Overtime Laws in Nebraska

As of January 1, 2025, Nebraska’s minimum wage increased to $13.50 per hour, up from $12.00 per hour in 2024. For tipped employees, the minimum hourly cash wage remains $2.13, with the combined total of wages and tips required to meet or exceed the standard minimum wage. 

Additionally, Nebraska follows the federal Fair Labor Standards Act (FLSA) for overtime regulations, meaning overtime is due at 1.5× the regular rate of pay for any hours worked over 40 in a workweek. There are no daily overtime requirements in Nebraska.

Employers must ensure employees are accurately classified as exempt or non-exempt and maintain proper records of hours worked and wages paid.

The table below summarizes the key updates relevant to overtime calculations:

These changes mean overtime rules cover more employees, especially those previously classified as exempt under federal standards but who do not meet the duties test.

Overview of Nebraska Overtime Laws

Nebraska’s overtime law is based on the federal Fair Labor Standards Act (FLSA). Key points in 2025 include:

• Weekly Overtime Requirement: Overtime pay is due at 1.5× the regular rate of pay for any hours worked over 40 in a workweek.
  
• No Daily Overtime: Nebraska does not require overtime after a set number of daily hours.
  
• Exemption Criteria: Employees must meet the FLSA’s salary basis, salary threshold, and duties tests to qualify for exemptions.
  
• Employer Coverage: All employers in Nebraska must comply with wage and hour laws.

This framework provides protections for employees in various industries, including retail, hospitality, and healthcare.

Eligibility for Overtime

Overtime eligibility in Nebraska depends on employee classification, duties, and pay level.

• Nonexempt workers: Most employees are nonexempt and must be paid overtime for hours over 40 per week. This includes hourly workers, tipped staff, and most salaried employees who do not meet exemption criteria.
• Exempt workers: Must meet all three FLSA tests to qualify for exemption.
• Common exempt categories: Executives, administrators, professionals.

Tipped Employees

Tipped workers (e.g., restaurant servers) must earn at least $2.13 per hour in direct wages. When tips are added, their total pay must equal at least $13.50 per hour. Overtime for tipped workers is based on the full minimum wage, not just the base wage.

Special Cases

Certain employees may be exempt under specific conditions:

• Outside Salespersons: Exempt if their duties meet federal definitions.
  
• Certain Computer Professionals: If compensated at or above the threshold and performing qualifying duties.
  
• Farmworkers and Seasonal Employees: May be exempt in limited circumstances defined by federal law.

Nebraska vs. Federal Overtime Rules

Nebraska follows federal FLSA guidelines for overtime. Employers must apply whichever standard benefits the employee most.

This means a salaried employee making $40,000 annually would be exempt under federal law but non-exempt in Nebraska, thus entitled to overtime.

Exemptions in Nebraska

Nebraska recognizes exemptions for:

• Executive Employees: Primarily manage the enterprise, supervise at least two employees, and exercise independent judgment.
  
• Administrative Employees: Perform office or non-manual work directly related to management or general business operations.
  
• Professional Employees: Work requiring advanced knowledge, such as lawyers, doctors, or teachers.
  
• Outside Salespersons: Work primarily outside the employer’s place of business, making sales.
  
• Certain Computer Professionals: If compensated at or above the threshold and performing qualifying duties.

Importantly, job title alone is not sufficient. Both the duties and salary tests must be met.

Employer Obligations and Employee Rights

Employers must comply with clear rules about employee classification, recordkeeping, and timely payment of overtime. Below are key employer obligations and employee rights to ensure fair treatment and legal compliance in Nebraska.

• Classification:  Employers must correctly classify employees as exempt or non-exempt.
• Overtime Pay: Non-exempt employees are entitled to 1.5× their regular rate of pay for hours over 40 in a workweek.
• Recordkeeping: Employers must keep accurate records and provide detailed wage statements.
• Timely Payment: Overtime pay must be included in the next regular paycheck.
• Complaint Rights:  Employees can file complaints with the Nebraska Department of Labor for unpaid overtime.
• Protection & Penalties: Employees are protected from retaliation; violations may result in back wages, penalties, and attorney fees.