Guides

Nebraska restaurant pay rules (2026): what to pay tipped and non-tipped staff

Mays TeamMarch 4, 2026
The PTO history for a server in Mays, opened from Employee balances with the Sick category set to accrue per hour worked: sick time earned from approved hours as each pay period was approved, and a sick day approved on February 20, 2026

Nebraska's minimum wage reached $15.00 an hour on January 1, 2026, the last step of the raise voters approved in 2022 (Neb. Rev. Stat. § 48-1203). The cash wage for tipped staff didn't move with it: state law fixes it at $2.13, so the tip credit is now $12.87 an hour, and a slow week can leave a large gap for you to make up (Neb. minimum wage poster). Two newer rules matter too. Employers with 11 or more employees have owed paid sick time since October 1, 2025 (Neb. Rev. Stat. § 48-3803), and a law signed on February 9, 2026 changes how the rate rises from 2027 (LB258 (2026)).

This page puts Nebraska's figures in one place. It covers what you owe tipped staff like servers and bartenders, what you owe everyone else, and two example weeks with the math shown. Every figure links to the official page it comes from.

Updated September 24, 2026: these figures are still current. Nebraska's minimum wage is $15.00 an hour ($2.13 cash wage for tipped employees) through December 31, 2026. It rises to $15.26 on January 1, 2027, while the cash wage for tipped employees stays $2.13. We re-read the next minimum wage change on its official source on October 6, 2026. The February 2026 law took effect on July 18, 2026: a youth minimum wage of $13.50 for 14- and 15-year-olds, and a training wage of $13.50 for new employees aged 16 to 19 for their first 90 days, in place of the earlier 75% rate (Neb. Rev. Stat. § 48-1203; Neb. Rev. Stat. § 48-1203.01).

This is general information, not legal advice. Whether a rule applies can depend on your business's size and your own facts; the note at the end says more.

Nebraska pay rules at a glance

As of March 4, 2026:

Rule

Nebraska

Minimum wage

$15.00 an hour, since January 1, 2026

Tipped employees: minimum cash wage

$2.13 an hour, if you take the tip credit

Maximum tip credit

$12.87 an hour

Who counts as tipped

Nebraska law sets no minimum amount of tips; more than $30 a month for an employer the federal law covers

Overtime

1.5× the regular rate after 40 hours in a workweek; no daily overtime

Meal and rest breaks for adults

Not required by Nebraska or federal law

Next change

Changes on January 1, 2027: a 1.75% raise under a law signed on February 9, 2026 (new rate not published yet)

Sources: Neb. minimum wage poster; US DOL, tipped wages by state; US DOL, overtime; Neb. Rev. Stat. § 48-212; Neb. DOL, lunch periods; LB258 (2026).

Who Nebraska's law covers. The state minimum wage applies to employers with 4 or more employees at any one time, leaving out seasonal work of no more than 20 weeks a year (Neb. Rev. Stat. § 48-1202). A smaller restaurant can still be covered by the federal law, through staff whose work regularly involves commerce across state lines (DOL Fact Sheet #14).

New hires under 20. On March 4, 2026, an employer could pay a new employee younger than 20, other than a seasonal or migrant worker, a training wage of at least 75% of the federal minimum wage for their first 90 days, with no more than a quarter of all the hours it pays at that rate (LB258 (2026); Neb. Rev. Stat. § 48-1203.01). That law changes the rate from July 18, 2026 (see the Updated note above).

Who counts as a tipped employee in Nebraska

Nebraska law sets no minimum amount of tips for the tip credit (US DOL, tipped wages by state). An employer the federal Fair Labor Standards Act (FLSA) covers must still meet the federal test to pay less than the federal minimum wage: more than $30 a month in tips (US DOL, tipped wages by state).

In a restaurant that usually means servers, bartenders, bussers and counter staff who serve customers, including baristas who get tips. Cooks and dishwashers usually aren't tipped employees. Only tips the employee actually receives count. If someone works two jobs, say a server who also works prep shifts, the tip credit applies only to the hours in the tipped job (DOL Fact Sheet #15).

