The Nebraska Legislature is back in session. Lots of new faces and new committee chairs. A few major changes in state law are taking effect this year because of actions taken by previous legislators or by ballot initiatives.
Effective January 1, minimum wage in Nebraska has gone up to $13.50 per hour. Next January it will be $15.00; after that it will be increased on January 1 every year by the increase in the cost of living as of the August Consumer Price Index. Overtime above 40 hours per week will continue to be paid at 1.5 times the hourly wage.
There are some exceptions to the $13.50 wage rate. Employees who rely on tips, like wait staff in restaurants, continue to have a minimum wage of $2.13 an hour. However, the total of the wages earned and the tips or gratuities received must be greater than minimum wage. If not, the employer must make up the difference. Student learners in a training program need only be paid 75% of minimum wage while the program lasts.
The Nebraska Data Privacy Act also took effect January 1. This law allows individuals to control how their personal data is collected and used by businesses. Consumers can confirm if their data is being processed, request a copy of their data, and ask for inaccuracies to be corrected. They can also opt out of having their data used for targeted advertising, sold, or used for profiling. Businesses must obtain consent before collecting or using sensitive data, which includes data about a person’s race, ethnicity, religion, health, sexual orientation, and more. Businesses must also provide consumers with ways to opt out of the sale of their data and its use for targeted advertising or profiling. However, consumers must initiate any opt-out actions. Read those privacy notices!
As of 2025, Nebraska law states that residents will no longer pay state income tax on their Social Security benefits, meaning there is a complete phase-out of Social Security tax on the state level in Nebraska starting January 1, 2025. Remember that when you file your NE income tax, that Social Security amount is from 2024.
Nebraska voters in November provided for some other changes in law: abortion restrictions, medical marijuana, and sick leave.
Abortion is prohibited after 12 weeks of pregnancy, which is counted from the first day of the last menstrual period. There are some exceptions to the ban: rape, incest, and a medical emergency means the pregnant person’s life is in danger.
Medical marijuana or cannabis up to 5 ounces will be available if a medical practitioner writes a recommendation or prescription. But first a Medical Cannabis Commission must be established to write rules and regulations (similar to the Liquor Control Commission). The deadline for the cannabis regulations is July 1, 2025. Licensing of distributors must begin by October 1, 2025.
