Chapter 4. Operations | Center for Agricultural Profitability

A business’ operational plan outlines the activities and processes that will help it reach its goals. When evaluating your operational plan, think about the work environment from your employees’ perspective. Ask yourself, “Would I want to work here?” Then, adjust accordingly. This section describes operational considerations for a farm.

4.1 Safety

To protect employees, the Occupational Safety and Health Administration[1] mandates that workplaces protect employees from recognized hazards that may cause or are likely to cause worker death or serious harm and provides a short summary of key employer responsibilities[2]. The OSHA Small Business Safety and Health Handbook (PDF)[3] may help small business owners navigate OSHA requirements.

The Nebraska Department of Labor[4] offers free, confidential, on-site safety and health consultation services to help employers identify hazards and comply with regulations.

The Central States Center for Agricultural Safety and Health (CS-CASH), headquartered at the University of Nebraska Medical Center, works with ag safety and health partners across a seven-state region and beyond to improve the health and safety of members of the agricultural community and offer many resources (in English and Spanish) on their website.[5] They offer no-cost training[6] including equipment, grain handling, feedyard safety, and mental health support, as well as a wealth of resources for employers and employees, some of which are explained below.

4.1.1 Livestock Worker Safety

Working with livestock can be dangerous. These sometimes-large animals can be unpredictable and aggressive if they feel threatened or stressed. CS-CASH has many resources[7] to stay safe and healthy while working with livestock.

4.1.2 Farm Safety

Farms are incredibly busy places, with many people, machines, and animals present. Be prepared by utilizing the Certified Safe Farm and other farm safety resources[8] produced by CS-CASH.

4.1.3 Weather Safety and Preparedness

Nebraska weather can be unpredictable and at times dangerous, especially for those working outdoors. The University of Nebraska-Lincoln is helping agricultural producers, businesses, and communities increase resiliency by identifying vulnerabilities and prioritizing actions through resources available on the Weather-Ready Nebraska website[9].

Thunderstorms may bring lightning and hail. Did you know?[10]

Lightning kills between 75 and 100 people nationwide annually
During thunderstorms, stay inside and away from skylights, glass doors, and windows. If you are outdoors, an automobile is a safe place to be
Indoors, keep away from doors, windows, stoves, sinks, metal pipes or other conductors. Don't use the phone. Disconnect electrical appliances.
Outdoors, minimize your height but don't lie flat. Do not take shelter under a tree. Stay away from wire fences or other metallic conductors. Avoid standing in small sheds in open areas.
Hail stones in severe storms can be as big as a softball and fall at 100 mph.

Lastly, prevent heat- and cold-related illnesses. To prevent dehydration and possible heat-related illnesses, drink plenty of water in addition to the preventative measures listed above. Dress in layers and have extra clothing available when working outdoors.

4.1.4 Cancer Prevention

Skin cancer is the most common type of cancer in the U.S. and is one of the most preventable. Melanoma, the most dangerous form of skin cancer, is the fifth most common cancer in Nebraska. Incidence and mortality rates of melanoma cancer are higher in Nebraska compared to U.S. rates due to several risk factors, including high UV radiation year-round. More resources[11] are available through Nebraska Extension.

To protect your skin and for early detection of skin cancer:

Regular skin exams
Wear sunscreen with an SPF of 30 or higher and reapply it often
Wear a hat with a 2-3-inch-wide brim, UV-blocking sunglasses, and protective clothing when in the sun

4.2 Compensation

A key to attracting good employees is offering competitive compensation. The U.S. Bureau of Labor Statistics reports employment statistics for various occupations. Its Occupational Outlook Handbook[12] section on farm workers can inform employers about setting competitive, fair wages for employees. The U.S. Department of Agriculture also conducts a semiannual survey of farm labor rates[13] by region. If hiring other types of workers to support an agricultural business, employers can review the Bureau of Labor Statistics’ Occupational Employment and Wage Statistic Tables[14] to set competitive wages for them.

4.2.1 Minimum wage

Nebraska’s minimum wage rose to $15.00/hour in 2026 for employers with four or more employees at one time. Every year thereafter, the minimum wage will be adjusted upward based on the cost of living. Neb. Rev. Stat. § 48-1203. The best place to get minimum wage updates is through the Nebraska Department of Labor[15].

Agricultural employers are generally exempt from the state minimum wage law, but there are two important situations in which a Nebraskan agricultural employer must pay the state minimum wage.

Type of work assigned. If an agriculture employer assigns any non-agricultural labor at any point during a workweek, that employee must be paid at least the state minimum wage for all hours worked during that week, including agricultural hours. See the definition of agricultural labor below.

Size of the operation. If an agriculture employer uses more than 500 “man-days” of labor in any calendar quarter of the previous year, then the state minimum wage applies for the entire current year. One “man-day” is any day on which an employee spends at least 1 hour performing agricultural work.

