Nebraska Overtime Laws

April 19th 2026

Understanding Nebraska labor laws is essential for both employers and employees, especially when it comes to overtime pay. If you work extra hours beyond your regular schedule, you may be entitled to additional compensation under Nebraska overtime laws.

In most cases, employees who work more than 40 hours in a workweek must receive overtime pay at a higher rate. But not everyone qualifies. Eligibility depends on job duties, salary level, and federal law.

This guide explains everything you need to know about overtime laws in Nebraska, including pay rates, exemptions, comp time rules, and compliance requirements in 2026.

Nebraska Overtime Laws Summary

Nebraska overtime law Overtime applies over 40 hours in a workweek
Overtime pay rate 1.5 times the employee’s regular hourly rate
Nebraska minimum wage $15.00 per hour
Minimum overtime rate $22.50 per hour
Comp time instead of overtime pay Allowed for state employees
Salary threshold for overtime exemption $684 per week

This Article Covers

What is Overtime Pay in Nebraska?

Overtime pay is additional compensation paid when an employee works beyond standard hours. So, what is considered overtime hours?

  • Any hours worked over 40 in a single workweek
  • Applies to most non-exempt employees
  • Paid at time and a half (1.5x) the regular rate

Nebraska Overtime Pay Rates Explained

Under Nebraska overtime pay laws, eligible employees must receive overtime pay at time-and-a-half (1.5) for every additional hour worked over 40 in a workweek.

Since the minimum wage in Nebraska is $15.00 per hour, this means Nebraska’s overtime minimum rate is $22.50 per hour. 

Overtime Entitlement in Nebraska

According to federal and Nebraska overtime laws, overtime pay is required for any non-exempt employees. 

Employees in non-exempt industries who make less than $684 per week ($35,568 annually) are entitled to overtime compensation.

However, an employee’s overall eligibility for overtime pay is based on job duties or the business they are involved in.

Learn about your overtime rights in Nebraska.

Overtime Pay for Tipped Employees in Nebraska

The overtime rate for tipped employees is 1.5 times their regular wage for every overtime hour worked.

Tipped employees in Nebraska are subject to a lower minimum wage of $2.13 per hour instead of the regular state minimum wage, and use a tip credit of up to $12.87 per hour. However, a tipped worker must accumulate enough tips to total up to the regular state minimum wage of $15.00 per hour. If their wage, including tips earned, falls below the regular minimum wage, their employer must make up the difference.

That being said, an employer cannot include that tip credit in the calculation of overtime pay. This means that the entire minimum wage must be considered when calculating overtime pay.

Learn how to calculate overtime pay in Nebraska, or use our overtime calculator for seamless calculations. 

Overtime Pay for Salaried Employees in Nebraska

In Nebraska, only certain salaried employees have the right to receive overtime pay. A salaried employee is an individual who receives a predetermined salary, regardless of the actual hours worked. This means that even if they work more than the hours their salary compensates for, they are still entitled to additional compensation for their extra hours.

To determine a salaried employee’s overtime rate, an employer must first determine the employee’s hourly rate by dividing the salary by the number of hours that the salary compensates for.

Then, take the hourly pay rate to calculate the overtime rate for salaried employees using the following formula:

Hourly pay rate x Overtime hours x Overtime rate (1.5)

It is important to note that if an employee’s salary covers fewer than 40 hours in a workweek, their regular rate will be added for every subsequent hour worked up to 40. Only after 40 hours will overtime be counted at time-and-a-half.

If an employee’s salary covers 40 hours in a workweek, then time-and-a-half will be paid for any hours over 40.

Explore your rights as a salaried employee in Nebraska.

Overtime Pay for Commissioned Employees in Nebraska

In Nebraska, employees who may receive commissions are still entitled to overtime pay, although the rate may differ.

If an employee receives weekly commissions, the commission will be combined with the employee’s weekly wage to get the total earnings for the week. The amount is then divided by the total number of hours worked in the week to determine the regular hourly rate for that week. For any hours worked beyond 40 per week, the employee must be paid additional compensation at a rate of half of the regular hourly rate.

For example, let’s say an employee works 45 hours a week at a rate of $15.00/hour (Nebraska minimum wage) and receives $50 in commissions for that week. 

(Total hours x Hourly rate) + Commission

= (45 x $15.00) + $50

= $725 (total earnings for the week)

Then, divide that by the total hours worked in the week.

= $725 / 45

= $16.11 (new regular hourly rate)

To determine the overtime rate for the commissioned employees, we need to take that new regular hourly rate and halve it.

$16.11 / 2

= $8.06

Since the employee worked an extra 5 hours in the week, that makes their overtime compensation $40.30 ($8.06 x 5 hours).

The amount will vary according to the hours worked, hourly rate, and commission earned.

Nebraska Overtime Exemptions

Under the FLSA, employees in Nebraska who perform certain executive, administrative, and professional job duties as well as earn at least $684 weekly or $35,568 annually, are exempt from overtime pay. This means that they are not eligible for additional wages even if they work more than 40 hours a week. 

The FLSA also exempts the following occupations from overtime pay:

  • Motion picture theatre workers
  • Care-takers of the elderly
  • Workers in forestry and lumber firms with fewer than nine employees
  • Homeworkers making wreaths
  • Aircraft, boat, truck, and trailer salespeople
  • Seamen on American and non-American vessels
  • Highly compensated employees earning $107,432 or more annually
  • Domestic workers living in their employer’s residence
  • Livestock auction workers
  • Computer employees who earn at least $27.63 per hour
  • Agricultural or horticultural employees
  • Casual babysitters
  • Taxi drivers
  • Railroad workers
  • Television station workers in small markets
  • Outside sale employees
  • Newspaper deliverers
  • Employees working for newspaper agencies with limited circulation
  • Police officers and firefighters employed in departments with fewer than five workers
  • Motor carrier employees

Comp Time and Overtime Rules for Nebraska State Employees

Certain state employees in Nebraska can receive 1.5 hours of compensatory time for each hour worked over 40 in a workweek. They can also choose to receive overtime pay at 1.5 times their hourly rate (or prorated monthly rate).

Penalties for Violating Nebraska Overtime Laws

Employees who believe their employer has violated their wage rights can file a complaint with the Nebraska Department of Labor for investigation and legal action.

Violations of the Nebraska Wage Payment & Collection Act (WPCA) can lead to an administrative penalty of:

  • Up to $500 for the first violation
  • Up to $5,000 for second and subsequent violations

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.