Pizza Hut is laying off more than 1,200 delivery drivers in California.
The layoffs, which will take place through the end of February, come as California’s minimum wage is set to increase by $4. The state’s fast food workers are expected to get a nearly 30% pay increase in April, with the minimum wage rising from $16 to $20 an hour.
PacPizza, LLC, doing business as Pizza Hut, said in a Worker Adjustment and Retraining Act (WARN) notice that the company made a business decision to eliminate premium delivery services party and, consequently, the elimination of all delivery driver positions, according to Business Insider. The notice was filed with the state Employment Development Department.
The Worker Adjustment and Retraining Notification Act requires employers to provide advance notice of mass layoffs or plant closings.
Southern California Pizza Co., a second Pizza Hut franchise, is also eliminating its in-house delivery services and laying off 841 drivers, according to a Dec. 1 WARN Act notice.
The layoffs impact Pizza Hut locations in Sacramento, Palm Springs, Los Angeles and other cities across the state.
How can California customers get Pizza Hut delivered?
Customers must use third-party apps such as DoorDash, GrubHub and Uber Eats for food deliveries from affected restaurant chains.
Pizza Hut, owned by Taco Bell parent company Yum! Brands told Business Insider that its “franchisees independently own and operate their restaurants consistent with local market dynamics and comply with all federal, state and local regulations while continuing to provide quality service and food to our customers via transport and delivery.
Minimum wage increase for fast food workers
In California, nearly a million fast food and health care workers are set to get a big raise after a deal was announced earlier this year between unions and the industries.
Under the bill, most California fast-food workers will be paid at least $20 an hour next year. And a separate bill will raise health care workers’ wages to at least $25 an hour over the next 10 years.
Chains including Chipotle and McDonald’s have said they plan to raise menu prices to offset costs from rising wages in California.
The law affects 557,000 fast food workers at 30,000 restaurants in California.
How does minimum wage compare by state?
Twenty-two states are expected to raise the minimum wage by early 2024. By January 1, seven states and Washington, D.C., will have a minimum wage of at least $15 an hour. Maryland, New Jersey and New York are all expected to increase their salaries at the start of the new year.
Fifteen states have laws in place that make the minimum wage equivalent to the federal minimum wage of $7.25 an hour, according to the Department of Labor. Five states have no minimum wage laws: Alabama, Louisiana, Mississippi, South Carolina and Tennessee.
Prices increase : McDonald’s and Chipotle to raise prices in California as minimum wage rises for workers
See the map : These states will see a minimum wage increase in 2024
This article originally appeared on USA TODAY: Pizza Huts in California lays off delivery drivers ahead of pay raise
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