Farm and ranch employers seeking to apply the law accurately must become familiar with how the law defines agriculture. In general, the law defines agricultural labor as including tilling, planting, cultivation, and harvesting of crops, among other tasks. But a lot of labor that gets assigned to farm workers, including selling at an off-farm farmer’s market or the commercial canning of vegetables, is considered non-agricultural labor. In cases where non-agricultural labor is assigned, the state minimum wage does apply, depending on the size of the business.

Nebraska’s minimum wage applies to businesses with four or more employees when non-agricultural labor is assigned.

If an agricultural employer has three or fewer employees and assigns those employees non-agricultural labor, the state minimum wage does not apply, but the federal minimum wage still does. The federal minimum wage is $7.25/hour.

4.2.2 Overtime

Nebraska does not have a state overtime wage law, but federal law typically requires that employees who work more than 40 hours a week be paid at least 1.5 times their hourly rate for hours worked over 40. However, federal rules exempt agricultural labor from these overtime requirements.

Thus, Nebraska farm and ranch businesses are not obligated to pay overtime wages to workers who perform exclusively agricultural labor. If the worker performs at least one hour of non-agricultural labor in a workweek, then non-agricultural rules apply, and the employee is owed overtime pay for all hours worked over 40 in that week.

The distinction between agricultural and non-agricultural labor can be complex. In general, the law defines agricultural labor as including tilling, planting, cultivation, and harvesting of crops, among other related tasks. But a lot of labor that gets assigned to farm workers, including packing produce from other producers, selling at an off-farm farmer’s market, or processing agricultural commodities into value-added products, is considered non-agricultural labor and would be subject to federal overtime laws.

For more information about overtime and agricultural labor, see The U.S. Department of Labor fact sheet Agricultural Employment Under the Fair Labor Standards Act (FLSA).

Employees who would otherwise be owed overtime may be exempt if:

They are paid a salary
They make at least $684/week with that salary (regardless of time spent working), and
They have managerial authority

For more information on the salary exemption, see the U.S. Department of Labor fact sheet #17A: Exemption for Executive, Administrative Professional, Computer & Outside Sales Employees Under FLSA.

4.2.3 Nonmonetary compensation

Compensation provided to employees may include some benefits that can’t easily be valued with a cash amount. These benefits may be called “nonmonetary compensation.” Such compensation includes access to farm equipment or tools; the opportunity for employees to continue their education; and a supply of meat, milk, produce or other farm products. Other possibilities include offering meals, hosting social recognition events or providing farm apparel. Items like these may cost little but create reasonable value for workers. Employees themselves, not the employer, determine the specific value, so get to know your employees and what they enjoy. Note that tax implications for non-monetary compensation may vary by item. Such benefits may be a tax-free form of compensation.

If you plan to offer your employees non-monetary compensation, choose items they would like. Offering housing on the farm may be crucial to attracting immigrant labor but have less value to local part-time employees. Giving employees options may ensure they receive something they’ll enjoy. Then, in a compensation package, do your best to share information about non-monetary compensation with employees, and estimate the value of those benefits.

4.2.4 Incentive pay

An incentive pay system rewards employees for their part in the business achieving certain production, marketing or financial goals. Based on performance, incentive pay encourages a productive work environment and strong workplace morale. It also may make employees proud of their work and attract workers who enjoy the opportunity to earn more as they perform well.

To develop an incentive, pay program, first consider your business’ objectives. If your goal is to improve product quality, then your incentive pay system could be based on the grade assigned to your harvested products. If your goal is to increase productivity, then your system could reward employees for handling or harvesting a certain quantity of product in a certain time period.

Although employers should match incentive pay to their goals, the standard set for incentive-based pay shouldn’t boost one performance measure to the extent that it causes a decline in another important measure. For example, if your goal is to increase harvest yields, then an incentive pay standard may establish that it will only measure product harvested that meets a certain quality threshold. Also, focusing exclusively on individual high performance may cause coworkers to feel like they’re working against one another. An effective incentive pay system requires recordkeeping that tracks employee performance relative to the certain goal. Standards should be monitored periodically, to determine how well a standard addresses and drives your initial goal, so that improvements can be made to them if necessary and you can update your workforce about overall performance. To be fair, do not reduce or eliminate a system’s potential payout in the middle of a given year, but use the monitoring information collected to improve the system for later years.

Businesses have multiple incentive pay options to consider.

Formal bonuses: As bonuses that tend to be paid at defined times each year, formal bonuses are often cash-based incentives. They can serve as tools to acknowledge work anniversaries, seasonal work effort, project milestones, holidays and good safety or work performance. They’re limited in their effectiveness if they create morale issues and if employees start to expect them as basic compensation.

