Mass Layoffs Begin in California as Corporations Retaliate Against New State Minimum Wage Laws

California’s recent minimum wage bills, aiming to improve the lives of fast-food and healthcare workers, have triggered mass layoffs in both sectors. The legislation raises wages, but the repercussions are causing a ripple effect in the job market, particularly in light of companies opting for cost-cutting measures.

Fast Food Industry Fallout:

Pizza Hut Layoffs

The fast-food giant, Pizza Hut, plans to lay off over 1,200 workers in response to the minimum wage hike. The layoff, filed under the federal WARN Act, underscores the struggle of California workers amidst the high cost of living.

Backlash and Delivery Service Elimination

The minimum wage increase, slated to bring fast food wages to $20 per hour, faces backlash from corporations seeking to avoid the financial burden. Pizza Hut’s decision to eliminate in-house delivery services, impacting drivers, highlights a broader concern about the fate of low-wage food service workers.

Gig Economy Expansion

By relying on third-party delivery apps, Pizza Hut is contributing to the expansion of the gig economy, where workers face precarious employment conditions. This shift is a concerning trend in California, marked by a steady increase in gig workers over the last decade.

Healthcare Industry Layoffs:

Kaiser Permanente’s IT Worker Layoffs

In response to the minimum wage increase for healthcare workers, Kaiser Permanente announces the layoff of 115 IT workers. The move hints at potential challenges and cost-cutting measures within the healthcare industry.

Minimum Wage Impact on Healthcare Workers

The minimum wage bill raises healthcare workers’ wages to $18 – $23 per hour, but the complex structure of the bill, with varying timelines and categories, poses challenges. Approximately 40% of healthcare workers, around 469,000 people, are affected, but the increases might not be sufficient for a livable wage.

Challenges in the Gig Economy:

Gig Worker Struggles

The gig economy, as highlighted by studies, exposes workers to instability, poor working conditions, and poverty. The layoffs and shifts towards gig work reveal a broader trend of deteriorating working conditions, stripping workers of essential rights.

Minimum Wage vs. Cost of Living

Despite the minimum wage increase, over 3 million people in California still work at minimum wage, which remains insufficient for a decent standard of living, especially in expensive areas like Los Angeles.

Healthcare Workers’ Struggles and Betrayal:

Minimum Wage Bill Specifics

The complexities of the minimum wage bill for healthcare workers, SB 525, create disparities among different employer categories. The proposed increases are seen as too little, too late, and potentially detrimental to workers’ job security.

Betrayal of Healthcare Workers

The minimum wage legislation follows the largest healthcare workers’ strike in US history in October 2023. The Coalition of Kaiser Permanente Unions (CKPU) is accused of betraying the workers by limiting the strike and diverting union funds to supportive politicians.

Rising Cost of Living and Social Inequality:

Cost of Living Realities

Despite the touted benefits of “Bidenomics,” the cost of living in California continues to rise, pushing families into nutrition insecurity. The layoffs exacerbate the struggle of families unable to afford basic necessities.

Social Inequality and Political Posturing

The minimum wage bills, presented by Democrats, are criticized for political posturing, with a focus on maintaining social order rather than truly supporting workers.


The dual impact of minimum wage bills on fast-food and healthcare industries in California reveals a complex situation. While the intention is to uplift workers, the layoffs, gig economy expansion, and complexities in the legislation highlight the challenges in achieving fair wages. Workers’ demands for a living wage and improved conditions necessitate a shift towards uncompromising class struggle, breaking free from ties to political entities that may compromise their interests. As California grapples with a widening social crisis, the call for genuine reforms and workers’ rights becomes increasingly urgent.

Leave a Comment