{"id":2192944,"date":"2024-03-05T12:00:03","date_gmt":"2024-03-05T17:00:03","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/how-fast-food-franchises-are-pushing-back-on-newsoms-20-minimum-wage-law\/"},"modified":"2024-03-05T12:00:58","modified_gmt":"2024-03-05T17:00:58","slug":"how-fast-food-franchises-are-pushing-back-on-newsoms-20-minimum-wage-law","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/how-fast-food-franchises-are-pushing-back-on-newsoms-20-minimum-wage-law\/","title":{"rendered":"Fast-food franchises resist Newsom&#8217;s $20 minimum wage law"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fhow-fast-food-franchises-are-pushing-back-on-newsoms-20-minimum-wage-law%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2192944&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><blockquote>\n<h2>Bill includes exemption for places that &#8216;produce&#8217; bread. No one can \u2062agree on who qualifies.<\/h2>\n<figure><figcaption>Gavin Newsom (Mario Tama\/Getty Images)<\/figcaption><\/figure>\n<\/blockquote>\n<div>\n<p>Fast-food industry insiders are disputing California Democratic governor Gavin Newsom&#8217;s claim that the bakery chain Panera Bread will have \u2064to comply with the state&#8217;s sweeping $20 minimum wage law for fast-food franchises, as the governor faces criticism for allegedly \u2062exempting \u200bthe bakery chain to\u2064 benefit a billionaire donor.<\/p>\n<p>The governor has faced sharp <a href=\"https:\/\/freebeacon.com\/latest-news\/gavin-newsom-under-fire-for-minimum-wage-carveout-that-benefits-donor\/\" target=\"_blank\" rel=\"noopener\">blowback<\/a> following a <em>Bloomberg<\/em> report that he fought \u200dfor a carveout for any franchise that &#8220;operates a\u200b bakery\u200b that produces [bread] for sale on \u200cthe establishment&#8217;s premises&#8221;\u200c at the behest of billionaire Greg Flynn\u2014a former high school classmate of the governor and owner \u2064of two dozen Panera franchises who <a href=\"https:\/\/cal-access.sos.ca.gov\/Campaign\/Committees\/Detail.aspx?id=1400726&#038;session=2021&#038;view=contributions\" target=\"_blank\" rel=\"noopener\">has given \u2063more than $160,000<\/a> to\u2064 Newsom&#8217;s campaigns. The exemption was understood to include\u2062 Panera, but Newsom&#8217;s lawyers said last week that since \u200bPanera does not mix its bread dough onsite, it does not qualify. This argument appears to run counter to the governor&#8217;s own acknowledgment when\u200b he signed the bill that Panera was indeed \u200cexempt\u2014a fact he <a href=\"https:\/\/www.youtube.com\/watch?v=S8iibvfpdb4&#038;t=2313s\" target=\"_blank\" rel=\"noopener\">attributed at the\u2064 time<\/a> to political \u200b&#8221;sausage-making.&#8221;<\/p>\n<p>Fast-food industry insiders say the exemption is so vague that the governor&#8217;s interpretation\u2063 would have to be litigated in court, while California\u2063 Republicans and other franchisees dispute it outright and see Newsom&#8217;s walk-back as motivated\u2063 by the negative publicity.<\/p>\n<p>&#8220;It&#8217;s \u2064our understanding that Panera Bread\u2064 is\u2064 exempt,&#8221; said GOP assemblyman Josh Hoover. &#8220;It seems convenient that we&#8217;re now saying they&#8217;re not exempt.&#8221;<\/p>\n<p>Newsom\u200d himself\u2063 on Monday <a href=\"https:\/\/twitter.com\/ZavalaA\/status\/1764747367931322754\" target=\"_blank\" rel=\"noopener\">stumbled over a question<\/a> on which bakeries qualify for the carveout, if Panera doesn&#8217;t. The governor first said that Panera is exempted, \u2064before realizing his mistake \u200dand reiterating that the \u2063franchise is not. \u2063In \u2063an NBC interview over the weekend, Newsom <a href=\"https:\/\/twitter.com\/JWheelertv\/status\/1764113769737896371\" target=\"_blank\" rel=\"noopener\">again denied<\/a> \u200bthe <em>Bloomberg<\/em> story but conceded that he had had &#8220;some discussions around bakeries and \u200dthis and that.