Following up on the discussion of the power and responsibility that comes with casting a ballot, this week I want to address one of the more debated issues of this legislative session: Nebraska’s new minimum wage law and the passage of LB258. LB258 was a bill created to provide practical, real-world guidelines for implementing Ballot Initiative 433, which was approved by voters in 2022.

Initiative 433 mandated an increase in the state's minimum wage to $15 per hour starting Jan. 1, 2026, with future increases tied to inflation. The measure was supported by many Nebraskans who believed mandatory increases would help employees keep pace with rising costs and improve economic opportunity. Conversely, opponents warned that the mandatory increase would fundamentally result in higher costs for businesses and ultimately force a reduction in expenses, often including available jobs.

I heard from employers across the state concerned about the long-term impact of automatic, inflation- based increases on small businesses, particularly those operating on thin margins or relying on seasonal, part-time, and entry- level workers. Business owners described the constant challenge of balancing rising labor costs with the realities of operating in today’s economy, where every expense carries weight in day-to-day decisions. Behind every local restaurant, grocery store, feed store, repair shop, or family-owned business is a constant effort to manage payroll, inventory, utilities, insurance, taxes, and countless other costs while continuing to provide essential jobs and services.

Now, five months after the law took effect, the actual consequences are quickly surfacing. We are seeing reports of small businesses having to reduce their workforce or hours of operation, citing the mandatory increase in hourly wages as one of the reasons. This is no longer a debatable issue; it is unfolding in real time.

These were the very concerns that led to the passage of LB258. The bill did not eliminate the voter-approved increase to $15 per hour, which is now part of Nebraska’s minimum wage framework. Instead, LB258 replaces inflation-based adjustments with an annual increase of 1.75 percent for future wage growth. Additionally, it establishes specialized wage rates:

• A youth minimum wage of $13.50 per hour for employees aged 14 and 15 (excluding emancipated youth), with a scheduled increase of 1.5 percent every five years beginning Jan. 1, 2030.

• A 90-day training wage of $13.50 per hour for new employees under age 20 through December 1, 2026, after which it will increase by 1.5 percent annually.

People can disagree about whether LB258 struck the right balance, but beyond the debate itself, the impact of these decisions is ultimately felt in Nebraska’s communities. It shows up in hiring decisions, in whether small businesses can stay open, and in the opportunities available to workers entering the job market. Moving forward, the focus should remain on how to support both workers seeking higher wages and the small businesses that sustain local economies, particularly in rural areas and on Main Streets across the state. In the end, good policy is the result of both the voter's voice on broad ballot initiatives combined with the work of those elected to represent them, who are charged with carrying those ballot initiatives out in a practical manner.

As always, I am committed to representing your interests and value your continued support and engagement. It is an honor to serve as your representative and hear your perspectives. Please contact my office with any questions or concerns.

Respectfully, Senator Tanya Storer