How Panera Bread Ducked California’s New $20 Minimum Wage Law
29th February 2024
Billionaire Greg Flynn, who made his fortune running one of the world’s largest restaurant franchise operations, is getting a new boost from sourdough loaves and brioche buns.
That’s because a California law that’s about to raise the state minimum wage at fast-food spots to $20 an hour from $16 offers an unusual exemption for chains that bake bread and sell it as a standalone item.
Governor Gavin Newsom pushed for that break, according to people familiar with the matter. Among the main beneficiaries is Flynn, a longtime Newsom donor whose California holdings include two dozen Panera Bread locations.
The specificity of the exemption has puzzled observers for months, especially after the governor told reporters last year that it came about as “part of the sausage-making” of politics. In response to detailed questions, Newsom’s office said the wage law was the “result of countless hours of negotiations with dozens of stakeholders over two years” — and will make a real difference for hundreds of thousands of Californians.
Flynn, who has been involved in business dealings with Newsom in addition to contributing to the governor’s political campaigns, said in a brief conversation that he didn’t play a role in crafting the bread exemption. He didn’t respond to requests for comment about his connections to Newsom.
Democrats never pass a law that doesn’t have loopholes for their favored allies.
UPDATE: California Governor Under Fire for Bizarre Minimum Wage Carveout That Benefits Donor