HR compliance can feel like a moving target, especially in the construction industry, where workforce size and job site demands can change quickly. Staying on top of the regulations that protect your employees and your business is critical, but it can be overwhelming if you’re focused on bids, schedules, and client demands. 

Whether you’re growing quickly or have been established for decades, these compliance tips will help you keep your team supported, your reputation strong, and your risk low. 
 

Nebraska PTO Compliance 

In Nebraska, earned but unused Paid Time Off (PTO) must be paid out when an employee leaves, whether through resignation, termination, or retirement. This includes vacation days, personal days, or any other paid leave included in your PTO policy. 

However, it’s important to note that some Nebraska employers still use a combined “PTO + Sick” system (a single paid leave bank). In those cases, the entire unused balance must be paid out upon termination. 

For employers who separate “Paid Time Off/Vacation” and “Sick Leave,” Nebraska law only requires payout of accrued and unused paid time off or vacation time. Sick leave is not required to be paid out at termination, but employers may choose to offer an annual payout option instead of a carryover policy. Whatever approach you take, it must be clearly stated in your employee handbook and applied consistently across the organization to avoid disputes or compliance risks. 

Failing to meet payout requirements not only risks disputes but can also damage your reputation in a tight-knit labor market. Make sure your PTO policy is clear, documented, and consistently applied across the organization, especially if you’ve recently added new employees who may be unfamiliar with your procedures. 
 

Paid Sick Leave Updates 

State and federal laws continue to evolve regarding paid sick leave, and it’s important to stay informed. The Nebraska Department of Labor (NDOL) provides updated guidance and FAQs that can help you understand current requirements.  

If you’ve recently updated or separated your time-off policies, review how they align with Nebraska’s sick leave provisions, including payout versus carryover options. Make yourself aware of the recent changes, what's required, and practical tips for making your sick leave policies compliant. 

Overtime Compliance 

Construction projects often involve long hours, but federal law, as outlined in the Fair Labor Standards Act (FLSA), is clear: all hourly, or “non-exempt,” employees must receive overtime pay (1.5 times their regular rate) for hours worked beyond 40 in a week. 

Salary-exempt employees, such as estimators or project managers, are paid based on the work performed, not the number of hours it takes to complete. 

Misclassification errors are one of the most common and most expensive compliance mistakes in construction. They often lead to back pay, penalties, and potential lawsuits. Review your job descriptions and pay structures regularly to ensure they meet FLSA requirements. 
 

How Else Can You Build a Strong HR Foundation? 

While compliance keeps you out of legal trouble, investing in your people keeps your projects running smoothly. Soft skills are often overlooked in the skilled trades, but they directly impact safety, efficiency, and team morale on the job site. Here are a few examples of how soft skills show up every day:  

• Clear safety communication: A foreman who sets expectations and explains procedures can prevent accidents and delays. 
• Conflict resolution: A site manager who addresses disputes between subcontractors quickly keeps the schedule on track. 
• Mentorship: Crew leads who coach apprentices not only build skills but also strengthen loyalty and retention. 

We know that smaller or rapidly growing construction companies often don’t have time to create formal training programs around these skills. An Outsourced HR team can help you integrate soft skills into hiring, training, and daily operations, so your people have the tools to succeed both on and off the job site. 

Growing Fast? Lutz Can Help. 

We’ve seen it before. A construction company goes from a crew of five to 50 in just a month to keep up with new contracts. In the rush to get projects moving, compliance requirements can be overlooked. Suddenly, PTO payouts, overtime tracking, or sick leave policies are inconsistent or nonexistent. 

If your company is scaling quickly, it’s the perfect time to partner with experts who can help you set up HR processes that protect your business and support your team. Our Outsourced HR Services help you create a workplace that’s legally sound and prepared for growth. Contact us to learn more or explore related offerings for the construction industry.