Nebraska minimum wage to increase to $10.50 starting Jan. 1

Nebraska's minimum wage will start at $10.50 starting Sunday.
Published: Dec. 27, 2022 at 11:52 AM CST|Updated: Dec. 27, 2022 at 12:07 PM CST
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LINCOLN, Neb. (WOWT) - Nebraska’s minimum wage will increase annually until 2026 after voters passed an initiative in November.

Initiative 433, which is a plan to gradually raise the state’s minimum wage to $15 an hour in 2026, passed with 59% of the vote.

The state’s current minimum wage is $9 an hour and will increase by $1.50 each year on Jan. 1. It will raise to $10.50 in 2023, $12 in 2024, $13.50 in 2025, and $15 in 2026. It will then be followed by annual cost of living adjustments.

Current minimum wage workers will see their bi-weekly pay rise from roughly $720 to $840 - an increase of $3,120 per year.

Many states will have minimum wages of $15 an hour or higher by 2026, including California, Connecticut, Delaware, Florida, Hawaii, Illinois, Maryland, Massachusetts, New Jersey, New York, Rhode Island, and Washington State.

Neighboring Iowa and Kansas have minimum wages of $7.25 an hour.

Nebraska Business for a Fair Minimum Wage, which is a coalition of more than 300 businesses, strongly supported the initiative.

“Nebraska voters passed a $15 minimum wage in November and we’re looking forward to the first step toward $15 in January,” said Dave Titterington, owner of Wild Bird Habitat Stores in Lincoln and Omaha.” It will bring a better new year for workers and businesses. We know from experience that paying employees a living wage increases productivity and brings us happier employees and happier customers. And raising the minimum wage will increase spending at local businesses across Nebraska.”

Raise the Wage Nebraska, which is the organization behind the petition to put the minimum wage increase on the ballot, claimed that increasing the state’s minimum hourly wage will benefit nearly 150,000 workers.