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HOURLY WAGE INDEX

Let’s talk wages in Nebraska

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$10.50

What is the minimum wage in Nebraska?

The minimum wage in Nebraska is $10.50 per hour for all employees, effective January 1, 2023. This is the result of a voter-approved initiative in 2020 that gradually increased the minimum wage from $9.00 to $10.50 over a three-year period.

There are a few exemptions to the minimum wage law in Nebraska. Tipped workers are paid a lower minimum wage of $2.13 per hour, but they must also receive tips that bring their hourly earnings up to the minimum wage. Employees under the age of 19 are also paid a lower minimum wage of $9.75 per hour, but only if they are working in their first 90 days of employment.

The minimum wage is an important issue for many people in Nebraska. It is a matter of fairness, economic security, and quality of life. The debate over the minimum wage is likely to continue for many years to come, but it is an issue that deserves our attention.

The Nebraska minimum wage is applicable to most employees, although there are certain exceptions and exemptions based on factors such as age, occupation, and employer size. It is crucial to understand that the minimum wage may vary across different states within the United States. Nebraska's minimum wage is determined by the state government and is subject to periodic reviews and adjustments to ensure it keeps up with the cost of living. Workers in Nebraska should be aware of their rights regarding minimum wage and consult the Nebraska Department of Labor or other reliable sources for the most current and accurate information on this matter.

Here are some additional facts about the minimum wage in Nebraska:

  • The minimum wage was first established in Nebraska in 1966.
  • The minimum wage has been increased 23 times since it was first established.
  • The minimum wage is indexed to inflation, so it automatically increases each year with the cost of living.
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$21.08

What is the average wage in Nebraska?

The average wage in Nebraska is $27.92 per hour as of May 2023, which is higher than the national average of $21.89. This comes out to $58,080 per year.

Wages aren’t everything!

While pay is one of the main factors that hourly employees consider when choosing to join (or stay at) a company, it’s not the end all be all. Research shows that advancement opportunities, supportive management, and schedule flexibility are all incredibly important as well.

Want to learn more about this trend? We dive deep into the data behind which perks and benefits matter most to hourly workers. Check out our full conversation with expert Sara Wasserteil of Cara Collective.

A guide to hourly labor laws in Nebraska

Verified by Legal Counsel Brooke Davis

  • Final Paychecks: By the next regular paycheck or two weeks, whichever is sooner (Nebraska DoL) (Neb. Rev. Stat. § 48-1230).
  • Wage Payment Frequency: Wages should be paid regularly and consistently, according to employment terms (Neb. Rev. Stat. § 48-1230) (DoL).
  • Paid Sick Leave: No state/federal law. Policies are determined by the employer or through collective bargaining agreements (DoL).
  • Paid Family and Medical Leave: No paid leave is mandated by law. Up to 12 unpaid weeks in one year for eligible employees (FMLA).
  • Maximum Daily and Weekly Hours for Children Under 16: No working during required school hours. No more than three hours per school day and 18 hours per school week. No more than eight hours per non-school day and 48 hours per non-school week. Only between 7 a.m. and 7 p.m., extended to 9 p.m. between June 1 and Labor Day. Special permits are available to extend work hours to between 6 a.m. and 10 p.m. before non-school days (Nebraska DoL) (Neb. Rev. Stat. § 48-310) (29 C.F.R. § 570.35).
  • Maximum Daily and Weekly Hours for Children 16 and 17: No state/federal law restricting work hours beyond required school hours for non-hazardous occupations (Nebraska DoL) (Neb. Rev. Stat. § 48-310) (DoL) (29 C.F.R. § 570.35).

Frequently asked questions

What is the difference between gross wages and net wages?

It's important to remember that the Hourly Wage Index data above reflects gross wages, or the amount of money an employee earns before accounting for payroll deductions like taxes, benefits, or wage garnishments. Due to variability in tax rates across locations, slightly lower gross wages in a certain location might result in higher take home pay, or vice versa.

What is a good hourly wage?

This question is a difficult one to answer, as a "good hourly wage" is highly subjective according to experience, work responsibilities, cost of living, and other factors. We recommend using Hourly Wage Index data as a starting point. Once you have established a baseline for certain positions, do further research into similar businesses in your area.

Lastly, consider surveying your employees. They're the best resource to help you know what is a good hourly wage, what competitive pay looks like in your location, and how competitive wages change in your industry over time.

Offering competitive pay is one of my top priorities—what other resources do you have that might help?

We know that getting applicants to pay attention to your business can be extremely challenging, and that offering competitive pay is a huge part of that. Wages aren’t everything, however! Applicant experience is another important factor that can help set you apart from your competition. A few examples include:

  • Short, easy to understand job descriptions
  • Mobile-friendliness
  • Quick communication
  • Streamlined interview stages
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A Workstream hiring specialist can help you identify high impact ways to improve your applicant experience, and even help you determine what is a good hourly wage for your location and business.

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