Nebraska tip pooling laws & tipped minimum wage
In Nebraska, employers can pay tipped workers $2.13/hr as long as tips bring them to the $15.00 minimum — here's how that works and who can legally share your tips.
| Regular minimum wage | $15.00/hr |
| Minimum cash wage for tipped workers | $2.13/hr |
| Maximum tip credit | $12.87/hr |
| Tips belong to | Employees — always |
A tip credit lets an employer count your tips toward the minimum wage it owes you. Rates reviewed July 2026. Rates change — confirm with the Nebraska labor department. Not legal advice.
What's specific to Nebraska
Nebraska raised its minimum wage to $15.00 by ballot initiative but kept the tipped cash wage at the federal $2.13 — one of the largest tip credits in the country ($12.87/hr). Employers must make up any shortfall.
Nebraska reached $15.00 — but kept one of the largest tip credits in the country
A 2022 ballot measure, Initiative 433, raised Nebraska’s minimum wage in steps to $15.00 an hour effective January 1, 2026. But the initiative left the tipped cash wage untouched at the federal figure of $2.13 an hour.
That gap makes Nebraska’s tip credit unusually large. Your employer may claim a credit of up to $12.87 an hour — the difference between the $2.13 cash wage and the $15.00 minimum — as long as your tips actually cover that gap every week.
Your $2.13 cash wage plus tips must still reach $15.00
The $2.13 rate is a floor on the cash portion of your pay, not the whole of it. In any workweek where your $2.13 cash wage plus tips do not average at least $15.00 an hour, your employer is required to pay the difference in that check.
With a credit this large, tips do a lot of the work — so it is worth tracking your hours and tips. If the total falls short of $15.00 and your employer does not make it up, contact the Nebraska Department of Labor.
Cost-of-living increases begin in 2027
Under Initiative 433, the $15.00 minimum is not the end of the schedule. Beginning January 1, 2027, the state minimum wage adjusts each year for inflation using the Consumer Price Index for the Midwest region. The $2.13 tipped cash wage, however, is set by statute and does not move with those adjustments — so the tip credit is expected to grow over time.
Tip pooling in Nebraska
Nebraska follows the federal baseline: employers may require tip pooling. If your employer takes the tip credit (pays $2.13/hr cash), the pool may only include customarily tipped workers — servers, bussers, bartenders, runners, hosts. Back-of-house can only be included if everyone is paid full minimum wage with no tip credit. Managers and supervisors are always excluded.
One federal rule applies everywhere: managers and supervisors can never take from a tip pool. Separately, credit card processing fees may only be deducted from tips where state law allows it.
What this means for your tip-out
Because part of your legal wage in Nebraska comes from tips, the employer's tip credit assumes those tips reached you. Use the tip-out calculator to split a shift by your house's percentages or by hours, and see standard tip-out percentages to check whether your house's rates are typical.
Nebraska tip law FAQs
What is the tipped minimum wage in Nebraska?
Employers in Nebraska may pay tipped employees a cash wage of $2.13/hr and claim a tip credit of up to $12.87/hr toward the $15.00 minimum wage. If tips don't close the gap in a workweek, the employer must make up the difference.
Is mandatory tip pooling legal in Nebraska?
Nebraska follows the federal baseline: employers may require tip pooling. If your employer takes the tip credit (pays $2.13/hr cash), the pool may only include customarily tipped workers — servers, bussers, bartenders, runners, hosts. Back-of-house can only be included if everyone is paid full minimum wage with no tip credit. Managers and supervisors are always excluded.
Can my manager take a share of the tip pool in Nebraska?
No. Federal law prohibits managers, supervisors, and owners from keeping any portion of employee tips in every state, including Nebraska. A manager may keep only tips they directly and solely earned (e.g., a table they personally served start to finish).
Why is Nebraska’s tipped cash wage only $2.13 when the minimum is $15.00?
Initiative 433 raised the regular minimum wage but did not change the tipped cash wage, which stays at the federal $2.13. The result is a tip credit of up to $12.87 an hour, among the largest in the country.
Will the tipped cash wage go up with inflation after 2026?
No. Nebraska’s cost-of-living adjustments starting in 2027 apply to the regular minimum wage. The $2.13 tipped cash wage is fixed by statute, so only the credit your employer can claim grows.