Thanks to a new state minimum wage law, most fast-food chains in California will have to start paying their workers $20 an hour this year, but not Panera Bread - why?
Bloomberg News reports the exemption is related to the fact that a billionaire who owns several locations is a long-time friend and political donor to Governor Gavin Newsom.
The governor's office issued a statement saying that the ruling resulted from countless hours of talks involving dozens of business owners and union representatives.
The statement does not directly address concerns for Newsom's relationship with the states top Panera franchise owner, Greg Flynn.
KNX News Chief Correspondent Charles Feldman spoke with political analyst Dan Schnur, who said while we can give Newsom the benefit of the doubt, he absolutely owes the people of California a thorough explanation.
"If Newsome offers a substantive explanation on why this should be treated differently than other types of food services, then it will probably go away. If he doesn't, then I can see it mushrooming into a much bigger political issue for him," said Schnur.
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Schnur also said the timing is not ideal for Newsom, referring to the recently filed recall campaign against him. Schur likens the situation to the previous recall effort that ultimately failed but gained traction amid Newsom's mishandling of the infamous dinner at the French Laundry restaurant during the pandemic.
The Republican leader in the California Assembly, James Gallagher, shared his feelings on the situation via 'X,' saying, "This crooked deal needs to be investigated."
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