California’s new $20 minimum wage law affecting certain fast food restaurants has a strange exception, Panera Bread and possibly one other store like it. The current minimum wage in California is $16, and the new law raises it to $20 for fast-food restaurants that meet specific criteria. Under this law, Panera Bread would be affected. An exception for restaurants that may operate as a bakery and sell singular bread items was carved out for a non-specific reason. When questioned about it, Newsom said it is “part of the sausage-making” in making the bill become law.
Underneath the surface of the odd bakery exception to the new minimum wage law is an explanation that makes perfect sense. The largest franchiser of Panera Bread in California and the second largest franchiser of the restaurant in the world is the Flynn Group. The Flynn Group is headed up by a billionaire named Greg Flynn. Flynn and Newsom are friends.
Greg Flynn attended the same high school as Gavin Newsom, although they may not have been classmates. Flynn donated over $164,000 to Newsom over the course of two campaigns. Newsom owns a hospitality firm that manages a Napa resort that Flynn acquired. To summarize, Gavin Newsom and Greg Flynn are friends who have been making money together for a long time. This is a crystal clear explanation for the exception carved out for Panera Bread regarding the highly expensive $20 minimum wage.
SOURCES:
Panera Bread exempt from California wage law after Newsom donation
Panera Bread exempt from following California’s new minimum wage law – YouTube
Panera – Flynn Group
Report: Why California’s fast food law may exempt Panera Bread
Fast-Food Billionaire Wins From Newsom’s Puzzling Wage Exemption
