The current minimum wage in Nebraska is $5.15 per hour for employers with four or more employees. For the past several years efforts to raise the minimum wage has been stalled in Nebraska’s state legislation.
In 2005 LB 554 was introduced and carried over to the 2006 session. Amendments by the Business and Labor Committee to this bill made several changes. Some of the changes removes the language that would apply to workers who are seventeen years of age or older and removes all language that would adjust the minimum wage or training wage to the Consumer Price Index starting October 1, 2008. With these amendments the minimum wage of $6.26 per hour and training wage of $5.15 per hour remains in effect until it is changed by later legislation. Unfortunately, this bill did not pass the 2006 session and will probably be reviewed again in next year’s session.
The economy in the state of Nebraska seems good and its overall cost of living ranks below the national average. However, Nebraska’s minimum wage has not increased in at least eight years. Currently, the U.S. Congress is debating on increasing the minimum wage to $7.25 per hour. Many states throughout the country haven’t waited for the federal minimum wage rate to increase. They have been working on providing economic power to their workers by either amending their constitution or passing legislation to increase its minimum wage.
Studies have shown that states who have increased its minimum wage realize an increase in payroll and a boost to its state revenue. No jobs were lost or businesses were closed. Whether the state of Nebraska works on increasing its minimum wage by either through an amendment or a ballot issue, waiting for the federal minimum wage rate to increase seems unrealistic. Voters in Nebraska should let their legislatures know their opinion on this issue.
