Nebraska's tipped wage remains $2.13 cash, with a $15.00 effective floor.
Despite the recent state minimum wage increase to $15.00 per hour, Nebraska's cash wage for tipped employees remains tied to the federal standard of $2.13. Employers must ensure that the combination of this cash wage and received tips totals at least the full state minimum wage of $15.00 per hour for all hours worked. This policy applies to employees who regularly receive more than $30 per month in tips.
Nebraska tipped wage at $2.13 (federal default)
Initiative 433 did NOT raise tipped wage. $2.13 cash + tip credit reaching $15.00. Workers earning $30+/month in tips qualify as tipped employees. Per Mays v. Midnite Dreams, employer not required to notify worker of tipped designation if tips sufficient.
What those rules do as a Nebraska shift is created.
Teambridge's engine continuously monitors and applies Nebraska's tipped wage rules, ensuring every shift is compliant with the state's unique requirements, especially in light of the recent minimum wage increases.
Prevent wage shortfalls
Before a shift is even completed, Teambridge projects potential tip shortfalls against the $15.00 state minimum wage, alerting you to any necessary employer contributions to meet the legal floor.
Verify tip eligibility
Teambridge automatically identifies employees who meet the federal "regularly receives more than $30 per month in tips" threshold, ensuring they are correctly designated as tipped employees for wage calculation purposes.
Flag tip pool violations
While Nebraska allows tip pooling, Teambridge monitors for impermissible tip pool participants (e.g., managers, non-tipped staff) and flags potential violations to prevent misdistribution and legal exposure.
Compliance, on autopilot.
See how Teambridge eliminates compliance risk and administrative burden in Nebraska.
Nebraska's tipped minimum wage is $2.13 per hour, with a state minimum wage floor of $15.00.
Nebraska law permits employers to pay tipped employees a cash wage of $2.13 per hour, provided that the employee's tips, when combined with this cash wage, equal at least the state minimum wage of $15.00 per hour. If the combination does not reach $15.00, the employer must make up the difference. Employees who customarily and regularly receive more than $30 per month in tips are considered tipped employees.
Nebraska Revised Statutes § 48-1203(1) and (2)
"(1) Every employer shall pay to each of his or her employees wages at the rate of: (a) Not less than nine dollars per hour through December 31, 2022; (b) Not less than ten dollars fifty cents per hour from January 1, 2023, through December 31, 2023; (c) Not less than twelve dollars per hour from January 1, 2024, through December 31, 2024; (d) Not less than fourteen dollars per hour from January 1, 2025, through December 31, 2025; and (e) Not less than fifteen dollars per hour from January 1, 2026, and each year thereafter, the minimum wage rate shall be indexed to the cost of living as measured by the Consumer Price Index for All Urban Consumers (CPI-U), Midwest Region, as published by the Bureau of Labor Statistics of the United States Department of Labor."
"(2) Notwithstanding subsection (1) of this section, an employer may pay an employee engaged in an occupation in which he or she customarily and regularly receives more than thirty dollars per month in tips a minimum wage of two dollars and thirteen cents per hour. The employer shall be entitled to a tip credit equal to the difference between the minimum wage prescribed in subsection (1) of this section and two dollars and thirteen cents per hour. If an employee's tips combined with the employer's cash wage of two dollars and thirteen cents per hour do not equal the minimum wage prescribed in subsection (1) of this section, the employer shall make up the difference."
Employer Obligations for Tipped Employees
Employers in Nebraska must track tips received by employees to ensure compliance with the state's minimum wage floor. If an employee's tips, when added to the $2.13 cash wage, do not reach the current state minimum wage of $15.00 per hour for all hours worked in a pay period, the employer is legally obligated to pay the difference. There is no requirement for employers to notify employees of their tipped designation if their tips are sufficient to meet the minimum wage, as established by the Nebraska Supreme Court in Mays v. Midnite Dreams, Inc., 295 Neb. 544 (2016).
Impact of Initiative 433
Initiative 433, passed in 2022, significantly increased Nebraska's general minimum wage, culminating in a $15.00 per hour rate effective January 1, 2026. However, this initiative specifically preserved the federal tipped minimum wage rate of $2.13 per hour, maintaining the existing tip credit structure. The key change for employers of tipped staff is the increased effective floor of $15.00 per hour that must be met through cash wages and tips combined.
Teambridge ensures Nebraska's tipped wage laws are always met.
Teambridge's platform is built to navigate the complexities of Nebraska's wage and hour rules, especially for tipped employees, ensuring your business remains compliant without manual oversight.
Automatic minimum wage reconciliation
Teambridge continuously monitors tip earnings against hours worked, automatically calculating any necessary employer contributions to bring a tipped employee's total hourly rate up to Nebraska's $15.00 minimum wage.
Accurate classification and record-keeping
Our system identifies employees who consistently meet the $30/month tip threshold, ensuring they are correctly classified and that all wage calculations leverage the permissible tip credit, without requiring explicit employer notification per state precedent.
Fair and compliant tip distribution
For businesses utilizing tip pools, Teambridge helps configure and enforce compliant distribution rules, preventing ineligible participants from receiving shares and flagging any potential misallocations.
Comprehensive wage and tip documentation
All wage, tip, and tip credit data is meticulously recorded and formatted into easily accessible reports, providing an unassailable audit trail for any state or federal inquiry.
People also ask.
What is Nebraska's cash wage for tipped employees?
Nebraska's cash wage for tipped employees is $2.13 per hour, mirroring the federal standard. Employers must ensure that, when combined with tips, this rate reaches the full state minimum wage.
What is the effective minimum wage floor for tipped employees in Nebraska?
As of January 1, 2026, the effective minimum wage floor for tipped employees in Nebraska is $15.00 per hour. The employer must make up any difference if the $2.13 cash wage plus tips does not reach this amount.
Did Initiative 433 change Nebraska's tipped wage?
Initiative 433 significantly increased Nebraska's general minimum wage but did NOT change the cash wage for tipped employees, which remains $2.13 per hour. It did, however, raise the minimum wage floor that tipped employees' combined wages must meet.
Who qualifies as a tipped employee in Nebraska?
An employee qualifies as a tipped employee in Nebraska if they customarily and regularly receive more than $30 per month in tips.
Is an employer required to notify an employee of their tipped status in Nebraska?
No. According to the Nebraska Supreme Court decision in Mays v. Midnite Dreams, Inc., an employer is not required to notify an employee of their tipped designation if their tips are sufficient to meet the minimum wage requirements.
Are tip pools allowed in Nebraska?
Yes, Nebraska generally allows tip pooling. However, only employees who customarily and regularly receive tips may participate in a mandatory tip pool. Managers, supervisors, and non-tipped back-of-house staff cannot participate.