Gov. Newsom is facing scrutiny over the state's new minimum wage law following a report that appears to have uncovered one of his longtime donors benefited from an exemption.California Gov. Gavin Newsom's administration has denied a news report that he pushed for an exception to the state's new fast-food minimum wage law that benefits a wealthy campaign donor.
But he denied asking for "an exemption or special considerations" and said he was surprised when the exemption appeared in the final bill. He said he met with Newsom's staff about the bill alongside other restaurant owners but did not speak to the governor about it. Since last year, Panera Bread has been reported as a restaurant exempt from the law and Newsom's office has not said otherwise, even when the governor was directly asked why the chain was exempt.
Assemblymember James Gallagher, the Republican leader in the assembly, said Attorney General Rob Bonta or another entity responsible for investigating conflicts of interest should look into the matter.The law was authored by Assemblymember Chris Holden, a Democrat from Pasadena. Holden told reporters Thursday he was not involved in the negotiations over the bill's final amendments, which included the $20 minimum wage increase and the exemption for bakeries.
The law represented a compromise between labor unions and business groups. Tia Orr, executive director of the Service Employees International Union California, said the law was "a transformational step toward an economy that works for all, not just billionaires."