Several fast-food franchises in California are laying off workers in anticipation of a legally mandated minimum wage hike that is slated to take effect in April. A new minimum wage law will award fast-food workers a 25% hourly raise, increasing the previous $16 per hour rate by $4, reported Inc.
The forthcoming law is essentially a compromise between owners, unions, and negotiators following the state's decision to raise the minimum wage of local fast-food workers. Major restaurant chains opposed the initially proposed $22 per hour rate, but many say the soon-to-be $20 hourly pay still comes with possible financial consequences. Pizza chains, notably Pizza Hut and Round Table Pizza, have already begun cutting an estimated 1,280 delivery jobs this year, per a Wall Street Journal report. Southern California Pizza Co. announced layoffs in December of around 841 drivers across the state, FOX Business said.
