Nebraska Minimum Wage: $15.00 in 2026, the 1.75% Annual Increase from 2027 and the Tipped Wage

Nebraska's minimum wage is $15.00 an hour for 2026, up from $13.50 in 2025. Beginning January 1, 2027, it rises 1.75% each January 1. If you hire, manage payroll or plan a budget in Nebraska, you need to know the current rate, how the next increase is published, and the special rules for tipped, youth and student-learner workers. This guide covers all of them, plus paid sick time, which applies to many of the same employers.

This guide is informational content, not legal or tax advice. Wage rules can change, so confirm the figures below with the Nebraska Department of Labor before you set pay. If your situation is complex, such as a mix of tipped, salaried and youth staff across several locations, talk with an employment attorney or a qualified CPA or payroll professional.

Nebraska Minimum Wage Rates at a Glance

The table below summarizes the figures covered in this guide. Confirm each one with the Department of Labor before relying on it for payroll.

Period	Standard minimum wage	Status
2025	$13.50 an hour	Prior year rate
2026 (January 1 through December 31)	$15.00 an hour	Current rate under Neb. Rev. Stat. 48-1203
2027 (from January 1)	About $15.26 an hour by arithmetic	Confirm the published rate with the Department of Labor

The 2026 Rate: $15.00 an Hour

Under Neb. Rev. Stat. 48-1203, the Nebraska minimum wage is $15.00 an hour from January 1 through December 31, 2026. That is a $1.50 increase over the $13.50 rate in effect for 2025.

The $15.00 rate for 2026 was set by the 2022 voter initiative (Initiative 433), which is part of the statute's history. LB258, a 2026 law that took effect July 18, 2026, replaced the earlier cost-of-living indexing for later years. Under the new structure, increases from 2027 follow a fixed 1.75% annual percentage rather than a cost-of-living measure, which makes multi-year planning simpler.

How the 1.75% Increase Works

Starting January 1, 2027, and every January 1 after that, the Nebraska minimum wage increases by 1.75%. Multiplying $15.00 by 1.0175 gives $15.2625, which is about $15.26 an hour. For a full-time worker at 40 hours a week, that is roughly $0.26 more per hour, or about $10.50 more per week at the minimum rate.

Treat $15.26 as an estimate. The statute sets no rounding rule, so the official published figure could differ slightly from the arithmetic. Do not post a wage notice or set a 2027 pay scale until you have the published number.

When the Rate Is Published

The Department of Labor must calculate and publish each coming year's minimum wage by October 15, beginning October 15, 2026. The 2027 rate was due by that date. Check the rate on the Department of Labor website at dol.nebraska.gov. If you cannot find it, call the Labor Standards division at 402-471-2239.

Tipped Employees: The $2.13 Cash Wage

Nebraska allows employers to pay tipped employees a lower direct cash wage, but only when tips make up the difference. The employer carries the burden of proof if the rate is ever questioned, so the paperwork matters as much as the math.

• The employer must pay at least $2.13 an hour in direct wages.
• Direct wages plus gratuities must equal the full minimum wage. At the 2026 rate, that is $15.00 an hour.
• If wages and tips fall short of the full minimum, the employer must make up the difference.
• The employer must be able to prove that the employee's wages plus tips reached the full minimum.

Here is how the math works for a server at the 2026 rate. Suppose the server works 30 hours in a week. The employer pays $2.13 an hour in cash wages, or $63.90. The full minimum for 30 hours is $450.00 ($15.00 times 30). Tips must therefore total at least $386.10 for the week, or about $12.87 per hour worked. If tips fall short, the employer owes the difference.

Keep daily tip reports, time records and payroll records for each tipped employee. These records are the evidence you will need if your wage calculation is ever questioned.

Youth and Student-Learner Rates

The youth minimum wage is $13.50 an hour for employees who are 14 and 15 years old. Confirm with the Department of Labor how this rate applies to your young workers and their schedules before you set their pay.

Student-learners in a bona fide vocational program may be paid 75% of the minimum wage. At the 2026 rate, that works out to $11.25 an hour ($15.00 times 0.75). Before you use this rate, confirm that your training program qualifies as a bona fide vocational program, and document the arrangement in writing. Ask the Department of Labor what qualifies.

Paid Sick Time

Paid sick time has applied in Nebraska since October 1, 2025, for employers with 11 or more employees. It is a separate requirement from the minimum wage, but the same employers usually need to review both. This guide does not cover the accrual, use or documentation details, so confirm those with the Department of Labor before you write your policy.

City and Local Rules

This guide covers the state minimum wage only. Nebraska has 93 counties and 528 municipalities, which are cities and villages. The state rate does not tell you whether a city or village sets its own rules, and this guide does not state any city minimum wage. Before you set pay for work in a particular city or village, check with that municipality directly. Local zoning and licensing questions are separate and also need local confirmation.

Registration and Payroll Setup

Hiring employees in Nebraska brings registration obligations that sit alongside the wage rules. Nebraska has no general state business license. Registration follows activity, so an employer with employees needs an income tax withholding certificate from the Nebraska Department of Revenue. Unemployment tax registration is handled through the Department of Labor. For withholding questions, start at https://revenue.nebraska.gov/.

Common Payroll Mistakes to Avoid

• Paying the $2.13 cash wage without tracking tips. If you cannot show that wages plus tips reached $15.00 an hour, you carry the burden of proof.
• Using the 2025 rate for 2026 pay. The 2026 rate is $15.00 an hour, and the youth rate of $13.50 applies only to 14 and 15 year olds.
• Assuming the state rate covers local rules. A city or village may have its own requirements, so check every location where people work.
• Setting 2027 pay before the rate is published. The arithmetic figure of about $15.26 is an estimate until the Department of Labor publishes the official rate.

Payroll Checklist for 2026 and 2027

• Pay at least $15.00 an hour to standard employees for all of 2026.
• Find the published 2027 rate on dol.nebraska.gov and update pay scales before January 1, 2027.
• For tipped staff, confirm that the $2.13 cash wage plus tips equals the full minimum, and keep tip records.
• Pay 14 and 15 year olds no less than $13.50 an hour.
• Apply the 75% student-learner rate only to a qualifying vocational program.
• If you have 11 or more employees, review your paid sick time obligations.
• Check city and village rules for every location where people work.

Where to Confirm Nebraska Wage Rules

• Nebraska Department of Labor, Labor Standards: dol.nebraska.gov, or call 402-471-2239
• Nebraska Department of Revenue: https://revenue.nebraska.gov/
• Neb. Rev. Stat. 48-1203, for the statutory minimum wage language

This content is informational only and is not legal, employment or tax advice. Nebraska minimum wage rules, published rates and effective dates can change. Confirm current figures with the Nebraska Department of Labor before making payroll decisions, and consult a qualified employment attorney or CPA for your specific situation.