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Pizza Hut franchises in California are reportedly laying off some of the delivery drivers. The operators are reducing the number of their workers ahead of the implementation of the new wage increase.
The Pizza Hut franchise operators are preparing for the pay hike that will require them to pay workers from the minimum wage of $16 to $20 per hour. The increase is almost 30% from the previous minimum hourly pay for staff.
New Pay Hike Awaits Fast-Food Employees
According to Fox Business, the state of California is set to implement the wage hike in April. Due to this, some Pizza Hut restaurants in Southern California are terminating a number of their staff.
It was reported that delivery drivers are expected to be the most affected by these job cuts at Pizza Hut franchises in the said territory. The reports did not specify the total number of operators or store outlets that are planning to lay off their drivers. Still, multiple locations have expressed their intent to reduce their workforce next year as they brace for the pay increase.
Pizza Hut Owners to Comply with the WARN
PacPizza, LLC, one of the Pizza Hut operators, said that it will follow the Worker Adjustment and Retraining Notification (WARN) Act, but to do so, it will have to get rid of the first-party delivery services, which will lead to the termination of all delivery driver positions.
USA Today explained that WARN also requires employers to notify workers of layoffs or closure of plants. It was added that another Pizza Hut franchisee, the Southern California Pizza Co., decided to remove its in-house delivery services as well, and this move will result in laying off 841 drivers.
Meanwhile, the job cuts will affect delivery drivers in Pizza Hut stores in Los Angeles, Palm Springs, Sacramento, and other cities in California. For deliveries, officials said customers may use GrubHub, DoorDash, or Uber Eats.
Photo by: Parham Barati/Unsplash
