Nebraska’s minimum wage is set to increase on New Year’s Day, rising from
$12 to $13.50 an hour. This is part of a voter-approved initiative from
2022 that mandates $1.50 increments annually until the wage reaches $15 in
2026. After that, adjustments will be tied to inflation.
Advocates for the increase, like Ken Smith of Nebraska Appleseed, argue
that the change will benefit not only low-income workers but also others,
as employers may raise wages above the minimum to attract and retain
employees.
However, critics, including Ansley Fellers of the Nebraska Grocery
Industry Association, caution that the increase may place significant
strain on businesses. She noted that while grocers have managed previous
increases by cutting hours and adjusting operations, many are concerned
about their ability to absorb the upcoming jump to $13.50 and, eventually,
$15. Fellers warned this could lead to further reductions in hours,
staffing, or higher prices for consumers.
The wage hike does not apply to tipped workers, whose minimum remains
$2.13 an hour. However, employers are required to ensure that tips bring
total earnings to at least the state’s minimum wage.
