Before the minimum wage rises, Pizza Hut in California will lay off all delivery drivers.
1,200 delivery drivers in California will be affected by the layoff at Pizza Hut.
The action comes swiftly as the California minimum wage increases to 30% in April. The majority of fast-food employees in California will receive at least $20 per hour starting in 2019 thanks to the measure. Additionally, over the next ten years, a different measure will raise the pay of healthcare professionals to at least $25 per hour.
Employers are required by the Worker Adjustment and Retraining Notification Act to notify employees about mass layoffs or factory closures.
A WARN Act letter dated December 1 states that Southern California Pizza Co., a second Pizza Hut franchise, is also terminating its internal delivery services and laying off 841 drivers. Following an agreement struck earlier this year between labor unions and companies, over one million fast food and healthcare workers in California are expected to get significant pay increases.
Customers wanting delivery can use Grubhub, Uber Eats, and Door Dash the Pizza Hut app and website.
Pizza Hut is owned by Yum! Brands, Inc. Yum! Brands is a multinational fast-food company that also owns other popular restaurant chains such as KFC and Taco Bell. Pizza Hut restaurants are franchises.
Additionally, Southern California Pizza Co. disclosed state-wide layoffs of about 841 drivers. Pizza Hut outlets in Orange, San Bernardino, Ventura, Los Angeles, and Riverside counties are affected by the changes.
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