Two major Pizza Hut franchisees are cutting their delivery service, resulting in over 1,200 employees being laid off.
The operators point the blame to California’s new minimum wage law, which sets the hourly wage at $20.
Driving the news: Operators PacPizza and Southern California Pizza Co. are making the cuts, which affects stores throughout Orange, Los Angeles, Riverside, Ventura, San Bernardino and Sacramento Counties.
- They filed WARN Act notice with the Employment Development Department to announce the layoffs.
- Business Insider reported that the job cuts will take place in February, ahead of the scheduled minimum wage increase from $16 to $20 in April.