McGill Law | Best Divorce & Family Law Attorneys in Nebraska & Iowa

View Original

How Changes in Minimum Wage Could Affect Child Support

In Nebraska, we are experiencing changes to our minimum wage.  While the Federal minimum wage has not changed, the state minimum wage in Nebraska is now $10.50 per hour, having begun on January 1, 2023.  Nebraska’s state minimum wage will increase by $1.50 each year until 2026, when the minimum wage will reach $15.00 per hour.  This is a result of a ballot measure voted on by Nebraska voters in 2022.

For a fulltime worker earning minimum wage, an extra $1.50 per hour is an increase of approximately $3,120 per year.  By 2026, minimum wage earners working full time will be earning $12,480 more per year than they earned in 2022. 

Nebraska, like most states, uses a standardized calculation based on income and custody arrangements, among other factors, to determine the amount of child support to order.  When circumstances change after the Court has issued a child support order, you can ask the Court to change the order.  This process is called a modification.  In order to modify an existing child support obligation, Nebraska requires that the change result in a variation of the current child support obligation of 10 percent or more, upward, or downward, but cannot be less than $25.00.  The change must have lasted 3 months and can reasonably be expected to last for an additional 6 months.

It is very possible that the change in minimum wage will result in an upward deviation of more than ten percent, especially by 2026, when the minimum wage is raised to $15.00 per hour. 

If you are receiving a child support payment and either your income or the other parent’s income has changed, you may have questions about whether a child support modification is right for your family.  We are here to help.  Reach out to our office and set up a consult to discuss your options at 402-548-5418.