How do you calculate overtime pay in Nebraska?

April 25th 2025

Overtime rules in Nebraska are guided mainly by the federal Fair Labor Standards Act (FLSA) along with state overtime laws.

This article explains Nebraska’s overtime rules, including which laws apply, how a workweek is defined, and how to calculate overtime for different pay types— be it hourly, salaried, piece rate, or flat rate. It also covers who qualifies for overtime, who is exempt, and how factors like multiple pay rates or paid time off affect calculations.

This Article Covers:

Understanding Overtime in Nebraska
Overtime for Hourly Rate, Two or More Hourly Rates, and Salaried Employees in Nebraska
Overtime for Complex Pay Structures in Nebraska
Additional Considerations for Nebraska Overtime

Understanding Overtime in Nebraska

Which Overtime Laws Apply in Nebraska?

In Nebraska, overtime pay is primarily governed by the federal Fair Labor Standards Act (FLSA).

Under the FLSA, non-exempt employees must receive overtime pay at 1.5 times their regular hourly rate for any hours worked over 40 in a single workweek.

While Nebraska does not have a specific state law mandating overtime pay, the Nebraska Wage Payment and Collection Act provides a framework for wage-related disputes. This state law allows employees to claim unpaid wages, including overtime, if there was a prior agreement between the employer and employee regarding such compensation.​

What is the Regular Rate of Pay in Nebraska?

The “regular rate” of pay in Nebraska refers to the hourly wage an employee earns for their standard, non-overtime workweek. This includes everything from hourly wages, salaries, commissions, and certain bonuses unless excluded by law.

To compute the regular rate of pay:

Regular Rate for the workweek = Total compensation in the workweek (except for statutory exclusions) ÷ Total hours worked in the workweek

How Do You Define a Workweek in Nebraska?

In Nebraska, a workweek is a fixed, recurring period of seven consecutive 24-hour days. Employers have the flexibility to define when the workweek begins, such as starting on a Friday at 12:00 a.m. and ending the following Thursday at 11:59 p.m. Once established, this workweek must remain consistent for payroll and overtime purposes.

Supervisors typically set employee work schedules, and any changes to those schedules should be communicated in writing. For full-time employees, the expectation is to account for at least 40 hours per workweek, either through worked hours or approved leave. Any leave used is deducted from the employee’s leave balance.

How Much is Overtime Pay in Nebraska?

Overtime pay in Nebraska is calculated at 1.5 times the employee’s regular hourly rate.

Given the current state minimum hourly wage of $13.50, this would put the minimum overtime pay in Nebraska at $20.25 per overtime hour worked beyond 40 in a workweek.

Who is Eligible for Overtime Pay in Nebraska?

In Nebraska, employees are classified as either exempt or nonexempt based on guidelines from the Fair Labor Standards Act (FLSA). This classification determines whether they are eligible for overtime pay.

  • Nonexempt employees are eligible for overtime. They must receive either compensatory time or pay at one and one-half times their regular rate for any hours worked over 40 in a workweek.
  • Exempt employees are not entitled to overtime. This group typically includes workers in professional, administrative, executive, supervisory, or certain computer-related roles who meet specific duties and salary requirements set by the FLSA.

Each job is reviewed and classified accordingly, and this status is usually outlined in the employee’s job description.

Who is Exempt from Overtime Pay in Nebraska?

In Nebraska, some employees may be exempt from receiving overtime pay if they work in a bona fide executive, administrative, or professional capacity. To qualify for this exemption, the following conditions must be met:

  1. Salary Basis – The employee must be paid a consistent salary, not based on the number of hours worked each week.
  2. Salary Threshold – The salary must meet or exceed the federal minimum, which is currently $684 per week (or $35,568 per year).
  3. Job Duties – The employee’s actual duties must fit the legal definition for the executive, administrative, or professional exemption under the Fair Labor Standards Act (FLSA).

If all three conditions are not met, the employee is likely entitled to overtime pay under Nebraska law.

