The Minimum Wage Debate
In California, there was a big disagreement about raising the minimum wage for fast food workers. A new law said the minimum wage must increase from $16 to $20 per hour starting April 1st. However it excluded businesses that make and sell bread as a main menu item. Critics felt this exception unfairly benefited Greg Flynn, a billionaire who owns 24 Panera Bread franchises in the state.
Accusations of Favoritism
People accused Flynn of using his connections to California’s governor, Gavin Newsom, to get this “bread loophole” added just for his restaurants. The two went to the same high school decades ago and Flynn donated money to Newsom’s campaign. However, both Flynn and Newsom denied any foul play. Flynn insisted he simply met with the governor’s team to discuss defining “fast food” restaurants, not to ask for special favors.
Rising Above
Despite the controversy, Flynn announced this week that he will voluntarily raise the minimum wage to $20 per hour at all his Panera locations, regardless of the law’s exception. In a statement, he said his employees are his “most valuable assets” and he wants to attract great workers by paying them fairly. Flynn expressed his decision shows his main priority is taking care of his team.
The governor’s office had also claimed Panera likely wouldn’t qualify for the bread loophole anyway since their baked goods are made at central facilities before being shipped to stores. Regardless, Flynn’s voluntary pay raise decision helps put the heated political debate to rest on a positive note of doing the right thing for workers.
