Bill proposes cap on minimum wage, lower wage for teens

LINCOLN, Neb. — A bill that would alter Nebraska’s voter-approved minimum wage laws is headed to the governor’s desk.

LB 258, proposed by Lincoln Sen. Jane Raybould, passed final reading Thursday on a 33-16 vote.

The measure would change the law enacted by voters in 2022 in several ways. It would cap the state’s training wage for workers ages 16 to 19 at 90% of the state minimum wage, set a lower minimum wage for 14- and 15-year-old workers, and cap the annual cost-of-living increase at 1.5%.

Opponents of the bill called the move disrespectful to the 58% of Nebraska voters who approved the wage increase.

Omaha Sen. John Cavanaugh said many Nebraskans are frustrated with the Legislature’s actions.

“You have so many Nebraskans, the thing we hear is their frustration with this Legislature undermining the will of the people,” Cavanaugh said. “This bill does just that. The first act of the 2026 Nebraska Legislature on final reading will be a bill that undermines working people and lowers wages for Nebraskans.”

Lincoln Sen. Jane Raybould, however, said critics were relying on misinformation. She cited studies showing minimum wage increases make younger people less likely to be hired by small businesses.

“I’ve tried to make the case that it’s critical that we hire 14 and 15-year-olds because the skills they learn are invaluable and set them up for a better future,” Raybould said. “But I challenge my colleagues: How can kids — and we know kids are helping their families more in this tight economic situation — pay for utilities, food and their own expenses if they don’t get hired?”

The bill was originally proposed during the 2025 session but did not receive enough votes to pass.