Editorial

Legislators tackle real-world impacts

Tuesday, January 28, 2025

On Friday, we gave some thought to the Unicam’s effort to exclude school boards from access to special elections, but we also referenced the use of general elections to allow workers to vote raises and benefits for themselves. Interestingly, a couple of efforts are underway to counteract some of the unintended (or ill-considered) consequences of those measures.

The first, LB 648, introduced by Sen. Paul Strommen, seeks to alleviate burdens placed on Nebraska’s smallest businesses by the statewide paid leave mandate. This measure proposes several adjustments, including exempting businesses with 10 or fewer employees, temporary and seasonal workers, and youth under 16 from accruing paid leave. Additionally, the bill would remove the private right of action – a provision that critics argue could encourage frivolous lawsuits and further strain small businesses.

Strommen’s proposal aligns with concerns raised by the National Federation of Independent Business (NFIB). In its recent survey, 98% of Nebraska’s small business owners reported negative impacts from the paid leave mandate. Many small employers already offered paid leave voluntarily, with 76% doing so before the law took effect. However, the new regulation’s administrative burdens and potential legal vulnerabilities have left many small employers overregulated. As Ryan McIntosh, NFIB Nebraska State Director, put it, “Small business owners are already grappling with federal issues like high costs and hiring challenges. Paid leave regulation will only increase the burden.”

Similarly, Sen. Jane Raybould’s LB 258 tackles the ripple effects of Nebraska’s minimum wage hikes. With the minimum wage set to rise to $15 per hour by 2026, concerns about the impact on entry-level jobs are becoming a reality, particularly for teenagers and seasonal workers. Under LB 258, employers would be permitted to pay employees aged 14 to 16 a youth minimum wage of $13.50, while those aged 16 to 18 could earn a training wage of 75% of the minimum wage for up to 180 days. This measure acknowledges the economic realities of small businesses that often serve as entry points into the workforce.

Critics will undoubtedly argue that 14-year-olds can’t possibly afford rent, day care, and a car payment at those wages. Proponents will simply point out that the adjustments might prevent further elimination of positions that allow young workers to gain experience and contribute to the labor force.

New York Gov. Mario Cuomo famously said, “You campaign in poetry. You govern in prose.” If we were to extend that analogy, most ballot questions would fall somewhere between haiku and a dirty limerick. At best, ballot language asks for agreement in principle, but leaves the details for the legislature to clean up after the fact.

Both LB 648 and LB 258 are attempts to fill in the necessary prose, refining voter-approved measures to function more effectively.

For now, the efforts behind LB 648 and LB 258 signal a pragmatic approach to policymaking – one that supports Nebraska’s small businesses and workers alike. The adjustments offer a chance to address unintended consequences without undermining the original goals of the initiatives, ensuring that Nebraska remains a state where both Main Street and its workforce can thrive.

We appreciate the efforts of the legislature to interpret the ballot initiatives and attempt to make them work in real-world applications. While Senators consider tinkering with access to special elections, perhaps they might think of better ways to disclose the potential downsides of poorly considered ballot initiatives.

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