Federal law also exempts other workers from overtime pay, including:

  • Aircraft salespeople
  • Airline employees
  • Amusement/recreational employees in national parks/forests/Wildlife Refuge System
  • Announcers, news editors, and chief engineers at major radio or TV stations
  • Babysitters on a casual basis
  • Boat salespeople
  • Buyers of agricultural products (poultry, egg, milk, etc.)
  • Companions for the elderly
  • Country elevator workers (rural)
  • Criminal investigators receiving availability pay
  • Domestic employees who live in
  • Domestic workers
  • Employees in national parks, amusement, or recreation facilities
  • Farm implement salespeople
  • Federal criminal investigators
  • Firefighters working in small (less than 5 firefighters) public fire departments
  • Fishing industry workers
  • Forestry employees of small (less than 9 employees) firms
  • Fruit & vegetable transportation employees
  • Government employees
  • Highly compensated employees earning at least $107,432 per year
  • Homeworkers making wreaths
  • House parents in non-profit educational institutions
  • Independent contractors (under specific conditions)
  • IT personnel earning at least $27.63 per hour
  • Livestock auction workers
  • Local delivery drivers and driver’s helpers
  • Lumber operations employees of small (less than 9 employees) firms
  • Motion picture theater employees
  • Newspaper delivery workers
  • Newspaper employees of limited circulation newspapers
  • Police officers working in small (less than 5 officers) public police departments
  • Radio station employees in small markets
  • Railroad employees
  • Seamen on American vessels
  • Seamen on other than American vessels
  • Sugar processing employees
  • Switchboard operators
  • Taxicab drivers
  • Television station employees in small markets
  • Truck and trailer salespeople
  • Volunteers in religious, non-profit, charitable, or educational organizations
  • Workers in maple syrup production
  • Youth employed as actors or performers
  • Youth employed by their parents

    Can Employers Mandate Overtime Work in Nebraska?

    Yes, employers in Nebraska can legally make overtime hours mandatory. It is within an employer’s right to assign work hours, including extra hours beyond the normal schedule.

    As long as nonexempt employees are paid the correct overtime rate for hours worked over 40 in a workweek, mandatory overtime is allowed.

    Overtime for Hourly Rate, Two or More Hourly Rates, and Salaried Employees in Nebraska

    How Do You Calculate Overtime for Hourly Employees in Nebraska?

    To understand overtime calculations for hourly employees in Nebraska, take the following example. 

    John is an hourly employee and earns $13.50 per hour. He has worked 47 hours in a specific week and is eligible to earn overtime pay. To determine his overtime wages, we can use the following steps:

    • Determine the regular rate of pay

    Since John earns $13.50.00 per hour, that would automatically be his regular rate of pay.
    • Calculate the overtime rate

    Multiply the regular pay rate by 1.5. John’s overtime rate would then be: ($13.50 x 1.5 = $20.25)
    • Identify overtime hours

    If John worked 47 hours in a week, his overtime hours would be seven: (47 hours – 40 hours = 7 overtime hours).
    • Calculate overtime pay

    Multiply the overtime hours by the overtime rate. From the example, John’s overtime pay would be a total of: (7 hours x $20.25 = $141.75).

    It’s important to note that the regular rate can change if the employee gets extra compensation or incentives during the week.

    Learn more about hourly employee rights in Nebraska.

    How Do You Calculate Overtime for Employees with Two or More Hourly Rates in Nebraska?

    To calculate overtime for an employee in Nebraska who has two or more hourly rates, you’ll first need to get their regular rate of pay. You can do so by adding up their total earnings for the week and dividing that by their total hours worked.

    For example, if an employee earns $705 in a week from two different hourly jobs and works 47 hours, here’s how you calculate their overtime pay:

    • Determine the regular pay rate

    Divide weekly earnings by the total hours worked. ($705 ÷ 47 = $15.00 per hour).
    • Calculate the overtime rate

    Multiply the regular pay rate by 1.5 to get the overtime rate. Here, the regular rate is $15.00, the overtime rate would be: ($15.00 x 1.5 = $22.50).
    • Identify the overtime hours

    As the employee worked 47 hours, their overtime hours would be seven (47 hours – 40 hours = 7 overtime hours).
    • Calculate the overtime pay

    Multiply the overtime rate by the overtime hours. In this example, the overtime pay would be ($22.50 x 7 hours = $157.50).

