Lincoln Considering Minimum Wage Increase, Critics Warn It Will Harm Competitiveness
by John Gage
(Picture courtesy of the City of Lincoln)
The Lincoln City Council is preparing to decide whether to increase the minimum wage in the city. Lincoln City Councilman James Michael Bowers introduced an ordinance that will be heard by the city at its next meeting on Friday.
The move comes following the state Legislature passing LB258 this year, which would slow the continued increase of the minimum wage, as well as approving a separate youth wage. Bowers said his measure will return to the language used on the ballot initiative, and make the youth wage commensurate with the overall minimum wage while increasing the minimum wage each year to keep pace with inflation.
“Lincoln voters were clear, and they spoke with strength across every part of this city. This ordinance merely keeps that decision intact,” Bowers said in a statement Thursday. “When voters set a standard so overwhelmingly, it should not be changed after the fact.”
State Sen. Danielle Conrad, who opposed the changes the Legislature passed on the issue this year, said she is “grateful” to see the city council take up the issue.
“Nebraskans were crystal clear about their decision on this matter, and their votes should be respected. Unfortunately, in recent years the Legislature has undercut the will of the voters to deliver favors to corporate special interests with massive lobbying power at the expense of Nebraska voters and working families,” Conrad said.
Critics Concerned For Competitiveness
While proponents of the measure cite support from voters in passing the minimum wage initiative in 2022, critics say they are concerned that the measure could hurt the city’s ability to compete for jobs.
City Council Member Tom Duden told The Plains Sentinel the measure put youth and teen jobs at risk in Lincoln. “I want wages to be competitive and comparable to like cities,” he said.
Jason Ball, president and CEO of the Lincoln Chamber of Commerce, said that the group had some “pretty fundamental questions” about whether the city was taking the right step.
“I understand the ballot initiative itself was very popular,” Ball said. “But it’s very clear that the industries that will be impacted by this are going to be predominantly small businesses and the type of small businesses that community members and leaders talk about wanting more of in Lincoln.”
Ball mentioned restaurants, independent retail, early childhood education, daycare services, and house construction as businesses and industries that could be impacted by changes to the minimum wage.
“It’s going to have some outcomes that I don’t think even proponents of that are wanting,” he added.
The measure will require three readings and a public hearing before it goes for a final vote.
John Gage is the executive editor of The Plains Sentinel.