OAN’s Brooke Mallory
6:23 PM – Thursday, February 29, 2024
Gavin Newsom signed a bill exempting restaurants from a new $20 minimum wage increase after the billionaire owner of Panera Bread restaurants donated a large sum of money to California’s governor.
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In September, Governor Newsom (D-Calif.) signed a bill raising the minimum wage for fast food workers from $16 an hour to $20 an hour.
[California] The minimum wage for fast food workers will be $20 an hour starting April 1. That’s $4 more than the 2024 U.S. minimum wage. This will apply to chain stores with 60 or more stores nationwide and will take effect from April 1, 2024.according to ABC7 News.
However, it is important to note that the Fast Food Accountability and Standards Restoration Act (FAST Act) has a unique clause that states that “chain stores that bake bread and sell it as a standalone item” are not forced to raise the minimum wage. There are exceptions to this rule. , according to bloomberg news.
According to reports, Newsom requested the exemption, which would affect many people, including Greg Flynn, the wealthy CEO of Flynn Restaurant Group, which controls at least 24 Panera Bread stores in the state. It is said to be of benefit to people.
bloomberg news It also reported that Flynn attended the same high school as Newsom and has donated more than $164,800 to Newsom’s political efforts.
Mr. Flynn is one of the largest franchisees in the United States, with thousands of brands including Wendy’s, Taco Bell, Applebee’s and Pizza Hut, according to disclosure documents. He also bought a Napa Valley resort run by Newsom’s hospitality company in 2014.
Mr. Flynn denied any involvement with Mr. Newsom on adding the bread exemption to the law.
Last month, Newsom told reporters that the exemption is “part of the sausage-making process.”
But Michelle Colmo of the National Restaurant Association said at a conference last year that the “random” exemption for bread “has everyone scratching their heads.”
“We may be celebrating or we may be mourning the bakery exemption,” Colmo said. bloomberg news. “But remember, everything comes through relationships.”
When the bill was first proposed in 2022, Flynn publicly opposed it. He said raising the minimum wage for fast-food workers would hurt franchise owners’ bottom lines and raise prices for consumers.
according to bloombergMr. Flynn urged Mr. Newsom’s aides to reevaluate whether Panera Bread qualifies as fast food.
The union, which had been pushing for an increase in the minimum wage, reportedly accepted the baker’s exception as a compromise in order to win the governor’s support. This led to its inclusion in the law.
As for other companies that could face impending legislation, Chipotle Chief Financial and Administrative Officer Jack Hartung also said earlier this month that California customers would see “significant” price increases as a result of the minimum wage increase. He warned that this could be expected.
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