Two major Pizza Hut operators in California are making the decision to lay off all their delivery drivers ahead of a new state law that will raise the minimum wage for fast-food workers to $20 an hour, as reported by Business Insider.

The layoffs will impact hundreds of Pizza Hut locations across the state, including Los Angeles, Orange, Riverside, Ventura, and San Bernardino counties, as well as Sacramento. More than 1,200 in-house delivery drivers will be affected by these job cuts, which will take place through February. This information was gathered from federal employment notices obtained by Business Insider.

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The new minimum wage law is set to take effect in April. Currently, the minimum wage in California is $16 per hour. The increase to $20 per hour was a result of the passing of Assembly Bill 1228. In response to these upcoming changes, PacPizza, LLC, operating as Pizza Hut, has made the business decision to eliminate first-party delivery services, resulting in the elimination of all delivery driver positions. This was stated in a federal WARN Act notice filed by the franchisee.

Another Pizza Hut franchisee, Southern California Pizza Co., is also reducing its workforce and will lay off approximately 841 drivers, according to another WARN Act notice obtained by Business Insider.

It’s worth noting that other fast-food chains, such as Chipotle and McDonald’s, have already announced their plans to raise menu prices in California to compensate for the higher cost of worker compensation.

It seems woke ideas such as a $20 minimum wage actually have consequences, like higher menu prices and layoffs.

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