Lincoln, Neb. — Nebraska Attorney General Mike Hilgers announced a lawsuit against the City of Omaha, asserting that the municipality’s ordinance requiring employers to pay youth workers $15 per hour conflicts with state law and the state constitution.
State law sets the floor
Earlier this year, the Nebraska Legislature amended the State Wage and Hour Act to establish a uniform growth rate for the minimum wage. The amendment specifies that the rate shall increase by 1.75 percent each year, and it allows a distinct minimum wage for youth employees. Under the statute, the youth minimum wage for 2026 is set at $13.50 per hour.
Omaha’s ordinance raises the bar
In March, Omaha’s city council adopted an ordinance that would prohibit employers from paying youth workers less than $15 per hour. Hilgers argues that the ordinance effectively rewrites the statutory language, changing the mandated “shall” to a prohibition of “shall not,” thereby nullifying the legislature’s intent.
Legal challenge grounded in the Constitution
Hilgers contended that the Nebraska Constitution does not permit a municipality to repeal or alter any portion of a statewide law enacted by the legislature. He cited a prior court injunction that barred the City of Lincoln from making a similar amendment to the same wage law, describing Omaha’s action as “materially similar.”
Potential impact on local employers
If the lawsuit proceeds, employers across Omaha could face uncertainty about the applicable wage floor for teenage and young adult workers. Businesses that currently pay the statutory $13.50 rate would need to adjust payroll systems, potentially increasing labor costs at a time when many small enterprises are already navigating a challenging economic environment.
Response from city officials
City officials have defended the ordinance as a measure to ensure that young workers receive a livable wage and to address inflationary pressures that have eroded purchasing power. They argue that the higher wage floor aligns with Omaha’s broader goals of supporting families and encouraging youth employment.
Next steps
The case is expected to move to the state district court, where a judge will determine whether Omaha’s ordinance indeed violates the state Wage and Hour Act and the constitutional prohibition on local repeal of state law. Both sides have indicated they are prepared for a prolonged legal battle.
Broader context
The dispute highlights an ongoing tension between local governments seeking to address cost‑of‑living concerns and state legislators aiming to maintain uniform regulatory frameworks. Similar conflicts have arisen in other states where cities have attempted to set higher minimum wages than those established at the state level.
Original reporting: KLKN-TV – News, Weather and Sports for Lincoln, Nebraska — read the source article.
