Compliance Watch:

What are my rights as a salaried employee in Nebraska?

Salaried employment in Nebraska, like in many other states in the United States, typically refers to a type of job arrangement in which an employee is paid a fixed, predetermined salary for their work, as opposed to being compensated on an hourly basis. Here are some key aspects of salaried employment in Nebraska:

• Fixed Salary: Salaried employees in Nebraska receive a set amount of money regularly, often bi-weekly or monthly, regardless of the number of hours they work. This provides a level of financial stability.
• Exempt vs. Non-Exempt Status: Salaried employees may be classified as either exempt or non-exempt from overtime regulations under the Fair Labor Standards Act (FLSA). Exempt employees are typically not eligible for overtime pay, while non-exempt employees are entitled to overtime pay for hours worked beyond 40 hours in a workweek.
• Salary Agreements: Employment terms and salary agreements should be documented in an employment contract or offer letter. This document should outline the salary amount, pay frequency, benefits, and any other relevant terms and conditions of employment.
• Labor Laws: Nebraska follows federal labor laws, but it’s essential to be aware of any state-specific labor regulations that may apply to salaried employees in Nebraska. Some of these laws can pertain to issues such as minimum wage, meal and rest breaks, and other employment-related matters.
• Job Responsibilities: Salaried employees often hold positions with more significant responsibilities, such as managerial or professional roles. Their duties and job descriptions should be clearly defined.
• Benefits: Salaried employees may be eligible for various employment benefits, including health insurance, retirement plans, paid time off, and more, depending on their employer’s policies.

Both employers and employees in Nebraska need to understand the specific terms and conditions of salaried employment, as well as any state-specific regulations that may apply.

These are some of the general differences between salaried and hourly employees in Nebraska, but it’s essential to note that specific employment conditions may vary based on individual circumstances and employer policies. If you’d like to know more about Nebraska Labor Laws,  you can access our guides on Nebraska hourly employee rights and Nebraska salaried employees laws.

Salaried employees in Nebraska, like in many other states, have certain basic rights and protections under labor laws. Here are some of the fundamental rights and protections for salaried employees in Nebraska:

• Overtime Pay: Salaried employees who are classified as non-exempt under the Fair Labor Standards Act (FLSA) are entitled to overtime pay for any hours worked beyond 40 hours in a workweek. Overtime pay is typically at a rate of one and a half times their regular hourly wage.
• Equal Pay: Salaried employees have the right to equal pay for equal work. Discrimination in compensation based on gender, race, religion, or other protected characteristics is prohibited under federal and state laws.
• Workplace Safety: Salaried employees have the right to a safe and healthy work environment. Employers are required to follow workplace safety regulations and provide necessary safety equipment.
• Family and Medical Leave: Eligible salaried employees may have rights under the federal Family and Medical Leave Act (FMLA). FMLA allows eligible employees to take up to 12 weeks of unpaid leave for specific family or medical reasons while maintaining job protection.
• Anti-Discrimination Laws: Salaried employees are protected from discrimination and harassment in the workplace based on protected characteristics such as age, race, sex, religion, disability, and more. Nebraska labor laws also offer protections against discrimination in employment.
• Whistleblower Protections: Salaried employees who report illegal or unethical activities by their employers are protected from retaliation under whistleblower laws.
• Meal and Rest Breaks: While Nebraska labor laws do not require employers to provide meal or rest breaks to adult employees, they may provide such breaks as a matter of company policy or collective bargaining agreements.
• Severance Pay: No state law in Nebraska mandates severance pay. The provision of severance pay is typically at the discretion of the employer, and any entitlement to severance pay is usually outlined in employment contracts or severance agreements.

It’s important to note that labor laws can change, so employees should stay informed about their rights and check for any updates or changes to labor regulations in Nebraska.

