Wage Laws

• Nebraska's minimum wage is $7.25 per hour as of 2011, the same as the federal minimum. Employers that have at least four employees must pay their employees at least that wage. Employers can pay employees who are under age 20 a rate of 75 percent of the state minimum wage during a probationary 90-day period. After 90 days, employers must pay these employees at least minimum wage. Nebraska allows employers to deduct shortages from their employees' paychecks for cash drawer discrepancies, equipment costs, trade tools and uniform costs, if their employees provide them with written consent allowing those deductions. However, employers may not deduct wages if doing so would reduce their employees' hourly wages below the state or federal minimum wage.
  
  

Differences From Federal Law

• Under the federal overtime law, employers must pay their employees overtime wages for hours exceeding a 40-hour workweek. However, since the federal overtime law covers only employers that gross over $500,000 of annual profits, state and local governments and health care and educational institutions, small non-health care or educational industry employers in Nebraska may not have to comply with the federal overtime regulations. Additionally, the federal labor law exempts some employees, such as administrative professionals, from the overtime entitlements.
  
  

Fringe Benefits

• Neither federal law nor state law requires employers to pay their employees for time not worked. Employers do not have to provide paid sick leave, holiday pay or vacation pay. Employers may voluntarily provide fringe benefits to their employees through written agreements or personnel policies. When employers provide fringe benefits to their employees, they must pay their employees all accrued vacation pay upon termination of employment.
  
  

Break Laws

• Nebraska does not require employers to provide paid or unpaid rest breaks during the workday. However, under the federal labor laws, employers that voluntarily allow their employees to exercise rest breaks throughout the workday must pay them for their entire break periods if they do not exceed 20 minutes. Nebraska requires employees who work in mechanical or assembly plants to take one 30-minute lunch break during the workday. The Department of Labor does not require employers to provide paid meal breaks exceeding 30 minutes.
  
  

Final Paychecks

• Under Nebraska law, employers must provide their discharged employees and employees who voluntarily terminate employment with their last paychecks by the regular pay date not exceeding two weeks of the last date of employment. Last paychecks must include all final wages for standard work hours and overtime work hours. If provided, employers must also include all accrued vacation pay in their final wages.
  
  

Considerations

• Since employment laws can frequently change, do not use this information as a substitute for legal advice. Seek advice through an attorney licensed to practice law in your jurisdiction.