Pizza Chains Cut Jobs In California Due To Higher Wages

Fast-food workers are losing their jobs in California as more restaurant chains prepare to meet a new $20 minimum wage set to go into effect next week, Emilee Coblentz reported for USA TODAY.

Democratic Gov. Gavin Newsom signed the Fast Act back in September to require fast-food chains with 60 or more locations nationwide to meet that wage increase. I Photo: Pizza Hut Facebook

Restaurants making cuts are mostly pizzerias, according to a report published by the Wall Street Journal. Multiple businesses have plans to axe hundreds of jobs, as well as cut back hours and freeze hiring, the report shows.

Democratic Gov. Gavin Newsom signed the Fast Act back in September to require fast-food chains with 60 or more locations nationwide to meet that wage increase after labor unions fought for it alongside the healthcare industry, which will also see a boost to earnings in June.


"This is a big deal," Newsom said alongside union members in September. "That's 80% of the workforce."

Pizza Hut is laying off more than 1,000 delivery drivers in California, according to federal and state filings. Fast-food workers in the state are set to get a pay bump in April 2023 as the minimum wage rises from $16 to $20 an hour.

Pizza Hut announced cuts to more than 1,200 delivery jobs in December, previous reporting by USA TODAY shows. Round Table Pizza will lay off around 1,280 delivery drivers this year in the Golden State, and Excalibur Pizza has plans to cut 73 driver jobs, as well as 21% of its workforce in April.

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