Informal bonuses: These bonuses can show employees that their unique contributions are valued, and they tend to be paid irregularly with cash. Businesses may award informal bonuses if employees demonstrate specific instances of positive performance or leadership; share beneficial ideas with the team; and celebrate personal successes or occasions, such as marriage or community involvement.

Profit sharing: With profit sharing, employees earn a portion of the operation’s profits. Because the amount they earn depends on the business operating profitably, employees should feel incentivized to improve the business’ bottom line. They may also feel more personally invested in the operation’s performance.

Employee stock ownership plan (ESOP): Another tool to create an ownership opportunity for employees, an ESOP uses a formula to allocate shares, which along with cash may be maintained in an ESOP trust fund for employees. Later, if employees have vested in the ESOP and they leave the operation, they may exchange shares for cash.

Despite their advantages, incentive programs also have some limitations. They should always prioritize employee safety and health. In an attempt to increase their chances for receiving an incentive-based payment, employees shouldn’t work to the extent they create liability or labor law compliance issues for the operation. You don’t want employees to lack confidence in the incentive system and its fairness, so be transparent in explaining how the incentive system works and how employees can qualify for incentive payments. If needed, seek the help of an accountant, attorney or consultant to create an effective incentive pay system.

4.2.5 Payday requirements

Payday requirements dictate how often employers must pay their employees. Typical frequencies are weekly, bi-weekly, bi-monthly, or monthly. Each state determines its own payday requirements.

Nebraska state law only requires employers to pay workers on a regular schedule. The specific payday frequency can be set by the employer or agreed upon by both the employer and the employee.

After the payday is established, an employer must provide 30 days written notice to employees before changing the schedule of paydays.

If an employee leaves or is terminated, the last paycheck must be paid on the next regular payday, or within two weeks of the last day of employment, whichever comes first.

Wage statements must include certain information, including:

Identity of the employer
Pay period ending date
Hours for which the employee is being paid
Gross wages
Deductions made from the paycheck

Deductions, withholdings, or any other diversion of payments must be authorized by state or federal law or court. Employers cannot deduct from paychecks for items such as shortages, breakage, or tools unless they have written authorization from the employee to do so. Such deductions cannot reduce an employee’s wages below the applicable minimum wage rate.

4.3 Benefits

Benefits agricultural employers may provide to employees include health insurance, retirement plans and time off.

4.3.1 Health insurance

The Affordable Care Act created health care insurance provisions for employers to provide affordable coverage with a minimum value. Requirements for an employer in a particular calendar year vary according to the average number of people employed during the previous year. A full-time employee is considered to be one who works at least 30 hours per week; part-time employees are counted on a full-time equivalency basis. Use the Full-time Equivalent (FTE) Employee Calculator to estimate your business’ number of employees. Note that employers who offer health insurance must provide the benefit to eligible employees within 90 days of an employee’s first workday.

For operations with fewer than 50 full-time employees or full-time equivalent staff on average in a year, the act’s employer-shared responsibility doesn’t apply in the following year. However, these businesses may offer self-insured health benefits or coverage through the Small Business Health Options Program. Visit HealthCare.gov for details about health insurance coverage options for small businesses. Some small businesses may also qualify for a small business health care tax credit. Employers that average at least 50 full-time or full-time equivalent staff must satisfy certain parameters specific to employer shared responsibility and information reporting. More information is available on the IRS webpage Affordable Care Act Tax Provision for Large Employers.

Beyond the Health Insurance Marketplace, other options may include association health plans or private insurance. In Missouri, qualified membership organizations may offer health care benefits by contracts starting on Aug. 28, 2025. Independent insurance agents or brokers may be able to help you find a plan suitable for your farming operation.

4.3.2 Retirement plan

If operations choose to offer a retirement plan to employees, they have several options from which to choose. First, a simplified employee pension (SEP) plan, which is a type of individual retirement account (IRA), enables businesses to contribute a variable rate from year to year that’s consistent for each employee in a given year. With an SEP, the employer is the only contributor; employees themselves don’t have the option to contribute. However, a SEP-IRA is established for each employee, and the employees are fully vested, meaning that all funds in an employee’s SEP-IRA belong to the employee. SEPs are known for having inexpensive overhead, and the setup and operational details are relatively easy to navigate. More information is available on the IRS webpage Simplified Employee Pension Plan (SEP).

A savings incentive match plan for employees (SIMPLE) IRA is an option for small businesses, particularly those that don’t employ more than 100 people. With a SIMPLE IRA, employers have more specific rules to follow governing their contributions to employee retirement accounts. In a year, employers either contribute 2% of an employee’s salary — maximum limits do apply — or offer to match as much as 3% of an employee’s contribution. Employees have the option to contribute funds to a SIMPLE IRA. Like with an SEP, SIMPLE IRA plans enable employees to fully vest, meaning the employees own their SIMPLE IRA funds. More information is available on the IRS webpage SIMPLE IRA Plan.

