How does factoring in minimum wage costs get added when wages have not necessarily been paid out yet at the new higher rate? For instance, if minimum wage is set to go up in the next few months and companies know of this increase in labor cost, when do they start raising prices or determining the best way to offset these added costs?

My assumption would be to raise product costs and cut employees beforehand, yet it seems many businesses tend to not raise costs or lay off employees until the new law/wage has come into effect. What do you guys think and what's the most efficient way to go about this as well?