Lincoln, Nebraska – A Nebraska judge has temporarily stopped the City of Lincoln from enforcing its local minimum wage ordinance after finding that the State presented a strong legal case challenging the measure.
The decision came from the Lancaster County District Court, which issued an injunction preventing the ordinance from taking effect while the lawsuit continues. According to the court, the State’s legal arguments are “strong enough that the Ordinance should be enjoined until the merits are fully litigated.”
The dispute centers on changes made by the Nebraska Legislature in 2026 to the state’s Wage and Hour Act. Those amendments established how the state’s minimum wage should increase over time and also allowed employers to pay a separate minimum wage for younger workers.
State says Lincoln ordinance conflicts with Nebraska law
According to the State, Lincoln’s ordinance directly conflicts with those legislative changes.
Under the amended law, the Legislature determined that the minimum wage growth rate “shall” be 1.75%. State officials argue that Lincoln’s ordinance effectively replaces that language by stating the growth rate “shall not” follow the state formula and instead applies a different increase.
The State also challenged the city’s approach to youth wages.
The Legislature’s amendments allow employers to pay workers who qualify as youth employees $13 per hour. However, according to court filings, Lincoln’s ordinance would instead require employers to pay those employees $15 per hour, preventing businesses from using the lower youth wage authorized by state law.
Attorney General Mike Hilgers welcomed the court’s decision to temporarily block enforcement of the ordinance.
“I appreciate the Court’s thoughtful consideration here,” stated Attorney General Mike Hilgers. “The injunction stops the City’s unlawful ordinance and its illegal attempt to circumvent the Constitution.”
In its ruling, the court rejected the City’s argument that the issue should be handled as a local matter. Instead, the judge concluded that “the minimum wage is likely a matter of statewide concern.”
The court also found that the State would face significant harm if Lincoln were allowed to enforce a law that conflicts with Nebraska statutes. According to the ruling, “the State will be irreparably harmed if the Ordinance contradicts state law.”
As a result, the court ordered that the City cannot enforce the ordinance “until further order of the Court.”
The lawsuit will now continue as both sides argue the broader legal questions surrounding the ordinance. Until a final decision is reached, the 2026 amendments to Nebraska’s Wage and Hour Act will remain in effect statewide, including within the City of Lincoln.
The ruling means employers in Lincoln must continue following the state’s minimum wage requirements rather than the city’s ordinance while the case moves through the courts.