Visit the IRS webpage for information about other retirement plan options.

4.3.3 Time off

Nebraska employers with 11 or more employees must provide paid sick leave to their employees, unless otherwise exempt. Year-round agricultural employees are not exempt from the Nebraska Healthy Families and Workplaces Act, but seasonal or temporary agricultural employment is.

Under this rule, employees accrue 1 hour of paid sick time for every 30 hours worked, up to a certain amount based on the business’s size. Agricultural employers with 11-19 employees must provide up to 40 hours of paid sick time per year. Employers with 20 or more employees must provide up to 56 hours of paid sick time per year. Employers can also provide more than the Act requires.

As stated above, temporary or seasonal agricultural workers are exempt from paid sick leave requirements. Other types of employees that are exempt include:

Independent contractors
Owner-operators
Workers with less than 80 hours of work per calendar year
Individuals under 16 years of age

Paid sick time accrues only after 80 hours of consecutive employment. Unused time generally carries over year to year but does not have to be paid out when employment ends (unless the employer specifically agrees to it).

Other benefits, such as paid time off (PTO) or vacation leave, are not required by Nebraska law. Federal law requires family leave under the Family Medical Leave Act, but only for businesses with 50 or more employees.

However, if an employer promises PTO as a benefit in a policy or employment agreement, that benefit becomes legally enforceable. Earned vacation generally must be paid at termination. Neb. Rev. Stat. § 48-1230.

Meal and rest breaks during a workday are allowed at the discretion of the employer. Farm businesses in Nebraska are not required by law to offer meal and rest breaks at specific intervals or for specific lengths to employees performing agricultural work.

With some agriculture jobs, work must happen every day, regardless of it being a weekend or holiday or during non-traditional hours. For example, dairy cows require milking, and a pest outbreak can occur in crops at any time. Because of demands such as these, providing time off to employees can make completing a workload more challenging. However, offering time off may help to attract workers.

Employers have several choices for offering time off as a benefit for farm employees. For example, they may choose the type of time off to provide. Options include vacation days, sick days, holidays and personal days. Some employers, particularly those with continuous operations, choose to use a paid time off (PTO) system. With PTO, employees receive a certain number of paid days away from work each year. The employees can use the paid days at their discretion, and the employer and employee don’t track how a day off was used — for example, whether it was a sick day, vacation day or holiday.

Employers must also determine how much time off to offer. A sliding scale that provides more time off to more experienced workers is an option. Employers can also choose whether they pay employees during the time off and whether employees receive extra compensation if they don’t use all or part of their paid time off. Alternatively, employers may consider allowing employees to carry over at least some unused time off into the next year.

Employers who choose to offer time off as a benefit can create guidelines to make providing the benefit more manageable. Some agricultural employers ask that employees avoid taking time off during busy seasons. Also, some require workers to coordinate their schedules and stagger their days off. Such coordination ensures that multiple employees don’t take leave at the same time. Employers also have the option to require that employees submit time-off requests in advance and to grant supervisors the authority to approve or deny those requests. If an employer requires requests, the process for submitting and reviewing those requests should be outlined clearly in the operation’s employee handbook. Points to address include the process and timeline for managing time-off requests.

4.3.4 Other benefit options

Benefit packages may also include items such as access to a work vehicle, on-site childcare, wellness programs, continuing education funds and donations to charitable organizations. From a health perspective, employers may choose to offer added insurance benefits, such as life, disability, dental or vision insurance. A creative, strong benefits package may enable your operation to compete with other local employers for new workers and retain employees who already work for you. Forms of non-monetary compensation (see Section 4.2.3) may also serve as extra benefits for employees.

4.4 Taxes

4.4.1 Federal

Employers must withhold three forms of federal taxes — federal income, Social Security and Medicare — and file those taxes throughout the year. The Internal Revenue Service (IRS) webpage Understanding Employment Taxes offers an overview of these taxes.

Federal income tax withholding depends on information provided on an employee’s Form W-4. For employees who do not complete Form W-4, employers still have an obligation to withhold taxes. In that case, the withholding default is that for a single person with no adjustments. More information about federal income tax withholdings is provided in the IRS Employer’s Tax Guide (Publication 15).

If an employer hires agricultural workers with H-2A status, the rules for reporting their compensation and withholding taxes are different. Employers should consult IRS guidance specific to agricultural and H-2A workers to ensure compliance.

Employers and employees share Social Security and Medicare tax payments. Depending on the employee’s wages, additional Medicare tax may be required. The IRS provides instructions for computing proper withholding and reporting requirements.

Federal unemployment tax (FUTA) is paid exclusively by employers. This tax is separate from federal income tax, Social Security and Medicare taxes. The federal unemployment tax rules are unique for operations that employ agricultural workers.

