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Minimum Wage in Nebraska: $15.00 in 2026, the $2.13 Tip Rule and the Youth Rate

The minimum wage in Nebraska is $15.00 an hour as of October 2026, the last step of the increases set out in state law. Tipped workers can be paid $2.13 an hour in cash plus tips, as long as the total reaches $15.00, and the state law applies to employers of 4 or more employees.

Nebraska's schedule comes from Revised Statute 48-1203, and the rate climbed every January from 2023 to reach $15.00 in 2026. This page draws on the statute's text and the U.S. Department of Labor's state, tipped, history, payday and meal break tables, read in October 2026.

Nebraska's pay floors in one table

RuleNebraska (as of October 2026)
Minimum wage$15.00 an hour
Tipped cash wage$2.13 an hour plus tips
Maximum tip credit$12.87 an hour
Youth rate (ages 14 and 15)$13.50 an hour
CoverageEmployers of 4 or more employees

The step-up schedule

The statute lays out each year in words rather than figures, and the Department of Labor's history table confirms them.

PeriodNebraska rate
Through December 31, 2022$9.00
2023$10.50
2024$12.00
2025$13.50
2026$15.00

How the 2027 rate is set

Here's what most guides miss. Once the schedule ends, the statute switches to automatic yearly rises. From January 1, 2027 the rate goes up each year by one and three-quarters percent, and the Nebraska Department of Labor must calculate and publish the new rate by October 15 of the year before. So the 2027 figure is published by mid-October 2026, and every January after that brings another rise.

Tipped staff and the $2.13 floor

Nebraska is one of the states that kept the federal tipped cash wage. Under the statute, people paid by way of gratuities, such as servers, hotel bellhops and porters, get at least $2.13 an hour plus all their tips, and the wage plus tips has to reach the full minimum. With a $15.00 minimum, that leaves a tip credit of $12.87.

  1. Pay tipped staff at least $2.13 an hour in cash.
  2. Track tips for every hour of the pay period.
  3. Check that cash wage plus tips reaches $15.00 an hour.
  4. Make up any shortfall from your own pocket that pay period.

If you share tips across a team, my tip pooling guide covers who can be included.

Youth and student rates

The statute allows a youth minimum wage of $13.50 an hour for employees who are at least 14 but younger than 16, under conditions set out in the law. Student-learners in a bona fide vocational training programme can be paid at least three quarters of the regular minimum. From January 1, 2030, the statute adds a review of the youth rate every fifth year.

Who the law covers

The Department of Labor's state table says Nebraska's law applies to employers of 4 or more employees. A business with fewer staff may still owe the federal $7.25 if the federal Fair Labor Standards Act reaches it. My federal minimum wage guide explains that test.

Meal breaks and paydays

Nebraska's meal break rule is narrow. The federal meal break table says workers in an assembly plant, workshop or mechanical establishment get half an hour, off premises, for lunch in each 8-hour shift, unless a collective bargaining agreement or other written agreement says otherwise. On paydays, the federal table says Nebraska lets the employer designate the payday.

Nebraska against its neighbours

StateBasic minimum wage (as of October 2026)
Nebraska$15.00
Missouri$15.00
Colorado$15.16
South Dakota$11.85
Iowa$7.25
Kansas$7.25

Nebraska now pays more than double Iowa and Kansas. A business in Omaha that also hires across the river in Council Bluffs is working with two very different floors, and my Iowa minimum wage guide covers the other side.

Federal rules that still apply

Nebraska's rate sits on top of the federal Fair Labor Standards Act. The Department of Labor's reference guide says the federal law covers enterprises with annual sales or business of at least $500,000, plus hospitals, care homes and schools, and individual staff whose own work involves interstate commerce. Federal law sets overtime at time and a half after 40 hours a week, and the federal tipped rule requires employers to tell tipped staff about the tip credit in advance.

The federal guide also says tipped employees are those who customarily and regularly get more than $30 a month in tips. Under that test, a worker with only occasional tips should be paid the full $15.00 in cash.

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Questions to settle before Nebraska payroll

  • Do you have 4 or more employees?
  • Are any staff aged 14 or 15 who could take the $13.50 youth rate?
  • Do you keep hour-by-hour tip records for staff on $2.13?
  • Have you checked the 2027 rate the Department of Labor publishes by October 15?

My verdict

Nebraska went from $9.00 to $15.00 in four years, and the rises don't stop: from 2027 the rate moves every January by a set formula. The rule to watch is the tipped floor, because $2.13 in cash leaves a big gap to cover when tips are thin. Track tips by the hour and plan your 2027 budget around the figure the Department of Labor publishes in October.

Frequently asked questions

What is the minimum wage in Nebraska?

It's $15.00 an hour as of October 2026, under Revised Statute 48-1203.

What is the tipped minimum wage in Nebraska?

Tipped staff get at least $2.13 an hour plus tips, with the total reaching $15.00.

Is there a youth minimum wage in Nebraska?

Yes. Employers may pay $13.50 an hour to employees aged 14 and 15 under the conditions in the statute.

How will Nebraska's minimum wage change in 2027?

From January 1, 2027 it rises each year by one and three-quarters percent, published by October 15 of the year before.

Who does Nebraska's minimum wage law cover?

Employers of 4 or more employees, according to the U.S. Department of Labor's state table.

Does Nebraska require lunch breaks?

Only in assembly plants, workshops and mechanical establishments: half an hour in each 8-hour shift.

Is Nebraska's minimum wage higher than Iowa's?

Yes. Nebraska pays $15.00 an hour and Iowa $7.25 as of October 2026.

Who sets Nebraska's payday?

The employer designates the payday, according to the federal payday table.

Can student-learners be paid less in Nebraska?

Yes. Student-learners in a bona fide vocational training programme can be paid at least three quarters of the regular minimum.

Published and maintained by the Lilach Bullock team, covering marketing, AI and business growth.
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