A wealthy campaign donor of California Gov. Gavin Newsom, D, has announced plans to increase wages at his Panera Bread restaurants to $20 an hour. The decision follows controversy surrounding what critics called a “carveout” for the restaurant chain in the state’s new minimum wage law for fast-food workers.
California’s current minimum wage stands at $16 per hour. Last year, Newsom signed a law mandating fast-food restaurants with at least 60 locations nationwide pay workers at least $20 an hour, effective April 1. However, this law does not cover restaurants with their own bakeries that produce and sell bread as a standalone menu item.
The exemption initially seemed to benefit Panera Bread restaurants, prompting speculation that Newsom had advocated for it to favor donor Greg Flynn, who owns and operates 24 Panera Bread locations in California.
Both Newsom and Flynn have denied these allegations. Newsom’s office contends that Panera Bread restaurants are likely not exempt because the dough used to make bread is mixed off-site.
Flynn, in a statement, emphasized his commitment to his employees, stating that the decision to raise wages was made to attract and retain the best team members. Flynn maintains the exemption for bread producers holds little practical value for his company.