Paying federal unemployment taxes is required when an employer:

Paid at least $20,000 in cash wages to farm workers during any calendar quarter in the current or preceding calendar year, or
Employed 10 or more agricultural workers for some part of a day during at least 20 different calendar weeks in the current or preceding calendar year

The IRS details FUTA requirements for farm operations in Publication 15 and Publication 51 (Agricultural Employer’s Tax Guide).

Basic tax-related responsibilities for employers

Collect payroll tax documentation from employees
Withhold payroll taxes and pay employees
File required reports by deadlines
Send payroll taxes to federal agencies
Keep accurate and complete payroll records

4.4.2 State

Every employer paying taxable wages and holding an office or conducting business in Nebraska must withhold income taxes for the state of Nebraska on top of federal tax obligations. Neb. Rev. Stat. § 77-2753(1)(a). Hiring an independent contractor is not the same as having an employee, and farm businesses are generally not responsible for withholding taxes from independent contractors.

Before employers can file state income tax withholding, they must obtain a Nebraska Withholding Certificate, which includes their state identification number. Businesses apply using the Nebraska Tax Application, Form 20.

Employers withhold state tax based on information provided on an employee’s Nebraska Withholding Allowance Certificate, Form W-4N. If an employee does not provide the form, the employer must withhold tax using the default single-person, no-exemptions rate.

Employers with more than 24 employees must generally withhold at least 1.5% of each employee’s taxable wages. A lower amount may be withheld if the employee provides documentation supporting the reduced withholding. 2026 Nebraska Circular EN.

All Nebraska employers must make quarterly filings via the Nebraska Income Tax Withholding Return, Form 941N, unless licensed as an annual filer. Deposits on these withholdings must also be made quarterly if more than $500 was withheld during the quarter. All payments for income tax withholding must be made electronically if the total payments made in any prior year exceeded $5,000.

In Nebraska, an agricultural employer becomes liable for unemployment insurance (UI) when it meets the Federal Unemployment Tax Act (FUTA) agricultural tests. Neb. Rev. Stat. § 48-604 (4). An agricultural employer is liable when either:

The farm pays $20,000 or more in wages for agricultural labor during any calendar quarter in the current or preceding calendar year, or
The farm employed 10 or more workers assigned agricultural labor during some portion of a day in each of 20 different weeks in the current or preceding calendar year.

Liability to pay state unemployment insurance can also be influenced by other factors, such as whether the organization is a nonprofit entity or if the employee works in multiple states. The Nebraska Department of Labor’s Employer’s Guide to Unemployment Insurance offers more information on state unemployment insurance obligations.

4.4.3 Local

Nebraska does not generally impose local income taxes on wages at the city or county level. However, employers should verify whether local occupation taxes, business license taxes or other municipal requirements apply in their community.

Check with your local city or county government to determine whether your business is subject to any local tax obligations related to employment.

4.5 Youth Labor

There are rules for when and under what conditions farms can use youth labor. Generally, once a child turns sixteen (16), they can work on a farm at any time. 29 USC § 213(c). But there are work restrictions for younger children based on age, the times of day work is allowed, the number of hours children can work in a day or week, and the type of work they may perform.

For example, children under 16 generally cannot perform “hazardous” agricultural jobs. Hazardous agricultural work includes tasks considered especially dangerous for young workers, such as operating large tractors, working inside silos, handling certain chemicals, or working with breeding livestock. 29 CFR § 570.71. Children working for their parent(s) on a farm owned or operated by that parent are exempt from this restriction.

Furthermore, Nebraska state law requires minors under the age of 16 to get an employment certificate from the Department of Labor before beginning work. Neb. Rev. Stat. § 48-302. Even with this certificate, the restrictions on working hours and the types of work minors may perform still apply. Neb. Rev. Stat. § 48-302.02.

This certificate isn’t required in two circumstances. First, parents of the child worker who employs and directly supervises their own child do not have to obtain this certification. Secondly, the certificate requirement does not apply to youth working in corn detasseling operations. Neb. Rev. Stat. § 48-302.03.

A child under 16 can work as a detasseler in Nebraska without an employment certificate if the job takes place outside of school hours between June and August, the parent provides written consent, and the child lives within 75 miles of the farm. Furthermore, the employer must provide at least two supervisors who are 18 years of age for the crew. The child’s hours must also be limited to those outlined below.

Generally, 14 and 15-year-olds cannot work before 7 a.m. nor after 7 p.m., and they can work no more than:

3 hours on a school day
18 hours during a school week
8 hours on a non-school day
40 hours in a non-school week

This time frame is extended from 7 a.m. to 9 p.m. from June 1 to Labor Day. 29 CFR § 570.35.

Children who are 12 or 13 years old can perform farm work outside of school hours with parental consent, or if their parent is employed at the same farm. Children under 12 may work only on farms owned by their parent(s) and must still work only outside of school hours.