What you must pay tipped staff in Nebraska

Servers, bartenders, bussers and baristas who get tips can be paid a lower cash wage, with part of their tips counted toward the minimum wage. That's the tip credit, and it comes with conditions:

  • Pay at least $2.13 an hour in cash wages. That's the $15.00 minimum wage minus the most you can credit from tips, $12.87 (Neb. minimum wage poster).
  • Cash wages plus tips must reach $15.00 for every hour worked, week by week. If tips fall short in a workweek, you pay the difference by the regular payday for that week (DOL Fact Sheet #15).
  • Tell them first. Before you take the tip credit, tell each tipped employee, in writing or out loud: the cash wage you pay, the tip credit you claim, that the credit can't be more than the tips they actually get, that they keep all their tips except through a valid tip pool, and that the credit doesn't apply unless you've told them all this (DOL Fact Sheet #15).
  • Overtime is figured on the full minimum wage. An overtime hour is worth 1.5 × $15.00 = $22.50. After the $12.87 tip credit, you pay at least $9.63 of it in cash wages (DOL Fact Sheet #15).

You don't have to take the tip credit. If you pay tipped staff the full $15.00 an hour, their tips are all on top, there's nothing to make up at the end of the week, and you can put kitchen staff in the tip pool (see below).

Because the cash wage is a fixed amount in the statute, every raise in the minimum wage makes the tip credit bigger, and so does the amount tips must cover before you owe anything extra. Nebraska also puts the burden of proof on the employer when it's unclear whether someone is paid by way of tips (Neb. minimum wage poster).

What you must pay non-tipped staff in Nebraska

Cooks, dishwashers, prep cooks, and cashiers or counter staff who don't get tips are paid like any other hourly employee:

  • At least $15.00 an hour for every hour worked (Neb. minimum wage poster). No tip credit applies.
  • The same goes for a tipped employee's hours in a non-tipped job, like a server's prep shift (DOL Fact Sheet #15).
  • Overtime is at least 1.5 times their regular rate for hours over 40 in a workweek. At $15.00 an hour, that's $22.50 (US DOL, overtime).
  • Can they share in the tip pool? Only if you take no tip credit and pay everyone in the pool at least the full minimum wage. If you take a tip credit, a pool you require can include only staff who customarily and regularly receive tips (US DOL, tips). Managers and supervisors can never take from the pool.

Worked examples (made-up numbers)

The names, hours and tips below are made up. The rates are Nebraska's as of March 4, 2026.

A server's week: when you have to top up

Sam is a server paid the $2.13 cash wage. He works 28 hours in each of two weeks: a busy one with $520.00 in tips and a slow one with $240.00.


Busy week

Slow week

Hours worked

28

28

Cash wages (28 × $2.13)

$59.64

$59.64

Tips received

$520.00

$240.00

Cash wages + tips

$579.64

$299.64

Minimum for the week (28 × $15.00)

$420.00

$420.00

You pay on top

$0.00

$120.36

In the slow week, $240.00 in tips covers only part of the $360.36 tip credit (28 × $12.87), so you pay the difference by the regular payday: $420.00 − $299.64 = $120.36. In the busy week you owe nothing extra, and every dollar of tips is still Sam's.

A cook's week with overtime

Ana is a line cook paid the Nebraska minimum wage, $15.00 an hour. Over five days she works 8, 9, 10, 9 and 8 hours: 44 hours in all.


Hours

Rate

Pay

Regular hours

40

$15.00

$600.00

Overtime hours (over 40)

4

$22.50 (1.5 × $15.00)

$90.00

Total

44


$690.00

Overtime is counted by the workweek, and hours can't be averaged across two weeks: a long week earns overtime even if the next one is short (US DOL, overtime). Bonuses can change the rate too; see Time clock, breaks and overtime: first-month payroll mistakes to avoid.

