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The minimum wage rate varies from state to state. So it’s important to understand the minimum wage rates and laws for the state you and your employees call home.
In Nebraska, there are quite a few things to keep in mind when it comes to compensating your workers. That’s why we’ve created this guide, just for you, to stay up to date with what’s going on with the Nebraska minimum.
Learn how to formalize and grow your business. Check out the Employer Launchpad.
What is the minimum wage in Nebraska?
The state minimum wage in Nebraska will rise from $10.50 per hour to $12.00 per hour, effective Jan. 1, 2024. In November 2022, Initiative Measure 433 passed with 58.19% of the vote, bringing a plan to eventually raise the state minimum wage up to $15 per hour.
Are there plans to change the minimum wage beyond 2024?
Initiative Measure 433 comes with the following increases to the minimum wage going forward:
- $12 per hour effective Jan. 1, 2024
- $13.50 per hour effective Jan. 1, 2025
- $15 per hour effective Jan. 1, 2026
From there, the consumer price index will determine future raises.
How should small business owners prepare for changes to the minimum wage?
Your business doesn’t have to take a big hit during any possible increase in the Nebraska minimum wage. Here are some ways to prepare for any future changes in the minimum wage:
- Reduce costs: You don’t have to cut payroll to make ends meet. Instead, look at how you spend company money and find ways to reduce business expenses. Updating your business tech like using Square Payroll software can help you reduce costs. You get custom payroll features like automatic payroll and simple team management, all with small business pricing in mind.
- Evaluate your hiring practices: Hiring and onboarding new staff can be costly, so you want to make sure your new hires have staying power. Cast a wide net when looking for new additions, and once they join, make employee retention a top priority.
- Increase prices: Maybe it’s time to consider raising your prices since the cost of employees is going up. In business, this is referred to as a market equilibrium. With paychecks getting fatter, the buying power will remain the same with new prices.
With updates on the Nebraska minimum wage and small business resources, like how to get a free EIN and more, Square is here to help your small business every step of the way.
