OMAHA, Neb. (KMTV) — Omaha business owners are adjusting rates and strategies as Nebraska's four-year minimum wage increase initiative concludes next year.
- Liz Goldsberry, owner of Jersey Cleaning in Omaha, has been preparing for these wage increases by raising her rates 20% over the last two years.
- At Premier Academy, a childcare center in northwest Omaha, Director Tiffany Pendergraft says while increasing wages look good on paper, the reality is more complex.
- After 2026, Nebraska's minimum wage will rise annually with the cost of living.
BROADCAST TRANSCRIPT:
Nebraska's minimum wage will reach $15 an hour in 2026, marking the final step in a four-year journey that began when the wage was $9 an hour in 2022. The $1.50 annual increases have prompted local business owners like Liz Goldsberry to adjust operations and pricing strategies.
"I never really had any pushback. Everyone seems to understand that everything is going up," Goldsberry said.
Goldsberry, owner of Jersey Cleaning in Omaha, has been preparing for these wage increases by raising her rates 20% over the last two years: 10% in 2024 and another 10% planned for 2026.
"That was designed to make sure my employees are paid above minimum wage cause they work their butts off," Goldberry said.
Goldberry doesn't mind paying higher wages because she believes her employees are worth the investment.
However, even with businesses increasing pay for workers, some think it's still not enough to address broader economic challenges.
At Premier Academy, a childcare center in northwest Omaha, Director Tiffany Pendergraft oversees staff who play crucial roles in child development.
"We basically raise their children. We basically, we instill the morals, the values, the please, the thank you," Pendergraft said.
Like many childcare centers, Premier Academy's entry-level positions start at minimum wage. While Pendergraft acknowledges that increasing wages looks beneficial on paper, the reality is more complex.
"There's a lot of levels to it, a lot of levels. Because every time we go up the prices for childcare go up," Pendergraft said.
Rising childcare fees can impact affordability for families, potentially forcing some to seek alternative arrangements that may not offer the same level of oversight.
"Which is a concern whenever you take a child from a center to an in-home because in-home's aren't regulated like centers are by the state," Pendergraft said.
After 2026, Nebraska's minimum wage will rise annually with the cost of living, creating ongoing uncertainty for business owners like Goldsberry.
"I don't plan to increase, I don't want to increase but it just depends on what all happens. If prices keep going up then I won't have a choice to raise prices again," Goldsberry said.
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