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California News California Pizza Hut operators laying off all delivery drivers by: Marc Sternfield Posted: Dec 26, 2023 / 11:25 AM PST Updated: Dec 26, 2023 / 12:13 PM PST by: Marc Sternfield Posted: Dec 26, 2023 / 11:25 AM PST Updated: Dec 26, 2023 / 12:13 PM PST SHARE Two large Pizza Hut operators in California are laying off all their delivery drivers ahead of a new state law that raises the minimum wage for fast-food workers to $20 an hour, Business Insider reports. The layoffs impact hundreds of Pizza Hut locations across the state including Los Angeles, Orange, Riverside, Ventura and San Bernardino counties and Sacramento, and involve more than 1,200 in-house delivery drivers. The job cuts will take place through February, according to federal employment notices obtained by Business Insider. The new minimum wage law takes effect in April. What happens to the billions spent on unused gift cards? "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 the franchisee said. The Worker Adjustment and Retraining Notification Act (WARN) requires employers to provide notification 60 calendar days before mass layoffs. The second Pizza Hut franchisee, Southern California Pizza Co., is laying off roughly 841 drivers, according to another WARN Act notice obtained by Business Insider. The current minimum wage in California is $16 per hour. The increase to $20 comes after the passage of Assembly Bill 1228 which aims to help fast-food workers cope with the rising cost of living and inflation in the Golden State. The bills' authors say a large percentage of fast-food restaurant workers are living at or below the federal poverty line, and a significant number are enrolled in the state's safety net programs. Fast-food chains Chipotle and McDonald's have already announced they plan to raise menu prices in California to offset the higher cost of worker compensation. Suggest a Correction Your name(required) [ ] Your email(required) [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] Report a typo or grammatical error(required) [ ] Submit [ ] [ ] [ ] [ ] [ ] [ ] [ ] D[ ] Suggest a Correction Copyright 2023 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Read next > [] Read next > Next Read next > [] Next story in Cancel Read next > Next story in Cancel Top Stories Israeli military says Gaza ground offensive has expanded ... Bulldozer unloads the bodies of Palestinians killed in the north of the Gaza Strip and turned over by the Israeli military during a mass funeral in Rafah, Tuesday, Dec. 26, 2023. 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