SAN DIEGO — Governor Newsom’s office is responding to critical accusations involving the state’s new minimum wage law for fast food workers.
A Bloomberg report published this week claims Newsom carved out an exemption for businesses like Panera Bread, because of his connections to a campaign donor. The report claims that Governor Newsom pushed for an exemption to the state’s new fast food minimum wage law to benefit Panera Bread after the franchise’s owner made significant contributions to Newsom’s campaign.
The governor’s office is denying the claims, but state republicans are demanding the attorney general to look into it.
The controversial report is sparking concern from voters and lawmakers.
“I can tell you that this is one of the most gross examples of a governor overstepping his authority and his ethics to come to this situation," Senate Minority Leader Brian Jones.
“I think Panera should raise their prices if everybody else has to, I don’t think they should be exempt from that," said one San Diegan.
“That doesn’t surprise me with the current environment, it’s just politics as usual," said San Diego resident Pat Andrews.
California’s new minimum wage law requires fast-food chains to increase pay to $20 an hour.
The law states that restaurants that bake and sell their own bread are exempt because they’re not considered fast food – making Panera Bread and billionaire franchise owner, Greg Flynn, exempt from following the new law.
“Panera Bread, which just so happens to be owned by one of his billionaire buddies from high school. That just also so happened to give him over $160,000 in campaign funds during that same period of time," said Jones.
Jones and other republican lawmakers are now calling for an investigation.
"That's exactly why we need to have an investigation because it does feel like corruption. We need an independent investigation by the attorney general or the ethics committee in the legislature to look into this and really come up with the facts," he added.
According to state campaign finance data, Flynn donated more than $160,000 to Newsom’s campaigns.
Meanwhile, the governor’s office is denying any claims that Flynn influenced the Governor or the new law. A spokesperson for Governor Newsom says Panera Bread is not exempt from the law.
“A statement from the governor’s press team is not proof that it didn’t happen. Californians need to understand what their governor is up to. And now that he's on the national stage, the rest of America needs to see what he's up to. If he leaves the governor's house and goes to the White House. What kind of corruption is he going to bring there?," questioned Jones.
The state's new minimum wage law is set to start on April 1.
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