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Panera Bread exempt from California’s $20 minimum wage law after owner donated to Gov. Newsom: report
Gov. Gavin Newsom signed a law exempting Panera Bread from a new $20-an-hour minimum wage hike for fast food chains after the owner of several of the chain’s locations donated to his campaign…
nypost.com
(i) An establishment that on September 1, 2022, operates a bakery that produces for sale on the establishment’s premises bread as defined under Part 136 of Subchapter B of Chapter I of Title 21 of the Code of Federal Regulations shall not be considered a fast food restaurant, so long as it continues to operate such a bakery. This exemption applies only where the establishment produces for sale bread as a stand-alone menu item, and does not apply if the bread is available for sale solely as part of another menu item.
What an odd exemption by ol' Newsom. Especially since this applies to only two fast food restaurants, Panera Bread and Boudin.
Maybe his friend Flynn had something to do with it:
Flynn, who attended the same high school as Newsom, has been involved in business dealings with the California governor, according to Bloomberg News.
He has also contributed to Newsom’s political campaigns.
In 2014, Flynn, who is the largest franchisee in the US with thousands of brands including Applebee’s, Pizza Hut, Taco Bell, and Wendy’s, acquired a Napa Valley resort that was managed by Newsom’s hospitality firm, according to disclosure forms.
According to state campaign finance data, Flynn donated $100,000 to Newsom's campaign against the 2021 recall and $64,800 to his reelection campaign in 2022. He told Bloomberg he did not play a role in crafting the exemption. He did not respond to KCRA 3's request for comment Wednesday night.
As to why Gavin added this exemption:
"That's a part of the sausage making," Newsom replied. "We went back and forth, and that was part of the negotiation, that's the nature of negotiation. It's not just Jack in the Box, it's not just McDonald's, there are a lot of different players, and this affects a lot of different franchises and different models as it relates to that and different conditions and environments. That was all part of the give and take and that was the collective wisdom of the Legislature and ultimately led to my signature."
The union that was pushing the minimum wage increase looks to blame this on Gavin as well:
Flynn was publicly critical of the legislation when it was first floated in 2022.
He said that raising the minimum wage of fast-food employees would have an adverse business effect on franchise owners.
Flynn quietly lobbied Newsom’s aides to reconsider whether Panera Bread can be considered fast food, according to Bloomberg News.
The exemption for bread sellers was inserted into the legislation after the union that was pushing for the hike in minimum wage accepted it as a concession aimed at getting the governor’s support, the report stated.