Nebraska Minimum Wage 2026: $15.00 Now, 1.75 Percent Raises From 2027
Nebraska minimum wage reached $15.00 per hour on January 1, 2026, the last step of Initiative 433. From 2027 the rate rises 1.75 percent a year. Tipped cash wage is $2.13, the youth wage is $13.50. Coverage, overtime, and employer checklist.
The Nebraska minimum wage is $15.00 per hour as of January 1, 2026. That completes the four-step increase voters approved in November 2022 as Initiative 433, which raised the rate by $1.50 a year from $9.00. Starting January 1, 2027, the statute provides for an automatic increase of 1.75 percent each year, published by the Nebraska Department of Labor by October 15 of the prior year. Tipped employees may be paid a cash wage of $2.13 per hour plus tips, and employees aged 14 and 15 may be paid a youth wage of $13.50.
Reviewed September 2026
Figures come from Nebraska Revised Statute 48-1203 as displayed on the Legislature's website, the Nebraska Department of Labor's press release on the 2026 increase, and the US Department of Labor's July 1, 2026 state table. The Department of Labor's release describes the 2027 adjustment as cost-of-living based, while the statute as amended provides a fixed 1.75 percent; the statute controls. Confirm the published 2027 rate with the Nebraska Department of Labor after October 15, 2026.
Current Nebraska Minimum Wage
Nebraska's minimum wage is $15.00 per hour, effective January 1, 2026. The Nebraska Department of Labor announced the increase and noted that under the 2022 voter initiative the rate "has increased $1.50 each year." The US Department of Labor table lists the same $15.00 and notes the state law applies to employers with 4 or more employees.
That employer-size threshold is the main coverage question in Nebraska. A business with three or fewer employees is outside the state minimum wage act, but if it is covered by the federal Fair Labor Standards Act it still owes at least the federal $7.25, and in practice most businesses with any interstate commerce are federally covered. Employers near the threshold should count carefully and count consistently.
Nebraska has no local minimum wages. No city or county in the state has adopted a rate above $15.00.
Nebraska Minimum Wage vs Federal Minimum Wage
| Measure | Nebraska (2026) | Federal (2026) | Difference |
|---|---|---|---|
| Hourly minimum wage | $15.00 | $7.25 | $7.75 |
| Tipped cash wage | $2.13 | $2.13 | $0.00 |
| Maximum tip credit | $12.87 | $5.12 | $7.75 |
| Weekly pay at 40 hours | $600.00 | $290.00 | $310.00 |
| Annual pay at 2,080 hours | $31,200 | $15,080 | $16,120 |
| Last increase | January 1, 2026 | July 24, 2009 |
Nebraska now has one of the highest minimum wages in the central United States, more than double the federal floor. The tipped cash wage, however, is still the federal $2.13, which produces the widest tip credit of any state at $12.87 per hour.
Tipped Minimum Wage in Nebraska
Nebraska allows employers to pay tipped employees $2.13 per hour in cash. The Department of Labor's release is explicit that "employers are responsible for ensuring that wages and tips combined equal at least the minimum wage." The statute as displayed by the Legislature states the same rule: $2.13 "plus all gratuities," provided total compensation meets the applicable minimum.
Because the gap between $2.13 and $15.00 is $12.87, the make-up obligation is large and frequent. A server with a slow lunch shift can easily fall short. Employers should:
- Calculate the shortfall every pay period and pay it in that period
- Keep tip records that show hourly tip earnings, not just totals
- Apply the youth wage rule separately: a 14- or 15-year-old tipped worker is measured against $13.50, not $15.00
Nebraska Minimum Wage Increase Schedule
Initiative 433 set the schedule through 2026. The Legislature later amended the statute so that increases after 2026 are a fixed 1.75 percent per year rather than an open-ended CPI adjustment.
| Effective date | Rate | Basis |
|---|---|---|
| Through December 31, 2022 | $9.00 | Prior law |
| January 1, 2023 | $10.50 | Initiative 433 |
| January 1, 2024 | $12.00 | Initiative 433 |
| January 1, 2025 | $13.50 | Initiative 433 |
| January 1, 2026 | $15.00 | Initiative 433 |
| January 1, 2027 | $15.00 plus 1.75 percent | Statute 48-1203, published by October 15, 2026 |
| Each January 1 after | Prior rate plus 1.75 percent | Statute 48-1203 |
Applied as written, a 1.75 percent increase on $15.00 is about 26 cents, but the Department of Labor publishes the official figure and rounding rules, so wait for the October announcement before updating payroll. The statute also creates a youth wage of $13.50 for employees aged 14 and 15 who are not emancipated, rising 1.5 percent every five years from January 1, 2030.