Overtime pay for salaried employees in Nebraska is typically governed by the Fair Labor Standards Act (FLSA) and federal labor laws. Under the FLSA, salaried employees are categorized as either exempt or non-exempt, which determines their eligibility for overtime pay:

• Exempt Salaried Employees: Exempt salaried employees are not entitled to overtime pay. These employees are typically classified as professionals, executives, or administrators, among other categories. To be considered exempt, they must meet certain criteria, such as receiving a predetermined salary that is above the minimum salary threshold established by the FLSA and primarily performing exempt job duties.
• Non-Exempt Salaried Employees: Non-exempt salaried employees are eligible for overtime pay. If a salaried employee does not meet the criteria for exempt status, they are entitled to receive overtime pay for any hours worked beyond 40 hours in a workweek. Overtime pay for non-exempt salaried employees is generally calculated at a rate of one and a half times their regular hourly wage.

It’s important for both employers and salaried employees to understand the classification of their job positions and whether they qualify for exempt or non-exempt status under federal law. While state labor laws in Nebraska may also apply, the FLSA sets the baseline standards for overtime pay.

In Nebraska, employers are generally allowed to make certain deductions from the wages of salaried employees, but these deductions must comply with federal and state labor laws. Some common situations in which deductions may be made from salaried employees’ wages include:

• Deductions Permitted by Law: Employers can make deductions required by federal or state laws, such as income tax withholding, Social Security and Medicare taxes, and other legally mandated payroll deductions.
• Voluntary Deductions: Salaried employees may authorize deductions from their wages for various purposes, such as retirement plan contributions, health insurance premiums, or charitable contributions.
• Deductions for Overpayment: If an employer overpays a salaried employee due to an administrative error, they may deduct the overpaid amount from future wages with the employee’s consent.
• Repayment of Advances: If an employer provides an advance or loan to a salaried employee and both parties agree to repayment terms, deductions can be made from the employee’s wages to recover the advance.
• Court-Ordered Deductions: Employers must comply with court-ordered wage garnishments, such as those for child support or alimony payments.

Employers need to adhere to the relevant laws and regulations when making deductions from salaried employees’ wages. Deductions must not bring an employee’s wage below the minimum wage rate, and the employer should have written policies in place that outline the specific circumstances under which deductions may be made. Additionally, employers should obtain the employee’s written authorization for voluntary deductions.

In Nebraska, employers are not legally required by either federal or state mandates to offer breaks to their employees. However, if an employer has established break policies, federal regulations come into play. Here are some key points regarding breaks and leaves for salaried employees in Nebraska:

• Rest Breaks: There is no legal requirement for employers to provide rest breaks in Nebraska. However, if an employer chooses to provide rest breaks, breaks of up to 20 minutes are generally considered working hours and should be compensated at the employee’s regular rate of pay.
• Meal Breaks: If an employer provides meal breaks, these breaks should be at least 30 minutes in duration and unpaid. During this time, employees should be completely free from any work-related responsibilities. This is following federal regulations.
• Exemptions: Some employers in Nebraska, such as those managing assembling plants, workshops, or mechanical establishments with one or more employees, are exempt from the state’s break regulations. However, even in these cases, employees must be provided with a minimum 30-minute meal break, and during this break, employees are not obligated to remain within their employer’s premises.

It’s important to note that while Nebraska does not have specific break requirements, federal regulations regarding rest and meal breaks apply if an employer chooses to provide them. For leaves, Nebraska follows federal laws when it comes to leave entitlements:

1. Family and Medical Leave Act (FMLA): Eligible employees are entitled to up to 12 weeks of unpaid, job-protected leave for certain family or medical reasons under FMLA. FMLA applies to employers with 50 or more employees within a 75-mile radius.
2. Nebraska Parental Leave Act: This state law applies to employers with 15 or more employees. It provides up to four months of unpaid leave for an employee to care for a child during the first year of the child’s birth or adoption.
3. Sick Leave: Nebraska does not have a state law requiring employers to provide paid or unpaid sick leave. However, some employers may offer sick leave as part of their benefits package.

