Nebraska — Wage & Hour

Nebraska's minimum wage is $15.00 per hour as of January 1, 2026. The state implemented annual $1.50 increases from 2023 through 2026, beginning at $10.50 in 2023, under Initiative 433, a voter-approved ballot measure passed in November 2022 with 58.7 percent support. This rate applies to employers with four or more employees; smaller employers must comply with the federal minimum wage.

Annual indexing mechanism changed by 2026 legislation. Beginning January 1, 2027, the minimum wage will increase annually by 1.75 percent, under Neb. Rev. Stat. § 48-1203(2) as amended by Laws 2026, LB258, § 1. The Nebraska Department of Labor calculates and publishes each new rate by October 15 of the preceding year, commencing October 15, 2026.

This fixed-percentage formula replaced the original inflation-based mechanism enacted in Initiative 433. As originally approved by voters, the statute provided for annual adjustments tied to "the increase in the cost of living," measured by the percentage increase in the Consumer Price Index for All Urban Consumers (CPI-U) for the Midwest Region, with increases rounded up to the nearest multiple of five cents. LB258, signed February 9, 2026, struck that language and substituted the 1.75 percent fixed increase. The change took effect July 17, 2026, but does not alter the $15.00 rate for calendar year 2026; the first increase under the new 1.75 percent formula will take effect January 1, 2027.

Source: Neb. Rev. Stat. § 48-1203 Source: LB258, Laws 2026 (approved Feb. 9, 2026)

Nebraska does not have a state overtime statute. Overtime in Nebraska is governed entirely by the federal Fair Labor Standards Act (FLSA), which requires non-exempt employees to receive overtime pay at 1.5 times their regular rate for all hours worked over 40 in a workweek. Under Nebraska case law, overtime wages can be claimed under the Nebraska Wage Payment and Collection Act (Neb. Rev. Stat. §§ 48-1228 to 48-1234) only if previously agreed to by the employer and employee; otherwise, claims must be brought under the FLSA.

Source: Neb. Rev. Stat. § 48-1229 (case annotations)

Nebraska requires employers to issue final paychecks on the next regular payday or within two weeks of the date of termination, whichever is sooner. This timing applies to all employment separations under Neb. Rev. Stat. § 48-1230(4)(a), whether the employee was terminated, resigned, or otherwise separated from the payroll. The law makes no distinction between voluntary and involuntary separations—both follow the same deadline.

Political subdivision exception. For political subdivisions (governmental entities), the rule is different. When a political subdivision separates an employee at least one week before the next regularly scheduled meeting of its governing body, unpaid wages become due within two weeks after that meeting. If separation occurs less than one week before the next scheduled meeting, wages are due within two weeks of the following regularly scheduled meeting. Neb. Rev. Stat. § 48-1230(4)(b).

Accrued vacation must be paid out. Under the Nebraska Wage Payment and Collection Act, accrued vacation time that is part of an employment agreement is considered wages and must be paid upon termination. The Nebraska Supreme Court held in Roseland v. Strategic Staff Management, 272 Neb. 434, 722 N.W.2d 499 (2006), that employer policies prohibiting payout of unused vacation at termination violate the Act. This rule extends to paid time off (PTO) when the only condition for earning the hours is rendering services and the employee has an absolute right to use the time for any purpose. In Fisher v. PayFlex Systems USA, 285 Neb. 808, 829 N.W.2d 703 (2013), the Court held that when vacation and sick leave are blended into a single PTO bank with unrestricted use, the entire PTO balance constitutes wages payable at separation. By contrast, sick leave that may be used only for illness or injury and has no monetary value upon termination if unused does not constitute wages under the Act. Loves v. World Insurance Co., 277 Neb. 359, 773 N.W.2d 348 (2009).

No withholding pending property return. Nebraska Department of Labor guidance states that final wages may not be withheld pending the return of employer property, though deductions for unreturned property may be permissible if the employee has provided written authorization and the deduction does not reduce the employee's pay below minimum wage.

