Nebraska Minimum Wage to Increase in 2024
Nebraska’s minimum wage will be increasing to $12 an hour beginning January 1, 2024.
Each state sets its own minimum wage. However, that wage must meet or exceed the federal minimum wage. The national minimum wage was created by Congress under the Fair Labor Standards Act (FLSA) in 1938. The first minimum wage, established during the Great depression, was 25 cents an hour. Currently, the federal minimum wage for covered nonexempt employees is $7.25 per hour, which has not increased since 2009.
The minimum wage in Nebraska is currently $9 an hour, and has been since 2016. The minimum wage was $8 an hour in 2015.
The change is the result of passage of the Nebraska Minimum Wage Increase Initiative in November of 2022. For the past few years, there has been a movement across the country to raise minimum wage to $15 an hour. Nebraska is one of 24 states that allow citizens to initiate legislation through the petition process.
In accordance with the initiative, the minimum wage will increase $1.50 each year through 2026, followed by an annual cost of living increase beginning in 2027. The minimum hourly wage for tipped employees is $2.13 per hour. Employers are responsible for ensuring that wages and tips combined equal at least the minimum wage.
The following minimum wage amounts are scheduled:
- January 1, 2024: $12 per hour
- January 1, 2025: $13.50 per hour
- January 1, 2026: $15 per hour
- January 1, 2027: The minimum wage will increase based on the cost-of-living increase as measured by the Consumer Price Index.
Information about the minimum wage, including current workplace posters, is available at dol.nebraska.gov/LaborStandards. Labor law specialists are available to answer questions from workers and employers regarding wages in Nebraska and may be contacted at 402-471-2239 or [email protected].