Tip pooling rules in Nebraska

No specific Nebraska rule found — federal rules apply (Neb. Rev. Stat. § 48-1203). Under federal law (US DOL, tips):

  • The business, its managers and supervisors never keep employees' tips. A manager can't take anything from a pool; they may keep only tips for service they directly and solely provide. An owner with a real stake who helps run the business counts as a manager too.
  • With a tip credit, a pool you require can include only staff who customarily and regularly receive tips: servers, bartenders, bussers, counter staff who serve customers.
  • Without a tip credit, when everyone in the pool gets at least the full minimum wage, you can include cooks and dishwashers.
  • Card fees: you may reduce a card tip by the percentage the card company actually charges you, and no more (DOL Fact Sheet #15).
  • Service charges aren't tips. Money you share with staff from a mandatory service charge is wages, and it counts in the regular rate for overtime (DOL Fact Sheet #15).
  • Pay pooled tips out by the regular payday for the week or pay period (DOL Fact Sheet #15).

How to split a pool fairly, with a worked example: Tip pooling for new restaurant owners.

Overtime in Nebraska

Nebraska has no overtime law of its own (Neb. DOL, labor standards FAQ), so the federal rule applies: non-exempt employees get at least 1.5 times their regular rate for hours over 40 in a workweek (US DOL, overtime).

A workweek is any fixed, recurring stretch of seven days that you choose, and hours can't be averaged across two weeks. There's no daily overtime, no double time and no seventh-day premium under Nebraska or federal law, and weekend or holiday hours don't earn a premium by law.

For tipped staff, overtime is figured on the full minimum wage, not the cash wage (see the tipped section above).

Breaks in Nebraska

  • Meal breaks: No specific Nebraska rule found — federal rules apply (Neb. Rev. Stat. § 48-212). The FLSA does not require meal periods. A bona fide meal period (typically 30+ minutes) is not work time (US DOL, breaks).
  • Rest breaks: No specific Nebraska rule found — federal rules apply (Neb. DOL, lunch periods). The FLSA does not require breaks. Short breaks an employer offers (about 5 to 20 minutes) are paid work time (US DOL, breaks).
  • Minors: No separate Nebraska rule for minors; the adult rules above apply to them too (Neb. Rev. Stat. § 48-310).

Other Nebraska rules that affect pay

  • Paid sick leave: Nebraska Healthy Families and Workplaces Act (2024 Initiative 436, amended by LB 415 in 2025). Accrue 1 h per 30 worked after 80 h of employment; up to 40 h/yr (11-19 employees) or 56 h/yr (20+). Unused time carries over with no maximum, but use can be capped at 40/56 h per year; employer may pay out in lieu of carryover. Excludes workers under 16, seasonal/temporary agricultural workers, and people working under 80 h/yr in NE (Neb. DOL, paid sick time FAQs).
  • Food handler training: A certified food protection manager is required, not a card for every employee. Who: the person in charge must be a certified food protection manager (via adopted FDA Food Code 2-102.12) (Neb. Rev. Stat. § 81-2,244.01).
  • By employer size. A business with 11 to 19 employees provides at least 40 hours a year, and one with 20 or more at least 56. Unused hours carry over, but they don't have to be paid out when someone leaves (Neb. DOL, paid sick time FAQs).
  • On the paycheck. Each employee's available sick time is recorded on, or attached to, their regular paycheck (Neb. Rev. Stat. § 48-3806).

Paydays, final pay and deductions

  • Paydays. Pay on regular paydays, and give 30 days' written notice before you change them (Neb. Rev. Stat. § 48-1230).
  • Final pay. Someone who leaves, whether they quit or are let go, is paid by the next regular payday or within two weeks, whichever comes first (Neb. DOL, wages; Neb. Rev. Stat. § 48-1230).
  • Deductions. Anything beyond taxes and court orders, such as shortages, breakage or uniforms, needs the employee's written authorization, and it can't take their pay below the minimum wage (Neb. DOL, labor standards FAQ).
  • Unpaid wages cost more. When an employee wins a judgment for unpaid wages, the employer can also be made to pay an amount equal to it, or twice the unpaid wages if the nonpayment was willful, and that money goes to the state, not the employee (Neb. Rev. Stat. § 48-1232).

