California Governor Gavin Newsom's administration has refuted claims that he advocated for an exception to the state's new fast-food minimum wage law to benefit a wealthy campaign donor. The current minimum wage in California stands at $16 per hour, but effective April 1, most fast-food establishments in the state are required to pay their employees a minimum of $20 per hour under legislation signed by Newsom last year. Notably, this law does not apply to restaurants with on-site bakeries that sell bread as a standalone menu item.
The exception in the law, which puzzled some observers, was reportedly linked to opposition from Panera Bread franchisee Greg Flynn, who owns 24 restaurants in California and has been a significant donor to Newsom's political campaigns. However, both Flynn and Newsom's spokesperson have denied any direct communication regarding this matter.
The Governor's Office has clarified that Panera Bread is not exempt from the minimum wage law as they do not produce bread on-site, but rather receive pre-mixed dough from a centralized location for baking and sale. Despite initial reports suggesting Panera Bread was exempt, the Governor's Office has now asserted that this is not the case.
Republican leaders in the state Legislature have called for an investigation into the matter, emphasizing that campaign contributions should not influence legislative decisions. The law, authored by Assemblymember Chris Holden, was described as a compromise between labor unions and business groups, aiming to improve conditions for fast-food workers in the state.
Lawmakers are currently considering additional exemptions to the fast-food minimum wage increase, with a recent bill passing in the state Senate to exclude certain establishments like airports, hotels, and theme parks. The ongoing discussions reflect the complexities of implementing such legislation and balancing the interests of various stakeholders involved.
