Gov. Gavin Newsom’s campaign donor says his Panera Bread restaurants will follow minimum wage law

SACRAMENTO, Calif. (AP) — A wealthy campaign donor of California Gov. Gavin Newsom said the Panera Bread restaurants he owns will start paying workers at least $20 an hour on April 1 after controversy over whether a new state minimum wage law for fast food workers applies to his businesses.

California’s statewide minimum wage is $16 per hour. Newsom signed a law last year that says fast food restaurants that are part of a chain with at least 60 locations nationally must pay their workers at least $20 per hour beginning April 1. But the law does not apply to restaurants that have their own bakeries to make and sell bread as a stand-alone menu item.

That exception appeared to apply to restaurants like Panera Bread. Last week, Bloomberg News reported that Newsom had pushed for such a carve-out to benefit donor Greg Flynn, whose company owns and operates 24 Panera Bread restaurants in California.

The Democratic governor and Flynn denied the report, with Newsom calling it “absurd.” Newsom spokesperson Alex Stack said the administration’s legal team analyzed the law “in response to recent news articles” and concluded Panera Bread restaurants are likely not exempt because the dough they use to make bread is mixed off site.

<bsp-list-loadmore data-module="" class=«PageListStandardB» data-gtm-region=«READ MORE» data-gtm-topic=«No Value» data-show-loadmore=«true» data-gtm-modulestyle=«List B»> <bsp-custom-headline custom-headline=«div»> READ MORE </bsp-custom-headline> <bsp-custom-headline custom-headline=«div»> Californians split on ballot measure to tackle homelessness crisis </bsp-custom-headline> <bsp-custom-headline custom-headline=«div»> California governor pushes back against criticism of fast food minimum wage law