Nebraska Advances Bills Amending Voter-Backed Labor Laws

Nebraska lawmakers have advanced bills amending two major labor laws that were recently approved by voters: minimum wage increases and paid sick leave requirements. The Legislature passed a bill capping annual minimum wage increases at 1.75%, diverging from a 2022 voter-approved initiative that tied future increases to the cost of living, and introduced a lower youth wage. Another bill exempts businesses with 10 or fewer employees, as well as certain young and seasonal workers, from new paid sick leave mandates, despite nearly 75% voter approval last year. An initial compromise to lower the exemption threshold to businesses with five or fewer employees was reversed due to concerns about the impact on small businesses. Opponents argue these legislative changes disregard the will of the voters, while supporters say they are necessary to protect small businesses and youth employment. Both measures are now awaiting final approval, underscoring ongoing tensions between direct democracy and legislative authority in Nebraska.