October 2024

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Nebraska approves increase to minimum wage

12/01/22

Author: ADP Admin/Tuesday, November 29, 2022/Categories: Compliance Corner , State Compliance Update, Nebraska

On Nov. 7, 2022, Nebraska voters approved a ballot initiative to increase the state minimum wage. Initiative 433 was approved on a 58 percent to 42 percent vote.

The Details:

Currently the minimum wage in Nebraska is $9.00 per hour with no scheduled increases. Employers may take a tip credit of $6.87 and need only pay tipped employees at least $2.13 in cash wages assuming the employee earns at least $9.00 per hour tips and cash wages combined.  

Initiative Measure 433 increases the state minimum wage as follows:

Date

Minimum Cash Wage

January 1, 2023

$10.50

January 1, 2024

$12.00

January 1, 2025

$13.50

January 1, 2026

$15.00

Beginning January 1, 2027

Adjusted annually to account for increases in cost of living.

 

Initiative 433 did not address a change to the minimum wash wage for tipped employees so the $2.13 per hour will remain in effect.

 

 

Next Steps:

Nebraska employers must pay their employees at least the minimum wage on the scheduled date as indicated above.

Have Questions?

Please contact your dedicated service professional with any questions.  

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