Panera Bread to raise employees’ minimum wages in California after backlash

A Panera Bread franchisee owner said he will raise the minimum wage for his employees in California when the state’s new fast food minimum wage law goes into effect, despite reports saying the chain wouldn’t have to comply.

California’s new fast-food minimum wage law, which goes into effect on April 1, would raise the minimum wage for fast-food workers from $16 per hour to $20.

However, the law’s text doesn’t recognize places that operate “a bakery that produces for sale on the establishment’s premises bread” as fast food, seemingly excluding places like Panera Bread from following the new requirements.

Many were puzzled as to why the exemption was included in the law’s final version.

“That’s part of the sausage-making of politics,” Gov. Gavin Newsom previously said during a news conference when asked about the exemption.

However, in February, reports came out that Newsom pushed for the exemption since it would benefit Greg Flynn, a billionaire and longtime donor who has two dozen Panera Bread locations in the Golden State.

Newsom and Flynn have denied those accusations.

Regardless of the exemption, representatives for Flynn told KTLA that Panera Bread locations owned and operated by Flynn Group will abide by the new law.  

“At Flynn Group, we are in the people business and believe our people are our most valuable assets. Our goal is to attract and retain the best team members to deliver the restaurant experience our guests know and love,” representatives for Flynn told KTLA in an emailed statement.

“Regardless of whether the bakery exemption in AB1228 applies to our bakery-cafes, California locations owned and operated by Flynn Group will increase all hourly pre-tip wages to $20 per hour or higher effective April 1.”

Still, due to backlash regarding the bread-making exemption, California Republicans have called for an immediate ethics investigation.

“Friends of the party in power get exemptions, and that’s not right.” Assemblyman Joe Patterson (R- Rocklin) said. “If this is a bad law for one company, then it’s probably a bad law for other companies.”

Other companies that aren’t exempt from the law, like Chipotle, previously announced plans to raise prices in the Golden State.