Nebraska lawmakers on Thursday passed LB 258, a bill that modifies the state’s minimum wage schedule, slowing increases approved by voters in 2022. The measure shifts annual wage growth from an inflation-linked index to a fixed 1.75% per year and lowers the minimum wage for workers aged 14 to 16 to $13.50, with raises set at 1.5% every five years starting in 2030.

The bill passed 33-16, following heated debate over its impact on the “will of the people.” In 2022, Nebraska voters approved a gradual increase to $15 per hour by 2026, with future adjustments tied to inflation. Opponents argued LB 258 undermines that initiative, while supporters said it helps small businesses manage labor costs.

Lincoln Sen. Jane Raybould, who introduced the measure last year, noted that lower teen wages make younger workers more employable despite limited experience. Small-business owners echoed concerns about the financial strain of automatic wage hikes, citing potential price increases or spending cuts.

Opponents, including Omaha Sen. John Cavanaugh and advocacy groups like Nebraska Appleseed, criticized the bill for disregarding voters’ intentions. Efforts are now underway to amend the state constitution to raise the threshold required to overturn voter-approved initiatives, ensuring future protections for ballot measures.