SACRAMENTO, Calif. — Two California Pizza Hut operators plan to lay off delivery drivers ahead of a state law taking effect in April 2024 raising the minimum wage for fast-food workers to $20 an hour, according to Business Insider.
The layoffs, effective in February 2024, will impact drivers statewide, including those at Sacramento locations.
Business Insider says the information came from a federal WARN Act notice filed with California’s Employment Development Department by the operators. It will affect around 1,200 drivers.
Pizza Hut told Business Insider it was aware of the changes at certain franchise locations in the state.
The increase in fast-food worker minimum wage is the result of AB 1228 signed by Governor Gavin Newsom in September. The pay increase from $16 to $20 an hour is only part of the law; another component of it will hold corporate fast-food chains responsible for working conditions at restaurants owned by individual franchisees.
The effects of the law are expected to trickle down to consumers as chains McDonald’s and Chipotle previously said they would raise menu prices to offset the cost of a higher minimum wage.
USA Today reported in November McDonald's had not decided yet how much prices will increase while Chipotle's CFO said on a conference call with analysts they expected to increase prices by a "mid-to-high single-digit."
So, how can people in Sacramento still get Pizza Hut delivered after the layoffs? You’ll need to use a third-party food delivery app like Uber Eats or DoorDash.
WATCH MORE ON ABC10: California's new 2024 workplace laws, explained