California Pizza Hut Operators To Lay Off Workers

(RTTNews) - Two Pizza Hut operators in California have announced their decision to lay off thousands of workers in 2024, anticipating the implementation of the new state law, Assembly Bill 1228. This law will raise the minimum wage for fast-food workers to $20 per hour, up from the current rate of $16 per hour.

The Pizza Hut franchise Southern California Pizza Co. plans to lay off 841 delivery drivers in various locations, including Sacramento, Palm Springs, Los Angeles, Central California, Southern Oregon, and the Reno-Tahoe area. Another operator intends to lay off more than 1,200 delivery drivers in Los Angeles, Orange, and Riverside counties.

Assemblyman Chris Holden introduced Assembly Bill 1228, which not only proposes a $4 increase in the fast-food minimum wage but also establishes a Fast Food Council. This legislation was signed into law by Governor Gavin Newsom in September.

Speaking about the new law, Holden said," The pay increase will help workers feed their children, keep gas in their vehicles, and improve the quality of life of many."

The law aims to safeguard the safety, health, and employment of fast-food workers by establishing a Fast Food Council. The council will address areas such as safety, wages, working conditions, and training. It will consist of nine voting members, including representatives from the fast-food industry, franchisees, employees, advocates, one unaffiliated member from the public, and two non-voting members.

The bill is estimated to impact over 550,000 fast-food workers and nearly 30,000 fast-food restaurants in the state.

In response to these changes, Pizza Hut, owned by Yum! Brands, has opted to collaborate with third-party delivery apps like DoorDash, GrubHub, and UberEats.

Earlier reports indicated that other food chains, such as Chipotle and McDonald's, have decided to raise their menu prices as a means of offsetting the increased minimum wages.