At least 2,000 Pizza Hut employees in Southern California face being laid off next year when a new law raising California’s fast-food minimum wage takes effect in April.
A corporate franchise is expected to lay off more than 1,200 delivery drivers in Los Angeles, Orange and Riverside counties over the coming year, ahead of a new state law that raises the city’s minimum wage. fast food from 4 to 20 dollars an hour.
Also see: Fast food companies hold referendum, agree to $20 minimum wage
The legislation, known as Assembly Bill 1228, was introduced by Rep. Chris Holden, D-Pasadena, and signed into law in September by Gov. Gavin Newsom.
Business Insider reported Tuesday that the layoffs were planned through the end of February, ahead of the pay increase planned for April.
Also see: Orange County restaurant closures in 2023
Pac Pizza LLC, Insider reported, filed a notice under the Worker Adjustment and Retraining Act with the state Employment Development Department, writing that it would follow through on its decision to ‘eliminate first-party delivery services.
The WARN Act requires employers to provide advance notice of mass layoffs or plant closings.
A second Pizza Hut franchise, Southern California Pizza Co., also plans to lay off 841 drivers. The layoffs will affect drivers at Pizza Hut locations in Sacramento, Palm Springs, Los Angeles, Central California, Southern Oregon and the Reno-Tahoe area, among others.
Pizza Hut franchises are preparing to turn to third-party apps like DoorDash, GrubHub and UberEats for pizza and food deliveries.
Yum! Brands, which owns Pizza Hut and other fast-food companies such as Taco Bell and KFC, did not immediately respond to a request for comment.
Yum previously 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.
It was previously reported that other food chains such as Chipotle and McDonald’s have said they plan to raise menu prices to offset costs related to rising wages in California.
Following the passage of the law, Holden said in a statement that the wage increase would help workers feed their children, keep gas in their vehicles and improve the quality of life for many people.
Also see: California workers will get five sick days instead of three under law signed by Governor Newsom
In addition to raising the minimum wage for fast food workers to $20 an hour, the plan will also create a Fast Food Council. The council would work to address concerns from the employer community while preserving fast food jobs by getting a seat at the table to raise standards, according to Holden’s office.
The board will consist of nine voting members, including representatives from the fast food industry, franchisees, employees, advocates, one unaffiliated member of the public and two non-voting members.
The council’s responsibilities will also include developing standards for fast food workers, covering wages, working conditions and training.
AB 1228 will affect more than 550,000 fast food workers and approximately 30,000 restaurants in the state.
California Daily Newspapers