<p>California Governor <a href="https://www.dailywire.com/topic/gavin-newsom" target="_blank" rel="noopener">Gavin Newsom</a>, who is considered a rising star in the Democrat Party, is under fire after a report this week revealed that he pushed for a special carveout in the state&#8217;s new $20 minimum wage law that affects businesses owned by one of his top political allies and donors.</p>
<p>Bloomberg News <a href="https://www.bloomberg.com/news/articles/2024-02-28/panera-bread-exempt-from-california-s-minimum-wage-increase-for-fast-food-worker" target="_blank" rel="noopener">reported</a> that billionaire Greg Flynn was getting a &#8220;new boost&#8221; after his chain of Panera Bread locations were exempted from a new law that forces fast food restaurants to increase their minimum wage from $16 to $20 per hour. Flynn is the largest &#8220;restaurant franchisee in the US, if not the world,&#8221; the report added.</p>
<p>Panera Bread was spared from the law because it offered &#8220;unusual exemption for chains that bake bread and sell it as a standalone item.&#8221; The report states that Newsom &#8220;pushed for that break.&#8221;</p>
<p>The report showed the numerous connections that the two men have, including going to the same high school, Flynn donating significant sums of money to Newsom&#8217;s political campaigns, Flynn allegedly bragging about his easy access to Newsom, and Flynn buying a resort managed by a company that Newsom owned.</p>
<p>Newsom and his office refused to disclose details about how they decided to create the carveout that benefited Newsom&#8217;s donor and only claimed that it was the &#8220;result of countless hours of negotiations with dozens of stakeholders&#8221; and was &#8220;part of the sausage-making&#8221; in politics.</p>
<p>The report noted that Flynn, who has also been involved in &#8220;business dealings&#8221; with the governor, would not respond to questions about his connections to Newsom. Panera Bread also would not respond to requests for comment, according to Bloomberg.</p>
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<p>Flynn strongly opposed the law, dubbed the FAST Act, saying that it would harm franchise businesses. The report said that he &#8220;urged the governor’s top aides to reconsider whether fast-casual chains such as Panera should be classified as fast food,&#8221; which ultimately went nowhere.</p>
<p>&#8220;The Service Employees International Union, a labor group that was the driving force behind the bill, decided to accept a narrower carve-out as the talks progressed — one that would only apply to restaurants operating bakeries,&#8221; the report added. &#8220;That position was adopted as a means of winning the governor&#8217;s support for the legislation, said a person with knowledge of the discussions. The rationale was the governor’s longstanding relationship with a Panera franchisee, the person said.&#8221;</p>
<p>The report highlighted multiple examples of major entities in the fast food industry who were puzzled about the special carve out and who also said that law was a &#8220;devastating financial blow&#8221; to businesses.</p>
<p>Flynn owns thousands of restaurants, including Applebee&#8217;s, Pizza Hut, Taco Bell, Wendy’s, Panera Bread, and more. The only restaurants he owns in California are Applebee&#8217;s — which is exempt from the law because it&#8217;s not a fast food restaurant — and Panera Bread.</p>

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Gavin Newsom Exempts Panera Bread From New Minimum Wage Law That Affects Owner Who Donated To Governor: Reports

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Gavin Newsom Exempts Panera Bread From New Minimum Wage Law That Affects Owner Who Donated To Governor: Reports