In Nebraska, as in most U.S. states, salaried employees have the right to request flexible work arrangements, but there is no specific state law that mandates flexible work arrangements. However, several factors come into play when considering flexible work arrangements:

• Employer Policies: It’s essential to review your employer’s policies and employee handbook to see if they already have provisions for flexible work arrangements. Some employers may offer options like telecommuting, flexible hours, or compressed workweeks.
• Federal Laws: The federal government has laws that can impact flexible work arrangements. The Family and Medical Leave Act (FMLA) and the Americans with Disabilities Act (ADA) may come into play if an employee’s need for flexibility is related to a medical condition or a family situation. These laws provide certain rights and protections to eligible employees.
• Negotiation: Salaried employees can discuss flexible work arrangements with their employers. It’s often best to have a clear and respectful conversation about your needs and how flexible arrangements can benefit both you and your employer.
• Collective Bargaining Agreements: If you are part of a union or covered by a collective bargaining agreement, the terms of the agreement may outline provisions for flexible work arrangements.
• Workplace Culture: The workplace culture and the attitude of your employer can also play a significant role in whether flexible work arrangements are feasible. Some employers are more open to accommodating flexible work schedules than others.

It’s important to note that while there are no specific state laws in Nebraska requiring employers to offer flexible work arrangements, many employers recognize the benefits of such arrangements for employee morale, productivity, and retention.

Exempt status in Nebraska, as in the rest of the United States, is a legal classification for certain employees that primarily relates to their eligibility for overtime pay. Being classified as “exempt” means that the employee is exempt from the overtime provisions of the Fair Labor Standards Act (FLSA) and, in Nebraska, state labor laws if applicable.

Here is a brief definition and the implications of exempt status:

• Definition of Exempt Status: An exempt employee is typically one who meets specific criteria related to job duties, salary level, and how they are paid. To be classified as exempt, employees must generally meet the following criteria:
• Salary Basis: Exempt employees are paid on a salary basis, not on an hourly wage, and they receive a fixed salary regardless of the number of hours worked.
• Salary Level: Exempt employees must earn a salary that meets or exceeds the minimum salary threshold set by federal and state law. This threshold can change over time based on government regulations.
• Job Duties: Exempt employees typically perform specific job duties that are considered “exempt” under the FLSA. These duties are usually categorized into executive, administrative, professional, or other specific roles. The specific duties required for exemption can vary based on the employee’s classification.

Implications of Exempt Status: The implications of being classified as exempt in Nebraska include:

1. Overtime Exemption: Exempt employees are not eligible for overtime pay when they work more than 40 hours in a workweek. They are expected to fulfill their job duties regardless of the number of hours worked.
2. Salary Basis: Exempt employees receive a fixed salary, which means they are paid the same amount, regardless of the number of hours they work. They are generally not eligible for overtime pay or eligible for compensatory time off.
3. Job Duties: Exempt employees are expected to perform certain job duties, often involving more significant responsibilities and decision-making authority within their roles. These job duties are typically outlined in federal and state labor laws.

It’s important to note that classification as exempt or non-exempt can have significant legal and financial implications for both employees and employers. Misclassifying employees can lead to legal issues, including wage and hour disputes. Therefore, employers must carefully evaluate their employees’ job duties and compensation to ensure compliance with labor laws in Nebraska and federal regulations, and employees should understand their rights and responsibilities under these classifications.

Please note that this table provides a general overview of the differences between exempt and nonexempt employees in Nebraska. Specific details may vary depending on individual employment contracts, industry standards, and changes in labor laws. It’s crucial to stay informed about the latest regulations to ensure compliance.

Determining whether you are exempt or non-exempt in Nebraska, or any other state in the United States, typically involves a careful evaluation of your job duties, salary level, and how you are paid. To determine your classification, you can follow these steps:

• Review Your Job Duties: Examine your job responsibilities to see if they align with the criteria for exempt or non-exempt status. In general, exempt employees typically have job duties that fall into specific categories, such as executive, administrative, or professional roles.
• Check Your Salary Level: Determine whether your salary meets or exceeds the minimum salary threshold set by federal and state law. This threshold can change over time based on government regulations.
• Consult Your Employment Contract or Offer Letter: Review your employment contract or offer letter. It may provide information about your exempt or non-exempt status and the terms of your employment.
• Understand Federal and State Laws: Familiarize yourself with the Fair Labor Standards Act (FLSA) and Nebraska state labor laws. These laws outline the criteria and regulations for exempt and non-exempt classifications.
• Seek HR Guidance: Reach out to your human resources department or employer for clarification. They can help you understand your classification and provide guidance on how it was determined.
• Consult Legal Advice: If you have concerns about your classification, you can seek legal advice. An attorney specializing in labor and employment law can provide guidance and help ensure that your classification is accurate.

