Gavin Newsom

Newsom faces scrutiny over minimum-wage law loophole, ties to franchisee

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Gov. Gavin Newsom is under the microscope Thursday in connection with a loophole in the new fast-food workers minimum wage law set to take effect in April.

The minimum wage for fast-food workers is set to rise to $20 per hour. But a new Bloomberg report finds the law will exempt chain restaurants that bake and sell their own bread, including Panera Bread, which critics point out is run by a billionaire who has close ties to Newsom.

In 2021, Greg Flynn, whose franchisee company controls a number of Panera locations, donated $100,000 to Newsom's campaign against a recall, according to Bloomberg.

The next year, Flynn donated $64,000 to Newsom's reelection campaign.

In the wake of the report, some lawmakers are now calling for an investigation.

Meanwhile, Newsom faces yet another recall effort. A group called Rescue California officially launched its recall campaign on Monday. It's the seventh recall attempt against the governor.

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