Minimum wage in Nebraska is increasing to $12 an hour starting Jan. 1, 2024, after a November 2022 vote. But wages for tipped workers remain stagnant at $2.13 per hour.State Sen. Megan Hunt of Omaha proposed legislation in years past to tie tipped workers to the minimum wage. She says hearings and research showed some employers were not making up the difference to give employees minimum wage."A lot of workers in Nebraska experienced wage theft, (and didn't) get paid the full amount that they're entitled to as workers," Hunt said. The minimum wage will increase to $13.50 per hour in 2025 and $15 per hour in 2026. Minimum wage will increase in 2027 based on the cost-of-living increase as measured by the Consumer Price Index to keep up with the cost of living."A living wage is important," Homer's general manager Mike Fratt said.He says his Old Market record store employs people who are young, single and still in college."Many of them are in a roommate situation, so they're not trying to make it completely on their own on a $12 an hour minimum wage," Fratt said.Other business owners like RAYGUN are more outspoken about the increase."I think the minimum wage is the fastest way to put more spending power in people's hands without having to rely on different programs or wealth distribution," RAYGUN owner Mike Draper said.The clothing business is based in Iowa, where the state still follows the federal minimum wage of $7.25 per hour."I think in Iowa, if the people actually had a say, the minimum wage would go up," Draper said.Small businesses like RAYGUN say the increase will boost consumer spending and improve employee hiring, retention, productivity, and customer service.Click here for the latest headlines from KETV NewsWatch 7
Minimum wage in Nebraska is increasing to $12 an hour starting Jan. 1, 2024, after a November 2022 vote. But wages for tipped workers remain stagnant at $2.13 per hour.
State Sen. Megan Hunt of Omaha proposed legislation in years past to tie tipped workers to the minimum wage. She says hearings and research showed some employers were not making up the difference to give employees minimum wage.
"A lot of workers in Nebraska experienced wage theft, (and didn't) get paid the full amount that they're entitled to as workers," Hunt said.
The minimum wage will increase to $13.50 per hour in 2025 and $15 per hour in 2026. Minimum wage will increase in 2027 based on the cost-of-living increase as measured by the Consumer Price Index to keep up with the cost of living.
"A living wage is important," Homer's general manager Mike Fratt said.
He says his Old Market record store employs people who are young, single and still in college.
"Many of them are in a roommate situation, so they're not trying to make it completely on their own on a $12 an hour minimum wage," Fratt said.
Other business owners like RAYGUN are more outspoken about the increase.
"I think the minimum wage is the fastest way to put more spending power in people's hands without having to rely on different programs or wealth distribution," RAYGUN owner Mike Draper said.
The clothing business is based in Iowa, where the state still follows the federal minimum wage of $7.25 per hour.
"I think in Iowa, if the people actually had a say, the minimum wage would go up," Draper said.
Small businesses like RAYGUN say the increase will boost consumer spending and improve employee hiring, retention, productivity, and customer service.
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2024 means $12 minimum wage in Nebraska, but no change for tipped employees - KETV Omaha
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