Effective January 1, 2025, Nebraska’s minimum wage increased to $13.50 per hour for non-tipped workers, part of a gradual plan to reach $15.00 by 2026. Tipped workers remain at $2.13 per hour, with employers required to ensure tips bring total pay to at least $13.50.
This law applies to most non-exempt employees, with some exceptions like student-learners. Starting in 2027, wages will adjust annually based on inflation.
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Nebraska State Minimum Wage for 2025
Effective January 1, 2025, the minimum wage rates will increase to $13.50 per hour for non-tipped employees. This is a result of voter-approved gradual wage increase plan passed in 2022 (Initiative Measure 433), which schedules another increase in 2026 and 2027.
However, the tipped minimum wage rates remain constant at $2.33 per hour. Employers must ensure tipped plus the base wage equals to $13.50 per hour for the tipped employees.
Nebraska’s scheduled minimum wage increases are:
January 1, 2024: $12.00 per hour
January 1, 2025: $13.50 per hour
January 1, 2026: $15.00 per hour
January 1, 2027: Based on CPI-U for Midwest regions
This update is based on Nebraska Revised Statute 48-1203, official Nebraska Department of Labor releases. For information, visit the official website here.
Minimum Wages in Nebraska Cities
The table below gives an overview of minimum wage rates observed by different cities in Nebraska.
City
Non-Tipped Wage
Tipped Wage
Omaha
$13.50
$2.13
Lincoln
$13.50
$2.13
Bellevue
$13.50
$2.13
Grand Island
$13.50
$2.13
Kearney
$13.50
$2.13
Hastings
$13.50
$2.13
Norfolk
$13.50
$2.13
Columbus
$13.50
$2.13
Fremont
$13.50
$2.13
Papillion
$13.50
$2.13
La Vista
$13.50
$2.13
Ralston
$13.50
$2.13
Scottsbluff
$13.50
$2.13
North Platte
$13.50
$2.13
South Sioux City
$13.50
$2.13
York
$13.50
$2.13
Beatrice
$13.50
$2.13
Plattsmouth
$13.50
$2.13
Sidney
$13.50
$2.13
Ogallala
$13.50
$2.13
Valentine
$13.50
$2.13
Broken Bow
$13.50
$2.13
Hebron
$13.50
$2.13
Minden
$13.50
$2.13
Auburn
$13.50
$2.13
Seward
$13.50
$2.13
Alliance
$13.50
$2.13
Clay Center
$13.50
$2.13
Cozad
$13.50
$2.13
Fairbury
$13.50
$2.13
Threshold For Employees Exempt
Every state, including Nebraska, typically has two types of workforces: non-exempt and exempt employees.
Non-exempt employees typically perform low-wage jobs and are entitled to receive the state minimum wage. The Fair Labor Standards Act (FLSA) entitles them to receive overtime pay at one and a half times their regular wage if they work beyond 40 hours per week.
Exempt employees, on the other hand, are the ones who earn a pre-defined salary. As of July 1, 2024, exempt employees must earn at least $844 per week or $43,888 annually to qualify in this category.
As of January 1, 2024, the minimum salary threshold for exempt employees was increased to $844 per week ($43,888 annually). A further increase to $1,128 per week ($58,656 annually) was scheduled for January 1, 2025. However, a Texas court ruling in November blocked this rule, reducing the salary threshold to $684 per week ($35,568 annually).
Thus, Nebraska follows federal FLSA rules for exemption thresholds, i.e.,$684 per week or $35,568 annually, and has not enacted a higher salary threshold for the employees.
Historical Data of Nebraska Minimum Wages
Nebraska has witnessed a steady increase in minimum wage rates over time, driven by both state initiatives and federal mandates. In 1939, Nebraska adopted the federal minimum wage laws established by the Fair Labor Standards Act (FLSA), with wage rates initially set at $0.25 per hour. By 1968, the federal minimum wage had risen to $1.60 per hour. Many states, including Nebraska, complied with federal standards and did not establish separate state minimum wage laws.
However, in 2014, Nebraska voters approved Initiative 425, which gradually increased the state’s minimum wage. By 2015, wages rose from $7.25 to $8.00 per hour, followed by an increase to $9.00 per hour in 2016.
In 2022, voters passed another measure, Initiative 433, to incrementally raise the wage rate from $9.00 to $15.00 by 2026. As of January 1, 2024, the minimum wage in Nebraska is set at $12.00 per hour.
Nebraska is one of the few states that has consistently made efforts to increase wages for its workforce, ensuring it keeps pace with inflation and the cost of living.
The table below shows the incremental increase in Nebraska’s minimum wages between 1968 and 2024.
Time Period
Year
Minimum Wage (in $)
1968 to 1981
1968*
1.00
1970*
1.00
1972
1.00
1976*
1.60
1979
1.60
1980
1.60
1981
1.60
1988 to 1998
1988
3.35
1991
3.35
1992
4.25
1994
4.25
1996
4.25**
1997
4.25**
1998
5.15**
2000 to 2006
2000
5.15**
2001
5.15**
2002
5.15**
2003
5.15**
2004
5.15**
2005
5.15**
2006
5.15**
2007 to 2013
2007
5.15**
2008
5.85**
2009
6.55**
2010
7.25**
2011
7.25**
2012
7.25**
2013
7.25**
2014 to 2019
2014
7.25**
2015
8.00**
2016
9.00**
2017
9.00**
2018
9.00**
2019
9.00**
2020 to 2023
2020
9.00**
2021
9.00**
2022
9.00**
2023
10.50**
* – Under the FLSA, the two rates shown in 1968, 1970, and 1976 reflect the former multiple-track minimum wage system in effect from 1961 to 1978.
*** – Rates applicable to employers of four or more.
The following workers are exempt from Nebraska’s minimum wage requirements.
Tipped employees and agricultural workers
Babysitters providing services at an employer’s residence
Executive, administrative, and professional (EAP) employees
Individuals employed by the federal and state government
Individuals working for educational institutions, charitable, religious or non-profit organizations
Learners and apprentices otherwise provided by the law
Trainee veterans working under the supervision of the United States Department of Veterans Affairs
Individuals working for family members
Physically or mentally disabled individuals directly or indirectly receiving federal, state, county or local aid or welfare, and employed in a rehabilitation program
Besides, individuals below 20 years of age are entitled to receive a minimum of 75% of the regular wage rate for the first 90 days of employment. The same is applicable to student workers.
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After the passing of Initiative 433, Nebraska will witness an annual increase in minimum wages until 2026, keeping in mind inflation and cost of living.
January 1, 2024 - $12 per hour
January 1, 2025 - $13.50 per hour
January 1, 2026 - $15 per hour.
Nebraska has higher minimum wage rates as compared to the federal minimum. The state guarantees a payment of at least $13.50 per hour to low-wage workers. Meanwhile, the federal minimum guarantees only $7.25 per hour.
Yes. Nebraska has different minimum wage rates for tipped employees. As of January 1, 2025, tipped employees earn $2.13 per hour.
According to Nebraska’s labor laws, employers must pay the state minimum wage of $13.50 per hour to all non-tipped employees and $2.13 per hour to tipped employees. Failing to do so can result in imposition of penalties on the employer, as defined by the states laws.
Yes. Nebraska’s minimum wage laws apply to all employees except for some select category of workers as defined by the Fair Labor Standards Act (FLSA).
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