Controversy Brews Over California Minimum Wage Exemption for Standalone Bakeries
• California passed a minimum wage law exempting businesses that sell standalone bread items, allowing them to continue paying the current $16 minimum wage instead of the new $20 wage.
• Panera Bread was caught in controversy over the exemption, with accusations that governor Newsom gave Panera the carve-out because of ties to billionaire franchisee Greg Flynn, a former classmate and campaign donor.
• Newsom and Flynn denied Flynn had influence over the bill, but Republican lawmakers called for an investigation into "crony capitalism."
• Flynn said he suggested amending the bill to exclude "fast casual" restaurants like bakeries and bagel shops, but did not ask for a special exemption.
• Newsom's team says the exemption likely does not apply to most Panera locations anyway, as they do not produce all bread on-site from scratch.