Ahead of a new California law set to take effect in April, which raises wages to $20 per hour, 1,200 Pizza Hut delivery drivers are being laid off.
“PacPizza, LLC, operating as Pizza Hut, has made a business decision to eliminate first-party delivery services and, as a result, the elimination of all delivery driver positions,” read a federal Worker Adjustment and Retraining Notification Act notice, Business Insider reports.
The Act requires employers give a 60 day notice before mass layoffs, according to KTLA.
Another WARN Act notice indicates a second Pizza Hut franchisee, Southern California Pizza Co., has made the same decision, which will affect 841 drivers.
The passage of Assembly Bill 1228 increases California’s minimum wage from $16 to $20. California Gov. Gavin Newsom signed it into law in September.
“California is home to more than 500,000 fast-food workers who – for decades – have been fighting for higher wages and better working conditions,” Newsom said at the time. “Today, we take one step closer to fairer wages, safer and healthier working conditions, and better training by giving hardworking fast-food workers a stronger voice and seat at the table.”
Other restaurant chains have said they plan to increase menu prices to pay for the wage increases.
In a not-so-shocking turn of events, California franchisees of Pizza Hut are laying off all their workers before the minimum wage increase kicks in. pic.twitter.com/oEydktEQN4
— Ian Miles Cheong (@stillgray) December 27, 2023
Gavin Newsom signs Bill for new $20/Hr. fast food worker minimum wage.
— Michael Oxford - Santa Cruz Mountain Goat (@SCMountainGoat) December 27, 2023
Pizza Hut lays off thousands of delivery drivers because of new minimum wage.
This is a perfect example of how California is run.
Every policy they implement makes it harder on the middle class and poor. pic.twitter.com/ZpwCUhuNXx