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.
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 announced cuts to more than 1,200 delivery jobs in December, previous reporting by USA TODAY shows. Some Pizza Hut franchises in California also filed notices with the state saying they were discontinuing their delivery services entirely, according to Fox Business.
“The franchisee is transferring their delivery services to third-party. While it is unfortunate, we look at this as a transfer of jobs,” Pizza Hut told Fox. “As you know, many California restaurant operators are following the same approach due to rising operating costs.”
USA TODAY has reached out to all pizza chains for comment.
