Pizza Hut has announced plans to lay off 1,200 delivery workers in California ahead of a new law that increases the workers’ wages to $20 per hour.
The food chain said the decision will come into effect in February 202. Assembly Bill 1228 sets a $20 wage for fast food workers from the current $4 per hour.
New Law Signed in
The bill that Assemblyman Chris Holden, D-Pasadena tabled this year, was signed into law last September.
Pizza Hut’s decision is expected to impact delivery drivers in Palm Springs, Los Angeles, Central California, Southern Oregon, and Sacramento; the CBS news reported.
Business Insider quoted food chain brands as saying that their franchises work independently under the law and “comply with all federal, state, and local regulations.
Mr. Holden said the new law will improve the quality of life for many wage workers.
