California: First layoffs due to new minimum wage for fast food workers mix

minimum wage for Fast food workers in California The increase will extend through 2024, benefiting most of the Golden State’s 500,000 fast food workers. However, this measure has already triggered mass layoffs.

On September 11, an agreement was reached that ended the impasse between the industry and unions over wages and working conditions. It is estimated that AB 1228 will benefit approximately half a million workers working for fast food chains with at least 60 restaurants nationwide, excluding restaurants that make and sell their own bread. , like Panera Bread. However, more than 25 percent increase in salary is forcing companies to take strict measures.

When has the wage increase for fast food workers been implemented?

currently Fast food workers make $15.50 an hour in Californiabut again Their minimum wage will be US$20 from April 1, 2024, A council could propose further increases until 2029, adjusted for annual inflation.

This new council would only have the power to set wages, but would not have the power to define industry labor standards for fast food restaurant workers, as the Fast Food Council had intended.

The agency may make recommendations on working condition standards to various state agencies.

Mass layoffs of fast food workers in California

Large operators of the Pizza Hut chain in California announced they will lay off all of their delivery drivers, due to new legislation that will raise the minimum wage for fast food workers to $20 an hour. In this sense, it is estimated that more than 1,200 delivery drivers will be affected, which, as Business Insider reports, affects hundreds of establishments of the restaurant chain throughout the state, including the counties of Los Angeles, Orange, Riverside, Ventura and San Bernardino. Will do. , The layoffs will take place in February 2024, according to a federal job notice obtained by Business Insider.

,PacPizza, LLC, doing business as Pizza Hut Business decision to end own delivery services And, as a result, all delivery driver positions were eliminated.This was mentioned in the Federal Alert Act notice filed by the franchise.

Another Pizza Hut franchise, Southern California Pizza Company, also plans to lay off 841 drivers. The layoffs will affect drivers at Pizza Hut locations in Sacramento, Palm Springs, Los Angeles, Central California, Southern Oregon and the Reno-Tahoe area, among other locations.

How will the distribution be done?

Pizza Hut franchisees will outsource shipping for pizza and food delivery through apps like DoorDash, GrubHub and UberEats.

Prices will rise in California

The Chipotle and McDonald’s chains have announced they are considering raising menu prices in the state in their plans to try to offset the higher costs incurred by increasing the minimum wage for their workers.

Why are companies opposing the new wages?

The main opponents of the new wages for delivery drivers in California are food delivery companies like Uber Eats, DoorDash and Lyft, as well as employer associations like the California Chamber of Commerce. Its arguments include:

• Rising costs for consumers and restaurants
• loss of jobs
• Reducing the flexibility and autonomy of delivery drivers

More information about salary

How is the local minimum wage enforced?

A total of 30 states and many cities set their own minimum wage rates, which are higher than the federal rate. If the federal, state, and local government have different minimum wages, the higher wage rate applies.

What is overtime pay like in the United States?

The Fair Labor Standards Act (FLSA) provides the right to receive overtime pay. Most employees are entitled to a special rate of overtime pay for hours totaling more than 40 in a single work week.

The wage rate for overtime is at least one hundred fifty percent (150%) of the normal wage rate.

What are the sanctions for non-payment of minimum wage?

If you have not been paid your minimum hourly wage in full, there are two ways the Department of Labor can sanction employers.

• Payment Order: The employer may be ordered to pay back wages, interest on late or non-payment, liquidated damages and may also be fined.