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Simply shameless corruption.
California Governor Gavin Newsom (D) exempted Panera Bread from the state's new $20 minimal wage legislation as a result of its billionaire CEO Greg Flynn donates to his political campaigns.
In September California Governor Gavin Newsom (D) signed laws elevating the minimal wage for fast-food employees to $20 an hour.
“Eighty % of the workforce, these quick meals locations – 80 % are individuals of colour, two-thirds…girls, the vast majority of the breadwinners and now we have a technique to reward that contribution, reward that sacrifice and in flip stabilize an trade have the chance. What an exquisite second,” Newsom mentioned through the invoice signing in September.
Based on Bloomberg, Newsom pushed to exempt Panera Bread from the brand new minimal wage legislation. Flynn, a billionaire restaurant franchisee, is a Newsom donor and was concerned in enterprise dealings with the California governor.
Newsom instructed reporters in regards to the exemption that it was “the sausage making half” of politics.
Greg Flynn had beforehand criticized the minimal wage invoice referred to as the FAST Act. He mentioned it could destroy franchising in California – and the following factor you recognize his eating places are exempt.
How did Panera escape the Democrats' new minimal wage invoice?
Panera is exempt as a result of it 'makes bread and sells it as a stand-alone merchandise.'
Bloomberg reported:
Billionaire Greg Flynn, who made his fortune operating one of many world's largest restaurant franchise operations, is getting a brand new increase from sourdough loaves and brioche buns.
That's as a result of a California legislation that’s set to boost the state's minimal wage at fast-food places from $16 to $20 an hour provides an uncommon exemption for chains that make bread and promote it as a standalone. Bought as an merchandise.
Governor Gavin Newsom pushed for that break, in keeping with individuals accustomed to the matter. Among the many most important beneficiaries is Flynn, a longtime Newsom donor whose California holdings embody two dozen Panera Bread places.
The specificity of the exemption has puzzled observers for months, particularly after the governor instructed reporters final yr that it got here as a “sausage-making half” of politics. In response to detailed questions, Newsom's workplace mentioned the wage laws was “the results of numerous hours of conversations with dozens of stakeholders over two years” — and can make an actual distinction for tons of of 1000’s of Californians.
Flynn, who has been concerned in enterprise offers with Newsom along with contributing to the governor's political campaigns, mentioned in a quick dialog that he performed no position in crafting the bread exemption. He didn’t reply to requests for remark about his relationship with Newsom.
Pizza Hut wasn't so fortunate.
In December two main Pizza Hut operators in California introduced they might lay off all of their supply drivers on account of a brand new legislation that raises the minimal wage for quick meals employees to $20 an hour.
Newsom faces one other recall effort, the second in three years, as a conservative group launches a brand new marketing campaign to take away him from workplace.