More than 1,000 delivery drivers in California will lose their jobs next month after two major Pizza Hut franchisees decided to eliminate their stores’ delivery service following the passage of a state bill raising the minimum wage to $20 an hour.
The law will go into effect in April.
The layoffs will affect 1,200 workers of restaurants in Orange, Los Angeles, Riverside, San Bernardino, and Ventura counties. They’ll also impact more than 800 workers at Pizza Hut locations in Sacramento, Central California, Southern Oregon, and the Reno-Tahoe area, according to media reports.
The suspension of Pizza Hut stores’ delivery means customers will have to rely on third-party apps like DoorDash, GrubHub, and Uber Eats for food deliveries.
The law known as Assembly Bill 1228 was introduced by Assemblyman Chris Holden, D-Pasadena, and signed into law by Gov. Gavin Newsom in September, KGO-TV reported.
The law requires fast food chains with 60 or more locations nationwide to pay their employees the higher minimum wage, and restaurants say they will raise prices to offset the higher labor costs.
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Rachel Greszler, senior research fellow at The Heritage Foundation,
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