Source: Neb. Rev. Stat. § 48-1230 Source: Neb. Rev. Stat. § 48-1229 (case annotations) Source: Nebraska Department of Labor FAQ

Nebraska requires employers with eleven or more employees to provide paid sick time under the Nebraska Healthy Families and Workplaces Act, effective October 1, 2025. The Act was enacted by voter initiative (Initiative 436) in November 2024 and subsequently amended by LB 415 in 2025 to exclude employers with ten or fewer employees and clarify implementation details.

Employer coverage thresholds. An "employer" is any entity that employs eleven or more employees. Neb. Rev. Stat. § 48-3802(4). For purposes of determining employer size, the Nebraska Department of Labor counts only individuals who worked at least 80 hours in Nebraska for the employer in a calendar year; out-of-state employees are not counted. A "small business" is an employer with eleven to nineteen employees during a given week (full-time, part-time, or temporary), unless the employer maintained twenty or more employees on its payroll in each of twenty or more calendar weeks in the current or preceding calendar year, in which case the employer is not considered a small business. Id. § 48-3802(10).

Employee coverage and exclusions. An "employee" is any individual employed by an employer, but excludes individual owner-operators, independent contractors, individuals who work in Nebraska for fewer than eighty hours in a calendar year, individuals employed in agricultural employment of a seasonal or other temporary nature, railroad employees subject to the Railroad Unemployment Insurance Act (45 U.S.C. § 351 et seq.), and individuals under sixteen years of age. Neb. Rev. Stat. § 48-3802(3). The United States, the State of Nebraska, and Nebraska's agencies, departments, and political subdivisions are also excluded from the definition of "employer." Id. § 48-3802(4)(b).

Accrual rate and timing. All employees begin accruing paid sick time after eighty hours of consecutive employment, at which point they accrue a minimum of one hour of paid sick time for every thirty hours worked. Neb. Rev. Stat. § 48-3803(1). Employees who are exempt from FLSA overtime requirements under 29 U.S.C. § 213(a)(1) or (b)(1) are assumed to work forty hours per workweek for accrual purposes unless their typical workweek is less than forty hours, in which case accrual is based upon the typical workweek. Id. § 48-3803(2). Employees may use paid sick time as it accrues. Id. § 48-3803(3). Employers may front-load the full annual allotment (40 or 56 hours) at the beginning of the year in lieu of accrual. Id.

Annual accrual and use caps. Small businesses (11–19 employees) are not required to permit an employee to earn or use more than forty hours of paid sick time per year. Employers with twenty or more employees are not required to permit an employee to earn or use more than fifty-six hours of paid sick time per year. Neb. Rev. Stat. § 48-3803(1). Employers may select higher limits.

Carryover and payout. Accrued paid sick time carries over to the following year. Neb. Rev. Stat. § 48-3803(5). However, the annual use caps (40 or 56 hours) apply regardless of carryover amounts. Id. In lieu of carryover, an employer may pay out all unused paid sick time at year-end and front-load the statutory minimum (40 or 56 hours) for the new year, available for immediate use. Id. § 48-3803(6). Employers are not required to pay out unused paid sick time upon an employee's separation from employment. Id. § 48-3803(10). If an employee is rehired within twelve months by the same employer, previously accrued paid sick time that was not used or paid out must be reinstated. Id. § 48-3803(9).

Permitted uses. Paid sick time must be provided for: (a) the employee's mental or physical illness, injury, or health condition; medical diagnosis, care, or treatment; or preventive medical care; (b) care of a family member with a mental or physical illness, injury, or health condition; care of a family member who needs medical diagnosis, care, treatment, or preventive medical care; or to attend a meeting necessitated by a child's mental or physical illness, injury, or health condition at a school or place where the child is receiving care; or (c) closure of the employee's place of business or a child's school or place of childcare by order of a public health emergency. Neb. Rev. Stat. § 48-3804(1). "Family member" is defined broadly in § 48-3802(5) to include relationships by blood, marriage, adoption, foster care, or "close association that is the equivalent of a family relationship."

