Nebraska Minimum Wage 2024

Minimum wage regulations can vary significantly by state, making it crucial to be familiar with the specific rules where you do business. Ensuring your employees are compensated according to state laws is key to maintaining compliance. In Nebraska, several essential factors must be considered when paying your workers. To help you stay informed and compliant, we’ve created this guide focused on Nebraska minimum wage. It provides the latest rates, future adjustments, and other essential details to keep your business in line with state requirements.

What Is the Minimum Wage Rate in Nebraska in 2024?

Starting January 1, 2024, Nebraska’s minimum wage rose to $12 per hour, surpassing the federal minimum of $7.25 per hour. This increase stems from a voter-approved initiative in November 2022, which mandates a yearly rise of $1.50 until 2026, when it reaches $15 per hour, and annual adjustments for inflation starting in 2027.

The average salary in Nebraska is approximately $63,641 annually or $30.60 hourly. Entry-level jobs typically offer around $40,542 annually, whereas highly experienced workers earn up to $129,394 annually.

Minimum wage discussions are significant to many in Nebraska, touching on fairness, economic stability, and living standards. This ongoing debate underscores the importance of the issue, which will continue to be relevant in the foreseeable future.

Nebraska’s minimum wage generally applies to most workers, with some exceptions based on age, job type, and employer size. Workers should stay informed about their rights and any changes to wage policies, which are set by the state and adjusted periodically to reflect living costs.

*Employees should refer to the Nebraska Department of Labor or other reliable sources for accurate and up-to-date information.

Historical Minimum Wage Rates in Nebraska

The minimum wage rates in Nebraska from 2018 to 2024 show a steady rise, with significant increases in recent years following voter-approved measures. Here’s the breakdown:

• From 2018 to 2022, the minimum wage in Nebraska was consistent at $9.00 per hour, a rate set by a 2014 ballot measure effective from January 1, 2016.
• In 2023, the rate rose to $10.50 per hour. This increase began a series of scheduled raises under Initiative 433, passed by Nebraska voters in November 2022. This law aims to gradually increase the minimum wage annually.
• In 2024, the minimum wage increased again, reaching $12.00 per hour as part of the planned increments stipulated by the same initiative.

The initiative outlines future increases, with the minimum wage scheduled to reach $13.50 in 2025 and $15.00 in 2026. Starting in 2027, the wage will adjust annually based on the Consumer Price Index to reflect the cost of living changes.

Are There Any Variations in Minimum Wage Rate Across Nebraska?

Starting January 1, 2024, Nebraska’s minimum wage will be $12.00 per hour. This follows a voter-approved initiative to raise the state minimum wage annually. This uniform wage rate applies to all locations within Nebraska, including Douglas County, Lancaster County, Hall County, and cities such as Omaha, Lincoln, Bellevue, Grand Island, and Kearney.

All counties and cities within Nebraska adhere to this consistent minimum wage of $12.00 per hour.

Tipped Employee Minimum Wage in Nebraska

The minimum wage for employees earning tips in Nebraska is $2.13 per hour. This rate applies to employees who receive a portion of their income from tips, such as waitstaff, bellhops, and porters.

Employers paying the tipped minimum wage must ensure that the combination of direct wages and tips meets or exceeds the minimum wage. If the sum of tipped wages and received tips falls short of the standard minimum wage, the employer is responsible for covering the shortfall. The employer must verify that an employee’s earnings from tips justify the lower wage rate.

Understanding the Overtime Regulations in Nebraska

In Nebraska, overtime regulations align with the federal Fair Labor Standards Act (FLSA), which sets the framework for minimum wage, overtime pay, recordkeeping, and youth employment standards applicable to most private and public employees.

Under Nebraska’s overtime provisions, employers must pay non-exempt workers one and a half times their regular hourly rate for hours worked beyond 40. A workweek consists of any set, recurring period of 168 hours spread over seven consecutive 24-hour days. This period does not need to coincide with the calendar week and can commence on any chosen day and hour.

According to the FLSA, the threshold for overtime eligibility for employees classified as administrative, professional, and executive is a minimum salary of $684 per week or $35,568 annually. However, the FLSA does not extend overtime benefits to all employees. Exemptions exist for certain job categories, including administrative, professional, executive, highly compensated employees, outside sales staff, computer professionals, and others who meet specified criteria.

