New $20 minimum wage law in California set to take effect, but people notice an ‘obscure’ exemption

Talk about fortuitous! In a strange turn of events, one of Gavin Newsom’s biggest donors hits the jackpot, and when the state-mandated $20 minimum wage for certain fast-food workers takes effect in April, this lucky duck employer won’t be subject to complying with the increase, thanks to an “obscure” exemption in the statute.

Here’s the story, from Fox News yesterday:

A major donor to Democratic California Gov. Gavin Newsom is expected to reap the benefit of an obscure exemption to the state’s new $20 minimum wage regulations for the fast food industry that will allow some of his restaurants to continue paying lower wages.

Here’s how the report from Bloomberg framed the issue:

The governor pushed for a carve-out that’s perplexed industry observers and benefited a donor.

Greg Flynn is a billionaire, one of Newsom’s (and other Democrats’) most loyal and longtime benefactors, and according to Bloomberg, “the largest restaurant franchisee in the US, if not the world.” Flynn’s fast-food portfolio includes establishments like Taco Bell, Wendy’s, and Pizza Hut… but his California fast-food portfolio is limited to one brand: Panera Bread.

And, surprise surprise, the new law’s “obscure exemption” seems only applicable to… Panera Bread. As the Fox report states:

Newsom pushed for the exemption, which allows restaurants baking and selling bread as a standalone item to continue paying the current rate of $16 to its employees. That means billionaire Greg Flynn, a longtime donor to the governor, could save hundreds of thousands of dollars a year per each of his two-dozen Panera Bread franchise locations across California….

Interesting. What happened to all of Newsom’s “fair share” talk?

Flynn and Newsome go way back; from Bloomberg:

Flynn attended the same high school as Newsom in the suburbs outside San Francisco.

Over the years, Flynn’s donations to Newsom’s political campaigns have included $100,000 to fight off a conservative-led recall effort and $64,800 to support the governor’s reelection in 2022. Flynn has been known to tout his relationship with Newsom, according to people familiar with the matter, with one saying the fast-food entrepreneur has said he can reach the governor via text.

A business connection goes back to 2014, when Flynn acquired a Napa Valley resort managed by Newsom’s hospitality company. Newsom, who was then serving as California’s lieutenant governor, reported an undisclosed amount of income from Flynn’s company that year.

(Oh, and apparently all of Newsom’s assets were placed into a blind trust in 2018 when he won the gubernatorial race—so not a lot of financial transparency there either.)

The corrupt Democrat’s actions have “perplexed” the people who are supposedly experts? In other news, the hens are shocked—shocked I tell you—to learn that the fox never intended to guard the henhouse.

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