Rate of pay. Paid sick time is compensated at the same hourly rate and with the same benefits, including health care benefits, as the employee typically earns during hours worked, and in no case less than the state minimum wage under Neb. Rev. Stat. § 48-1203. Neb. Rev. Stat. § 48-3802(7). For employees paid on a commission, piece-rate, mileage, or fee-for-service basis, the hourly rate is determined using the average weekly rate calculation under Neb. Rev. Stat. § 48-126 (Nebraska's Workers' Compensation statute), reduced to an hourly rate based on a forty-hour workweek. Id.

Notice and documentation. Employers must give employees written notice of their paid sick time rights at the commencement of employment or by September 15, 2025, whichever is later. Neb. Rev. Stat. § 48-3806(1). The notice must include: that employees are entitled to paid sick time; the amount; the terms of use; that retaliation is prohibited; the right to file a complaint; and the Nebraska Department of Labor's contact information. Employers must also display a poster containing this information in a conspicuous and accessible place in each establishment (or provide electronic notice for remote/app-based workers). Id. § 48-3806(4). Each regular pay period, employers must record in or on an attachment to the employee's paycheck the amount of paid sick time available, the amount taken to date in the year, and the amount of pay received as paid sick time. Id. § 48-3806(3).

An employer may require advance notice of the need to use paid sick time only if the employer has provided the employee a written policy containing reasonable procedures for providing notice. Neb. Rev. Stat. § 48-3804(3). An employer that has not provided the employee with a copy of such written policy may not deny paid sick time based on noncompliance with the policy. Id. § 48-3804(3). For use of paid sick time for more than three consecutive work days, an employer may require reasonable documentation, which includes documentation signed by a health care professional indicating paid sick time was necessary, or—if the employee or family member did not receive services from a health care professional, or documentation cannot be obtained in reasonable time or without added expense—a written statement from the employee indicating the sick time was taken for a qualifying purpose. Id. § 48-3804(6).

Employer policies. Any employer with a paid leave policy (such as a PTO policy) that makes available an amount of paid leave that equals or exceeds the Act's requirements and that may be used as paid sick time in accordance with Neb. Rev. Stat. § 48-3804 is not required to provide additional paid sick time and is not obligated to allow accrual or carryover beyond the employer's existing policy. Neb. Rev. Stat. § 48-3803(7). Paid sick time provided to an employee on or after January 1, 2025, and before October 1, 2025, counts toward the employer's obligations for calendar year 2025. Id. § 48-3803(4).

Source: Neb. Rev. Stat. § 48-3801 Source: Neb. Rev. Stat. § 48-3802 Source: Neb. Rev. Stat. § 48-3803 Source: Neb. Rev. Stat. § 48-3804 Source: Neb. Rev. Stat. § 48-3806

Nebraska does not require most employers to provide meal breaks or rest breaks to employees. The state has one narrow statutory exception for certain industrial employers, and otherwise follows federal FLSA rules when employers voluntarily provide breaks.

Meal break for assembling plants, workshops, and mechanical establishments. Employers operating an assembling plant, workshop, or mechanical establishment must allow all employees not less than thirty consecutive minutes for lunch in each eight-hour shift. Neb. Rev. Stat. § 48-212. During this meal period, the employer cannot require the employee to remain in the building or on the premises where the work is performed. Id. This requirement does not apply to employment covered by a valid collective-bargaining agreement or other written agreement between the employer and employee. Id.

The statute applies to employers employing one or more persons in the covered industries. Id. Employers outside these industries—retail, hospitality, healthcare, offices, and most other sectors—have no state-law obligation to provide meal breaks to any employee.

No state-law rest break requirement. Nebraska has no statute or regulation requiring employers to provide short rest breaks (sometimes called coffee breaks or paid breaks) to employees, regardless of industry, hours worked, or employee age. Rest breaks are purely at the employer's discretion.

