A Lancaster County district judge has issued a temporary injunction preventing the City of Lincoln from putting its locally approved minimum wage ordinance into effect, after the Nebraska attorney general filed a lawsuit arguing the measure conflicts with state law.
What the court decided
Judge Lori Maret granted the interlocutory order on Friday, finding that Nebraska Attorney General Mike Hilgers has standing to bring the case. The judge's decision does not resolve the underlying dispute over whether Lincoln may set a wage rate that differs from the state's law; it pauses the city's ordinance while the lawsuit continues.
"The state would be 'irreparably harmed' if the ordinance contradicted state law," the judge wrote, also noting that "the remaining two elements — the balance of the hardships and the public interest — do not weigh strongly for or against a temporary injunction."
Background to the clash
The legal action arose after Lincoln's City Council moved last month to maintain a $15 minimum hourly rate for workers and to allow future increases tied to the cost-of-living index, reflecting the wider measure voters backed in 2022. This step put the council at odds with a new law passed earlier this year by the Nebraska Legislature that narrows those voter-approved increases and establishes different rules for younger workers and short training periods.
- The state law permits employers to pay 14- and 15-year-olds $13.50 an hour.
- It allows a 90-day training period during which 16- to 19-year-olds may be paid the lower rate.
- Annual increases under the state law are capped at 1.75% rather than being tied to an inflation index.
Arguments presented in court
City Attorney Yohance Christie argued at a July 2 hearing that Lincoln acted within its powers to set a wage above the statewide minimum and that the question should be treated as a local matter — pointing also to the fact that a majority of Lincoln voters supported the 2022 ballot measure. State attorneys countered that the city's ordinance raises issues of statewide concern and sought to prevent Lincoln from enforcing a rule at odds with the Legislature's statute.
The judge referenced precedent from another jurisdiction in reaching a preliminary view that the subject may be of statewide significance, and she concluded that allowing the local ordinance to operate would cause harm to the state that could not be remedied later.
| Item | Detail |
|---|---|
| Judge | Lori Maret |
| Plaintiff | Nebraska Attorney General Mike Hilgers |
| Defendant | City of Lincoln |
| City ordinance | Maintain $15 minimum, index-linked increases |
| State law | Allows $13.50 for 14–15 year-olds; 90-day training rate; 1.75% annual cap |
Local consequences and next steps
For workers, employers and city policymakers in Lincoln the injunction leaves the council's preferred wage policy on hold. Businesses preparing for the local change will need to continue following state law until the court reaches a final decision. The ruling also raises broader questions about the extent to which cities in Nebraska can enact labour standards that go beyond state requirements.
The judge did not make a final determination on the merits, so the legal contest will proceed. Residents and local employers can expect further filings and possibly more court hearings before the matter is resolved. City leaders and the attorney general's office will each consider whether to appeal or press the case through the Lancaster County courts.
Until then, Lincoln's attempt to implement a higher, index-linked local minimum wage remains suspended by judicial order.
