On February 9, 2026, Governor Jim Pillen signed Nebraska Legislative Bill 258 (LB 258), amending the Nebraska Wage and Hour Act to:

• Keep the statewide minimum wage at $15.00 through 2026.
• Replace post‑2026 Consumer Price Index (CPI) indexing with a fixed 1.75% annual increase beginning January 1, 2027. The adjusted amount will be published annually by the Department of Labor on October 15.
• Establish a $13.50 youth minimum wage for non‑emancipated 14–15‑year‑olds with 1.5% increases every five years starting January 1, 2030.
• Update the training wage for 16–19‑year‑olds to $13.50 through 2026 with 1.5% annual increases beginning in 2027.
• Strict duration/usage safeguards.
• Retain the $2.13/hour tipped cash wage.

This update applies to Nebraska employers covered by the Wage and Hour Act (see below “Applicability”) and takes effect on July 17, 2026.

Applicability: Applicable to all employers with four or more employees at any one time, except for seasonal employment of not more than twenty weeks in any calendar year.

What Employers Need to Do

• Set Effective‑date Triggers (July 17, 2026): Keep the general minimum wage at $15.00 through December 31, 2026; do not apply CPI indexing for 2027 and beyond. Replace CPI with fixed 1.75% increases starting January 1, 2027.

• Configure Annual Updates: Add a calendar task that the Nebraska Department of Labor will publish the next year’s adjusted rate by October 15, 2026; load the new rate in payroll each January 1 beginning in 2027.

• Add a Youth Wage Pay Code (ages 14–15, non‑emancipated):
  • Rate: $13.50/hour starting July 17, 2026.
  • Increase Cadence: +1.5% every five years beginning January 1, 2030 (round to the nearest cent).
  • Controls: Block this code automatically at the worker’s 16th birthday or if emancipation is recorded.

• Add a Training Wage pay code (ages 16–19, new hires, non‑seasonal, non‑emancipated):
  • Rate: $13.50/hour through December 31, 2026; then +1.5% annually beginning January 1, 2027 (round to the nearest cent).
  • Duration Guardrails: 90 days standard from date of hire; a one‑time 90‑day extension is permitted only if the job requires technical/personal/other necessary skills and the training program is approved by the Labor Commissioner—retain written approval.
  • Utilization Cap: Configure reports to ensure no more than 25% of total paid hours are at the training wage across the establishment.

• Anti‑substitution rule: Train managers that they may not reduce or eliminate existing employees’ hours to replace them with trainees; audit schedule changes for compliance.

• Tipped Employees: Keep the direct cash wage at $2.13/hour and verify that cash wage + tips is at least the applicable state minimum wage (i.e., $15.00 through December 31, 2026, and the published rate thereafter). Maintain documentation because the employer bears the burden of proof.

Overview

• 2026 Wage: $15.00/hour through December 31, 2026.

• Annual Increases (Beginning 2027): Fixed 1.75% per year; Nebraska DOL will publish by October 15 annually.

• Youth Wage (14–15, Non‑emancipated): $13.50/hour starting July 17, 2026; +1.5% every five years beginning January 1, 2030.

• Training Wage (16–19, Non‑seasonal, Non‑emancipated): $13.50/hour through 2026; +1.5% annually beginning 2027; 90‑day period plus a possible 90‑day Commissioner‑approved extension; no more than 25% of total paid hours; no replacing existing staff.

• Tipped Employees: $2.13/hour direct wage + tips must reach at least the applicable minimum wage; employer bears the burden of proof.

Why This Matters

• Predictable Payroll Escalators: Moving from CPI‑U indexing to a fixed 1.75% produces steadier out‑year budgeting than inflation‑driven adjustments, which have shown volatility in the Midwest.

• Youth and Entry‑level Staffing Options: The youth and training wage structures can expand early‑career hiring while lowering initial labor costs—if employers stay within the statute’s eligibility, duration, utilization, and anti‑substitution limits.

• Mid‑year Change Management: The July 17, 2026, effective date requires mid‑cycle updates to payroll, posters, scheduling logic, and manager training—missed updates can trigger wage‑and‑hour violations.

Key Risks for Employers

• Eligibility Errors: Applying the youth wage to a 16-17‑year‑old or an emancipated 14-15‑year‑old or applying the training wage to seasonal/migrant or emancipated minors. Lock eligibility in HRIS and audit quarterly.

• Duration/Extension Missteps: Exceeding 90 days (or granting a 90‑day extension without the Labor Commissioner’s approval tied to a bona fide skills program).

• Over‑utilization: Paying more than 25% of establishment hours at the training wage—use exception reports and monthly reviews.

• Tip‑credit Shortfalls: Failing to ensure $2.13 + tips meets the applicable minimum each pay period and to retain evidence.

• Poster/Notice Gaps and Late Rate changes: Not updating postings or missing the October 15 published rate for January 1 changes beginning in 2027.

• Intersection with Child‑labor Rules: Wage compliance does not override federal restrictions on under‑18 hazardous duties or 14–15-hour limits—train supervisors accordingly.

Additional Information

• Student Learners: If using bona fide student‑learner programs, confirm pay is at least 75% of the otherwise applicable minimum wage and retain the program documentation.

• Posters and Handbook Updates: Refresh Nebraska wage posters and internal pay‑practice pages before July 17, 2026, reflecting the youth and training wage options and the 1.75% indexing method for 2027 and beyond.

• Controls for Eligibility: In HRIS/ATS, collect date of birth, emancipation status, and seasonality flags; build alerts so the youth wage cannot apply to 16–17‑year‑olds, and the training wage cannot apply to seasonal/migrant or emancipated minors.

• Budgeting and Offers: Update labor‑cost models for the 1.75% annual floor increase from 2027 onward; revise offer‑letter templates for youth/training‑wage roles (include duration limits, conversion timing, and any tip‑credit disclosures).

Source Reference

• Nebraska Legislative Bill 258 (LB258) – Change provisions relating to the minimum wage under the Wage and Hour Act

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