Federal FLSA rules when breaks are offered. When a Nebraska employer voluntarily provides breaks, federal wage-and-hour rules under the Fair Labor Standards Act govern whether the time is compensable. Under 29 C.F.R. § 785.18, rest periods of short duration (usually five to twenty minutes) must be counted as hours worked and paid. Bona fide meal periods (typically thirty minutes or longer) are not compensable work time if the employee is completely relieved from duty—the employee must be free to leave the workstation and use the time for personal purposes. 29 C.F.R. § 785.19. If the employee performs any duties (active or inactive, such as answering phones or monitoring equipment) during the meal period, the time is compensable.

Minors (employees under 18). Nebraska's child labor statutes (Neb. Rev. Stat. §§ 48-302 to 48-313) impose hour restrictions, require employment certificates for minors under sixteen, and prohibit hazardous occupations, but do not contain an express meal-break mandate for minors working a threshold number of hours. Neb. Rev. Stat. § 48-310 requires employers of minors under sixteen to post a notice stating the hours of work and "the time allowed for meals," but does not mandate that a meal period be provided. Minors employed in assembling plants, workshops, or mechanical establishments receive the same thirty-minute meal break under § 48-212 as adult employees in those industries.

Some secondary sources assert that Nebraska requires a thirty-minute meal break for minors after five consecutive hours of work, but the cited primary authority for that rule cannot be confirmed as of 2026-06-01. Federal FLSA child labor rules (29 U.S.C. § 212; 29 C.F.R. Part 570) likewise do not mandate meal or rest breaks for minors, though state or local ordinances may. Employers of minors should verify their obligations with the Nebraska Department of Labor's Division of Safety and Labor Standards.

Enforcement and penalties. Violation of Neb. Rev. Stat. § 48-212 (the assembling-plant / workshop / mechanical-establishment meal-break rule) is a Class III misdemeanor under Neb. Rev. Stat. § 48-213. A Class III misdemeanor in Nebraska carries a maximum penalty of three months' imprisonment, a $500 fine, or both. Neb. Rev. Stat. § 28-106(1).

Nursing mothers' break time. Under the federal PUMP for Nursing Mothers Act (29 U.S.C. § 218d, enacted December 29, 2022), FLSA-covered employers must provide reasonable break time and a private location (not a bathroom) for an employee to express breast milk for one year after the child's birth. The breaks are unpaid unless the employee uses an otherwise-paid rest period. Employers with fewer than 50 employees are exempt if providing break time or space would impose an undue hardship. Nebraska has no separate state statute governing nursing-mothers' break time that exceeds the federal floor.

Source: Neb. Rev. Stat. § 48-212 Source: Neb. Rev. Stat. § 48-213 Source: Neb. Rev. Stat. § 48-310 Source: Neb. Rev. Stat. § 28-106 Source: 29 C.F.R. § 785.18 Source: 29 C.F.R. § 785.19 Source: 29 U.S.C. § 218d

Nebraska law strictly limits an employer's ability to deduct, withhold, or divert any portion of an employee's wages. Under Neb. Rev. Stat. § 48-1230(1), an employer may deduct from wages only when:

1. Required or permitted by state or federal law (e.g., federal and state income tax withholding, Social Security and Medicare taxes, court-ordered garnishments);
2. Ordered by a court of competent jurisdiction; or
3. The employer has a written agreement with the employee authorizing the deduction.

Written authorization required for all discretionary deductions. The statute's plain language requires a written agreement for any deduction that does not fall within categories (1) or (2). Neb. Rev. Stat. § 48-1230(1). Verbal consent is not sufficient. The Nebraska Department of Labor confirms that employers may make deductions from an employee's paycheck for items such as cash shortages, breakage, uniforms, tools, or unreturned property only when the employer has written authorization from the employee to make such deductions. Even in cases of suspected or confirmed employee theft, an employer cannot unilaterally deduct wages without written authorization from the employee; the remedy for the employer is a court order or a civil lawsuit.

