On Nov. 7, 2022, Nebraska voters approved a ballot initiative to increase the state minimum wage. Initiative 433 was approved on a 58 percent to 42 percent vote.
The Details:
Currently the minimum wage in Nebraska is $9.00 per hour with no scheduled increases. Employers may take a tip credit of $6.87 and need only pay tipped employees at least $2.13 in cash wages assuming the employee earns at least $9.00 per hour tips and cash wages combined.
Initiative Measure 433 increases the state minimum wage as follows:
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Date
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Minimum Cash Wage
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January 1, 2023
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$10.50
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January 1, 2024
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$12.00
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January 1, 2025
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$13.50
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January 1, 2026
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$15.00
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Beginning January 1, 2027
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Adjusted annually to account for increases in cost of living.
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Initiative 433 did not address a change to the minimum wash wage for tipped employees so the $2.13 per hour will remain in effect.
Next Steps:
Nebraska employers must pay their employees at least the minimum wage on the scheduled date as indicated above.
Have Questions?
Please contact your dedicated service professional with any questions.