Nebraska Attorney General Mike Hilgers has issued a significant opinion regarding Lincoln’s minimum wage initiative. He asserts that the proposed wage increase violates state law.
Nebraska AG on Lincoln’s Minimum Wage
In a detailed 22-page document unveiled on Thursday, Hilgers highlighted concerns about competitive imbalance. He stated that increased wages in Lincoln would require businesses in adjacent labor markets to raise their salaries as well. Such increases could lead to higher prices for goods and services in Lincoln, which would affect consumers statewide.
Background of the Ordinance
This opinion follows a proposal presented by Lincoln City Council member James Michael Bowers. Last month, Bowers aimed to align Lincoln’s minimum wage with a statewide minimum approved by voters in 2022, which set the wage at $15 per hour by 2026.
A final vote on this ordinance is scheduled for the upcoming City Council meeting on Monday. Bowers responded to the AG’s opinion, expressing skepticism about its validity. He emphasized that the Attorney General’s statement is not legally binding and challenged the timing of its release before a key vote.
Controversy Surrounding Minimum Wage Legislation
- In 2022, 67% of Nebraskans supported raising the minimum wage to $15/hour.
- The previous year, a legislative move led by Lincoln Sen. Jane Raybould overturned this plan.
- Her bill, LB 258, limits minimum wage increases to a capped 1.75% annually, impacting inflation adjustments.
- The minimum wage for younger workers (ages 14 to 16) is now set at $13.50, with slower increases starting in 2030.
Raybould, reflecting on the context of the AG’s opinion, expressed her appreciation for the clarity it brings. She underscored the extensive legislative process that preceded this decision, advocating for balance to ensure the economic vitality of both families and small businesses in Nebraska.
The issue continues to develop, and stakeholders are advised to stay informed as the City Council prepares for its decisive vote on the proposed minimum wage changes.
