OMAHA, Neb. (KMTV) — The minimum wage in Nebraska is increasing in the new year. Starting January 1st, those who make the current wage of $12 an hour will now make $13.50.
- In 2022, Nebraska voters passed an initiative to increase the minimum wage by $1.50 through 2026.
- After 2026, the minimum wage in Nebraska will be based on cost-of-living increases.
- "Everybody deserves a livable wage and, and, and minimum it needs to keep up with that, and it hasn't unfortunately for the last 5 to 7, 10 years we have seen such small increments in pay versus what we have seen in cost of living."
BROADCAST TRANSCRIPT:
The minimum wage in Nebraska is increasing in the new year. Starting January 1st, those who make the current wage of $12 an hour will now make $13.50. I’m talking to small businesses about the impacts on them and our community.
Soley Joe has been working at the clothing store Raygun for a few months. As a shift lead, she gets paid $17 an hour.
"I mean, I think it's pretty well for the work I do here,” she said.
Prior to that, Joe was a barista working while she was in college at Dunkin' Donuts for $13 an hour, then Starbucks for $15 an hour.
"At the time I was like, oh my God, $15 so much money, but now I'm kind of out of school, kind of trying to figure out what to do with my life and discovering the world is kind of expensive,” said Joe.
In 2022, Nebraska voters passed an initiative to increase the minimum wage by $1.50 through 2026.
Nebraska now stands at a minimum wage of $13.50 going into 2025.
Compare that to our neighboring states:
Where the U.S. Department of Labor shares; Iowa and Kansas go by the federal minimum wage of $7.25. South Dakota at $11.50. Missouri at $12.50 and Colorado at $14.42.
Even though Nebraska sits towards the top of that list, small business owner, Lukas Rix with Prairie in Bloom doesn't think the new minimum wage is a livable one.
"It's always been important to me that you pay your people well because you are going to get more out of them because at the end of the day money is what they're here for,” said Rix.
Rix build his business with a plan in place to pay his employees what he considers fair which is 20-30% higher than the state minimum.
"Everybody deserves a livable wage and, and, and minimum it needs to keep up with that, and it hasn't unfortunately for the last 5 to 7, 10 years we have seen such small increments in pay versus what we have seen in cost of living,” said Rix.
After 2026, the minimum wage in Nebraska will be based on cost-of-living increases.