Billionaire Greg Flynn, known for his successful restaurant franchise operations, is set to benefit from an unexpected exemption in California’s new minimum wage law. The law, which is poised to increase the state’s minimum wage for fast-food employees to $20 per hour from $16, includes a unique provision that spares chains involved in baking and selling bread as a standalone product.
Governor Gavin Newsom is reported to have advocated for this exemption, with Flynn, a major donor to Newsom’s campaigns and owner of two dozen Panera Bread locations in California, being among the primary beneficiaries.
The specificity of this exemption has raised eyebrows, particularly after Governor Newsom referred to it as part of the political process. While Newsom’s office emphasized the extensive negotiations and stakeholder involvement that led to the wage law, Flynn distanced himself from any involvement in crafting the bread exemption, declining to comment on his connections to Newsom.
Despite Flynn’s public criticism of the FAST Act, a bill set to impact the franchising business model in the state, behind-the-scenes discussions saw him lobbying the governor’s aides to reconsider the classification of fast-casual chains like Panera as fast food. Ultimately, the Service Employees International Union, a key proponent of the bill, accepted a narrower carve-out that exclusively applies to restaurants with bakeries, in a strategic move to secure the governor’s backing for the legislation.
