Panera Bread locations in California, owned by billionaire Greg Flynn, will increase their base pay to $20 an hour when the state’s fast-food wage law takes effect next month. This move is happening regardless of whether Panera needs to comply with the new requirement.
The measure, supported by Governor Gavin Newsom, will raise the minimum pay for fast-food workers to $20 an hour from $16, benefiting hundreds of thousands of workers in the state.
Flynn had urged the governor’s top aides to reconsider whether fast-casual chains like Panera should be classified as fast food. While this request wasn’t adopted, a narrower exemption was agreed upon for chains that bake bread, securing Newsom’s support.
Newsom’s office disputed reports about the exemption, calling them “absurd.” After conducting a legal review, they concluded that Panera wouldn’t benefit from the bread exemption, revising their earlier stance.
Regardless, Flynn’s company announced its decision to increase hourly wages to $20 per hour or higher for California locations owned and operated by Flynn Group, effective April 1. Flynn emphasized the importance of attracting and retaining top team members.
Flynn clarified that he never asked for an exemption or special considerations and did not meet with the governor over the bill, only meeting with his staff in a group meeting alongside other restaurant owners.