Attorney General Hilgers Sues City of Omaha over Unconstitutional Minimum Wage Ordinance

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.