Legislature passes minimum wage decrease for teen workers

The Legislature Thursday gave final approval to a bill (LB258) lowering Nebraska’s minimum wage from $15 an hour to $13.50 for young workers, and slowing down minimum wage increases for others.

In 2022, Nebraska voters approved a law that increased the state’s minimum wage in stages until it reached $15 an hour this Jan. 1.

Thursday, senators voted to change that law. The new law allows employers to pay 14- and 15-year-olds $13.50 an hour. Sixteen through 19-year-olds can also be paid at that lower rate for a 90-day training period.

Sen. Jane Raybould, the bill’s sponsor, said reducing the minimum wage for younger workers would make businesses more likely to hire, helping young people as well.

“Early work experiences teach responsibility, time management and the basics of showing up and doing the job. If we want young people to develop strong work ethic and practical skills, we have to make sure they have safe, appropriate opportunities to take those first steps into the workforce,” Raybould said.

Sen. Stan Clouse said people he talks to confirm that higher wages make them less likely to hire young people.

“I've talked to everyday Nebraska small-business owners in my community, and I've talked to a lot of them, and they want a training wage, and it costs kids jobs. This is almost a quote: ‘I am not going to pay a high school kid minimum wage to come in, and I have to tell them three times to empty out the trash,’” Clouse said.

Sen. Jared Storm put it this way.

“A minimum wage increase is essentially a tax on small businesses," he said.

The bill also changes how future increases in the minimum wage will be calculated. The voter-approved measure would have kept pace with inflation as measured by the Midwest consumer price index. The bill, as amended, limits annual increases to 1.75%, with smaller increases for younger workers.

Opposing the measure, Sen. Terrell McKinney said rolling back wage increases would hurt young people. He suggested his colleagues’ frequently expressed support for young people is hypocritical.

“I know a kid that quit wrestling because – recently -- because he has to work to take care of his family. But ‘It's okay. We care about kids, and we care about our youth, and it's all going to be peaches and cream,’ because you're going to be making more money and your profit lines are going to be better, because we're cutting the wages of kids,” McKinney said.

Sen. Megan Hunt said young people are having trouble affording things just like many others.

“Groceries cost the same, whether you're 17 or 37. Rent costs the same. Gas costs the same," she said. "But this bill says that if you're young, you'll earn a special exploitation wage engineered by Sen. Raybould and her allies in the Legislature, who think that your labor is worth less."

Sen. Tony Sorrentino supported the reduction, saying Nebraska is out of line with nearby states.

“We see that Iowa, Kansas, are both $7.25. And in fact, if you look at our northern border and go straight down the middle of our country, from North Dakota to Texas, $7.25, $11.85, $15 Nebraska, $7.25 Kansas, $7.25 Oklahoma, $7.25 Texas,” Sorrentino said.

But Sen. John Cavanaugh said the Legislature would be sending the wrong message by passing the bill.

“Minimum wage is $15 an hour right now. This bill makes, for some Nebraskans, the minimum wage $13.50 -- lowers the wage by $1.50 an hour. That cannot be the message that this Legislature sends to Nebraskans as what we prioritize,” Cavanaugh said.

Critics also accused the Legislature of defying the will of the people expressed by their approval of the wage increases in the 2022 ballot initiative. Sorrentino pushed back.

“The initiative process, which I've said more than once, is flawed. It's an opinion poll. We don't make laws on opinion polls in Nebraska, at least, I hope we don't,” he said.

Cavanaugh took exception to that argument.

“This is not a poll. This is a vote of the people, just as much as the vote of the people that put you here,” he said.

Sen. Bob Andersen also questioned the initiative process.

"We talk about the will of people, let's make sure that we're really talking about the will of people, and not the outcome of influence by foreign governments, foreign funds,” Andersen said.

Attorney General Mike Hilgers has charged Hansjorg Wyss, a Swiss citizen who lives in Wyoming, with violating Nebraska law by funneling contributions to Nebraska initiatives, including the minimum wage campaign. Wyss’s foundation has denied any violations.

After about two hours of debate, senators voted 33-16 for the bill, just reaching the minimum number of votes needed for passage. It will take effect 90 days after the Legislature adjourns -- in other words, in mid-July.

This was the vote on final passage of the bill:

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