Friends with benefits have a whole new meaning when it comes to giving money to politicians to stay on their good side.
According to a report from Bloomberg, Panera Bread will be exempt from Gov. Gavin Newsom’s (D-CA) new $20 minimum wage regulations for the fast food industry after it was reported the company donated to the governor’s political campaigns.
For previously unknown reasons, Newsom pushed for the exemption that allows restaurants baking and selling bread as a standalone item to continue paying lower wages to employees, which is the current rate of $16 an hour.
Longtime donor, high school pal, and billionaire Greg Flynn has been involved in business dealings with the California governor— according to the outlet. Flynn owns more than two dozen Panera Bread locations across the state.
Bloomberg highlighted that Flynn’s opposition to the Fast Food Accountability and Standards Recovery Act (FAST Act) has resulted in him lobbying for Newsom’s administration to exempt Panera Bread from the bill.
Flynn has donated at least $164,800 to Newsom’s campaigns. State records show he gave $8,400 to the governor’s 2018 campaign. In 2022, he also donated a total of $64,800 to Newsom’s candidacy.
The billionaire was also an outspoken voice in opposing Newsom’s 2021 election recall effort. He donated $100,000 to the “Stop the Republican Recall of Governor Newsom” committee.
In response to the exemption, the Democrat governor told reporters that it was “part of the sausage-making” in politics.
During an industry conference last year, the head of the National Restaurant Association Michelle Korsmo said that “everyone’s scratching their head” about the bread exemption.
"You may be celebrating or you may be lamenting the bakery exemption,” Korsmo said according to Bloomberg. “But remember, all of that comes through relationships.”