Lawmakers debate minimum wage, WEC bill

McCOOK, Neb. — A bill that would bump up the minimum wage rate for people who work for tips generated plenty of debate this week in the Nebraska Legislature.

Currently, the wage for those compensated for gratuities is $2.13 per hour. LB 400 would increase the wage to 40 percent of the minimum wage rate in effect on Jan. 1, 2020, until Jan.1, 2021, when the wage goes up to 50 percent of the minimum wage. Assuming the Nebraska minimum wage remains $9 per hour, under this bill, wages would increase to $3.60 on Jan.1, 2020 and then to $4.50 on Jan. 1, 2021. An amendment was added Thursday that would make a single, one-time tipped minimum wage increase to $4.50 per hour, rather than the incremental approach proposed in the original bill.

After two days of debate, the bill stalled on the floor Thursday. Dist. 44 State Sen. Dan Hughes said he is against the bill Thursday morning at the McCook Chamber of Commerce conference call.

It would a very real hardship to owners of small-town diners, he said, putting additional restraints on small business owners. It’s another example of the government intruding into small businesses.

“Let the free market work,” Hughes said. He’s a strong proponent on the power of individual incentive, Hughes said, whereby employees have the opportunity to provide excellent service and get favorable compensated for that service.

Advancing to general file this week was LB 340, that eliminates females from being eligible to be placed at the Work Ethic Camp in McCook.

Hughes said he’s in support of that bill as the space is needed, as the number of inmates entering the Nebraskas Department of Corrections is more than those being released. Capacity in the state’s correctional system is at 157 percent, according to the September 2018 annual report.

The space at the Work Ethic Camp, that can hold up to 200, is needed until inmate numbers come down, he said.

The original design of the camp had offenders sentenced on first offense felonies to individually structured programs, such as GED classes, drug treatment, parenting and other classes, to reduce the risk of recidivism.

In 2010, it started to accept minimum security inmates incarcerated at the Nebraska Department of Corrections and as such, regulations in the state penitentiary were incorporated at the camp. This meant offenders have the option, not the requirement, to take classes.

“Unfortunately, it’s not a work ethic camp now but a prison,” Hughes said. He added that although the director of corrections and other officials understand the importance of the work ethic camp, current circumstances make it impossible at this time to operate as one.

Hughes also said the introducer of the bill has the support of the work ethic camp warden, Pam Morello.

Another bill Sen. Hughes weighed in on was LB 670, in response to a comment by a participant at the conference call. The bill would create an income tax credit for those who donate money to nonprofits that grant scholarships to students to attend a private elementary or secondary school. The priority bill of Elkhorn Sen. Lou Ann Linehan, the scholarships could be used to pay tuition and fees at a qualifying non-governmental, privately operated elementary or secondary school in Nebraska.

Jamie Mockry, McCook Chamber of Commerce director, told Hughes that in conversations he’s had in the community about the bill, about 90 percent are against it. Although he has nothing against parochial or private schools, parent’s make the decision to send their children to private school and state money shouldn’t be used to fund that. Hughes has said at previous conference calls that he is in favor of the bill and that Mockry’s comment was “duly noted.” Another participant at the conference call said he was in favor of the bill.

A bill that has advanced to the final round of debate in the legislature, LB 399, would update social studies requirements for Nebraska schools. It would require each school district to incorporate either a civics exam or a civics-focused project, paper or presentation into its curriculum. The bill has a significant amount of support in the legislature, Hughes said.

Lawmakers have until Tuesday, March 19, to designate their priority bills. Priority bills are guaranteed to be heard again, with Hughes not yet selecting one.