- The franchise proprietor of dozens of Panera Breads in California stated he’ll increase the minimal wage for workers.
- The proprietor is a significant donor to Gov. Gavin Newsom.
- Newsom confronted blowback final week for showing to carve out an exemption in a brand new legislation for Panera.
A billionaire donor to California Gov. Gavin Newsom stated he is elevating pay at his Panera Bread places after it was extensively reported that they’d be exempt from a brand new state legislation boosting the minimal wage.
Greg Flynn, the franchise proprietor of 24 Panera Breads within the state, introduced on Tuesday that he would increase the minimal wage at his places from $16 to $20.
Newsom and Flynn have identified one another for years, and Flynn has been a longtime donor to Newsom’s marketing campaign, Enterprise Insider beforehand reported. That connection introduced Newsom beneath fireplace final week as a result of the state’s new legislation appeared to have a possible, particular exception for Panera Bread.
The new legislation requires quick meals chains with 60 or extra places to extend the minimal wage for his or her employees starting on April 1. However, the legislation consists of an exemption for eating places that bake bread and promote it as a stand-alone merchandise.
(For those who’re questioning, bagels or croissants do not rely as “bread” beneath the legislation.)
A spokesperson for the governor informed Enterprise Insider that Panera is probably not exempt from the brand new legislation as a result of the chain prepares its dough at an off-site location earlier than shops bake it.
Flynn stated final week that though he had instructed excluding fast-casual eating places from the invoice, he by no means requested for particular issues and by no means met straight with Newsom in regards to the invoice, Bloomberg reported.
After the backlash, Flynn stated his eating places would comply with the legislation — even when they did not must.
“No matter whether or not the bakery exemption in AB1228 applies to our bakery-cafes, California places owned and operated by Flynn Group will enhance all hourly pre-tip wages to $20 per hour or greater efficient April 1,” Flynn stated in his Tuesday assertion, in line with KCRA.
Flynn’s pay bump for Panera employees will not have an effect on employees on the remaining 164 places in California not owned by the Flynn Group — until the governor’s workplace confirms that no Paneras are exempt.
The Flynn Group didn’t instantly reply to BI’s request for remark.
