Lincoln, NE – A major wage change in Nebraska is raising a bigger question across the Midwest: Could other states follow the same path and roll back pay for young workers?
According to the Nebraska Legislature, lawmakers approved Legislative Bill 258 on a 33–16 vote, allowing employers to pay workers ages 14 and 15 a reduced “youth minimum wage” of $13.50 per hour, down from the current $15 minimum. The bill is expected to be signed by Gov. Jim Pillen and would take effect mid-July.
The law also slows future wage growth for all workers. Instead of increasing with the cost of living, Nebraska’s minimum wage will now rise by a fixed 1.75% each year, reaching about $15.26 next year, even if inflation is higher.
That change reverses a system approved by voters in 2022, when nearly 60% of Nebraskans backed automatic cost-of-living increases. Lawmakers passed the bill with the minimum number of votes required to alter voter-approved policy.
Supporters say the move gives businesses predictable labor costs and helps avoid price increases. Critics argue it weakens wage protections — especially for teens entering the workforce — at a time when rent, food, and transportation costs remain high.
The youth wage will increase only 1.5% every five years starting in 2030, meaning teen workers could earn less than the standard minimum wage for decades.
While employers can still choose to pay more, they are no longer required to.
With other Midwest states facing similar pressure from business groups, Nebraska’s move is now being watched closely across the region.
❓ Do Midwest states need to worry about this trend spreading — and are young workers becoming the first target?
