California Pizza Huts lay off all delivery drivers ahead of minimum wage increase

they would have laid them off without the minimum raise hike. Org's like pizza hut are realizing they can essentially 1099 grubhubs and and other 3rd party delivery drivers to be their contractors.

the interesting thing is that Pizza hut is owned by Yum brands that has a division that makes broad business plans for their restaurants. They, ran a projection on the amount of labor that existed for 3rd party delivery drivers / contrasted that with their internal delivery staff and made a caluculated bet. It was interesting California was the test state. New Jersey, where I live or NY would have been smarter. Pizza hut has such a hard time fighting for market share in my part of the country due to mom and pops.

It is a big gamble. I am not sure who many pizza chains and other organizations compete for 3rd party delivery drivers in Cali or how many independant drivers there are. That is an unstable supply market as of today (supply of drivers).

I do understand using Cali as a cover to advert a what they percieve as a poetential PR distaster from layoffs. However I don't really think anyone cares about fast food layoffs. It is non skilled labor and traditioanally one of the dangers of non skilled labor is lack of job stability.

On a sidnote the bartending industry has been an early adapter at contingent labor a while back. If you bar hop (I don't ) in major metros chances are a large percentage of your bartenders are contractors who picked up a shift and are not actually employeed at that bar.

Delivery drones coming next. Folks getting free pizza by shooting down drones after that.

That's because they are going to offer to re-hire them as "independent contractors."

And that's only because the Dumbass Democrats in Sacramento didn't account for that in the legislation.

Oh, sure. They will say Pizza Hunt is "exploiting" a "loophole."

But anyone with half a brain could have anticipated that. Who and how workers are classified as "independent contractors" needs to fixed. They are really employees in all but name.

[quote]The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done.[/quote]

https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-defined

This is where minimum wage payment increases designed to rise in line with cost of living increases clash with what employers are willing to pay their lowest paid staff on the pay roll.
News flash!
America is not the only place that at happens.

Dems “ out pizzaed the hut “ . Lol