Nebraska — Wage & Hour

Nebraska's minimum wage is $15.00 per hour effective January 1, 2026, with a major statutory change to the annual increase mechanism enacted by LB258, Laws 2026. The prior schedule of stair-step increases ($1.50/year from 2023–2026) ends at $15.00 per hour as of 2026. For calendar year 2026, this remains the minimum wage for covered employers (those with four or more employees). Smaller employers remain subject only to the federal minimum wage standard.

New annual indexing mechanism beginning January 1, 2027. Effective July 17, 2026, LB258 amended Neb. Rev. Stat. § 48-1203 to require that, beginning January 1, 2027, and each January 1 thereafter, the minimum wage will increase annually by the sum of (1) the percentage increase in the Consumer Price Index for All Urban Consumers, Midwest Region (CPI-U), as published by the U.S. Bureau of Labor Statistics for the most recent twelve-month period for which data is available as of August 1 of the preceding year, plus (2) 1.75%. The resulting rate is then rounded up to the nearest multiple of five cents. The Nebraska Department of Labor is required to calculate and publish the following year's minimum wage by October 15 each year, beginning October 15, 2026.

Summary of mechanism and projected rates:

• $15.00/hour effective January 1, 2026–December 31, 2026
• Starting 2027, indexed annually by Midwest CPI-U % change + 1.75%, rounded up to the nearest $0.05
• Department of Labor must publish the new rate each October by the 15th

This formula replaces the prior Initiative 433 mechanism, which linked increases solely to the Midwest CPI-U (rounded up to $0.05), as approved by voters in 2022. LB258's passage adds a statutory 1.75% boost above inflation, creating a higher floor for annual increases. Projected rates, based on past Midwest CPI-U trends, are approximately $15.26 in 2027, $15.53 in 2028, $15.80 in 2029, and $16.08 in 2030.

Source: Neb. Rev. Stat. § 48-1203 Source: LB258, Laws 2026 (approved Feb. 9, 2026) Source: Nebraska Department of Labor Minimum Wage Info

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 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 discretionary deductions. The statute requires a written agreement for any deduction that does not fall within the first two categories. 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, and so long as the deduction does not reduce earnings below minimum wage.

Deductions for meals or lodging. Nebraska does not have a statute expressly authorizing deductions for the cost of employer-provided meals or lodging. Instead, any deduction for meals or lodging from pay must be supported by a clear, signed written agreement between employer and employee, or fall within another statutory or judicial requirement. Employers cannot deduct for meals or lodging on a unilateral basis—written authorization is required, and the deduction may not drop wages below the minimum-wage floor. Neb. Rev. Stat. § 48-1228(1).

Under Neb. Rev. Stat. § 48-126 (Workers’ Compensation Act), board, lodging, or similar advantages received from the employer are excluded from the definition of wages unless their money value has been fixed by the parties at the time of hiring. While this definition is intended for workers' compensation calculations, it clarifies that meals or lodging must be part of a mutually agreed compensation arrangement—deductions after the fact are not permitted absent a written agreement.

Federal FLSA overlay: meals and lodging credit. At the federal level, the Fair Labor Standards Act (FLSA) § 3(m) [29 U.S.C. § 203(m)] allows an employer to credit the reasonable cost of meals or lodging toward minimum wage obligations, but only if:

• The employee voluntarily accepts the arrangement;
• The arrangement is primarily for the employee’s benefit;
• It is regularly provided as a condition of employment;
• It complies with state law; and
• The employer maintains accurate records of actual costs.

FLSA credit for meals or lodging is not a license to make payroll deductions without a written agreement under Nebraska law. Employers using the federal meal/lodging credit must still comply with Nebraska's written-authorization rule for deductions, and any deduction may not reduce pay below the Nebraska minimum wage.

Scope of deductions requiring written authorization. Common employer-initiated deductions that require advance written employee authorization include but are not limited to: cash register shortages, breakage, uniforms, tools, safety equipment, training/certification fees, recovery of overpayments, unreturned property, and now, the cost of meals or lodging. The written agreement should specify the reason and the method or amount of deduction.

Final wages may not be withheld pending return of property. Final wages may not be withheld for return of employer property, though a deduction for unreturned property may be made with prior written authorization if it does not reduce pay below minimum wage. For meals/lodging, the same written-authorization rule applies.

No categorical prohibition on deduction types. Nebraska’s wage-deduction framework is authorization-based and does not contain categorical bans on meals or lodging deductions. Compliance with state law and the minimum-wage floor is always required. Federal law may also impose restrictions on deductions that benefit the employer if an employee is paid close to minimum wage.

Source: Neb. Rev. Stat. § 48-1230 Source: Neb. Rev. Stat. § 48-1228 Source: Neb. Rev. Stat. § 48-126 Source: 29 U.S.C. § 203(m)) Source: Nebraska Department of Labor FAQ Source: Nebraska Department of Labor Wages Fact Sheet (2026)

Effective July 17, 2026, Nebraska implemented a revised subminimum wage framework for both youth and training workers through LB258 (2026). This section updates for the effective date, new wage thresholds, and the statutory indexing mechanisms set forth in the amended statutes and the Nebraska Department of Labor's published guidance.

Youth minimum wage (ages 14–15):

• The minimum wage for employees who are at least 14 years old but under 16 is $13.50 per hour from July 17, 2026 through December 31, 2029.
• As of January 1, 2030 (and every five years thereafter), this youth minimum wage increases by 1.5% (rounded to the nearest cent). For example, it rises to $13.70 on January 1, 2030, $13.91 on January 1, 2035, etc.
• The youth minimum wage applies for all hours worked by covered employees in this age range; there is no cap or duration limit within the period.
• Emancipated minors (by marriage, court order, or military service) must be paid the full standard minimum wage.

Training wage (ages 16–19):

• New employees ages 16 to 19 may be paid a training wage of $13.50 per hour for the first 90 days after hire.
• This period may be extended by an additional 90 days (maximum 180 days total) if the employee is participating in a bona fide, Commissioner-approved on-the-job training program.
• Beginning January 1, 2027, the training wage is indexed upward by 1.5% annually (rounded to the nearest cent): e.g., $13.70 for 2027, $13.91 for 2028, etc.
• No more than one-fourth (25%) of the employer’s total hours paid may be at the training wage rate at any time, and displacement rules prohibit reducing hours or laying off existing employees to substitute training wage hires.
• Like the youth rate, emancipated minors and seasonal/migrant workers are not eligible for the training wage and must be paid the full prevailing minimum wage.

Student-learners:

• Employers may pay student-learners enrolled in qualifying vocational training programs 75% of the applicable minimum wage under Neb. Rev. Stat. § 48-1203(4).

These updates replace the prior subminimum wage system (formerly tied to 75% of the federal minimum wage). Department of Labor published guidance as of May 2026 confirms these rates and schedules.

Source: Neb. Rev. Stat. § 48-1203 Source: Neb. Rev. Stat. § 48-1203.01 Source: LB258, Laws 2026 (approved Feb. 9, 2026) Source: Nebraska Department of Labor: Minimum Wage Info (2026)