Panera Bread Chain Owned by Newsom Donor to Implement $20 Minimum Wage
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In light of recent discussions about California’s new minimum wage law for fast-food employees, a key campaign contributor to Governor Gavin Newsom has confirmed that Panera Bread establishments under his ownership will adhere to the mandated pay increase. Workers will receive a minimum of $20 per hour starting April 1.
The general minimum wage in California stands at $16 per hour. However, Governor Newsom endorsed legislation last year dictating a higher minimum wage specifically for fast food chains with over 60 locations nationwide. This law, scheduled to start on April 1, spares restaurants that also function as bakeries selling bread as individual items.
Originally, this seemed to exempt chains like Panera Bread. After a Bloomberg News article suggesting that the governor intervened to assist donor Greg Flynn, whose Flynn Group manages 24 Panera Bread outlets in California, scrutiny arose. Both parties have dismissed the allegations, with Newsom labeling them “absurd.”
Post-review by Newsom’s legal team, Panera’s exemption seems unlikely, considering its bread dough is not mixed on-site. Regardless of this analysis, Flynn has decided to harmonize wages across his Panera Bread operations, guaranteeing an hourly rate of at least $20, emphasizing the importance of their workforce.
Flynn has refrained from commenting further on the matter. Panera Bread company representatives have yet to state their stance on whether the new minimum wage law is applicable to all their Californian franchises. Chris Micheli, an experienced lobbyist and law professor, suggested Flynn could have a viable legal argument but acknowledged that the matter might ultimately require judicial clarification.
The task of defining the exemption parameters has been delegated to the newly established Fast Food Council and the Labor Commissioner, but final interpretations may likely land in the courts.
Despite Flynn declaring he will implement the wage increase, political repercussions continue as state Republicans push for an inquiry. Some view this episode as a means to criticize Newsom, especially given his perceived national ambitions.
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FAQ Section:
- What is the new minimum wage law in California?
In California, a new law requires fast food restaurants that are part of a chain with at least 60 locations nationally to pay their workers at least $20 per hour.
- Does the law apply to all fast food restaurants in California?
No, the law exempts restaurants that have their own bakeries producing bread as a stand-alone menu item. However, this is subject to legal interpretation.
- Why is Panera Bread paying a $20 minimum wage despite the possible exemption?
Greg Flynn, the owner of several Panera Bread restaurants and a campaign donor to Governor Newsom, has decided to adopt the new minimum wage regardless of the potential exemption to retain and attract the best workers.
- Will all Panera Bread locations in California follow the minimum wage increase?
It’s unclear if corporate Panera Bread will follow suit, but the locations owned by Greg Flynn will adhere to the new wage standard.
- Could this situation lead to an investigation?
Yes, California Republicans have called for an investigation into the matter.
Conclusion:
The situation surrounding the application of California’s new minimum wage law highlights the complexities of legislating and enforcing pay standards within the fast food industry. The proactive stance taken by the Flynn Group to align with the new wage mandate, even amidst legal ambiguity, showcases a commitment to its workforce and potentially sets a benchmark for other proprietors. Meanwhile, the dispute and subsequent political narrative around these developments underscore the intricate connection between business, legislation, and politics within the state of California.
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