Court battles ensue over Omaha and Lincoln wage and hour ordinances

On February 9, 2026, Governor Jim Pillen signed Legislative Bill (LB) 258, amending Nebraska’s Wage and Hour Act. The legislation was intended to provide employers with greater predictability when budgeting labor costs while also establishing specific wage provisions for younger workers. The cities of Omaha and Lincoln then passed ordinances deviating from LB 258, and the state filed lawsuits to stop them. 

What LB 258 does

Before LB 258, Nebraska’s minimum wage was scheduled to increase annually based on changes in the cost of living. Those increases were tied to the Consumer Price Index for Urban Consumers (CPI) for the Midwest Region. Under that system, the Nebraska Department of Labor calculated annual adjustments by comparing the CPI from August of one year to August of the following year. Additionally, Nebraska law didn’t provide a separate minimum wage for 14- and 15-year-old employees. Employers generally were required to pay those workers the same minimum wage applicable to other covered employees.

LB 258 changed both of those provisions. The law maintains Nebraska’s minimum wage at $15 per hour through the end of 2026 and establishes a new formula for future increases. Beginning January 1, 2027, the state’s minimum wage will increase by 1.75% annually rather than by changes in the CPI.