It’s important to note that the determination of exempt or non-exempt status is a legal matter and can have significant implications for your pay, overtime eligibility, and other employment rights. Misclassification can result in wage and hour disputes, so it’s crucial to ensure your classification aligns with your job duties, salary, and applicable labor laws.

The minimum wage requirements for salaried employees in Nebraska are as follows:

• As of January 1, 2024, the state minimum wage in Nebraska is $12 per hour. This increase in the minimum wage is a result of Initiative Measure 433, which was passed in November 2022 with 58.19% of the vote.
• The minimum wage is set to increase further as part of the plan outlined in Initiative Measure 433:
  • $13.50 per hour will become effective on January 1, 2025.
  • $15 per hour will become effective on January 1, 2026.

• After January 1, 2026, future increases to the minimum wage will be determined by the consumer price index (CPI).

It’s important to note that these minimum wage rates apply to hourly employees. Salaried employees, on the other hand, are typically exempt from minimum wage requirements as long as they meet the criteria for exempt status, including receiving a fixed salary that meets or exceeds the minimum salary threshold set by federal and state labor laws.

Overtime compensation for salaried employees in Nebraska, as in the rest of the United States, follows federal and state labor laws. Salaried employees are generally classified as either “exempt” or “non-exempt,” and how overtime is compensated depends on this classification:

• Exempt Salaried Employees: Exempt salaried employees are not eligible for overtime pay. They are typically paid a fixed salary regardless of the number of hours worked. Exempt employees are expected to fulfill their job duties, even if it requires working more than 40 hours in a workweek, without additional compensation. They are exempt from the overtime provisions of the Fair Labor Standards Act (FLSA) and state labor laws. Overtime laws do not apply to exempt employees, and they do not receive overtime pay for working beyond 40 hours in a workweek.
• Non-Exempt Salaried Employees: Non-exempt salaried employees are eligible for overtime pay when they work more than 40 hours in a workweek. While they are salaried, they are paid on an hourly basis for overtime hours. Overtime pay for non-exempt salaried employees is typically calculated at a rate of at least 1.5 times their regular hourly rate for each hour worked beyond 40 hours in a workweek. The regular hourly rate is determined based on their annual salary divided by the number of hours normally worked in a year (often 2080 hours for a standard 40-hour workweek).

It’s crucial for employers to correctly classify their employees as exempt or non-exempt and follow federal and state labor laws regarding overtime compensation. Misclassification can lead to legal issues, including wage and hour disputes. Salaried employees who have concerns about overtime pay should ensure that their classification and compensation align with labor laws.

Nebraska’s state law does not have specific regulations regarding permissible deductions from the pay of salaried employees. However, federal laws and regulations do apply to deductions from the pay of salaried employees. Some common federal rules that apply to deductions include:

• Taxes: Federal and state income taxes, as well as Social Security and Medicare (FICA) taxes, must be withheld from an employee’s paycheck. The amount to be withheld is determined based on the employee’s W-4 form.
• Garnishments: If a court orders wage garnishment for things like child support or unpaid debts, the employer is required to make deductions from the employee’s salary as per the court order.
• Voluntary Deductions: Salaried employees can authorize deductions for various benefits, such as health insurance premiums, retirement contributions, or charitable contributions. These deductions are typically outlined in the employment contract or a written agreement between the employee and employer.
• Loan Repayments: If an employee has taken a loan from the employer, the employer may deduct the agreed-upon loan repayment amounts from the employee’s paycheck.
• Union Dues: If an employee is a member of a labor union, the employer may deduct union dues as required by the union’s agreement.
• Uniforms or Equipment: If an employer provides uniforms or equipment necessary for the job, they may deduct the cost of these items from the employee’s salary, but generally, this should not reduce the employee’s wage below the minimum wage.
• Overpayment: In cases of accidental overpayment, the employer can deduct the overpaid amount from future paychecks, subject to certain limitations.

