CNBC: Businesses Get Creative as Minimum Wages Increase

It's about to get more costly for businesses to operate in the nation's second- and third-largest American cities.

The cities of Los Angeles and Chicago both have local minimum wage ordinances going into effect July 1 that will increase the mandated hourly wage 5 percent to $10.50 per hour from $10 previously. On the same day, both San Francisco and Louisville, Kentucky, will also see new higher minimum wages in their cities. San Francisco's hike will boost the hourly rate 6 percent to $13 per hour from $12.25 previously, while Louisville's minimum wage will rise 6 percent to $8.25 per hour from $7.75.

Overall, researcher Evercore notes that four counties and seven municipalities nationally will get a jump in minimum wages between July and October. Among them are two counties in Maryland — Montgomery and Prince George's — where minimum wages are set to soar nearly 13 percent to $10.75 from $9.55 on Oct. 1.

Some employers — particularly those in the retail industry — are increasingly adopting technology to soften wage inflation pressure. McDonald's, Panera Bread, Wal-Mart and other major retailers are leading the way and using kiosks and other technology as they generally reduce the number of personnel dedicated to cashier functions.

"Restaurants are finding creative ways to cope through technology and price increases while increasing general consumer service levels," said R.J. Hottovy, an analyst at Morningstar in Chicago.

To read the full CNBC article, click here.