&#8221;<\/p>\n<p>The law states that to be exempt from the\u200c wage law, bakeries have to \u2064&#8221;produce&#8221; bread and sell it as a \u200cseparate menu\u200c item on their premises\u2014and\u2063 to have done so prior to Sept. \u200b15, 2023. The text never defines the word &#8220;produce,&#8221; but Newsom&#8217;s legal team is interpreting the word\u200d to mean \u200cfrom-scratch mixing of the dough, rather than raising and baking frozen dough, \u200cas Panera and other chains\u200c do. \u200cPanera representatives did not\u200c respond to a request for comment, and legislative staff \u200bfor the State Assembly&#8217;s labor committee, which vetted the bill, \u200ccould not take a position.<\/p>\n<p>&#8220;I don&#8217;t know many places, if any, that mix dough onsite,&#8221; said \u2063Keith Miller, a consultant with Franchisee\u200d Advocacy Consulting\u200d who advocates for \u2064franchises in the California Legislature. He added that as a Subway franchisee himself, his stores also get frozen dough sticks, which they thaw and bake. &#8220;I&#8217;d think people say that&#8217;s producing bread,&#8221;\u200d he said.<\/p>\n<p>Newsom&#8217;s attempt to defray criticism for allegedly negotiating on behalf of a donor came the same day California Republicans asked Democratic attorney general Rob Bonta to <a href=\"https:\/\/www.dropbox.com\/scl\/fi\/fphhpgxh29sftocrxqj5y\/2024-02-29-Panera-Exemption-Letter.pdf?rlkey=3tp00kg1kksl2p5h3z5z0ugts&#038;e=1&#038;dl=0\" target=\"_blank\" rel=\"noopener\">investigate<\/a> the potential &#8220;pay-to-play.&#8221; Representatives for Bonta, who is expected \u2062to run for governor when Newsom&#8217;s term expires, did not respond to a request for comment.<\/p>\n<p>&#8220;Governor \u2062Newsom has a record of doing favors\u2064 for political donors, going back\u200c before COVID-19,&#8221; said Hoover, the \u200cGOP assemblyman\u2014citing\u200b <a href=\"https:\/\/www.latimes.com\/california\/story\/2019-09-18\/gavin-newsom-signs-ab5-employees0independent-contractors-california\" target=\"_blank\" rel=\"noopener\">carveouts<\/a> to California&#8217;s law\u2063 cracking down on freelancers and independent contractors. Hoover also pointed to Newsom&#8217;s push to exempt prison guards from COVID-19 vaccine mandates after the guards&#8217; union <a href=\"https:\/\/calmatters.org\/justice\/2021\/09\/covid-vaccine-mandate-prison-guards-california\/\" target=\"_blank\" rel=\"noopener\">gave the governor<\/a> $1.5\u2062 million to fend off \u2062a recall campaign.<\/p>\n<p>Rep. Kevin Kiley (R., Calif.) on Monday <a href=\"https:\/\/blog.electkevinkiley.com\/panera-gate\/\" target=\"_blank\" rel=\"noopener\">vowed<\/a> to use his congressional investigatory powers to look into\u2064 the \u200dscandal.<\/p>\n<p>&#8220;I will be using all available oversight powers to get answers\u2064 about Newsom&#8217;s corruption,&#8221;\u200b Kiley said, citing \u200dhis position as the chairman of a subcommittee overseeing workplace regulations.<\/p>\n<p>For his part, Newsom says there is \u200cnothing to \u200cthe <em>Bloomberg<\/em> report that he \u2064exempted Panera as a favor to a donor.<\/p>\n<p>&#8220;The\u200c governor never met with\u2063 Flynn about \u200bthis \u200bbill\u2063 and \u200dthis story is absurd,&#8221; Newsom spokesman Alex Stack said in a statement. \u200d&#8221;Our legal team\u2062 has reviewed and it appears Panera is not exempt from \u200dthe law.&#8221;<\/p>\n<\/div>\n<p> <\/p>\n<h2> Why are industry insiders, Republicans, and franchisees \u2064questioning the governor&#8217;s change\u200d of position on the exemption? <\/h2>\n<p><span>  M over the\u2064 inclusion of an exemption for bakeries in California&#8217;s minimum wage law has sparked controversy and debate. The governor&#8217;s alleged favoritism \u2062towards Panera Bread, a major bakery chain, has raised concerns about possible political motivations behind the carveout.<\/p>\n<p>According to a Bloomberg report, Governor Gavin Newsom fought for the exemption at the request of billionaire Greg Flynn, who \u2063owns\u2063 two dozen Panera franchises and has been a significant donor to \u2064Newsom&#8217;s\u200b campaigns. While the exemption was initially seen to include Panera, Newsom&#8217;s lawyers later argued that since the chain does not mix \u200dits bread dough onsite,\u2063 it does not qualify for the exemption. This conflicting stance has prompted criticism \u2063and accusations of inconsistency\u200b from both industry insiders and political opponents.