Nebraska’s Midyear Minimum Wage Changes Will Impact Payroll Planning, Hiring Strategies + Compliance

Takeaways

• LB258 updates Nebraska’s Wage and Hour Act effective 07.17.26, while keeping the standard minimum wage at $15 per hour until 01.01.27.
• Annual minimum wage increases shift from CPI-based adjustments to a fixed 1.75% increase, starting 01.01.27.
• New lower wages apply to younger workers, including a $13.50 per hour youth wage for ages 14–15 and updated training wages for ages 16–19, with indexed future increases.

Related link

• Nebraska LB258

Article

Nebraska’s newly approved changes to the state’s Wage and Hour Act take effect on July 17, 2026. The amendments (LB258) include a new youth minimum wage and changes to the training wage. The standard minimum wage of $15 per hour, however, is unchanged and will remain in place until Jan. 1, 2027.

Whether you manage a large workforce or are a small business juggling tight margins, LB258 will affect payroll planning, hiring strategies, and compliance obligations.

What’s Changing

Relief for Annual Adjustments to Minimum Wage

Nebraska’s minimum wage increased to $15 per hour beginning Jan. 1, 2026. It was slated to increase on Jan. 1 of each subsequent year based on the cost-of-living according to the Consumer Price Index for the Midwest Region and rounded to the nearest multiple of five cents.

Now, instead of a cost-of-living adjustment, the minimum wage will increase by 1.75% on Jan. 1 of each year, beginning on Jan. 1, 2027.

New Youth Minimum Wage for Employees Ages 14–15

LB258 creates a lower minimum wage for certain youth workers as follows:

• Employers may pay workers aged 14–15 a wage of $13.50 per hour (if they are not emancipated minors). 
• Beginning Jan. 1, 2030, the youth minimum wage will increase every five years by 1.5%, rounded to the nearest cent.

Updated Training Wage for Employees Ages 16–19; Indexed Annual Increases

LB258 raises the training wage for new employees aged 16–19. The training wage does not apply to seasonal or migrant workers or emancipated minors.

The training wage is $13.50 per hour through Dec. 31, 2026. Beginning Jan. 1, 2027, and each subsequent Jan. 1, the training minimum wage increases by 1.5%, rounded to the nearest cent.

The training wage continues to be limited to 90 days from the date the new employee was hired. An additional 90-day period is permitted while the new employee is participating in on-the-job training which:

1. Requires technical, personal, or other skills necessary for their employment; and 
2. Is approved by the commissioner of labor.

No more than one-fourth of the total hours paid by the employer may be paid at the training wage. Further, there are additional limitations on the circumstances in which an employer pays the training wage under existing law.

What’s Staying the Same

The following requirements are unchanged:

• Tipped employee wage structure – Employers may still pay tipped employees $2.13 per hour, provided tips bring total compensation to at least the applicable minimum wage. 
   
• Student-learner wage exception – Businesses employing student-learners in bona fide vocational training programs may continue paying 75% of the minimum wage.

Need Help Navigating LB258?

These changes affect nearly every employer in Nebraska. Jackson Lewis attorneys are available to assist employers in determining whether and how their particular business is affected. If you need assistance updating policies, auditing wage practices, training managers, or related compliance matters, contact a Jackson Lewis attorney.