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Author: ADP Admin/Tuesday, November 29, 2022/Categories: Compliance Corner
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:
Date
Minimum Cash Wage
January 1, 2023
$10.50
January 1, 2024
$12.00
January 1, 2025
$13.50
January 1, 2026
$15.00
Beginning January 1, 2027
Adjusted annually to account for increases in cost of living.
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?
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