Office of Governor Newsom denies allegations of favoritism towards 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 donation to Gov. Gavin Newsom have been denied by Newsom’s office.

The Los Angeles Times referenced a report from Bloomberg News alleging that Greg Flynn, CEO of a restaurant group that operates Panera locations, lobbied to have fast-casual chains like Panera excluded from the legislation.

The report claimed that the Service Employees International Union California State Council agreed to this exclusion to gain the governor’s support for the bill, citing a long-standing relationship between Newsom and a Panera franchisee.

Newsom’s office dismissed the Bloomberg report as “absurd” and stated that Panera is not exempt from the law, despite Flynn’s public denouncement of the bill and donations to Newsom’s campaign that led to a bread exemption being added to the legislation, according to The New York Post.

The Fast Food Accountability and Standards Act, signed into law in September, raised the minimum wage for fast-food workers to $20 an hour, with an exemption for chains that bake and sell bread as a standalone item. The law specifies that this exemption only applies when the establishment sells bread as a separate menu item, not as part of another menu item.

California Senate Republican Leader Brian Jones called for an investigation into the allegations, criticizing the influence of campaign contributions on legislation as “crony capitalism.” Bloomberg did not immediately respond to requests for comment.