Local News

New Year Brings Bad News For In-House Delivery Drivers As Pizza Hut Announces Mass Layoffs in Califonia

New Year Brings Bad News For In-House Delivery Drivers As Pizza Hut Announces Mass Layoffs in Califonia

Los Angeles, California: As the minimum wage rises to $20 per hour in 2024 due to new legislation, certain Pizza Hut locations in California are terminating its internal delivery drivers.

In a federal WARN (Worker Adjustment and Retraining Notification) Act notice filed with California’s Employment Development Department, PacPizza LLC, doing business as Pizza Hut, stated that it has decided to terminate first-party delivery services and, consequently, all delivery driver positions.

Similar to this, Southern California Pizza Co. has recently disclosed layoffs, affecting roughly 841 drivers throughout the state.

Pizza Hut outlets in Orange, Los Angeles, San Bernardino, Riverside, and Ventura counties are impacted by the decision. Almost 1200 in-house delivery drivers will lose their jobs.

California now has a $16 minimum wage; in April, it will rise to $20. After AB 1228 was passed, the action was taken in response to the rising cost of living and the fact that the majority of fast-food workers were living at or below the federal poverty level.

The California locations of Pizza Hut will now rely on outside delivery apps like GrubHub, Uber Eats, and DoorDash for deliveries.

Pizza Hut, a division of Yum! Brands, Inc., a publicly traded company that also owns Taco Bell and KFC, acknowledged the recent changes in delivery services at some franchise restaurants.

The senior ranking officers stated that the franchisees independently operate their businesses, paying attention to local market dynamics and following local, state, and federal laws.

This decision to terminate a full-fledged branch in multiple outlets will affect many, but in the long run, it will provide stability to the company and its employees.

The Worker Adjustment and Retraining Notification Act (WARN) requires employers to issue notification 60 calendar days before mass layoffs. The termination will take place in February as per the WARN notice issued by the company.

Leave a Reply

Your email address will not be published. Required fields are marked *