Nebraska Child Labor Law (Non-Parent Employers)

Nebraska statutes (Neb. Rev. Stat. §§ 48-301–48-313) require that any minor under 16 who is not employed by a parent or guardian have an employment certificate on file with their employer (§§ 48-302, 48-303).

The certificate must be approved by the principal of the school the child attends, or by a person authorized by the principal or superintendent.
Employers must maintain the certificate and make it available for inspection.

State law also sets hour and time-of-day limits for minors under 16 employed by non-parent employers (§ 48-310):

Maximum of 8 hours per day
Maximum of 48 hours per week
Work permitted only between 6 a.m. and 10 p.m.
Work must not interfere with school attendance

Note: These restrictions apply only when the minor is employed by someone other than a parent/guardian.

Parental Employment Exemption

Minors employed by a parent or guardian who directly supervises them on a parent-owned farm:

Do not require an employment certificate
Are exempt from Nebraska state hour limits

Nebraska Detasseling Exception

Nebraska law provides a specific exception for corn detasseling (§ 48-302.03):

Minors 12–15 years old may work during June, July, and August, outside school hours if:
- Written parental consent is obtained
- The minor lives within 75 miles of the detasseling site
- Work does not exceed 9 hours per day or 48 hours per week
- Work occurs between 6 a.m. and 8 p.m. for those under 14, or 6 a.m. and 10 p.m. for ages 14–15

Federal Agricultural Child Labor Law

Federal law (29 U.S.C. § 213(c); 29 C.F.R. Part 570, Subpart E) applies to agricultural employment:

Youth of any age may work on a farm owned or operated by their parent or legal guardian
Youth 14–15 years old may work in agriculture outside school hours
Youth 12–13 years old may work outside school hours with written parental consent
Minors under 16 may work only outside school hours; work must not interfere with school attendance

Note: Federal hazardous occupation restrictions apply to all minors under 16, including those performing detasseling work or working for a parent. Federal coverage may depend on farm size or interstate activity (29 C.F.R. §§ 570.71–570.72).

Minimum Wage Considerations

Nebraska minimum wage law generally exempts agricultural employment (§ 481203(2)). Federal exemptions may also apply depending on farm size and operations (29 U.S.C. § 213(a)(6)). Employers should verify whether minimum wage requirements apply to their operation.-1203(2)). Federal exemptions may also apply depending on farm size and operations (29 U.S.C. § 213(a)(6)). Employers should verify whether minimum wage requirements apply to their operation.

Enforcement

Nebraska child labor laws are enforced by the Nebraska Department of Labor (§ 48-311)
Federal agricultural child labor provisions are enforced by the U.S. Department of Labor

Employers should review both Nebraska statutes and federal regulations before employing minors. For detailed guidance, consult the Nebraska Department of Education’s Child Labor Laws for Workplace Experiences: https://www.education.ne.gov/workplace-experiences/child-labor-laws/

4.6 Insurance

Hiring employees can help a farm or ranch grow, but it also introduces new legal and financial responsibilities. One of the most important areas for Nebraska agricultural employers to understand is insurance and liability particularly workers’ compensation coverage and broader risk management practices.

This chapter outlines what Nebraska producers should know about workers’ compensation requirements, liability considerations, and employment laws that may apply to agricultural operations.

4.6.1 Workers’ compensation

Workers’ compensation insurance may provide medical coverage, partial lost wages and permanent disability benefits to employees who are injured at work. Coverage also protects employers from civil lawsuits that could otherwise result from on-the-job employee injuries.

Nebraska farm and ranch businesses are not obligated to purchase workers’ compensation for agricultural workers unless they employ 10 or more unrelated, full-time employees for 13 weeks during the calendar year (the weeks do not have to be consecutive). Neb. Rev. Stat § 48-106(2). Note that farms that have fewer than 10 workers for the majority of the year can still be subject to the workers’ compensation law if they have busy seasons throughout the year where their employees swell to 10 or more, as long as there is a total of 13 weeks with 10 or more employees.

If a farm or ranch fails to secure workers’ compensation as required, the penalties can be severe, including responsibility for all costs of medical treatment plus a fine for noncompliance.

Many business owners see workers’ compensation as a regulatory obligation, which it often is. However, many farmers don’t realize that the workers’ compensation system was designed to protect the business owner from lawsuits. Some farmers choose to purchase workers’ compensation even if it isn’t a legal requirement because it helps manage legal risk.

Alternatively, a farm that isn’t required to purchase workers’ compensation and may not be able to opt into the state program, may choose instead to purchase a liability policy that covers worker injuries. Worker injury liability policies may not cover all worker injuries and may exclude some workers. Be sure to speak to an insurance agent in-depth about the policy’s coverage.