Minimum-wage floor. Under any circumstances, a deduction authorized by written agreement may not reduce an employee's wages below the applicable minimum wage rate for the hours worked in that pay period. The Nebraska Department of Labor interprets this floor as applying to deductions outside of those required by law or court order. The minimum wage in Nebraska is $15.00 per hour as of January 1, 2026 (see Minimum wage rate section of this guide). Federal FLSA standards impose the same prohibition on deductions that would drop an employee below the federal minimum wage, except for legally required deductions.

Scope of deductions requiring written authorization. Common employer-initiated deductions that require advance written employee authorization include:

• Cash register shortages or till discrepancies;
• Breakage, damage to equipment, or spoilage of inventory;
• Uniforms, tools, safety equipment, or other employer-provided property;
• Training expenses, orientation costs, or certification fees;
• Recovery of overpayments (e.g., payroll errors, advance wages, or loans);
• Unreturned employer property upon separation (laptops, phones, keys, uniforms, badges).

The written authorization should specify the reason for the deduction and, ideally, the amount or method of calculation. Employers may require employees to sign a deduction authorization as a condition of initial employment or at the time property is issued, provided the authorization complies with § 48-1230(1) and does not violate the minimum-wage floor.

Final wages may not be withheld pending return of property. The Nebraska Department of Labor has confirmed that final wages may not be withheld pending the return of employer property. If an employee separates and has not returned employer property (laptop, uniform, tools), the employer must still pay all earned wages on the statutory deadline (next regular payday or within two weeks, whichever is sooner, under Neb. Rev. Stat. § 48-1230(4)(a)). The employer may deduct the value of unreturned property from the final paycheck only if (i) the employee provided written authorization in advance for such a deduction, and (ii) the deduction does not reduce the employee's pay below the minimum wage. If no written authorization exists, the employer's recourse is a lawsuit or, if the employee consents after separation, a written repayment agreement separate from the final paycheck.

No separate statute limiting specific deduction types. Unlike some states, Nebraska does not have categorical prohibitions on specific types of deductions (e.g., outright bans on cash-shortage deductions or requirements that uniforms be provided at no cost). The statutory framework is authorization-based: if the employer obtains written consent and respects the minimum-wage floor, the deduction is permissible under state law. Federal wage-and-hour law may impose additional restrictions (for example, 29 C.F.R. § 531.35 limits deductions from tipped employees' cash wages for uniforms, and FLSA regulations restrict deductions that benefit the employer rather than the employee when the employee is paid close to the minimum wage).

Source: Neb. Rev. Stat. § 48-1230 Source: Nebraska Department of Labor FAQ Source: Nebraska Department of Labor Wages Fact Sheet (2026)

Nebraska enacted two subminimum wage provisions in 2026 under LB258, effective July 17, 2026: a youth minimum wage for employees ages 14–15 and a training wage for new employees ages 16–19. Both rates are set at $13.50 per hour through December 31, 2026, below the standard state minimum wage of $15.00 per hour. The provisions replaced Nebraska's prior training-wage framework, which had been tied to 75 percent of the federal minimum wage (yielding $5.44 per hour) and was widely regarded as obsolete.

Youth minimum wage (ages 14–15). Employers may pay employees who are at least 14 years of age but younger than 16 a minimum wage of $13.50 per hour, provided the employee is not an emancipated minor. Neb. Rev. Stat. § 48-1203(5), as amended by LB258. The youth minimum wage applies to all hours worked by covered employees; there is no durational limit (unlike the training wage).

Beginning January 1, 2030, the youth minimum wage will increase every five years by 1.5 percent, rounded to the nearest cent. Neb. Rev. Stat. § 48-1203(5)(b). This indexing schedule means the youth wage will remain $13.50 per hour from July 17, 2026, through December 31, 2029 (three and a half years), then increase to $13.70 on January 1, 2030, to $13.91 on January 1, 2035, and so on. By contrast, the standard minimum wage increases annually by 1.75 percent starting January 1, 2027, creating a widening gap over time.

