This week, I’m going to share information on a bill that impacts Nebraska’s minimum wage laws. I’ve received a large number of emails and phone calls about this bill and I wanted to take this opportunity to share information about it.
As background, the Nebraska voters approved an increase to the state’s minimum wage with Initiative 433 in 2022. By January 1st of 2026 the new minimum wage will be $15.00/hr. After that, it will increase at the rate of the Midwest Consumer Price Index (CPI) each year.
LB258 was introduced this year by Senator Raybould to address several things about the minimum wage. LB258 would set the yearly growth adjustment for minimum wage at either the Midwest CPI or at 1.5%, whichever is the highest. I support this because it gives a business a wage growth rate they can plan on. The Midwest CPI in 2022 was 7.8%. A mandated jump in wages like that in one year would be very difficult for small businesses to adjust to on short notice. Additionally, the Midwest CPI has been at zero or even negative in some years. The Midwest CPI has been below 1.5% in 5 of the past 20 years. In my opinion, a more stable annual growth of the minimum wage will work better for workers and for our small businesses. Keep in mind that the minimum wage under LB258 will still grow each and every year. This growth rate also has a compounding effect.
Additionally LB258 would:
· Establish a minimum wage of $13.50/hr for youth 14 to 15 years old (except emancipated minors). Federal law restricts minors who are 14 and 15 from doing many jobs that older teenagers and adults are allowed to do. Additionally, federal law restricts the hours and days that 14 and 15-year-olds can work. Setting the minimum wage slightly lower for 14 & and 15-year-olds provides employers with greater flexibility when hiring younger teenagers, who, again, are federally restricted as to what they can do and when they can work;
· Amend the current 90-day training wage for new employees to apply to those who are at least 16 years of age but younger than 18. Nebraska’s current law applies to anyone under the age of 20 years of age. The 90-day training wage will be increased from the current rate of $5.44/hr. (75% of the federal minimum wage) to the rate of $13.50/hr through Dec. 31, 2026 and then 75% of Nebraska’s minimum wage starting in 2027;
· Require that both the youth minimum wage and the 90-day training wage increase by 1.5% each year.
I believe these changes are aligned with what the voters voted for in 2022, which was an annual increase in minimum wage. This bill also fixes the training wage problem. Without this change, the 90-day training wage would be stuck in perpetuity at $5.44 for everyone under 20 years of age. LB258 limits the training wage to workers 16-18 years old, increases it by 148%, and provides for an annual growth rate of 1.5% each year thereafter. LB258 advanced on a 32-17 vote to the next round of debate.
As always, if I can be of assistance to you in any way, please do not hesitate to contact my office. My staff members – Matt and Katie – are available to assist you with your needs, and they pass along messages, so if you’d like a call back, please let them know!
Email: jhughes@leg.ne.gov
Phone: 402-471-2756
Facebook: Senator Jana Hughes
