A Lancaster County District Court judge has temporarily blocked the City of Lincoln from enforcing its local minimum wage ordinance while a legal challenge brought by the State of Nebraska moves forward.
The court ruled the state presented a strong enough case to justify an injunction until the lawsuit is decided on its merits. The dispute centers on changes the Nebraska Legislature made to the state’s Wage and Hour Act earlier this year. The law set a 1.75% annual minimum wage growth rate and allows employers to pay workers under 20 a youth minimum wage of $13 an hour.
The City of Lincoln later adopted an ordinance requiring a different wage increase formula and a $15 minimum wage for youth employees. In its order, the court said the issue is likely a matter of statewide concern and found the state could suffer irreparable harm if the city’s ordinance conflicted with state law. As a result, the ordinance cannot be enforced until further order of the court.
Attorney General Mike Hilgers welcomed the ruling, calling the ordinance an unconstitutional attempt to override state law. For now, the Legislature’s 2026 amendments to Nebraska’s Wage and Hour Act remain in effect statewide, including within Lincoln, while the case continues through the courts.