Governor Gavin Newsom of California has come under the microscope after a connection was found between a donor of his and a specific exemption in the state’s newly minted minimum wage legislation. This follows a Bloomberg News report that unearthed the donor’s benefaction from the law.
The legislation, which raises the state’s minimum wage to $20, included an exemption for establishments like Panera Bread.
The exemption was distinctly crafted for restaurant chains that bake and sell their own bread as an individual item. This detail aligns with the operations of some Panera Bread franchises in the Bay Area, owned by billionaire Greg Flynn—a donor who has contributed no less than $173,000 to Governor Newsom since 2021.
Flynn previously expressed in 2022 that such a wage law could severely harm the franchising business in California. Notably, prominent fast-food chains, including McDonald’s and Chipotle, do not benefit from this law’s exemptions.