Minimum Wage Increase Affects Small Businesses
In less than three weeks, Nebraskans will vote on a minimum wage increase. The current minimum wage for non-students is $9 per hour. The federal minimum wage is $7.25 an hour. Minimum wage does not apply to tipped employees, some student workers and other exempt occupations.
The Nebraska minimum wage was last changed in 2015 when it went from $6.55 to $9. The tipped minimum wage has stayed at $2.13 an hour for over 25 years. Tipped employees must earn at least $9 per hour including tips. A training minimum wage of 75% of the Nebraska minimum wage (currently $7.65) can be paid for student workers (indefinitely) and to new employees under age 20 for the first 90 days. Student employees must work twenty hours or less per week.
Nebraskans will be voting on Initiative 433 which raises the minimum wage from $9.00 an hour to $10.50 on January 1, 2023, and then to $12 in 2024, $13.50 in 2025 and finally to $15 in 2026.
Will this help Nebraska families and Nebraska employers? Nebraska employers are having a hard time finding workers, even with one of the lowest unemployment rates. Nebraska families are having a hard time meeting expenses if they only work for minimum wage.
Local business owners that Polk County News talked to discussed this could hurt service industries which utilize younger workers. A youth/training wage would help so that a 16-year old who you have to supervise more shouldn’t be paid the same as an adult who might not need that supervision. Also recommended was to soften the CPI (consumer price index) increase. Fourteen states have the minimum wage tied to the CPI. Several states have a cap on the increase from 2-3.5%.
Local businesses did say they do pay their full time adult workers more than minimum wage. Most workers making minimum are the younger student-age part-time workers.
Should this be tied to cost of living? The cost of living in Lincoln and Omaha is probably more than here in Polk County. We could compare real estate prices or rental property prices to easily see the urban area has a higher cost of living.
Above all, we want to keep our small businesses in the area. Please think about your vote and how that will affect not only your own family, but the businesses you use, such as your grocery store, pharmacy, restaurant, and more.
