Pizza Hut is set to lay off more than 1,200 delivery drivers in Los Angeles, Orange and Riverside counties in the coming year, ahead of a new state law that boosts the fast-food minimum wage by $4 to $20 per hour.
The law, known as Assembly Bill 1228, was introduced by Assemblyman Chris Holden, D-Pasadena, and signed into law in September by Gov. Gavin Newsom. It is predicted the law will impact more than 550,000 fast food workers and about 30,000 restaurants in California.
In addition to raising the minimum wage for fast food workers to $20 an hour — it will also establish a Fast Food Council, “representing a path forward to resolve employer community concerns while preserving fast food workers by securing a seat at the table to raise standards,” according to Holden’s office.
Pizza Hut franchises are preparing to pivot toward third-party apps like DoorDash, GrubHub and UberEats for pizza and food deliveries, according to CBS News.
