Nebraska Minimum Wage Changes

April 15th, 2007 Posted by Mark

There is a movement in the state of Nebraska, as there has been a movement in many states across this great land lately, to increase the state minimum wage. The movement is taking place in the Nebraska Senate, where some of the senators are trying to get it so that the state has its own minimum wage. Doesn’t the state of Nebraska already have its own minimum wage, you ask? Well, sort of.

The way the Nebraska minimum wage works at the moment is that it is directly tied to what the federal minimum wage is doing. So it is a de facto federal minimum wage, disguised as a state minimum wage that the state has. The proposed law in the Senate at the moment would have the state minimum wage increase from the current level of $5.15 per hour to the ultimate rate of $6.26 per hour over the course of three years.

The first increase to the Nebraska minimum wage would occur this coming October 1, increasing the Nebraska minimum wage by 37 cents to the overall rate of $5.52 per hour. Then the following year, the minimum wage would go up again another 37 cents. The following year after that, the Nebraska minimum wage would see another 37 cent increase, raising it to that final point of $6.26 per hour.

But that would not be the true final point for the state minimum wage after that. The new law would have a mechanism built into it that every year after that, the state minimum wage would go up based on the rate of inflation as determined by the state Department of Labor, compared with what the Consumer Price Index was doing. We have seen that in many other states, and it serves to keep a minimum wage in line with the costs of living.

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Posted in Employment Laws, Minimum Wage, Nebraska, Wage and Hour

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