February 28th, bloomberg Bakery chain Panera reported that it will be exempt from California law AB1228, which increases the minimum wage for fast food workers from $16 to $20 starting April 1. But now it appears that this may not be the case. On Feb. 29, Gov. Gavin Newsom’s press secretary told the newspaper. Los Angeles Times Panera would not be exempt from the law.A spokesperson also denied the claim. bloomberg Citing sources “close to the matter,” the article criticized Newsom’s claim for an exemption for companies that bake bread and sell it as a standalone product, calling the report “ridiculous.”
bloomberg He hinted that including Panera in the exemption would benefit billionaire Greg Flynn, who operates 24 Panera restaurants across California. Longtime donor to Newsom campaign. At a press conference on September 28, 2023, Newsom referred to the exemption for bakeries as part of “legislation.”making sausageof politics.” Newsom did not respond to Eater’s request for comment.
inside Los Angeles Times, a Newsom spokesperson said that Flynn had not been involved in any conversations surrounding the bill and that “after review by our legal team, it appears that Mr. Panera is not exempt from this law.” Anonymous sources mentioned in the article also revealed that the exemption is only intended to apply to bakeries that are categorized by whether they make their bread or dough on-site or bring in their own bread. did. Under this classification, Panera would not be exempt. Tia Orr, Executive Director of the Service Employees International Union, said: statement “It was never our intention to exclude any one company, but rather to clarify what a fast food restaurant is.” Panera has not commented on the matter and did not respond to Eater’s request for comment.
In a February 29 statement quoted by ABC News, Flynn denied the request for an exemption, but acknowledged that he had suggested businesses such as bakeries and bagel shops should be excluded. In the same statement, he also said, “Such a narrow exemption has little practical value. As is true for all peer-to-peer restaurants in the fast-casual sector, there are will almost certainly have to offer market-value wages.”
AB1228 Define A fast food restaurant as a limited service restaurant. It is part of a national chain with at least 60 stores across the country, all of which operate under the same brand name or share a standardized menu and overall design. Replacement for AB1228 AB257the Bill of 2022 (also known as) fast recovery method) focused on expanding protections for fast food workers. AB257 also includes a 10-member panel that includes representatives from both the employee and owner sides of the restaurant industry and is tasked with setting “minimum employment standards for fast food restaurants,” including wages, working conditions, and training. Established the Fast Food Council. The council will continue to operate under AB1228. He also included a similar minimum wage exemption for businesses that bake and sell bread in AB257.
California Congressman James Gallagher called for an investigation In a Feb. 28 post on X, he called Panera’s alleged exemption a “crooked deal.”according to bloomberg, Mr. Flynn said he had no role in inserting the exemption into the bill, but did not respond to requests for further comment on his relationship with Mr. Newsom. but, bloomberg reported that Flynn is known to “publicize his relationship with Newsom” and in 2014 acquired a Napa Valley resort managed by Newsom’s hospitality company. Eater reached out to the Flynn Group for comment but did not receive a response.
AB1228 affects all of California, but the minimum wage in Los Angeles is rose to $17.28 Starting July 1, 2024, it will be one hour, replacing the $16 state minimum.
