LINCOLN — Nebraska’s Legislature passed Legislative Bill 258, which changes how the state minimum wage grows in future years. Instead of automatic cost-of-living increases tied to inflation, the law sets a fixed 1.75% annual increase once the wage reaches $15/hour. The measure passed 33-16 and is expected to be signed by Gov. Jim Pillen, taking effect this summer. Supporters say the fixed rate gives businesses predictability and helps protect jobs, while critics argue it undermines voter-approved increases and won’t keep pace with living costs.

The law also creates a new “youth minimum wage” for workers aged 14 and 15 starting at $13.50/hour, which will rise very slowly over decades and remain below $15 until about 2065. It increases modestly every five years, and employers can still pay workers older than that the regular minimum wage with the annual 1.75% bump. The bill also revises the “training wage” for teens, raising it from its current tied-to-federal level to $13.50 with small annual increases. Critics argue the changes send the wrong message about youth labor and wage fairness, while supporters say they’ll help create more job opportunities for young workers.

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