California Pizza Huts cut 1,200 delivery drivers ahead of minimum wage hike
OAN’s Elizabeth Volberding
1:15 PM – Wednesday, December 27, 2023
Several Pizza Hut franchises in California are laying off delivery drivers ahead of the state’s new $20 minimum wage increase for fast food employees. It is set to take effect in 2024.
Approximately 1,200 California Pizza Hut delivery drivers are set to be laid off after the state recently presented a new $20 minimum wage for all fast food employees next year.
Pizza Hut franchise operators announced that they are going to get rid of all of their delivery drivers in 2024 and depend purely on third-party platforms like DoorDash and UberEats instead.
The decision seems to have been sparked by Governor Gavin Newsom’s (D-Calif.) recent legislation that will mandate all fast-food chains with 60 or more locations around the United States to pay their workers $20 per hour.
The $20 minimum wage for all fast-food employees will go into effect in April 2024. The rise in minimum wage was placed as a way to counteract the growing cost of living for Californians.
In order to comply with the Worker Adjustment and Retraining Notification (WARN) Act, a number of Pizza Hut operators filed notices announcing the termination of their delivery services. The notice was filed with California’s Employment Development Department.
“PacPizza, LLC, operating as Pizza Hut, has made a business decision to eliminate first-party delivery services and, as a result, the elimination of all delivery driver positions,” a federal WARN Act notice filed by Pizza Hut with the Golden State’s Employment Development Department said.
The WARN Act mandates employers to provide notice of large layoffs of plant closures.
The layoffs, which are set to go into effect in February 2024, are going to impact delivery drivers at Pizza Hut locations in Sacramento, Palm Springs, Orange, Los Angeles, and additional regions throughout California.
Additionally, the Southern California Pizza Company, which is a second Pizza Hut franchise, is also terminating its in-house delivery assistance and laying off 841 drivers, according to a WARN Act notice filed from December 1st. As a result, 1,200 delivery drivers will be impacted in total.
Pizza Hut, which is owned by the Taco Bell parent company Yum! Brands, explained to the press that its “franchisees independently own and operate their restaurants in accordance with local market dynamics and comply with all federal, state, and local regulations while continuing to provide quality service and food to our customers via carryout and delivery.”
The new fast-food employee minimum wage law is going to affect about 557,000 workers at 30,000 fast-food establishments in California.
Stay informed! Receive breaking news blasts directly to your inbox for free. Subscribe here. https://www.oann.com/alerts
Our U.S. military shoot down more attack missiles from the Iranian-backed Houthis. This comes as President Biden directed airstrikes in Iraq after three U.S. service-members were wounded by a one-way attack drone this week.
Former CIA analyst and author ‘John Gentry’ tells One America News that the Obama Administration changed the culture of the intelligence community, which led to the politicization of the CIA and the targeting of Donald Trump in 2016 and 2020.
A real-estate developer, bankrolled by Silicon-Valley, is promising a new Utopian community built on farmland in Northern California.
A real-estate developer, bankrolled by Silicon-Valley is promising a new Utopian community built on farmland in Northern California.
December 22, 2023 – 6:05 AM PST HONG KONG (Reuters) – Chinese regulators announced on Friday a wide range of rules aimed…
One of the main bottlenecks for Tesla is the speed it can make the 4680 batteries used in the Cybertruck with its new dry-coating technology.
A group of 11 nonfiction authors have joined a lawsuit in Manhattan federal court that accuses OpenAI and Microsoft of misusing books the authors have written to train their models.
San Francisco police Sergeant David Radford contacted Tesla about data on an alleged stalker’s remote access to a vehicle.
rnrn
What is the reason behind Pizza Hut franchise operators’ decision to rely solely on third-party platforms for delivery services?
The Impact of California’s New Minimum Wage on Pizza Hut Delivery Drivers
Several Pizza Hut franchise operators in California are reportedly laying off delivery drivers in anticipation of the state’s upcoming minimum wage increase for fast food employees. The new minimum wage, set to take effect in 2024, will raise the hourly rate to $20.
Approximately 1,200 California Pizza Hut delivery drivers are expected to be affected by these layoffs. Pizza Hut franchise operators have announced plans to eliminate their in-house delivery services and instead rely solely on third-party platforms such as DoorDash and UberEats.
This decision seems to have been prompted by Governor Gavin Newsom’s recent legislation, which mandates that all fast-food chains with 60 or more locations in the United States must pay their workers a minimum wage of $20 per hour.
The increase in minimum wage is aimed at addressing the rising cost of living in California. However, in order to comply with the Worker Adjustment and Retraining Notification (WARN) Act, several Pizza Hut operators have filed notices announcing the termination of their delivery services. These notices have been filed with California’s Employment Development Department.
According to a federal WARN Act notice filed by Pizza Hut, the termination of first-party delivery services will result in the elimination of all delivery driver positions. The WARN Act requires employers to provide notice of large layoffs or plant closures.
The layoffs are set to go into effect in February 2024 and will impact delivery drivers at Pizza Hut locations in Sacramento, Palm Springs, Orange, Los Angeles, and other regions throughout California. Additionally, the Southern California Pizza Company, another Pizza Hut franchise, has also announced the termination of its in-house delivery assistance, resulting in the laying off of 841 drivers.
Pizza Hut, which is owned by Yum! Brands, Taco Bell’s parent company, stated that its franchisees independently own and operate their restaurants, complying with all federal, state, and local regulations. The company stressed its commitment to providing quality service and food to customers through carryout and delivery services.
The new minimum wage law is expected to affect approximately 557,000 workers at 30,000 fast-food establishments in California.
It is evident that the implementation of the new minimum wage law has had significant consequences for Pizza Hut delivery drivers in California. While the intention behind raising the minimum wage is to improve the standard of living for workers, the repercussions for businesses and employees need careful consideration. As this issue continues to unfold, it remains essential to strike a balance between fair wages and job security for those employed in the fast food industry.
" Conservative News Daily does not always share or support the views and opinions expressed here; they are just those of the writer."
*As an Amazon Associate I earn from qualifying purchases
Now loading...