This past February, Govenor Pillen signed into law LB 258, which enacts amendments to Nebraska’s Wage and Hour Act. Discussed further below, these amendments include changes to annual adjustments of minimum wage, changes to the training wage, and creates a new youth minimum wage. LB 258 will become effective by July 17, 2026, allowing time for employers’ payroll planning and compliance.
Annual Adjustments to Minimum Wage
Previously, minimum wage was set to increase based on cost-of-living according to the Consumer Price Index for the Midwest Region. With LB 258’s passage, minimum wage will instead increase by 1.75% each new year. One aspect of mnimum wage remaining the same is the wage structure for tipped employees. Such employees may still be paid $2.13 per hour, provided that compensation from tips at least equals the applicable minimum wage.
Training Wages
LB 258 also raises the training wage for new employees aged 16-19 to $13.50 per hour through the end of 2026. Starting in 2027, and with each new year, the training wage is raised by 1.5%. However, payment of the training wage must still be limited to only 90 days from the date of hire, unless the new employee is receiving on-the-job training that requires skills necessary for their employment. In which case, an additional 90-day period of the training wage may be permitted. Regardless, no more than one-fourth of the total hours of payable to an employee may be the training wage.
Youth Minimum Wage
Lastly, LB 258 creates a lower minimum wage of $13.50 per hour for employees aged 14-15. Beginning in 2030, this youth minimum wage will increase every 5 years by 1.5%.
Conclusion
The singing into law of LB 258 brings about changes that all Nebraska employers should be aware of. If you need assistance in updating payroll practices or with other compliance matters, contact the attorneys at the Knudsen Law Firm.