Compliance Watch:

What are my rights as an hourly employee in Nebraska?

To learn more about Nebraska labor laws, you can access our informative guides on understanding salaried employee rights in Nebraska and how to run payroll in Nebraska.

Minimum wage is defined as the lowest monetary compensation a person can receive for each hour they work. While federal wage rules are regulated by the Fair Labor Standards Act, individual states possess the freedom to implement their own minimum hourly wage rates, which can be higher than the federal required minimum. Nebraska, in this regard, is one of the states that has set the minimum wage to be higher than the federal minimum wage requirement.

As of January 1st, 2024, Nebraska’s minimum wage laws have fixed its minimum wage at $12.00 per hour. The minimum wage is scheduled to increase annually in light of the rise of inflationary pressures.

The state of Nebraska adheres to the overtime regulations outlined in the Fair Labor Standards Act (FLSA). According to the federal overtime rules, any hours worked beyond 40 hours in a week are considered ‘overtime’, and employees are entitled to earn compensation at a rate of 1.5 times their regular hourly pay for each hour worked in excess. However, working on weekends and rest days does not require compensation unless an employer specifically demands an employee to work on these days under exceptional circumstances.

It is worth acknowledging that employees working in certain occupations are not eligible to earn the minimum wage and overtime pay in the state, according to Nebrasaka’s statutory laws. These excluded employees comprise the following:

• Tipped Employees: Employees who earn tips may receive a lower minimum hourly pay of  $2.13 per hour, this is provided that the tips combined with the hourly pay amount to the state’s minimum hourly wage of $12.
• Full-time students: High school or college students who work part-time may receive a minimum hourly pay of $10.20 per hour, which is 85% of the state’s minimum hourly wage, for up to 20 hours of work in a given week.
• Employees below the age of 20 years: According to federal law, employees below the age of 20 can earn a minimum hourly pay of $4.25 within the first 90 days of employment. After 90 days, they must earn the state’s minimum hourly wage.

Other job categories that are exempt from minimum wage and overtime pay include:

• White-collar employees (i.e. bona fide executives, administrative workers, and professionals).
• Outside salesmen.
• Computer professional employees.
• Administrative, executive, or professional employees.
• Agricultural employees.
• Employees working as babysitters in or about a private home.
• Employees working as superintendents or supervisors.
• Employees hired by the United States, the state, or any political subdivision thereof.
• Employees working as volunteers for educational, charitable, religious, or nonprofit organizations.
• Veterans in training under the supervision of the United States Department of Veterans Affairs.
• Children in the employment of their parent or parents in the employment of their child.

In Nebraska, employees are given specific rights and protections through both federal and state laws about leaves of absence. These laws are designed to ensure that employees can take time away from work for various reasons without jeopardizing their employment. The leave of absence laws in Nebraska aim to assist and safeguard employees who need time off from work because of family emergencies, personal health matters, pregnancy, or tending to a new child.

Nebraska’s labor laws offer a variety of leaves of absence to accommodate the employee’s particular needs for taking time off. Some of the key laws governing leave of absence in Nebraska encompass:

• Jury duty leave: Unlike other U.S. states, employees must be compensated by their employers for the time they have spent serving on a jury. 
• Voting time leave: Employees must be given 2 hours of paid time off to vote in an election if they do not have sufficient time to vote while off duty. Furthermore, an employee must give notice of their leave in advance of election day and cannot have their income deducted for taking leave.
• Military leave: In Nebraska, employees who are members of the reserves or National Guard must be given 120 hours worth of paid military leave every year.
• Family military leave: In Nebraska, employees hired by employers with 15 or more employees have the right to take family military leave. To qualify for this leave, employees must meet specific requirements. They must be the parent or spouse of an individual called to active duty for more than 179 days, have completed at least 12 months of service with the same employer before the leave starts, and have worked at least 1,250 hours in the 12 months prior to taking the leave. If an employee requests leave lasting more than five days, the employer may ask for a minimum of 14 days’ notice. During this leave, employees can maintain their health benefits at their own expense. The duration of the leave may vary depending on the employer’s size: those with 15 to 50 employees are required to provide up to 15 days of leave, while employers with more than 50 employees must provide up to 30 days of leave.
• Family and medical leave: The Family and Medical Leave Act (FMLA) is a federal legislation that offers eligible employees the legal right to take up to 12 weeks of unpaid, job-protected leave each year for particular family or serious health-related reasons. To become eligible for this leave, employees must meet the following criteria:
  1. They must have completed a minimum of 12 months of continuous service with the same employer before using this leave.
  2. They must have worked at least 1,250 hours over the 12-month period while employed by the same employer.
  3. Employment must be with an employer having at least 50 employees located within a 75-mile radius.