What Are the Labor Law Requirements in Nebraska?

Under the Fair Labor Standards Act (FLSA) and state regulations, every employer in Nebraska must prominently display approved posters detailing the Nebraska minimum wage and other state and federal labor laws. This ensures employees are informed about their rights under both Nebraska and federal laws, including overtime rules. Not displaying these required posters in the workplace can lead to substantial penalties.

Employers can download the Nebraska minimum wage poster and other mandatory labor law posters on the Nebraska labor law poster page.

Understanding Exemptions from Minimum Wage in Nebraska

Certain exemptions from minimum wage and overtime pay are recognized under specific criteria. Common exemptions are for Administrative, Executive, Computer, and Professional employees. It is critical to understand that job titles or classifications alone do not determine whether an employee is exempt or non-exempt.

For an exemption to be valid, an employee’s job duties and salary must satisfy the requirements set by the U.S. Department of Labor’s regulations. Each state agency’s responsibility is to correctly classify its jobs as exempt or non-exempt based on these standards.

There are additional exemptions related to minimum wage laws, as well as the general federal guidelines:

• Under 20 Minimum Wage: In Nebraska, employers may pay new workers under 20 years of age a training wage of $4.25 per hour for the first 90 days of employment. After this period, employees must receive at least the standard state minimum wage of $12.00 per hour.
• Student Minimum Wage: Part-time, full-time students employed at certain institutions, like universities with work-study programs, may receive a wage that is 85% of the Nebraska minimum wage, currently $10.20 per hour. This rate is applicable for up to 20 hours per week during the school term.
• Other Exemptions: Various groups in Nebraska are exempt from minimum wage laws, including agricultural workers, private home babysitters, certain executives, administrative or professional employees, and individuals working for specific non-profit organizations under particular conditions.

These exemptions provide ways to structure wages differently for specific groups, yet compliance with state and federal laws is mandatory to avoid legal penalties.

Tips for Businesses to Comply with Changing Minimum Wage Rates in 2024 and Beyond

To prepare for the upcoming changes to Nebraska’s minimum wage, which will increase to $12 per hour starting January 1, 2024, and escalate to $15 by 2026, small business owners can implement several strategies to lessen the impact on their operations:

• Optimize Hiring Practices: Since hiring and training new staff is costly, it’s important to focus on hiring practices that enhance retention. Consider offering competitive benefits and a positive work environment to make your business appealing to long-term employees. Also, explore ways to improve employee engagement, as this can lower turnover and its related costs.
• Review and Adjust Costs: Evaluate your business expenses to identify where you can cut costs without reducing staff. For instance, implementing more efficient technologies or renegotiating supplier contracts can help decrease operational costs. Additionally, updating your business processes, such as using automated payroll systems, can simplify operations and reduce errors, which saves time and money.
• Adjust Pricing Strategies: With the rise in labor costs, you might need to raise your prices to sustain profitability. It’s crucial to communicate these changes clearly to your customers, explaining that the adjustments are necessary to continue providing quality products and services while ensuring fair employee compensation.
• Plan for Future Increases: Remember that the minimum wage will keep increasing until 2026 and will be adjusted annually for cost of living afterward. Incorporating these future increases into your financial planning is vital to avoid being unprepared when they take effect.

Conclusion

Nebraska’s minimum wage changes in 2024 highlight a significant shift in labor standards within the state. As of January 1, 2024, the minimum wage rises to $12 per hour, reflecting ongoing adjustments mandated by voter-approved initiatives. This increase is part of a structured plan to elevate the wage to $15 by 2026, with future adjustments tied to inflation.

Employers must stay informed about these developments to ensure compliance and avoid potential legal issues. This includes understanding the rules regarding tipped employees, overtime, and exemptions. As the minimum wage rises, businesses must strategically manage their hiring practices, cost structures, and pricing strategies to balance operational efficiency with fair employee compensation.

Keeping abreast of these changes and planning will help businesses navigate the evolving wage requirements while maintaining compliance and supporting their workforce.

Frequently Asked Questions