Nebraska Changes Minimum Wage Adjustment Method - HR ALERTS

Nebraska Changes Minimum Wage Adjustment Method

Effective Date: July 16, 2026 (projected)

Nebraska has enacted changes to how its minimum wage will increase in future years, moving away from inflation-based adjustments.

Under the new law, Nebraska’s minimum wage will no longer be adjusted annually based on inflation. Instead, the minimum wage will increase by a flat 1.75% each year.

While the minimum wage will continue to rise, this change is expected to result in slower growth over time, as inflation has historically exceeded 1.75% annually.

Additional Wage Changes

The law also introduces the following updates:

• Youth Minimum Wage (Ages 14–15):

  • Set at $13.50 per hour

  • Will increase by 1.5% once every five years, beginning in 2030

• Training Wage (Under Age 20):

  • The 90-day training wage will increase from $5.44 per hour to $13.50 per hour

  • Will then increase by 1.5% annually

What This Means for Employers

• Minimum wage increases in Nebraska will be more predictable and uniform year over year.

• Employers should update payroll forecasting and budgeting assumptions accordingly.

• Employers utilizing youth or training wages should review applicable rates and age-based rules to ensure compliance.

• Payroll systems should be configured to differentiate wages by age group (14–15, 16–20, and adult employees).

• Emancipated minors may not be paid the training wage, even if otherwise age-eligible.

Action Recommended

Nebraska employers should review payroll systems and wage schedules ahead of the projected July 2026 effective date to confirm updated rates are applied correctly.

Reference: Nebraska legislation signed February 2026

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