Nebraska lawmakers passed Legislative Bill 258 (LB258), approved by Governor Jim Pillen on February 9, 2026, which amends the Nebraska Wage and Hour Act, to adjust future minimum wage increase provisions, establish a new youth minimum wage, and revise training wage rules.
These changes, which become effective July 17, 2026 (three calendar months after the legislative session adjourns), may affect employers’ payroll forecasting, hiring practices, and compliance planning, particularly for businesses employing minors or entry‑level workers.
Future Minimum Wage Increases
LB258 replaces annual minimum wage increases based on the Consumer Price Index (“CPI”) with a fixed annual adjustment beginning in 2027:
- The minimum wage for calendar year 2026 remains $15.00 per hour.
- Beginning January 1, 2027, the minimum wage will increase annually by 1.75%.
- The Nebraska Department of Labor will publish each year’s adjusted rate by October 15 of the preceding year, starting in 2026.
- Tipped employees may still be paid $2.13 per hour, provided tips bring total compensation to at least the applicable minimum wage.
Youth and Training Wages
LB258 creates a youth minimum wage:
- Employers may pay $13.50 per hour to employees who are at least 14 but under 16 years of age and not emancipated minors.
- Starting January 1, 2030, and every five years thereafter, the youth minimum wage will increase by 1.5%, rounded to the nearest cent.
LB258 also updates Nebraska’s training wage provisions:
- Eligible new employees (ages 16 to 19, non‑seasonal, non‑emancipated) may be paid a training wage of $13.50 per hour for up to 90 days.
- An additional 90‑day extension of the training wage is permitted for on‑the‑job training, which:
- Requires technical, personal, or other skills which are necessary for his or her employment; and
- Is approved by the Department of Labor Commissioner.
- The training wage is set at $13.50 per hour through December 31, 2026, with annual 1.5% increases, rounded to the nearest cent, beginning January 1, 2027.
- Existing safeguards remain, including:
- A cap limiting training‑wage hours to no more than one‑fourth of total hours paid, and
- Prohibitions on reducing or eliminating existing employees’ hours to replace them with lower‑paid trainees.
- Student‑learners participating in bona fide vocational training programs may continue to be paid 75% of the applicable minimum wage.
Takeaways for Employers
- Greater predictability: Fixed annual increases beginning in 2027 allow for more reliable wage forecasting than CPI‑based adjustments.
- Reduced labor costs for younger workers: Youth and training wages may reduce entry‑level labor costs, but only if employers carefully track age, emancipation status, and applicable time limits.
- Compliance risk remains: Misuse of training wages, particularly in connection with workforce reductions or role substitutions, continues to present enforcement exposure.
Contact us
If you have any questions, please contact Marnie Jensen, Amanda JoLee, or your Husch Blackwell attorney. We are available to assist businesses in navigating these changes effectively to ensure compliance with LB258’s new wage structure.