SACRAMENTO, Calif. – Republican lawmakers in California are pressing for an investigation into Governor Gavin Newsom’s alleged ties to a billionaire Panera franchisee and the exemption of the restaurant from a new state law mandating a $20 per hour minimum wage for major fast-food chains.
The legislators, led by Republican State Senate Minority Leader Brian Jones, are calling for transparency and accountability from Newsom regarding his relationship with the billionaire franchisee, Greg Flynn. Concerns have been raised about Flynn’s influence on securing an exemption for Panera from the wage law, which goes into effect in April.
Assemblyman Joe Patterson, R-Rocklin, has even suggested that the FBI should be involved in the investigation, expressing doubts about the ability of California’s Democratic Supermajority Legislature to impartially look into the matter. The controversy stems from allegations that Flynn played a role in carving out exemptions for chains that sell and produce bread on-site during the final weeks of the 2022 legislative session.
Newsom’s office has defended the exemption, stating that it was the result of extensive negotiations between the Governor and the Legislature over a two-year period. While Newsom’s spokesperson, Alex Stack, denied that the Governor had discussed the bill with Flynn, questions remain about the nature of their relationship and Flynn’s alleged influence.
Flynn, for his part, has denied seeking any special treatment or exemptions, claiming that he opposed the bill along with many other restaurant owners. He emphasized that the exemption for fast-casual restaurants like Panera has little practical value and may necessitate offering market value wages to attract and retain employees.
Democratic Assemblyman Chris Holden, the author of the law, has expressed puzzlement over the inclusion of the exemption in the bill, noting that he was not involved in the negotiations that led to it. Questions have also been raised about Flynn’s significant donations to Newsom’s political campaigns, raising concerns about potential conflicts of interest.
As the controversy continues to unfold, stakeholders and observers are closely monitoring the situation, with calls for greater transparency and accountability in the relationship between politicians and donors. The fallout from this case underscores the importance of ethical governance and the need for rigorous oversight to uphold public trust and integrity in the political process.