Business and Labor

Lower wage for young workers fails

A bill that would have created a lower wage for young workers in Nebraska failed to advance May 15.

Introduced by Crete Sen. Laura Ebke, LB599 would have permitted employers to pay workers ages 18 and younger either $8 an hour or 85 percent of the federal minimum wage, whichever is higher, beginning Jan. 1, 2016. No more than 25 percent of the worker’s total hours could have been paid at the new rate.

Following the approval of Initiative 425 by Nebraska voters last November, the state’s minimum wage increased to $8 per hour this year and is set to increase again in 2016 to $9 per hour. The ballot initiative was the result of a successful petition drive that followed the 2014 Legislature’s rejection of a bill to increase the state’s minimum wage.

LB599 would have applied to employees age 18 and younger who do not have a high school diploma and have no dependent children.

The bill failed to pass on a 29-17 vote. Because LB599 would have amended a law enacted by voter initiative, it required at least 33 votes on final reading for passage.

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