Tipped minimum wage / Nebraska

By NorseHorse. Rates in force on October 15, 2026, checked against the sources at the bottom of this page. General information, not legal advice.

What employers must pay

In Nebraska, the minimum wage is $15.00 an hour. An employer can pay a tipped employee as little as $2.13 an hour in cash, as long as tips bring the total to at least $15.00. The difference, $12.87, is the tip credit.

Nebraska's minimum wage law covers employers with 4 or more employees. Since July 2026, workers aged 14 and 15 may be paid a $13.50 youth wage, and workers 16 to 19 may be paid a $13.50 training wage for up to 90 days.

Who counts as a tipped employee: anyone who gets tips as part of their pay (Nebraska sets no dollar amount), and your employer must be able to show your tips brought you up to the minimum.

If your cash wage plus tips comes up short of $15.00 an hour in a workweek, your employer has to make up the difference.

What changes next

On January 1, 2027, the minimum wage goes to $15.26, and the tipped cash wage stays at $2.13. Under a 2026 law the minimum rises 1.75 percent each January 1, so the tip credit grows.

Tip pooling and service charges

No state rule beyond federal law: an employer taking a tip credit may require a pool only among customarily tipped staff; if it pays the full minimum wage, back-of-house may be included. Employers, managers and supervisors may never keep employees' tips.

Overtime

No state overtime law; federal rule applies: 1.5 times the regular rate after 40 hours a week. Tipped overtime is figured on the full $15.00, so the cash rate is at least $22.50 minus the $12.87 tip credit, or $9.63.

Taxes on your tips

Nebraska taxes wage income, and tips are wages, so its income tax applies to your tips. Federal income tax, Social Security and Medicare still apply. The federal tip deduction can cut the income tax part: see how the No Tax on Tips deduction works.

Check a week's pay

If you are underpaid

Start by comparing your pay stubs with your own record of hours and tips. If the numbers don't add up, you can file a complaint with the Nebraska Department of Labor, Labor Standards: how to file. You can also call the U.S. Department of Labor, Wage and Hour Division, at 1-866-487-9243.

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