Sacramento, California – An obscure exemption in California’s new minimum wage regulations is sparking controversy as it benefits a major donor to Governor Gavin Newsom. The exemption allows some fast-food restaurants, specifically those baking and selling bread, to continue paying lower wages. This exemption could result in significant savings for billionaire Greg Flynn, a longtime donor to the governor, who owns several Panera Bread franchise locations across California.
The decision to include this exemption in the regulations has raised questions about the influence of political donors on policy-making. Flynn’s close ties to Governor Newsom, including past business dealings and campaign contributions, have come under scrutiny. The implementation of compromised regulations, including the bread exemption and the $20 minimum wage, followed talks between labor groups and the fast-food industry. This compromise was reached after the initial law, which set the minimum wage above $20, was repealed.
Flynn, the largest franchisee in the U.S., has a significant presence in the restaurant industry, owning thousands of locations across various chains. His generous contributions to Newsom’s campaigns, including substantial donations during the 2021 recall election, have raised concerns about the extent of his influence on state politics. Despite Flynn’s involvement in supporting Newsom and other Democratic politicians in California, questions remain about the transparency and fairness of the exemption that benefits his business interests.
In response to inquiries about the controversial exemption, Governor Newsom’s office emphasized the extensive negotiations involving various stakeholders in the decision-making process. According to a spokesperson, the final outcome of the legislation was the result of input from labor unions, business leaders, and franchise owners. However, concerns persist about the level of influence that individual donors like Flynn may have had on shaping the final regulations.
As the debate over the exemption continues, it remains to be seen how this issue will impact future policy decisions in California and beyond. The intersection of political contributions, business interests, and public policy raises important questions about the integrity of the legislative process and the role of donors in shaping laws that affect millions of workers. The fallout from this controversy could have far-reaching implications for how regulations are crafted and implemented in the state.