<\/p>\n<p>The vagueness of the exemption&#8217;s language \u2063has also come under scrutiny. \u2064Fast-food industry insiders\u2062 argue that the interpretation of the \u200bexemption would have to be settled in court, while Republicans and other franchisees of California question the \u200bgovernor&#8217;s sudden change of position, suggesting it may be a response to negative publicity.<\/p>\n<p>Assemblyman \u2062Josh Hoover, a Republican, stated, \u200c&#8221;It&#8217;s our understanding that Panera Bread is exempt. It seems convenient \u200cthat we&#8217;re now \u2062saying they&#8217;re not exempt.&#8221; This sentiment highlights the ongoing confusion surrounding the exemption&#8217;s \u200capplicability.<\/p>\n<p>Governor Newsom\u2064 himself stumbled when questioned about which bakeries qualify for the carveout if Panera does not. Initially, he stated that Panera was exempted before correcting his statement to clarify that the franchise is not exempt. In another interview, Newsom denied the Bloomberg story while acknowledging discussions about bakeries had taken \u2063place.<\/p>\n<p>The dispute centers around the interpretation of the term &#8220;produce&#8221; as\u200d stated in the law. To be exempt from the minimum wage requirement, \u2063bakeries must produce bread and sell it\u2064 as\u2063 a separate menu item on their premises before September 15, 2023. However, the law does not provide a clear definition of what &#8220;produce&#8221;\u200c means. Newsom&#8217;s legal\u2063 team is interpreting the term to mean from-scratch mixing of dough, excluding baking frozen dough, which is the practice \u2064of Panera and\u200d other chains. The absence of a definition\u200d has made it difficult to determine the eligibility of bakeries for the exemption.<\/p>\n<p>Franchisee \u2063advocates and consultants argue \u2062that very few places mix dough onsite, as most rely on pre-mixed frozen dough. Keith Miller, a consultant with Franchisee Advocacy Consulting and a Subway franchisee himself,\u2062 stated, &#8220;I don&#8217;t know many places, if any, that mix dough onsite. I&#8217;d think people say that&#8217;s producing bread.&#8221; Miller&#8217;s perspective highlights the broader concern that the current interpretation of the exemption excludes many bakeries that are still \u200bconsidered to be producing bread.<\/p>\n<p>Governor Newsom&#8217;s attempt to clarify the exemption and address criticism has only led to further confusion. The ongoing controversy surrounding this \u200bissue raises questions about the transparency and fairness of the \u2063exemption process and highlights the need for a more clearly defined and inclusive framework for the application of such\u2063 exemptions in the future.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Fast-food industry insiders challenge Governor Gavin Newsom&#8217;s assertion that Panera Bread must adhere to California&#8217;s $20 minimum wage law for fast-food franchises. The bill&#8217;s exemption for bread-producing establishments sparks disagreement over qualifying criteria. (Image: Mario Tama\/Getty)<\/p>\n","protected":false},"author":1604,"featured_media":2192945,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/freebeacon.com\/wp-content\/uploads\/2024\/03\/second-republican-primary-debate-held-at-ronald-reagan-presidential-li-scaled-e1709652793177.jpg","fifu_image_alt":"","footnotes":""},"categories":[544],"tags":[],"class_list":["post-2192944","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-free-beacon"],"fifu_image_url":"https:\/\/freebeacon.com\/wp-content\/uploads\/2024\/03\/second-republican-primary-debate-held-at-ronald-reagan-presidential-li-scaled-e1709652793177.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2192944","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1604"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2192944"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2192944\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2192945"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2192944"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2192944"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2192944"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}