By ADAM BEAM
SACRAMENTO — California Gov. Gavin Newsom’s administration has denied a news report that he pushed for an exception to the state’s new fast-food minimum wage law that benefits a wealthy campaign donor.
California’s minimum wage is $16 per hour. But starting April 1, most fast-food restaurants in the state must pay their workers at least $20 an hour under legislation Newsom signed last year to much fanfare. It doesn’t apply to restaurants that have on-site bakeries and sell bread as a stand-alone menu item.
That exception puzzled some industry watchers and was never fully explained by Newsom or other supporters of the law. But Bloomberg News on Wednesday reported it was connected to opposition from Panera Bread franchisee Greg Flynn, whose company owns 24 of the restaurants in California and has donated to Newsom’s campaigns.
“This story is absurd,” Newsom spokesperson Alex Stack said Thursday.
Flynn said in a statement Thursday that he opposed the initial legislation and suggested fast casual restaurants like bakeries, bagel shops and delis be excluded “if the intent of the bill was to address alleged labor code violations in fast food restaurants.”
But he denied asking for “an exemption or special considerations” and said he was surprised when the exemption appeared in the final bill. He said he met with Newsom’s staff about the bill alongside other restaurant owners but did not speak to the governor about it.
The Flynn Group and Flynn Properties operate 2,600 restaurants and fitness centers across 44 states, according to the company’s website. Campaign finance records show Flynn Properties and Greg Flynn — the founder, chairman and CEO — have donated more than $220,000 to Newsom’s political campaigns since 2017. That included a $100,000 donation to Newsom’s campaign to defeat a recall attempt in 2021.
The governor’s office is now arguing Panera Bread is not exempt from the law.
Stack said to be…
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