California Pizza Hut franchises are set to lay off 1,200 delivery drivers as a result of the upcoming increase in the minimum wage for fast food employees in 2024.

This move to raise the minimum wage to $20 was initiated by Governor Gavin Newsom.

According to Business Insider, Pizza Hut operators have filed notices stating that they will be discontinuing their delivery services in order to comply with the federal Worker Adjustment and Retraining Notification Act (WARN).

PacPizza LLC, operating as Pizza Hut, filed a WARN Act notice with the state's Employment Development Department, explaining that the company has made the decision to eliminate first-party delivery services, resulting in the elimination of all delivery driver positions.

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Southern California Pizza Co. has also announced that 841 drivers at various locations in Los Angeles, Orange, San Bernardino, Riverside, and Ventura counties will be laid off.

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To compensate for the loss of in-house delivery services, the franchises will be turning to third-party delivery apps such as DoorDash as alternatives.

These layoffs have been reported well in advance of April 2024, when fast-food workers in California will begin earning a minimum wage of $20 per hour.