Gavin Newsom reportedly pushed for exemption to wage hike law, thereby benefiting his his billionaire donor

California Governor Gavin Newsom (Democratic)
law In September, the minimum wage for fast food restaurant workers was raised from $16 to $20 an hour, effective April 1, 2024. However, this legal requirement is not imposed equally.

Recent Insider
revealed Newsom told Bloomberg that he personally fought for an exemption that would ultimately benefit America’s largest restaurateur Greg Flynn, a longtime donor and billionaire friend.

Assembly Bill 1228 defines a “fast food restaurant” as “a limited service restaurant within the state that is part of a national fast food chain.”

Mr. Flynn’s 24 Panera Bread stores in California — stores that serve soups, pizzas, salads, sandwiches, milkshakes, desserts and other meal options — ostensibly meet this definition, but Mr. Newsom said appears to have secured an exception to the rule for “stores opened in September.” On 15th 2023, we operate a bakery on the premises of the facility that sells “bread” as a standalone menu item.

On September 28, when a KCRA-TV reporter confronted Newsom about Panera’s apparent carve-out, the Democratic governor said:
Said“That was part of making the sausage.” 257the original bill, and we go back and forth, [it] It was part of the negotiation. That’s the nature of negotiation. ”

Newsom also emphasized that the decision was the result of “give and take.”

Mr. Flynn also owns thousands of Taco Bell, Pizza Hut, Applebee’s and Wendy’s locations.
reportedly AB 257, so-called “.California fast food restaurant minimum wage and labor regulations referendum” 2022 would include a bread exemption, but the minimum wage would increase to $22.

Flynn apparently got his way. AB 257 was repealed and replaced by AB 1228, which still contains exemptions in favor of Panera Bread.

Flynn told Bloomberg he was not involved in developing the bread exemption and declined to comment on his relationship with the governor.

Apparently they went to the same high school and
I did something together.Bloomberg, even Newsom earned undisclosed income He joined the company from Flynn’s company when he was the lieutenant governor of California.

Since then, Flynn has made large donations to Newsom.

For example, he donated In April 2017, he donated $50,000 to support Newsom’s gubernatorial campaign the following year. In 2018, Mr. Flynn continued to pour cash into supporting Mr. Newsom’s campaign for the governor’s mansion.

In 2021, Flynn will donated $100,000 to Newsom’s campaign to thwart Republican recall effort. He also donated $64,800 to Newsom in 2022 to support his re-election bid.

The billionaire’s contributions to Newsom pale in comparison to the potential savings for restaurants exempted from the new wage increases. Assuming the full-time employee works 40 hours a week and she is paid hourly wages for 52 consecutive days, the difference is more than $8,000.

Bloomberg noted that McDonald’s Corp. franchisees expect the law to cost them an additional $250,000 a year, which some see as a “devastating financial blow.” Companies that don’t want to bear the full cost end up passing it on to their customers. For example, Chipotle Mexican Grill Co. is reportedly considering raising prices to offset increased costs.

Despite the potential savings, some of Flynn’s Panera locations reportedly advertise that some non-management positions will pay $20 an hour. But Mr. Flynn’s Panera, located near the California State Capitol in Sacramento, appears to still be advertising $16 and $18 an hour.

Bloomberg said neither Newsom nor Panera Bread representatives responded to requests for comment.

Do you like Blaze News? Avoid censorship and sign up for our newsletter to get articles like this delivered straight to your inbox. Please register here!



Sign up to stay informed to breaking news