Nebraska minimum wage to increase January 1, 2023

Nebraska voters approved a ballot measure in November to gradually increase the minimum wage each January 1 from 2023 through 2026. Employers must be aware of this change to stay in compliance in how they pay their employees. On January 1, 2023, the minimum wage increases from its current rate of $9 per hour to $10.50 per hour.

What employers need to know

The minimum wage for Nebraska employees will increase according to the following schedule:

• January 1, 2023 increased to $10.50 per hour;
• January 1, 2024 increased to $12 per hour;
• January 1, 2025 increased to $13.50 per hour; and
• January 1, 2026 increased to $15 per hour.

This increase in Nebraska’s minimum wage standards follows a trend among many states throughout the country of raising their minimums. Voters have been behind these initiatives in a large majority of states considering the proposals.

Minimum wage for tipped employees

Nebraska’s Wage and Hour Act applies to employers of four or more persons. For tipped employees, the combined amount of hourly wage and gratuities given to the employee must equal or exceed the current minimum wage. The hourly wage amount paid to a tipped employee must be at least $2.13 per hour and the employer is responsible for making up the difference between the actual hourly wage including gratuities and the current minimum wage.

Bottom line