Douglas County Judge Blocks Omaha’s $15 Minimum Wage Ordinance for Youths
In a significant legal development, a Douglas County judge has determined that Omaha’s recent ordinance mandating a $15 minimum wage for workers of all ages is unlikely to survive judicial scrutiny and thus cannot be enforced. This decision arrives just days before the ordinance was set to commence.
The ruling, issued by Douglas County District Court Judge Timothy Burns, follows a lawsuit filed by the State of Nebraska against the City of Omaha, challenging the ordinance meant to counteract the state’s Wage Act, LB258. This state legislation controversially lowered the minimum wage for workers aged 14 and 15 to $13.50 per hour and set annual wage increases at a flat 1.75%.
Judge Burns agreed with the state’s request for a temporary injunction, noting that Omaha’s ordinance likely conflicts with the Wage Act by attempting to abolish the lower youth wage. However, Burns indicated that the city retains the ability to adjust annual minimum wage increases based on the Consumer Price Index, rather than the state’s fixed rate, allowing for a potential increase of 3.6% in 2027.
“Because a City ordinance requiring a higher minimum wage is merely more stringent, it can be harmonized with the State statute and is not preempted,” Burns explained in his ruling.
Judge Burns further elaborated that home rule charter cities like Omaha are permitted to enact ordinances in areas of purely local concern. While acknowledging Omaha’s higher cost of living, he noted the city failed to provide evidence of a strictly local concern that justifies overriding the state’s wage for young workers.
The City of Omaha Law Department responded positively to the ruling, stating, “The Court recognized the right of cities, such as Omaha, to govern and enact laws designed to help people living in Omaha.” They also noted that the portion of the ordinance concerning the youth wage would not be implemented at this time.
Meanwhile, a similar legal challenge has emerged in Lincoln, where the city adopted a $15 minimum wage ordinance for all workers. Lancaster County District Court Judge Lori Maret previously granted a temporary injunction to halt its enforcement, citing compelling state preemption arguments.
Lincoln’s ordinance, like Omaha’s, proposed linking wage increases to the Consumer Price Index, but the entire ordinance faced suspension. Both the Omaha and Lincoln cases remain unresolved, with no final orders issued, and the temporary injunctions are not subject to appeal.
