OMAHA, Neb. (KMTV) — Nebraska Attorney General Mike Hilgers has sued the City of Omaha — describing its minimum wage ordinance as 'unconstitutional' and a 'power grab.'
- The key points: Members of the Omaha City Council voted on July 14, 2026 to equalize pay for teen workers to match the adult minimum wage of $15 an hour (and they also opted to impact the minimum wage growth rate in the city).
- Earlier this year, the Nebraska Legislature set state law as youth employees earning a minimum wage of $13.50 an hour (with a minimum wage growth rate of 1.75%).
- In 2022, approximately 67% of Nebraska voters approved a minimum wage increase. Initiative 433 provided for a gradual increase in the minimum wage to $15 an hour by 2026.
- Finally, this past June, Hilgers sued the City of Lincoln. Its council members voted on — and approved — a $15 an hour increase in May. Similar to his lawsuit against Omaha, Hilgers has described Lincoln's ordinance as unconstitutional.
READ: The full statement from Attorney General Mike Hilgers' office regarding action against the City of Omaha, released August 18, 2026.
Today, Attorney General Mike Hilgers sued the City of Omaha over its unconstitutional minimum wage ordinance. The lawsuit asks the courts to stop the City’s power grab and enjoin enforcement of a municipal ordinance in direct conflict with State law.
In 2026, the Nebraska Legislature amended the State’s Wage and Hour Act to set the growth rate for the minimum wage and to allow employers to pay youth employees a distinct minimum wage. The Omaha City Council apparently disagreed with the balance the Legislature struck and, just last month, enacted a municipal ordinance directly at odds with State law.
The Legislature said the minimum-wage growth rate “shall” be 1.75%; the City’s ordinance would modify that statute to say, “shall not” and sets the growth rate at a different level. Similarly, the Legislature said that employers “may” pay youth employees a minimum wage of $13.50 per hour; the City’s ordinance effectively rewrites that law to say, “may not” and instead requires employers to pay youth employees $15 per hour.
“Our Constitution does not permit the City of Omaha to repeal any portion of a statewide law passed by the Legislature. A court already has enjoined the City of Lincoln from modifying this same state law, and it is unfortunate that we are forced to sue Omaha on a materially similar ordinance,” said Attorney General Mike Hilgers.
The City’s unconstitutional ordinance will inevitably cause the cost of goods and services made with Omaha labor to increase across the State. Moreover, businesses across the State may have to adjust their own costs to keep up with the City’s inflated wages. This would undermine the statewide uniformity and predictability that the Nebraska Legislature intended.
The lawsuit seeks to enjoin the ordinance from taking effect as violative of the Nebraska Constitution.
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