Delivery Driver Layoffs at California Pizza Huts Precede Minimum Wage Boost


Pizza Hut is initiating the layoff of over 1,200 delivery drivers in California, a move scheduled to be completed by the end of February. 

This decision coincides with the upcoming increase in California’s minimum wage by $4, with a nearly 30% pay raise for fast-food workers anticipated in April, raising the minimum wage from $16 to $20 per hour.

PacPizza, LLC, operating under the name Pizza Hut, cited a business decision in a Worker Adjustment and Retraining Notification (WARN) Act notice. 

The company has opted to discontinue first-party delivery services, leading to the elimination of all delivery driver positions.

 This notice has been officially filed with the state’s Employment Development Department, as reported by Business Insider.

Southern California Pizza Co., another franchise associated with Pizza Hut, is similarly discontinuing its internal delivery services, resulting in the layoff of 841 drivers, as outlined in a WARN Act notice dated December 1.

These layoffs affect drivers at Pizza Hut establishments in various cities across the state, including Sacramento, Palm Springs, Los Angeles, and others.

Third-Party Apps Essential for Pizza Hut Deliveries

Pizza Hut is initiating the layoff of over 1,200 delivery drivers in California, a move scheduled to be completed by the end of February.

Customers are required to utilize third-party platforms such as DoorDash, GrubHub, and Uber Eats for food deliveries from the impacted chain restaurants.

In California, nearly one million fast-food and healthcare employees are slated to receive a substantial salary increase following an agreement reached earlier this year between labor unions and industry representatives.

According to the legislation, the majority of fast-food workers in California will receive a minimum wage of at least $20 per hour starting next year. 

Additionally, a separate measure will progressively raise healthcare workers’ wages to a minimum of $25 per hour over the next decade.

Major chains, including Chipotle and McDonald’s, have announced intentions to adjust menu prices as a means to counterbalance the higher wage expenses in California.

The legislation encompasses 557,000 fast-food workers employed at 30,000 restaurants throughout the state.

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