Los Angeles
CNN
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A Panera Bread franchise proprietor in California mentioned he’ll increase the minimal wage for his workers after accusations he benefited from ties to the state’s governor to keep away from mountain climbing pay.
A brand new state minimal wage legislation exempts sure companies that make and promote bread – a carveout that critics contended benefited Greg Flynn, a billionaire Panera franchise proprietor who attended highschool with Democratic California Gov. Gavin Newsom and who has donated to the governor’s marketing campaign prior to now.
The legislation, which takes impact on April 1, raises the minimal wage from $16 per hour to $20 for all quick meals staff — besides these working in companies that produce and promote bread as a standalone menu merchandise.
It’s that exception that’s driving the political accusations.
Each males have denied Flynn’s affect over the brand new legislation. On Tuesday, Flynn advised CNN that he has determined to lift the minimal pre-tip wage in any respect of his Panera Bread places to $20 per hour, no matter whether or not his fast-casual bakeries are exempt from the brand new minimal wage legislation or not.
“At Flynn Group, we’re within the individuals enterprise and imagine our individuals are our most respected belongings,” Flynn mentioned. “Our objective is to draw and retain the very best staff members to ship the restaurant expertise our friends know and love.”
In keeping with California public records, Flynn, whose firm, The Flynn Group, has 24 Panera places in California, donated a number of occasions to Newsom’s 2022 re-election marketing campaign and gave $100,000 in 2021 amid a conservative combat to recall the governor.
Nonetheless, Flynn mentioned he by no means personally met with Newsom concerning the minimal wage invoice, although he did meet with Newsom’s workers and a gaggle of different restaurant house owners to debate it.
“I advised the invoice’s language defining ‘quick meals restaurant’ needs to be amended to exclude quick informal eating places,” Flynn mentioned in an announcement final week.
Nonetheless, Flynn advised CNN he by no means requested for an exemption or particular issues and that he was “shocked” when the bakery exemption appeared within the remaining laws.
He additionally clarified that though he attended the identical highschool as Newsom, the 2 didn’t meet till a long time later.
A spokesperson for Newsom dismissed rumors of Flynn’s affect over the quick meals minimal wage invoice outright, calling the story “absurd.”
And regardless of Flynn’s determination to lift the minimal wage for his California Panera places, a Newsom spokesperson beforehand advised CNN that the bakery would possible have been compelled to lift wages below the legislation in any case.
“We perceive many chain bakeries (corresponding to Panera Bread) combine dough at centralized off-site places after which ship that dough to their retail places for baking and sale,” which means that the bread is just not technically “produced” on web site, Alex Stack, a spokesperson for Newsom, mentioned.