Additionally, employment contracts and agreements between employers and employees can also dictate specific rules regarding deductions, so reviewing the terms of employment is essential.

Nebraska state law provides certain employee benefits and protections, which include the following:

• Minimum Wage: As of January 1, 2024, the minimum wage in Nebraska is $12 per hour. This rate is set to increase gradually in the coming years according to Initiative Measure 433, eventually reaching $15 per hour by January 1, 2026. Future increases may be determined by the consumer price index.
• Overtime Pay: Nebraska follows federal law regarding overtime pay. Non-exempt employees are entitled to receive overtime pay at a rate of at least 1.5 times their regular hourly rate for hours worked beyond 40 hours in a workweek.
• Family and Medical Leave: Nebraska does not have a state-specific family and medical leave law. The federal Family and Medical Leave Act (FMLA) applies to eligible employees in Nebraska and provides up to 12 weeks of unpaid, job-protected leave for certain family or medical reasons.
• Workplace Safety: The Nebraska Department of Labor enforces state occupational safety and health laws, aimed at providing safe and healthful working conditions for employees. Employers are required to comply with these regulations to protect employees from hazards in the workplace.
• Equal Employment Opportunity: Nebraska has laws that prohibit workplace discrimination based on factors such as race, sex, religion, age, disability, and national origin. The Nebraska Equal Opportunity Commission (NEOC) enforces these laws.
• Whistleblower Protection: Nebraska protects employees who report workplace safety violations, illegal activities, or unethical behavior. Retaliation against employees who engage in whistleblowing activities is prohibited.
• Workers’ Compensation: Nebraska requires most employers to provide workers’ compensation insurance to cover employees in case of work-related injuries or illnesses. This insurance provides medical benefits and wage replacement for injured workers.
• Unemployment Insurance: The Nebraska Department of Labor administers unemployment insurance benefits for eligible workers who have lost their jobs through no fault of their own.
• Payroll Deductions: Employers may make deductions from employees’ paychecks for specific purposes, but written consent is typically required. Deductions can include cash shortages, damage to employer property, required uniforms, necessary tools, and other work-related items.
• Retirement Benefits: Nebraska state employees are eligible for retirement benefits through the Nebraska Public Employees Retirement Systems (NPERS). Private employers may offer retirement plans, such as 401(k) plans, but they are not mandated by state law.

It’s important to note that many employee benefits and protections, such as health insurance, retirement plans, and paid time off, are often offered at the discretion of the employer and may not be mandated by state law. 

Instances of violations in labor or employment law in Nebraska can encompass various issues such as wage and hour discrepancies, workplace safety concerns, or discriminatory treatment. Reporting such violations typically involves reaching out to the relevant federal or state agencies. Unlike some states, Nebraska does have state-level agencies to address certain labor and employment matters. Here’s how to report violations of labor or employment law in Nebraska:

• Wage and Hour Violations: If you encounter wage and hour violations, such as unpaid wages or overtime issues, you should contact the Nebraska Department of Labor’s Wage and Hour Division. They are responsible for addressing such concerns.
• Workplace Safety Violations: For workplace safety violations, including hazardous working conditions, you can get in touch with the Nebraska Department of Labor’s Occupational Safety and Health Administration (OSHA). This agency oversees safety and health regulations in the workplace.
• Discrimination and Harassment: If you believe you have experienced workplace discrimination or harassment based on factors like race, gender, age, or disability, you can file a complaint with the Nebraska Equal Opportunity Commission (NEOC). Alternatively, you can contact the federal Equal Employment Opportunity Commission (EEOC) to report such grievances.
• Whistleblower Complaints: If you’ve reported unlawful activities at your workplace and have experienced retaliation, you may need to consult with legal counsel or reach out to the appropriate agency to address your concerns.

Each of these agencies typically has specific procedures and forms for reporting violations, so it’s important to follow their guidelines when initiating a complaint. Be prepared to provide detailed information about the violation, your employer, and the circumstances surrounding the issue.