Newsom’s Office Refutes Claims of Favoritism Toward Panera Bread

Reports claiming that Panera Bread was excluded from California’s new $20-an-hour fast food minimum wage due to its owner’s campaign donations to Gov. Gavin Newsom have been denied by his office.

The Los Angeles Times referenced a report from Bloomberg News alleging that Greg Flynn, CEO of a restaurant group running Panera locations, sought to have fast-casual chains like Panera classified differently. The article claimed the Service Employees International Union California State Council agreed to exclude bakeries to gain the governor’s support for the bill.

Newsom’s office dismisses the allegations as “absurd,” stating that there was no meeting between the governor and Flynn regarding the bill. A spokesperson for Newsom, Alex Stack, clarified that Panera is not exempt from the new law.

Despite Flynn’s opposition to the bill and his campaign donations to Newsom, a carve-out was added for Panera in the legislation, as reported by The New York Post.

The Fast Food Accountability and Standards Act (FAST Act), signed into law in September after being proposed in 2022, raised the minimum wage for fast-food workers in California to $20 per hour. There was an exemption for establishments that bake and sell bread as a standalone item.

California Senate Republican Leader Brian Jones has called for an investigation into the matter, denouncing any special treatment based on campaign contributions as “crony capitalism.”

Bloomberg has not responded to requests for comment, as per the Times.