As an hourly employee, it is imperative to remain aware of your employment rights and compensation benefits throughout your tenure. Below is a list of the diverse employment benefits available to you in Nebraska:

• Minimum wage: Employees in Nebraska are legally entitled to earn the state’s minimum hourly wage of $12.00 according to the state’s wage and hour laws.
• Overtime: The federal overtime laws mandate employers to pay non-exempt employees 1.5 times their standard hourly wage for any hours worked more than 40 hours a week.
• Worker’s compensation insurance: As per Nebraska’s Workers’ Compensation Act, employees hired by employers in the construction industry or those with three or more employees are eligible to receive several kinds of benefits under the Act when they sustain work-related injuries or illnesses arising out of and in the course of their employment. Furthermore, employees must immediately report any injuries they have sustained in a prompt manner to prevent a denial of their benefits.
• Unemployment insurance benefits: Unemployment insurance benefits provide temporary income to individuals who have lost employment through no fault of their own. These benefits are meant to partially offset the loss of wage as the unemployed worker searches for new career opportunities or await to be recalled by their employer. In addition, nothing is deducted from an employee’s income to cover this insurance.
• Extended health insurance benefits: COBRA is a federal law that permits many employees to lengthen their healthcare benefits post-employment. Because federal COBRA applies only to employers with at least 20 or more employees, some states have implemented their type of COBRAs, generally termed “mini-COBRAs.” Nebraska’s mini-COBRA extends coverage for up to 6 months and requires employers to send their employees a detailed COBRA notice by certified mail within 10 days from the employee’s last working day.

Federal and state authorities have implemented a range of legislations intended to protect employees from an array of workplace inequalities. These laws address matters concerning health and safety, discrimination, the reporting of misconduct, and various other issues. The following compilation outlines the key legal provisions that ensure the protection of your rights and well-being during your employment.

• Whistleblower protection laws: Nebraska’s labor laws protect employees from being retaliated against by their employers for reporting illegal workplace practices done by the employer. This safeguard does not apply to complaints raised by an employee concerning actions carried out by other employees.
• Right-to-work protection laws: Nebraska is a right-to-work state, which means employees are granted the freedom to abstain from joining or supporting unions, choose their representatives for collective bargaining, and engage in legal collective activities for mutual aid and protection. Employers cannot make employment decisions or agreements based on the individual’s union membership or lack thereof.
• Child labor protection laws: In summary, Nebraska’s child labor laws safeguard the health and well-being of employed minors in various job settings. These laws involve restrictions on the types of occupations minors can work in, the places where they can work, the hours they are allowed to work, and the minimum age for employment.
• Anti-discrimination protection laws: According to federal law, it is unlawful for an employer to engage in discrimination related to various characteristics, including race, color, age, gender, sexual orientation, gender identity, religion, national origin, pregnancy, genetic information, disability, child or spousal support withholding, military or veteran status, and citizenship/immigration status. In addition to this, Nebraska also forbids employers from discriminating against employees based on their marital status and whether they have AIDS/HIV.

Severance pay, a type of monetary compensation offered by employers to departing employees, plays a fundamental role in financially supporting individuals as they transition from one job to another and seek new job opportunities. The specific amount is typically calculated based on the employee’s tenure with the company, often equating to one week’s salary for every year worked.

While severance pay is an advantageous employment benefit, federal and state laws do not mandate its provision. Instead, it hinges on mutual agreement between the employer and the employee. Hence, if the employment contract or a collective bargaining agreement explicitly obligates the provision of severance pay, the employer is mandated to make such payments to avoid potential breach of contract lawsuits filed against them.