Teenagers, alcohol and food handlers

Local rates in Nebraska

We found no Nebraska city or county with its own minimum wage, so the state figures apply across Nebraska.

How Mays helps

Mays runs the schedule, time clock, tip pool and payroll export for each location. For Nebraska pay rules, that means:

  • Positions and wages. Give each position a default hourly wage, for example the tipped cash wage for servers and at least the minimum wage for cooks. Turn on Labor law compliance and Mays looks up each location's minimum wage from its address and warns you when a position's default wage, someone's hourly wage or a punch is below it, comparing tipped positions with the tipped cash wage when it has that figure. It never blocks the save. The rate for January 1, 2027 isn't published yet; once Mays has it, admins get a reminder 30 and 7 days before.
  • A tip pool per location. Split pooled tips by hours worked, equally or by FTAR score, per pay period or day by day, and choose which positions receive. Until you pick positions under Who receives, the positions marked Tipped share the tips; if no position is marked, everyone who worked does, cooks included. So if you take a tip credit, tick Tipped position only on positions whose staff get tips, or pick them yourself. A punch with no position counts under its shift's position, or else the person's primary or only position at that location; with neither, its hours get no share, and the tip pool card shows how many punches that leaves out. Leave managers and admins out of the pool is on by default, so leave it on. The tips come from your connected POS at that location (Square or Union) or from tips synced with 7shifts time punches, and each person's share appears in the Tip Payouts report and the payroll export. If you take your card processor's fee out of card tips, turn on Labor law compliance and Deduct the card processing fee from card tips: Mays deducts only your processor's percentage, split in proportion to each person's card tips, and shows it on the pay period and in the export.
  • The tip-credit make-up is yours to check. Mays doesn't compare a tipped employee's cash wages plus tips with the minimum wage, so check each workweek the way the server example above does.
  • Time clock and timesheets. Staff clock in on their phone, a shared kiosk or an NFC tag. Timesheets run by pay period. Overtime is counted by the workweek, and with Labor law compliance on, by any daily, double-time and seventh-day rule the location's state sets too, which Mays reads from its address; the schedule's labor cost, the reports and the pay summary all include it.
  • Payroll export. A standard CSV or a Gusto-format CSV with regular and overtime hours and pooled tips for each employee. A card surcharge you share with staff goes in as wages, not tips.
  • Food protection manager certificate. Turn on Labor law compliance and keep your certified manager's certificate in Mays with its expiry date. Each location shows whether someone there holds a valid one, and Mays reminds them and their managers before it expires.
  • Paid sick time. With Labor law compliance on, the Sick category under Scheduling → Settings → Time off & PTO accrual shows Nebraska's rules for each location, and Apply these rules fills them in: at least one hour for every 30 worked, Nebraska's yearly limits on earning and using sick time, and no limit on carryover. Everyone who works hours earns it from approved punches, managers included, and History next to each person's balance lists every hour earned and used. The limits shown are the ones for employers with 20 or more employees, so a smaller employer lowers them to its own, and Mays doesn't hold back the first 80 hours, so check that against the law.

Sources

Every figure on this page comes from these official pages, as they read on the date shown.

This page is general information, not legal advice. Laws change, and coverage rules (your business's size, whether federal law covers you) decide which of them apply. Check the pages above, and ask an employment lawyer or accountant about your situation.

Run Nebraska payroll on the right numbers

Set each position's wage, turn on the tip pool with managers left out, and let the time clock count overtime by the workweek. Then payroll is an export, not an evening.

Start your free trial: 30 days, every module, no card needed. Setting up a tip pool? Read Tip pooling for new restaurant owners.