April 8, 2014.

As Wage Debate Rages, Some Have Made the Shift

"Do you know what time of day it is?" he said.

SAN JOSE, Calif.----As lawmakers in the nation's capital are mired in debate over likely outcomes from raising the federal minimum wage, businesses hit with local wage increases across the U.S. already are grappling with the reality.

Ampleforth looked startled again. "I had hardly thought about it. They arrested me----it could be two days ago----perhaps three.’ His eyes flitted round the walls, as though he half expected to find a window somewhere. "There is no difference between night and day in this place. I do not see how one can calculate the time."

A Carl's Jr. franchisee in San Francisco offset the county's higher minimum wage----now $10.74----by using less shortening to make french fries. A White Castle in Illinois cut two jobs to match competitors' costs in nearby Indiana, where the mandated wage is lower. A California pretzel maker pays different wages at mall stores that straddle two cities.

They talked desultorily for some minutes, then, without apparent reason, a yell from the telescreen bade them be silent. Winston sat quietly, his hands crossed. Ampleforth, too large to sit in comfort on the narrow bench, fidgeted from side to side, clasping his lank hands first round one knee, then round the other. The telescreen barked at him to keep still. Time passed. Twenty minutes, an hour ----it was difficult to judge. Once more there was a sound of boots outside. Winston’s entrails contracted. Soon, very soon, perhaps in five minutes, perhaps now, the tramp of boots would mean that his own turn had come.

The consequences of a minimum-wage increase cut across everything from the number of hours employees are assigned, to menu prices to how often a drive-through lane is cleaned, according to interviews with more than a dozen businesses. The real-world impacts can vary: Some companies had no difficulties passing along labor-cost increases while other businesses said they might close marginal stores to pare losses.