4.6.2 Liability

Even if workers’ compensation is not legally required, many Nebraska producers choose to carry a policy voluntarily. Producers often cite several benefits, including:

Protection from unexpected medical costs after a workplace injury
Reduced legal exposure in case of accidents
Greater financial stability for employees and their families
Stronger overall risk management for the operation

Agricultural work involves physical labor, livestock handling, machinery operation, and exposure to environmental hazards. A serious injury can create significant financial strain for both employer and employee. For these reasons, workers’ compensation coverage is often viewed as a practical and proactive management tool.

Insurance agents who specialize in agricultural operations can help determine whether coverage is required, whether voluntary coverage makes sense, and what policy options and costs fit best.

Many Nebraska farms and ranches rely heavily on family members for labor. In some cases, family members may be treated differently under workers’ compensation statutes. The treatment of family labor often depends on:

The business structure (sole proprietorship, partnership, corporation)
Whether wages are paid
The family member’s role within the operation

Because these factors can change over time, producers should periodically review how the law applies to their family employment arrangements.

Insurance is only one part of managing risk. Nebraska producers can reduce potential liability by promoting safety and controlling access on their operations. Helpful steps include:

Posting “No Trespassing” or safety signage where appropriate
Clearly marking hazards such as grain bins, feedlots, or equipment yards
Monitoring visitors and contractors entering the property
Maintaining safe equipment and facilities
Providing employee training for machinery, livestock, and chemical handling

These practices not only reduce risk but also demonstrate reasonable care to protect workers and visitors.

Many farms and ranches also carry general liability or farm liability insurance. These policies help cover claims related to injury, property damage, or accidents connected to the operation. Coverage should reflect the specific nature of the business, whether that involves livestock, grain handling, custom work, trucking, agritourism, or direct marketing ventures. Review coverage periodically to ensure it aligns with current risks.

4.7 Other Laws

All employers are prohibited from discriminating against employees or applicants. Federal nondiscrimination laws, enforced by the U.S. Equal Employment Opportunity Commission (EEOC), require employers to provide equal employment opportunities and, in many cases, reasonable accommodations for qualified individuals with disabilities. Employment decisions must not be based on a person’s race, color, religion, sex (including pregnancy, sexual orientation and gender identity), national origin, age, disability, genetic information, veteran status, marital status or other protected characteristics.

Nebraska agricultural employers should ensure that all aspects of their employment practices recruitment, hiring, pay, benefits, training, promotion, discipline and termination are free from discrimination and harassment. The EEOC fact sheet “Federal Laws Prohibiting Job Discrimination” provides a concise overview of these rules.

Agricultural employers may also be subject to additional federal laws, including:

Migrant and Seasonal Agricultural Worker Protection Act (MSPA) – Provides protections for certain migrant and seasonal agricultural workers related to wages, housing, transportation, disclosures and recordkeeping, and requires registration of farm labor contractors.
Agricultural Worker Protection Standard (WPS) – Administered by the U.S. Environmental Protection Agency and designed to protect agricultural workers and pesticide handlers from pesticide exposure through training, notification, decontamination and emergency assistance requirements.
Family and Medical Leave Act (FMLA) – Applies to covered employers that have employed at least 50 employees for at least 20 workweeks in the current or previous year. It provides eligible employees with job-protected, unpaid leave for certain family and medical reasons.

Because coverage thresholds and definitions can be complex, Nebraska producers should review current federal guidance and consider consulting an attorney or HR professional to confirm how these laws apply to their operation. The National Agricultural Law Center’s labor overview is another helpful reference for agriculture-specific labor topics.

4.8 Employee Manual

An employee manual (or handbook) gives Nebraska farm and ranch employers a written way to communicate policies, expectations and benefits. Putting these details in writing can reduce confusion, provide consistency and help protect the operation if questions or disputes arise later. Many operations also include a statement in the manual clarifying that, if there is any conflict between the manual and other communications, the manual is considered the official statement of policy.

You can make your manual as simple or detailed as you need, but aim for clear, practical language that employees will actually read and use. The manual should supplement not replace direct communication such as team meetings, one-on-one conversations, training and informal check-ins.

Common components of an employee manual include:

Business history and background – A brief description of the farm or ranch, its history in Nebraska, and its values, mission and vision.
Expectations – Clear rules and standards around topics such as work schedule and attendance, dress code or PPE, safety practices, cell phone use, social media, use of employer equipment and vehicles, conflicts of interest, harassment and discrimination, substance use, and emergency procedures. Include what may happen if an employee violates these policies.
Compensation and benefits – Pay periods and paydays, overtime policies, bonuses or incentive programs (if any), and available benefits such as health insurance, retirement plans, housing, beef or commodity allowances, and paid or unpaid time off.
Employment relationship – A statement that employment is at-will (unless you have a different, written agreement), meaning either the employer or employee may end the employment relationship at any time, consistent with applicable law.
Acknowledgment – A page employees sign to confirm they received, read and understand the manual. Place signed acknowledgments in each employee’s personnel file.

