Nebraska Attorney General Mike Hilgers is suing the City of Omaha over its new minimum wage ordinance, which aims to maintain the 2022 voter-approved annual adjustment to the minimum wage based on inflation. The lawsuit argues that the city’s ordinance conflicts with the state’s minimum wage law, which sets a 1.75% annual growth rate and allows employers to pay 14- and 15-year-old workers $13.50, down from the current $15 minimum wage.
Hilgers’ office claims that the city’s ordinance is a power grab and that the state’s Constitution does not permit the City of Omaha to repeal any portion of a statewide law passed by the Legislature.
The local ordinances in Omaha and Lincoln seek to maintain the 2022 voter-approved annual adjustment to the minimum wage based on inflation and prohibit paying any workers less than $15, except for a $13.50 training wage eligible for 16- to 19-year-old workers for the first 90 days of employment.
Under current state law, the minimum wage will increase to $15.26 on Jan. 1, and the youth minimum wage will remain at $13.50 through 2029 and remain below $15 for nearly 40 years.
Hilgers is asking a Douglas County District Court judge to block the Omaha order, which is set to take effect Oct. 1, absent court action. They argue that the ordinances will inevitably cause the cost of goods and services statewide to increase and require other communities to adjust to keep up.
The lawsuit names Omaha Mayor John Ewing Jr., Director Cailin Daly Dejillas of the City of Omaha Human Rights and Relations Department, and all seven Omaha City Council members as defendants.
Omaha Mayor John Ewing Jr. signed the ordinance, citing residents’ overwhelming support for the 2022 ballot measure, and said it would help families and was the right thing to do.
The situation in Nebraska is similar to other states where cities have attempted to raise the minimum wage above the state-level minimum. In these cases, the courts have often had to weigh in to determine the validity of the local ordinances.
In Nebraska, the Legislature has the final say on matters of statewide concern, and the Attorney General’s Office argues that the minimum wage is one such issue. It is a matter of affordability for many residents.
The Omaha lawsuit is similar to one filed against Lincoln city leaders, who passed a similar measure. Lancaster County District Judge Lori Maret blocked Lincoln from enacting its ordinance on July 17.
City Attorney Matt Kuhse had told the Omaha City Council that it could enact such an ordinance as a home rule charter city, which faces a higher cost of living than other parts of the state. However, Hilgers disagrees with this assessment.
Kuhse wrote in a June 4 letter to the Omaha City Council that the ordinance addresses the issue of higher costs in Omaha and provides a way for the city to utilize its local control to deal with unique issues.
The outcome of the lawsuit will have implications for the minimum wage in Omaha and potentially other cities in Nebraska.
If the court rules in favor of the city, it could set a precedent for other cities to raise their minimum wage above the state-level minimum.
Nebraska residents are watching the case closely, as it may impact their living costs.