LINCOLN, Neb. (KOLN) — In a 22-page opinion issued Thursday, Nebraska Attorney General Mike Hilgers said Lincoln’s attempt at setting a minimum wage would violate state law.
“Competitors in nearby labor markets will have to compete for labor with elevated Lincoln wages. The prices of goods and services originating in Lincoln but consumed elsewhere in the state will rise as labor costs rise. And businesses that operate in both Lincoln and other cities will be forced to reconsider their compensation policies across markets.”
The opinion comes after council member James Michael Bowers introduced an ordinance last month to put the minimum wage in the city of Lincoln back in line with the voter-approved statewide minimum wage from 2022.
A third reading and final vote are planned for Monday’s City Council meeting.
In a statement, Bowers said he isn’t surprised the city says Lincoln doesn’t have the authority.
“They already seem to believe voters don’t have the authority either,” Bowers wrote in a statement on Friday. “The Attorney General’s opinion is not legally binding and has been incorrect before. The Council will not be intimidated by an opinion dropped on a Friday before a Monday vote.”
See more: Nebraska’s minimum wage
The ballot initiative to bring the state’s minimum wage to $15 an hour by 2026 was supported by 67% of Nebraskans.
The statewide minimum wage was overturned in the last legislative session by Lincoln Sen. Jane Raybould, who brought LB 258, which reversed some of those voter-approved cost of living increases.
Previously, minimum wage increases were tied to inflation.
Raybould’s bill capped increases at a flat 1.75% per year. It also lowered the minimum wage for workers aged 14 to 16 to $13.50. Their minimum wage will rise more slowly, at 1.5% every five years beginning in 2030.
Lawmakers in the Unicameral approved those changes with a 33-16 vote in February. Supporters argued the cap on increases was necessary to help small businesses stay afloat, while opponents called the move a clear disregard for “the will of the voters.”
Raybould told 10/11 on Friday she is grateful for the clarity from Hilgers’ office, and that it “acknowledges the lengthy Nebraska legislative process of more than three years of hearings, hours of lengthy debate and tremendous outreach to businesses.”
“The State’s job and state senators’ is to find the balance, predictability and consistency so that all Nebraska families and businesses can thrive,” Raybould concluded.
The attorney general’s opinion is available to read here:
This is a developing story; check back with 10/11 for more updates.
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