California Gov. Newsom Says Panera Bread Not Exempt from Minimum Wage Law
Controversy Surrounds New California Minimum Wage Law
California Governor Gavin Newsom has addressed allegations that Panera Bread, owned by a major campaign donor, would be exempt from the state’s new minimum wage law. The law, signed by Newsom last year, mandates a minimum wage increase for most fast-food workers, but a specific exemption allows restaurants with on-site bakeries and standalone bread menus to bypass the increase, according to The Associated Press.
Fueling the controversy, a recent report by Bloomberg News claims that Governor Newsom initiated the bread and bakery exemption, ultimately benefiting billionaire Greg Flynn, who owns over 20 Panera Bread restaurants in California and has contributed to Newsom’s political campaigns. However, a spokesperson for the Governor strongly denounces these allegations, stating that Panera Bread is not exempt from the minimum wage law.
The Bread and Bakery Exemption Criteria
In order to be exempt from the minimum wage law under the bakery exemption, restaurants must produce bread on-site. The Governor’s office argues that chain bakeries like Panera Bread do not meet this requirement, as they mix dough at an off-site location before shipping it to individual restaurants for baking.
In response to these claims, Greg Flynn maintains that while he met with Governor Newsom’s staff to discuss the bill, he did not directly speak to the Governor about it. Flynn denies seeking any special treatment and expresses surprise that the exemption made it into the final legislation.
Political Backlash and Call for Investigation
Following the legislation’s passage, Republican lawmakers in California raised concerns about the potential personal connection between Newsom and the bill. Assembly leader James Gallagher raised questions on X, formerly known as Twitter, and demanded accountability pertaining to “PaneraGate”, accusing Newsom of leveraging his power to benefit special interest donors. California state Senate Minority Leader Brian Jones and Assemblyman Joe Patterson joined Gallagher in writing a letter to state Attorney General Rob Bonta, urging an investigation into the alleged “pay-to-play” politics involved in the drafting of the bill.
Seeking Further Comment
The Hill has reached out to Governor Newsom’s office for additional comments regarding these allegations and the ongoing controversy surrounding Panera Bread’s potential exemption from the minimum wage increase.
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