When drafting an employee manual, you can review examples from other farms and agribusinesses or use templates and generators created for agricultural employers, adapting them to Nebraska law and your operation. It can also be helpful to ask trusted employees to review a draft and suggest topics that may need more explanation or clarity. Have your attorney review the final version to ensure it aligns with current Nebraska and federal law.

4.9 Recordkeeping

Agricultural employers must comply with several federal and state recordkeeping requirements. At the federal level, the Fair Labor Standards Act (FLSA) specifies wage and hour records that employers must keep for nonexempt employees, including:

Full name and Social Security number
Address
Birth date (if under 19)
Sex and occupation
Time and day the workweek begins
Hours worked each day and each workweek
Basis on which wages are paid (hourly, piece-rate, salary)
Regular hourly pay rate
Total daily or weekly straight-time earnings
Total overtime earnings for the workweek
All additions to or deductions from wages
Total wages paid each pay period
Date of payment and the pay period covered

Other federal laws, such as FMLA, OSHA, EEOC requirements and the Age Discrimination in Employment Act (ADEA), also set specific record retention standards (for example, OSHA injury and illness logs, FMLA leave records, and termination or benefit plan records).

At the state level, Nebraska requires employers to keep records — name, social security account number, residence (by state), nature of job and the place where the job will be performed, date of hire, pay, and allowance or reimbursement for traveling or other business expenses — for each employee for at least four years.

A practical best practice for Nebraska farms and ranches is to:

Maintain a personnel file for each employee that includes the job application, job description, hiring notes, signed offer letter, tax and employment forms (such as W-4, I-9), benefits forms, performance evaluations, disciplinary notes and signed acknowledgments of the employee manual.
Maintain separate, secure files for confidential medical or FMLA information.
Keep required payroll and safety records for at least the minimum retention period specified by the relevant federal or state laws.

Electronic recordkeeping can reduce paper and improve organization, but employers who store records electronically should ensure that they have secure backups and appropriate privacy protections in place.

4.10 Resources List

The following types of resources can provide additional information to Nebraska agricultural employers on human resources, compliance and risk management. When possible, look for Nebraska specific guidance from the University of Nebraska–Lincoln (UNL), the Center for Agricultural Profitability, the Nebraska Department of Labor, the Nebraska Department of Revenue and the Nebraska Workers’ Compensation Court. Useful categories include:

Compensation and benefits – Federal minimum wage and overtime rules, federal tax guidance for farm employers, and land-grant extension resources on employee compensation in agriculture.[16][17][18][19][20][21]
Taxes – IRS Employer’s Tax Guide, Farmer’s Tax Guide, and IRS resources for businesses with employees; Nebraska Department of Revenue employer withholding guidance and forms.
Beyond Basic Compensation: Employee Benefits in Agriculture
NCAT ATTRA Sustainable Agriculture ProgramYouth labor – U.S. Department of Labor child labor rules for agricultural employment and Nebraska child labor information from the Nebraska Department of Labor.
Insurance and liability – Information on workers’ compensation from the Nebraska Workers’ Compensation Court, farm liability insurance guidance from extension publications and risk management resources from USDA and land-grant universities.[22][23]
Employee manuals and HR tools – Agricultural workforce development materials, sample handbooks, and personnel policy generators from university and extension programs that can be adapted to Nebraska law[24][25].
Other labor resources – Federal labor law summaries for agricultural employment (FLSA, MSPA, H-2A), recordkeeping requirements, and checklists or self-audit tools for agricultural employers.[26][27][28]

Because statutes and regulations can change, Nebraska producers should always verify they are consulting the most current versions of laws, regulations and agency guidance, and consider working with legal or tax professionals when developing or updating their policies and systems.

[1] https://www.osha.gov/

[2] https://www.osha.gov/workers/employer-responsibilities#:~:text=Provide%20a%20workplace%20free%20from,and%20properly%20maintain%20this%20equipment.

[3] https://www.osha.gov/

[4]https://dol.nebraska.gov/LaborStandards/OnsiteSafetyandHealthConsultation/OnsiteConsultationProgramOverview

[5] https://www.unmc.edu/publichealth/cscash/outreach/index.html

[6] https://www.unmc.edu/publichealth/cscash/outreach/index.html

[7] https://www.unmc.edu/publichealth/cscash/resources/resources-livestock-worker-safety.html

[8] https://www.unmc.edu/publichealth/cscash/resources/resources-farm-safety.html

[9] https://weather-ready.unl.edu/

[10] https://nema.nebraska.gov/severe-weather-preparedness.php

[11] https://preec.unl.edu/news/share-message-about-skin-cancer-and-protect-your-skin/

[12] https://www.bls.gov/ooh/farming-fishing-and-forestry/agricultural-workers.htm