Sacramento, California – California Governor Gavin Newsom is facing backlash from Republican lawmakers after a peculiar exemption to the state’s minimum wage law was revealed, benefiting one of his donors. The exemption allows restaurants that bake and sell bread as a standalone item to continue paying their employees below the state’s $20 minimum wage.
Newsom’s decision to push for this exemption has drawn criticism and calls for an investigation. The exemption specifically benefits billionaire Greg Flynn, who is a major donor to Newsom and owns two dozen Panera Bread franchise locations across California. The move has sparked outrage among lawmakers, with the top Republican legislator in the state calling for a probe into the situation.
Lawmakers have condemned the exemption as an example of “crony capitalism,” expressing concerns about the influence of campaign contributions on legislative decisions. The exemption has raised questions about the fairness of the state’s minimum wage laws and the potential impact on businesses that do not have the same level of financial support from donors.
According to reports, Flynn has a history of business dealings with Newsom and has been actively involved in lobbying for exemptions to the state’s minimum wage regulations. The repeal of the law that initially set the minimum wage above $20 was a result of negotiations between labor groups and the fast food industry, leading to compromised regulations that included the bread exemption and the $20 minimum wage.
Flynn, as the largest franchisee in the U.S., owns thousands of fast food chain locations and has made significant donations to support Newsom’s political campaigns. While Newsom’s office has defended the legislation as a product of extensive negotiations with various stakeholders, critics argue that the influence of donors like Flynn raises concerns about the integrity of the legislative process.
Both Newsom’s office and Flynn’s holding company have been contacted for comments on the matter, but responses have not yet been received. The controversy surrounding the exemption highlights ongoing debates about the role of campaign contributions in shaping public policy and the need for transparency in decision-making processes.