Nebraska's LB 258 introduces youth and training wage provisions effective July 1, 2026.
Legislative Bill 258 significantly alters Nebraska's minimum wage landscape by creating a sub-minimum training wage for young workers and establishing a new indexing method for future minimum wage adjustments. These changes aim to support youth employment and provide a structured approach to wage increases following the voter-approved Initiative 433 schedule.
LB 258 Youth & Training Wages
Establishes sub-minimum training wage for workers under 20 and new minimum wage indexing.
What those rules do as a Nebraska shift is created.
Teambridge automatically applies the correct wage rates based on employee age, employment duration, and the current minimum wage. Our system ensures compliance with both the new training wage provisions and the upcoming indexing method.
Youth Wage Application
When an employee under 20 years old is onboarded, Teambridge automatically flags their profile. For their first 90 calendar days of employment, their hourly rate is set to the federal training wage equivalent (75% of federal minimum, currently $5.44/hr), ensuring compliance from day one.
Automatic Wage Escalation
On the 91st calendar day of employment for eligible youth workers, Teambridge automatically escalates their wage to the prevailing Nebraska minimum wage, without any manual intervention required. This ensures timely and accurate pay adjustments.
Minimum Wage Indexing
Beginning January 1, 2027, Teambridge will incorporate the new minimum wage indexing calculation method (based on the Consumer Price Index for All Urban Consumers, Midwest Region, CPI-U Midwest) to automatically update the state minimum wage annually, ensuring future compliance.
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Nebraska LB 258 introduces youth training wages and new minimum wage indexing.
Effective July 1, 2026, Legislative Bill 258 amends Nebraska's minimum wage laws to allow a sub-minimum wage for certain young workers and establishes a new method for future minimum wage adjustments.
Nebraska Revised Statutes § 48-1203 (as amended by LB 258, 2025)
"Notwithstanding the minimum wage rates prescribed in section 48-1203, an employer may pay an employee who is under twenty years of age a training wage equal to seventy-five percent (75%) of the federal minimum wage for a period not to exceed ninety (90) calendar days from the date of initial employment. After the expiration of such ninety-day period, or upon the employee attaining twenty years of age, whichever occurs first, the employee shall be paid not less than the minimum wage rate otherwise applicable under this chapter."
"Beginning January 1, 2027, the minimum wage rate shall be annually adjusted by the percentage increase, if any, in the Consumer Price Index for All Urban Consumers, Midwest Region (CPI-U Midwest), as published by the Bureau of Labor Statistics of the United States Department of Labor for the most recent twelve-month period for which data are available, rounded to the nearest five cents ($0.05)."
Youth and Training Wage Provisions
Effective July 1, 2026, employers in Nebraska may pay a training wage to employees who are under twenty (20) years of age. This training wage is set at 75% of the federal minimum wage, which currently equates to $5.44 per hour (75% of $7.25). This sub-minimum wage can be paid for a maximum duration of ninety (90) calendar days from the employee's initial date of employment. Once the 90-day period expires, or the employee turns 20 years old, whichever comes first, the employee must be paid at least the prevailing Nebraska minimum wage.
Minimum Wage Indexing
Starting January 1, 2027, Nebraska's state minimum wage will no longer be subject to fixed increases but will instead be indexed annually. The adjustment will be based on the percentage increase in the Consumer Price Index for All Urban Consumers, Midwest Region (CPI-U Midwest), as published by the Bureau of Labor Statistics. Any adjustments will be rounded to the nearest five cents ($0.05). This change ensures that the minimum wage will keep pace with inflation in the Midwest region following the final scheduled increase from Initiative 433 on January 1, 2026.
Teambridge ensures Nebraska's complex wage rules are applied without a second thought.
From initial onboarding to ongoing payroll, Teambridge automates the nuances of Nebraska's youth and training wage laws, keeping you compliant and your operations smooth.
Employee Age Verification
Upon employee onboarding, Teambridge securely verifies the employee's age. If the employee is under 20, the system automatically tags them for potential training wage eligibility.
Automated Training Wage
For eligible employees under 20, Teambridge automatically applies the correct training wage rate ($5.44/hr) for their first 90 calendar days. No manual calculation or tracking is needed.
Automatic Wage Increase
On the 91st calendar day of employment (or when the employee turns 20), Teambridge automatically adjusts the employee's wage to the current Nebraska minimum wage, eliminating the risk of underpayment.
Indexed Minimum Wage
Starting January 1, 2027, Teambridge will automatically update the Nebraska state minimum wage annually based on the CPI-U Midwest, ensuring your payroll always reflects the latest legal requirements.
People also ask.
What is the purpose of Nebraska's LB 258?
LB 258 serves two primary purposes: to allow employers to pay a sub-minimum training wage to young workers (under 20) for their initial 90 days of employment, and to establish a new indexing method for annual minimum wage adjustments starting January 1, 2027, based on the CPI-U Midwest.
When does the training wage provision take effect?
The youth and training wage provisions of LB 258 become effective on July 1, 2026.
How much is the training wage in Nebraska?
The training wage is set at 75% of the federal minimum wage. As of the effective date of LB 258, this rate is $5.44 per hour (75% of the current federal minimum wage of $7.25).
Who is eligible for the training wage?
Employees who are under 20 years of age are eligible for the training wage. This wage can only be paid for their first 90 calendar days of employment.
When does the new minimum wage indexing begin?
The new method for calculating annual minimum wage adjustments, based on the CPI-U Midwest, will begin on January 1, 2027.
How does LB 258 interact with Nebraska's $15 minimum wage?
LB 258 introduces a training wage that is below the $15 state minimum wage (effective Jan 1, 2026, due to Initiative 433). After the 90-day training period, or when the employee turns 20, the employee must be paid at least the prevailing Nebraska minimum wage, which will be $15.00/hour as of Jan 1, 2026, and then indexed annually thereafter.