Multiple Pizza Hut franchises in California are planning to lay off delivery drivers as the restaurant chain braces for an increase in the minimum wage for fast food workers next year.
Several Pizza Hut operators filed notices to comply with the Worker Adjustment and Retraining Notification Act saying they were discontinuing their delivery services.
The layoffs announcements came months before most fast food workers in California will begin earning a minimum wage of $20 per hour, beginning in April.
“It comes to $3 a month for nine-plus years of service.” FOX Business has reached out to the Pizza Hut operators, but has not yet heard back.
One Pizza Hut delivery driver told Business Insider that he was offered a $400 severance if he stuck around through his February 5 layoff date.
“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 fast-food operator with the state’s Employment Development Department said, Business Insider reported.
Another operator, Southern California Pizza Co. also announced layoffs of around 841 drivers across the state.
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