Over the next few years, the minimum wage in Nebraska will rise in the following manner:
NE Statute 48-1203, Nebraska Initiative 433, and the Minimum Wage Increase Initiative (2022).
The future minimum wage increase in Nebraska, starting from January 1, 2027, will be determined by the cost-of-living increase, using the successor index or the Midwest Region for all urban consumers (CPI-U) published by the United States Department of Labor (US DOL). The year immediately preceding the previous year from August will be taken into account to calculate the percentage increase, which will then be used to determine the future minimum wage increase.
The minimum wage determinations and increments will be determined based on the increases in the cost of living.
NE Statute 48-1203, Nebraska Initiative 433, and the Minimum Wage Increase Initiative (2022).
Nebraska regulations on minimum wage do not pertain to businesses with less than four (4) workers. NE Statute 48-1202.
The employer must pay employees in accordance with the minimum wage law, which results in higher wages being paid to employees. If an employer chooses to pay employees the minimum wage, they must comply with the FLSA, which provides more information on minimum wage. Employers in Nebraska must also comply with federal minimum wage laws, which currently set the minimum wage at $7.25.
Tip Minimum Wage
The minimum wage for tipped workers in Nebraska is $2.13.
Employers may compensate individuals who receive minimum tipped wages, such as porters, bellhops, waiters, and waitresses, with gratuities.
In addition to the tips they receive, the employees must also guarantee that they are compensated with the regular minimum wage if the employer decides to opt for the tipped minimum wage.
According to Nebraska Statute 48-1203(2), the responsibility lies with the employer to demonstrate that an employee is remunerated through gratuities. If the combined amount of tipped wages and tips received does not reach the standard minimum wage, the employer is obligated to cover the shortfall.
Tip Pooling and Sharing
Nebraska minimum wage laws do not address whether an employer may require employees to participate in a tip pooling or tip-sharing arrangement.
The federal Fair Labor Standards Act provides further instructions regarding tip/gratuity pooling as it applies to the majority of employers and employees in Nebraska.
Subminimum Wage
Employees with Disabilities
If employees with mental or physical disabilities participate in a rehabilitation program, whether receiving welfare or any form of aid from local, county, state, or federal sources, the state of Nebraska exempts them from its minimum wage requirements.
Workers of this nature might be eligible for a subminimum wage that is appropriate for their well-being, efficiency, and general well-being.
Nebraska Statute 48-1202(3)(i).
Trainees
Nebraska minimum wage laws permit employers to compensate trainees who are not seasonal or migrant workers with a subminimum wage rate, which must be at least 75 percent of the federal minimum wage, for new hires under the age of 20.
If the trainee is engaging in on-the-job instruction, the employer has the option to prolong the training duration by another 90 days. The employers can remunerate the trainee at the same rate for the 90-day period starting from the trainee’s hiring date.
Employees may have their paid hours reduced by the employer if they undergo wage training, with the total hours worked by employees not exceeding the employer’s specified limit.
Those employees who have had their hours reduced or laid off may be offered similar positions or reduced hours. Employers may not pay employees the training wage rate.
Employers are also prohibited from reducing or terminating the hours of such an employee, with the intention of replacing the employee with a new employee who is compensated at a wage rate that is lower than the employee being replaced.
Nebraska Statutes 48-1203.01.
Apprentices
Nebraska minimum wage laws exempt apprentices from its minimum wage requirements. Employers are not obligated to pay apprentices the standard minimum wage. In Nebraska, there is no set minimum wage for apprentices, as stated in NE Statute 48-1202(3)(f).
Learners
Nebraska minimum wage laws provide an exemption for learners from the requirement to receive the standard minimum wage. Therefore, employers are not obligated to pay learners the minimum wage that is set by Nebraska. This exemption is outlined in NE Statute 48-1202(3)(f).
Student Learners
Nebraska minimum wage laws allow employers to pay student learners a subminimum wage rate that is no less than 75 percent of the standard minimum wage, as part of their vocational training program under NE Statute 48-1203(3).
Student Workers
The minimum wage set by Nebraska’s laws cannot be given to student employees.
Minimum Wage Calculator
Nebraska Minimum Wage Laws 2022 FAQs
Can workers expect a minimum wage rate increase in Nebraska in 2022?
The federal minimum wage, currently set at $7.25 per hour, is higher than Nebraska’s current state minimum wage of $9 per hour.
The minimum wage amount has not been modified since 2016 and is expected to stay unchanged for the remainder of the year. These per hour pay rates are reported to be evaluated annually based on the Consumer Price Index (or CPI) and trends in inflation.
Are there efforts to increase Nebraska’s minimum wage in the future?
Indeed, there are endeavors to enhance Nebraska’s existing standard salary to what can be deemed a just wage.
“Raise the Wage Nebraska” is a ballot initiative campaign led by Nebraska Appleseed, a nonprofit organization, that aims to raise the minimum hourly wage to $15 by 2026.
However, the road ahead won’t be easy to achieve the goal of raising the current minimum wage, as a petition has gathered over 87,000 signatures calling for this requirement.
The cutoff date for submitting signatures is prior to the November 2022 ballot.
Other individuals and organizations that endorse the initiative to raise the minimum wage, backed by Nebraska Appleseed, encompass the following:
The number of supporters on this list is continuously increasing every day.