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Nebraska Passes Law Capping Minimum Wage Increases, Introduces Youth Wage Below $15
The new law will limit annual minimum wage bumps to 1.75% and allow employers to pay certain teen workers less than the current $15 minimum.
Published on Feb. 5, 2026
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The Nebraska legislature has passed a new law that will cap the state's annual minimum wage increases at 1.75%, down from the current cost-of-living adjustments. The law also introduces a 'youth minimum wage' of $13.50 for workers aged 14 or 15, which will increase by 1.5% every five years starting in 2030. Supporters say the changes will provide more predictability for businesses, while critics argue it undervalues young workers and fails to keep up with the rising cost of living.
Why it matters
The minimum wage has been a contentious political issue in Nebraska, with voters approving increases in 2014 and 2022. This new law, which is expected to be signed by the governor, significantly alters the state's minimum wage structure and could impact low-wage workers, especially younger employees, as well as small businesses and the broader economy.
The details
The new law, LB 258, was introduced by State Sen. Jane Raybould of Lincoln. It will change the state's minimum wage increases from being tied to the cost of living to a fixed 1.75% annual bump, starting in 2024. This is lower than the average 2.4% inflation rate for the Midwest region over the past 26 years. The law also creates a 'youth minimum wage' of $13.50 for workers aged 14 or 15, which will increase by 1.5% every five years starting in 2030. Supporters argue the changes will provide more predictability for businesses, while critics say it undervalues young workers and fails to keep up with the rising cost of living.
- The new law will take effect in mid-July 2023, three months after lawmakers adjourn this spring.
- The 'youth minimum wage' of $13.50 will be introduced starting in July 2023.
The players
Jane Raybould
A state senator from Lincoln who introduced LB 258.
Tony Sorrentino
A state senator from the Elkhorn area who supported the bill.
Terrell McKinney
A state senator from North Omaha who opposed the bill, arguing it undervalues young workers.
Jim Pillen
The governor of Nebraska, who is expected to sign the new law.
Dave Wordekemper
A former firefighter and the lone Republican state senator to vote against Raybould's bill.
What they’re saying
“We don't care about our youth. We just want discounted labor.”
— Terrell McKinney, State Senator (Nebraska Examiner)
“We're not taking aim at youth in Nebraska.”
— Tony Sorrentino, State Senator (Nebraska Examiner)
“Closing the door on early employment does not prepare them for the future.”
— Jane Raybould, State Senator (Nebraska Examiner)
What’s next
The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.
The takeaway
This new law in Nebraska highlights the ongoing debate over minimum wage policies, with supporters arguing for more predictability for businesses and critics contending it undervalues workers, especially young people, and fails to keep up with the rising cost of living.
