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

Pizza Hut is laying off more than 1,200 delivery drivers in California.

The layoffs, which will take place through the end of February, come as California's minimum wage is about to go up by $4. Fast-food workers in the state are set to get a pay bump of close to 30% in April as the minimum wages rises from $16 to $20 an hour.

PacPizza, LLC, operating as Pizza Hut, said in a Worker Adjustment and Retraining Notification (WARN) Act notice that the company made a business decision to eliminate first-party delivery services and, as a result, the elimination of all delivery driver positions, according to Business Insider. The notice was filed with the state's Employment Development Department.

The Worker Adjustment and Retraining Notification Act requires employers to give notice of mass layoffs or plant closures.

Southern California Pizza Co., a second Pizza Hut franchise, is also eliminating its in-house delivery services and laying off 841 drivers, according to a WARN Act notice from Dec 1.

The layoffs impact drivers at Pizza Hut locations in Sacramento, Palm Springs, Los Angeles and other cities throughout the state.
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AthrillatheHunt · 51-55, M
Dems “ out pizzaed the hut “ . Lol
justanothername · 51-55, M
@AthrillatheHunt Actually more like the reality of the government lifting the minimum wage means businesses also have to adjust and if you only have a fixed amount of money set for paying wages then you have to reduce your staff count to match your wages budget while still delivering pizzas to customers.
AthrillatheHunt · 51-55, M
@justanothername dude you’re trying to make sense to someone who’s just here for the memes , so to speak. Lol
justanothername · 51-55, M
@AthrillatheHunt Trump inherited a strong economy from Obama. COVID-19 (real or manufactured) came in on Trumps watch and impacted the economy. Every country now has the resulting hangover of high inflation and high gas prices. As a result companies need to make adjustments if they want to stay in business.

On top of that, the government has lifted the minimum wage to help support low income families. Companies also have to adjust their payroll to account for higher wages.
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