Why Panera is causing a stir in California politics

The minimum wage for fast-food workers in California is set to increase to $20 per hour on April 1st, but one curious carve-out in the new minimum wage law has ignited controversy in the state. And Panera Bread has been caught in the middle.

The minimum wage for fast food workers in California is set to increase to $20 per hour on April 1, but one curious carve-out in the new minimum wage law has ignited controversy in the state. And Panera Bread has been caught in the middle. The law exempts businesses that produce and sell bread as a stand-alone menu item, meaning those bakeries are not required to pay workers the higher minimum wage and can continue paying the state’s current $16 minimum wage. That’s confounding some in the restaurant industry. Democratic California Gov. Gavin Newsom has faced accusations – particularly from Republican lawmakers and conservative media – that Panera may have received this unlikely and specific exemption because of Newsom’s ties to Greg Flynn, a billionaire Panera franchise owner who is a former classmate of Newsom’s. He has donated to the governor’s campaigns in the past. Both Newsom and Flynn have denied Flynn’s influence over the bill. Newsom has also said that Panera may not be exempt from the new minimum wage law after all. Panera did not respond to CNN’s requests for comment. Nevertheless, on Thursday, Republican lawmakers in California called on the state’s attorney general to investigate the minimum wage exemption. “Campaign contributions should not buy you exemptions in legislation,” said California Senate minority leader Brian Jones in a statement. “The public deserves to know the truth about the allegations of Governor Newsom’s crony capitalism.”