Nebraska’s minimum wage increasing to $12 an hour on Jan. 1

LINCOLN, Neb. (KLKN) — Employers across the state are preparing to pay their workers more money soon. 

Nebraska’s minimum wage is increasing to $12 an hour on Jan. 1.

This initiative was passed by Nebraskans during the 2022 election.

The state’s minimum wage will increase $1.50 per hour every year until 2026 when it will be at $15 an hour. There will also be an annual cost of living adjustment every year after that.

Some say this yearly increase will help the state’s economy while others say it could hurt small businesses even though it’s being phased in over time.

“If businesses see their cost increase to the point where they have to raise prices that will hurt consumers, reduce benefits, reduce hours or possibly even cut some employment,” Bob Hallstrom, state director for the National Federation of Independent Businesses, told Channel 8 at the beginning of 2023.

Minimum hourly wage remains the same for tipped employees in the state, at $2.13 an hour.

The Nebraska Department of Labor said it’s up to the employer to make sure wages and tips are combined equally.