Newsom Campaign Donor Says His Panera Bread Restaurants Will Follow New Minimum Wage Law

Chris Micheli, a California lobbyist and adjunct professor of law at McGeorge School of Law, said Flynn likely would have had a good case had he chosen to challenge the Newsom administration’s interpretation of the law. The law defines what a fast-food restaurant is saying it is not an establishment that “operates a bakery that produces for sale on the establishment’s premises bread.”

The law goes on to say the exemption only applies “where the establishment produces for sale bread as a stand-alone menu item, and does not apply if the bread is available for sale solely as part of another menu item.”

“On its face, it appears that it would be applicable. However, a court might have to determine what is included in the word ‘produce’ in order for the exemption to apply,” Micheli said.

As for which businesses would be exempt from the law, Newsom’s office said the newly created Fast Food Council “may develop regulations, and the Labor Commissioner has enforcement authority over individual claims based on the facts of individual cases.”

“Ultimately, the courts may have to make the final ruling,” said Alex Stack, Newsom’s spokesperson.

Last week, Flynn denied asking for an exemption or “special considerations.” He said he did participate in a group meeting with some of Newsom’s staff and other restaurant owners. He said that if the bill intended to address labor code violations in the fast-food industry, it should make a distinction between fast-food restaurants and “fast-casual restaurants.”

In an interview with KNBC in Los Angeles earlier this week, Newsom said negotiations about the law included “some discussions around bakeries and this and that,” but he said those talks were only “as it relates to the carve-outs and the details that were done with this deep coalition” that included labor unions and fast-food industry representatives.

The political effects of the issue could linger. Republicans in the state Legislature have called for an investigation. While Flynn now won’t benefit from the exemption in the law, that likely won’t deter Newsom’s opponents from using the allegations against him.

“Anyone who wants to take a shot at Newsom will use this. That’s just politics,” said Kevin Liao, a California-based Democratic political consultant. “When you have someone who many think has national aspirations, they are going to pick at any scab that exists and try to exploit it.”