Local Minimum Wages in Nebraska
None. Omaha, Lincoln, and other Nebraska cities have not adopted local minimum wages, so the state rate applies uniformly. Employers with locations in neighboring states should note that Iowa, Kansas, and Wyoming remain at the federal $7.25, South Dakota is at $11.85, Colorado is at $15.16, and Missouri is at $15.00, so a workforce that crosses the state line is paid on very different floors.
Who Is Covered and Who Is Exempt
The Nebraska Wage and Hour Act applies to employers with four or more employees. Within covered employers, the usual exemptions apply: bona fide executive, administrative, and professional employees who meet the salary and duties tests, certain agricultural workers, and some student and apprentice positions. Nebraska also allows a lower rate for student learners in limited programs.
Being salaried does not make a worker exempt. The exempt vs non-exempt guide explains the federal tests, and at $15.00 an hour a full-time minimum wage worker earns $31,200, which is below the federal salary threshold for exemption, so nobody paid at or near the minimum should be classified as exempt.
Overtime and the Minimum Wage
Nebraska follows the federal rule: overtime at 1.5 times the regular rate after 40 hours in a workweek, with no daily overtime. A 45-hour week at minimum wage pays:
| Component | Hours | Rate | Pay |
|---|---|---|---|
| Regular | 40 | $15.00 | $600.00 |
| Overtime | 5 | $22.50 | $112.50 |
| Total | 45 | $712.50 |
Tipped employees' overtime is calculated on the full $15.00, not the $2.13 cash wage. See overtime pay laws by state and the overtime calculator.
What a Minimum Wage Worker Earns in Nebraska
| Period | Hours | At $15.00 | At $13.50 (youth wage) |
|---|---|---|---|
| Week | 40 | $600.00 | $540.00 |
| Month | 173.33 | $2,600.00 | $2,340.00 |
| Year | 2,080 | $31,200 | $28,080 |
Gross figures before taxes. Use the salary to hourly calculator for other rates and see gross pay for what is deducted.
Employer Compliance Checklist
- Confirm you are covered by counting employees against the four-employee threshold, and remember FLSA coverage applies regardless.
- Update payroll to $15.00 for every non-exempt adult employee if you have not already.
- Diary October 15, 2026 for the Department of Labor's 2027 rate announcement and January 1, 2027 for the change.
- Reconcile tipped pay every period. The $12.87 tip credit makes shortfalls common.
- Apply the youth wage only to 14- and 15-year-olds and document ages.
- Keep hour records with a time card calculator or automated tracking so overtime and shortfalls are provable.
See minimum wage by state for every other state's 2026 rate.
Prove Every Hour at $15.00
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Common Minimum Wage Mistakes in Nebraska
Nebraska's jump from $9.00 to $15.00 in four years means many payroll setups are still catching up. The errors that show up most often:
- Using last year's rate in January. The rate changed every January 1 from 2023 through 2026 and will change again in 2027. Payroll systems that roll forward without a rate review underpay for weeks.
- Applying the 4-employee threshold loosely. Employers count only full-time staff, or count per location, and conclude they are exempt. The state act counts employees, not full-time equivalents, and federal FLSA coverage usually applies anyway.
- Treating the $13.50 youth wage as a general training rate. It applies only to 14- and 15-year-olds. A 17-year-old new hire is owed $15.00.
- Ignoring the tip make-up. With a $12.87 credit, a slow shift can leave a server below $15.00. The employer owes the difference in that pay period, not at year end.
- Paying tipped overtime on $2.13. Overtime is 1.5 times the regular rate, and the regular rate for a tipped employee is the full $15.00.
- Missing the October 15 announcement. The Department of Labor publishes the 2027 rate by October 15, 2026; employers that wait until January to look will have already issued at least one pay run at the wrong rate.
Frequently Asked Questions
What is the minimum wage in Nebraska in 2026?
$15.00 per hour, effective January 1, 2026, for employers with four or more employees.
Is Nebraska's minimum wage going up in 2027?
Yes. The statute provides an increase of 1.75 percent on January 1, 2027, and each year after. The Nebraska Department of Labor publishes the exact rate by October 15, 2026.
What is the tipped minimum wage in Nebraska?
$2.13 per hour in cash. Tips must bring the employee to at least $15.00 for every hour worked, or the employer pays the difference.
Is there a youth minimum wage in Nebraska?
Yes. Employees aged 14 and 15 who are not emancipated may be paid $13.50 per hour under statute 48-1203.
Does Omaha or Lincoln have a higher minimum wage?
No. Nebraska has no local minimum wages; $15.00 applies statewide.
How much is Nebraska minimum wage per year?
$31,200 before taxes for 2,080 hours at $15.00.
Does the Nebraska minimum wage apply to small businesses?
The state act applies to employers with four or more employees. Smaller employers covered by the federal FLSA must pay at least $7.25.
When did Nebraska's minimum wage reach $15?
January 1, 2026, after increases to $10.50 (2023), $12.00 (2024), and $13.50 (2025) under Initiative 433.