Training wage (ages 16–19). Employers may pay a new employee who is at least 16 years of age but younger than 20 a training wage rate of $13.50 per hour for 90 days from the date of hire, provided the employee is not a seasonal or migrant worker and not an emancipated minor. Neb. Rev. Stat. § 48-1203.01(1). The training wage may be extended for an additional 90-day period (180 days total) if the employee is participating in on-the-job training that (a) requires technical, personal, or other skills necessary for the employment, and (b) is approved by the Commissioner of Labor. Id.

Beginning January 1, 2027, the training wage will increase annually by 1.5 percent, rounded to the nearest cent. Neb. Rev. Stat. § 48-1203.01(2)(b). The first annual increase will occur January 1, 2027, yielding a training wage of $13.70 per hour for calendar year 2027. This indexing rate (1.5 percent) is slower than the standard minimum wage indexing rate (1.75 percent), so the gap will widen annually.

Restrictions on use of training wage. No more than one-fourth of the total hours paid by the employer may be paid at the training wage rate. Neb. Rev. Stat. § 48-1203.01(3). This cap applies across the employer's entire workforce, not per location or per employee; it prevents employers from structuring their workforce predominantly around training-wage positions.

Employers are prohibited from dismissing or reducing the hours of any existing employee with the intention of replacing that employee or the employee's hours with a new employee receiving the training wage rate. Neb. Rev. Stat. § 48-1203.01(4). Employers also may not pay the training wage if the hours of any other employee are reduced or any other employee is laid off, and the hours or position to be filled by the new employee is substantially similar to the hours or position of the displaced employee. Id. These anti-displacement rules aim to prevent employers from cycling through training-wage workers to avoid paying the standard minimum wage.

Exclusions: emancipated minors. Both the youth minimum wage and the training wage exclude emancipated minors. Under Nebraska law, a minor may be emancipated by marriage (Neb. Rev. Stat. § 43-2101), by court order upon petition demonstrating self-support and financial independence (Neb. Rev. Stat. § 43-2103), or automatically upon active military service (Neb. Rev. Stat. § 43-2106). An emancipated minor must be paid the standard minimum wage ($15.00 per hour as of January 1, 2026) regardless of age.

Seasonal and migrant workers. The training wage (§ 48-1203.01) excludes seasonal and migrant workers ages 16–19; they must be paid the standard minimum wage. The youth minimum wage (§ 48-1203(5)) contains no seasonal/migrant exclusion, so employers may pay 14- and 15-year-old seasonal or migrant workers $13.50 per hour under the youth-wage provision.

Student-learners. Nebraska separately permits employers to pay student-learners enrolled in a bona fide vocational training program at a rate of 75 percent of the applicable minimum wage. Neb. Rev. Stat. § 48-1203(4). For calendar year 2026, this yields $11.25 per hour (75 percent of $15.00). This provision predates LB258 and remains in effect.

Policy context. LB258 passed the Nebraska Legislature on February 5, 2026, by a vote of 33–16 and was signed by Governor Jim Pillen on February 9, 2026. The bill took effect July 17, 2026 (90 days after the legislative session adjourned). Proponents argued that the prior training wage of $5.44 per hour was "antiquated" and that a higher youth and training wage would incentivize hiring of younger workers, particularly in rural and small-business settings where labor shortages persist. Opponents argued that the provisions undermine the voter-approved minimum wage (Initiative 433, passed November 2022 with 58.7 percent support) and authorize "exploitation wages" for young workers, who face the same cost of living as adult workers. The bill also amended the standard minimum wage indexing formula from a CPI-based adjustment to a fixed 1.75 percent annual increase, as described in the Minimum wage rate section of this guide.

Source: Neb. Rev. Stat. § 48-1203 Source: Neb. Rev. Stat. § 48-1203.01 Source: LB258, Laws 2026 (approved Feb. 9, 2026)