    How Do You Calculate Overtime for Salaried Employees in Nebraska?

    To calculate the overtime pay for salaried employees in Nebraska, you’ll first need to find their regular hourly rate. You can do so by dividing their weekly salary by the number of weekly hours it covers.

    For example, if an employee earns $525 for a 35-hour week, their regular rate would be: ($525 ÷ 35 hours = $15.00). Overtime pay is 1.5 times this rate for hours over 40.

    For salaries covering longer periods, it’s easier to calculate overtime if you convert them first to a weekly equivalent. You can do so by using the following formulas:

    For Monthly Salary:

    (Monthly Salary x 12) ÷ 52 

    For Semimonthly Salary:

    (Semimonthly Salary x 24) ÷ 52 

    For example, a monthly salary of $2,800 (or a semimonthly salary of $1,400) for a 40-hour workweek would equate to an hourly rate of $16.15 per hour.

    Employers can also calculate the hourly rate by dividing the monthly salary by the number of workdays in the month and then by the hours in a typical workday. However, this rate must meet or exceed the minimum wage.

    Learn more about salaried employee rights in Nebraska.

    Overtime for Complex Pay Structures in Nebraska

    How Do You Calculate Overtime Pay for Piece Rate Employees in Nebraska?

    In Nebraska, if an employee is paid by the piece instead of by the hour, their regular hourly rate is calculated by adding up all their earnings for the week—including piece-rate pay, bonuses, and pay for waiting time—and then dividing that total by the number of hours they worked.

    For overtime, piece-rate workers are entitled to an extra half of their regular hourly rate for every hour worked beyond 40. This is in cases when the employee has already been paid their normal rate through piece work or other payments.

    For example, if an employee works 50 hours and earns $750 from piece work, their regular hourly rate would be $15.00 ($750 ÷ 50).

    For the 10 overtime hours, they get an extra $7.50 per hour, adding $75.00 to their total pay. Their final weekly earnings would then be:

    Total Regular Earnings + Overtime Pay = $825.00.

    How Do You Calculate Overtime for Flat Rate Employees in Nebraska?

    In Nebraska, a flat rate employee is paid a fixed amount to complete a specific task or job, regardless of the time it takes. In contrast, an hourly employee is paid based on the actual number of hours they work.

    For example, an employee earns $15.00 per hour for regular work and $22.50 per hour for overtime. If they are also paid a flat rate of $80.00 for completing a special task outside regular hours, this payment must be included in their total earnings when calculating overtime.

    With this in mind, if the employee works 46 hours in a week, their total earnings would amount to:

    Total Earnings =($15.00 x 40 Regular Working Hours) + ($22.50 x 6 Overtime Hours) + $80.00 Flat Rate for Special Task

    Total Earnings = $815.00

    Next, get the employee’s regular rate of pay by dividing the total weekly earnings by total weekly work hours.

    Regular Rate of Pay = $815/ 46 = $17.72

    To calculate overtime pay, the extra half-time rate is determined by dividing $17.72 by two, equaling $8.86 per overtime hour. Since the employee worked six overtime hours, they are owed an additional $53.16.

    Additional Considerations for Nebraska Overtime

    Can an Employee Choose Compensatory Time Instead of Overtime in Nebraska?

    Yes, public agencies in Nebraska can give compensatory time (or “comp time”) instead of overtime pay for nonexempt employees, including part-time staff. For every hour worked over 40 in a workweek, employees are granted 1.5 hours of comp time, which must generally be used within six months.

    Employees can accrue up to 240 hours of comp time, after which any additional time must be paid out.

    Does Nebraska Include Paid Time Off in Overtime Calculations?

    No, Nebraska does not count paid time off—such as holidays, vacation, or sick leave—when calculating overtime. This follows federal law under the Fair Labor Standards Act (FLSA), which only considers actual hours worked when determining overtime pay.

    Even if you’re paid for time off, those hours don’t count toward the 40-hour overtime threshold. Also, employers in Nebraska are not required to pay extra (like double time) for working on holidays, unless it’s part of their company policy.

    Important Cautionary Note

    This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.