Over the last several weeks, I have heard from employers across District 42 who are trying to do the right thing. They want to pay fair wages, keep hard-working employees, and continue serving their communities. I have also heard from parents and young people who want what we all want: the opportunity to work, gain experience, and build a future.

That is why the Legislature became involved in the minimum wage discussion this session.

On January 1, 2026, Nebraska’s minimum wage reached fifteen dollars per hour as a result of a voter-approved initiative passed in 2022. That initiative also scheduled future increases tied to inflation. For many families, higher wages are important and meaningful. But for many small employers, especially in rural Nebraska, these changes have created real pressure.

In much of our state, businesses operate on thin margins. Customer volume is lower than in large cities. Prices can’t always be increased without risking losing customers. Labor pools are shrinking, and competition for workers is already high. When wages rise at the same time as utilities, insurance, supplies, and interest rates, some small employers simply cannot absorb the costs. The result is not always higher pay. Sometimes it is fewer hours, fewer jobs, or worse, businesses closing altogether.

When a small business closes in a small town, the impact reaches far beyond that storefront. Jobs are lost. Young people miss out on their first job opportunities. Communities lose essential services residents depend on. Once those doors close, they often never reopen.

The 2022 ballot initiative placed Nebraska on an automatic path of wage increases driven by inflation. While well-intentioned, automatic increases do not account for the economic realities many small employers face. Inflation can change quickly, and businesses cannot always adjust at the same pace. Wage policy that runs on autopilot may be simple on paper, but it does not reflect how fragile many rural businesses truly are.

This is what prompted legislative debate and ultimately the passage of LB 258.

The bill keeps the current fifteen-dollar minimum wage for adults in place for 2026, but it changes what happens after that. Instead of future increases being tied to inflation, the bill sets predictable, modest annual increases of one point seven five percent beginning in 2027. Predictability matters. It allows employers to plan, budget, and make informed decisions about hiring and expansion without guessing next year’s increase.

The bill also establishes a separate minimum wage for fourteen and fifteen-year-olds. This provision is intended to protect entry-level job opportunities. First jobs are where young people learn responsibility and basic work skills. If it becomes too costly to hire inexperienced workers, employers are less likely to take that chance. The result can be fewer opportunities for young people to enter the workforce at all.

There is also a broader question that deserves honest discussion. What is minimum wage meant to be, and how do we decide what dollar amount qualifies as minimum? A household budget in rural Nebraska looks very different from one in an urban area. A small business in a town of a few hundred people operates under very different conditions than a large employer in a major city.

Minimum wage was never intended to be a long-term career wage. It was meant to serve as a starting point as people gain experience, develop skills, and move into higher-paying roles. That progress depends on opportunity. Opportunity arises from businesses that can stay open, hire locally, and invest in their employees over time.

The message I hear most often from small employers in District 42 is clear. They want to hire workers and expand their business. However, they struggle to keep up with rapidly increasing costs.

That concern should matter to everyone. When small employers cannot afford to hire, people lose access to jobs. When people lose access to jobs, families lose stability. When families lose stability, communities lose population and momentum.

My goal is a Nebraska where people can earn more, keep more of what they earn, and find opportunity close to home. Achieving that goal requires policies that recognize the realities faced by rural communities and small businesses, not just those in larger cities.

I will continue to address this issue by listening to employers, employees, and families across District 42 and by weighing what policies mean not only today but also for the long-term health of our communities. It is a pleasure serving as your State Senator. I enjoy the challenge and will continue to do my best to serve the interests of District 42. Please continue to reach out to me about issues important to you at 402-471-2729 or by emailing me at mjacobson@leg.ne.gov.