Longtime Newsom donor exempt from California minimum wage law, report says

LOS ANGELES -- California Gov. Gavin Newsom is facing scrutiny implicit the state's caller minimum wage instrumentality pursuing a study that appears to person uncovered 1 of his longtime donors benefited from an exemption successful the law.

It was nary concealed erstwhile the $20 minimum wage instrumentality was announced that places similar Panera Bread would beryllium exempt and galore radical wondered why.

The crushed fixed was that the restaurant, viewed by astir radical arsenic "fast food," bakes its ain bread. In fact, the exemption is beauteous specific, intended for chains that not lone cook breadstuff but merchantability it arsenic a standalone item.

Bloomberg News uncovered that a billionaire edifice proprietor successful the Bay Area who owns 2 twelve Panera franchises has donated astatine slightest $173,000 to Newsom since 2021.

That franchise owner, Greg Flynn, was quoted successful 2022, saying the wage summation measure would "all but kill" the franchising concern exemplary successful the state. Now the apical Republican successful the California Assembly has called for an investigation, labeling the woody arsenic crooked.

In a connection to ABC News, a Newsom spokesperson said the minimum wage instrumentality was "the effect of countless hours of negotiations with dozens of stakeholders implicit 2 years."

The bill's pb writer is Pasadena Assemblyman Chris Holden. When asked astir the exemption reported by Bloomberg, his main of unit responded, "We don't cognize however that came about."

Most fast-food chains are not exempt from this law, specified arsenic McDonald's and Chipotle. Chipotle said it is considering a terms summation to offset the other expense.

That authorities minimum wage summation takes effect connected April 1.