Overview of Nebraska's Minimum Wage Requirements
The minimum wage requirements in Nebraska have seen a steady increase over the years. As of January 1, 2023, the minimum wage was set at $10.50 per hour, according to the Nebraska Department of Labor and Workstream. This increase was a result of a voter-approved initiative in 2020 that gradually raised the minimum wage from $9.00 to $10.50 over a three-year period.
The state has planned further increases in the coming years. On January 1, 2024, the minimum wage is set to rise to $12.00 per hour, followed by an increase to $13.50 per hour on January 1, 2025, and finally reaching $15.00 per hour on January 1, 2026. Starting from January 1, 2027, the minimum wage will be adjusted based on the cost-of-living increase as measured by the Consumer Price Index.
Understanding Local Minimum Wage Variations
The minimum wage requirements in Nebraska apply to employers with 4 or more employees, as per the Department of Labor. However, the minimum wage can vary depending on the county or city. For instance, as of 2024, the minimum wage in Douglas County, Lancaster County, Hall County, Omaha, Lincoln, Bellevue, Grand Island, and Kearney is set at $12.00 per hour.
There are exceptions to these rates for certain categories of employees. Employees paid gratuities for services performed must receive a combined amount of hourly wage and gratuities that equals or exceeds the current minimum wage. The hourly wage amount paid to these employees must be at least $2.13 per hour. Student-learners as part of a bona fide vocational training program should receive wages at a rate of at least 75% of the minimum wage rate. New employees younger than 20 who are not seasonal or migrant workers may be paid a training wage of at least 75% of the federal minimum wage for 90 days from the date they were hired.
Minimum Wage Eligibility and Exemptions
In the state of Nebraska, most employees are eligible for the state minimum wage of $12.00 per hour, which is higher than the Federal Minimum Wage of $7.25. This is mandated by the Fair Labor Standards Act (FLSA), which also requires overtime pay at time and one-half the regular rate of pay for all hours worked over 40 hours in a work week. However, there are several exemptions to these rules.
Exemptions from the minimum wage and overtime pay apply under certain criteria. The most common exemptions include Executive, Administrative, Professional, and Computer employees. It's important to note that job titles or classifications do not determine Exempt/Non-Exempt status. For an exemption to apply, an employee's specific job duties and salary must meet all requirements of the U.S. Department of Labor's (DOL) regulations. Each State agency is responsible for ensuring that each of its jobs is properly identified as exempt from overtime based on these regulations, or non-exempt.
Minimum Wage Considerations and Compliance Tips
As of January 1, 2024, there are several key minimum wage legal and compliance considerations for food business employers in Nebraska. According to the U.S. Department of Labor source, the basic combined cash and tip minimum wage rate is $12.00. This means that the total amount of cash wage and tips received by the employee must equal at least $12.00 per hour.
The maximum tip credit against the minimum wage is $9.87. This indicates that employers can count up to $9.87 per hour of their employees' tips towards their obligation to pay the minimum wage. The minimum cash wage that employers are required to pay tipped employees out of pocket is $2.13.
FAQs
- What is the current minimum wage in Nebraska? As of January 1, 2024, the minimum wage in Nebraska is $12.00 per hour.
- Are there any exemptions to the minimum wage in Nebraska? Yes, there are several exemptions including Executive, Administrative, Professional, and Computer employees.
- What is the minimum wage for tipped employees in Nebraska? The minimum wage for tipped employees is $2.13 per hour, but the combined amount of hourly wage and tips should equal or exceed the current minimum wage.
Information Source Links
- Nebraska Department of Labor
- Workstream
- U.S. Department of Labor
- Nebraska Minimum Wage
- Minimum Wage Exemptions
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