Lincoln, Neb. — Attorney General Mike Hilgers sued the City of Omaha on Tuesday over its unconstitutional minimum wage ordinance. The lawsuit asks the court to block the City’s power grab and stop enforcement of a local law that conflicts directly with state law.
In 2026, the Nebraska Legislature amended the State’s Wage and Hour Act. The changes set the minimum wage growth rate and allowed employers to pay young workers a separate minimum wage. The Omaha City Council rejected that balance and enacted an ordinance last month that conflicts with state law.
State law says the minimum wage growth rate “shall” be 1.75%. Omaha’s ordinance changes that language to “shall not” and sets a different rate. State law also says employers “may” pay youth employees $13.50 per hour. The city ordinance effectively changes “may” to “may not” and requires employers to pay those workers $15 per hour.
“Our Constitution does not permit the City of Omaha to repeal any part of a statewide law passed by the Legislature. A court has already blocked the City of Lincoln from changing this same state law, and it is unfortunate that we must sue Omaha over a materially similar ordinance,” said Attorney General Mike Hilgers.
The city’s unconstitutional ordinance will raise the cost of goods and services made with Omaha labor throughout Nebraska. Businesses across the state may also need to increase their prices to match Omaha’s higher wages. That would weaken the uniformity and predictability the Legislature intended statewide.
The lawsuit asks the court to block the ordinance because it violates the Nebraska Constitution.
