Posted on 02/29/2024 10:38:01 AM PST by SeekAndFind
Talk about fortuitous! In a strange turn of events, one of Gavin Newsom’s biggest donors hits the jackpot, and when the state-mandated $20 minimum wage for certain fast-food workers takes effect in April, this lucky duck employer won’t be subject to complying with the increase, thanks to an “obscure” exemption in the statute.
Here’s the story, from Fox News yesterday:
A major donor to Democratic California Gov. Gavin Newsom is expected to reap the benefit of an obscure exemption to the state’s new $20 minimum wage regulations for the fast food industry that will allow some of his restaurants to continue paying lower wages.
Here’s how the report from Bloomberg framed the issue:
The governor pushed for a carve-out that’s perplexed industry observers and benefited a donor.
Greg Flynn is a billionaire, one of Newsom’s (and other Democrats’) most loyal and longtime benefactors, and according to Bloomberg, “the largest restaurant franchisee in the US, if not the world.” Flynn’s fast-food portfolio includes establishments like Taco Bell, Wendy’s, and Pizza Hut… but his California fast-food portfolio is limited to one brand: Panera Bread.
And, surprise surprise, the new law’s “obscure exemption” seems only applicable to… Panera Bread. As the Fox report states:
Newsom pushed for the exemption, which allows restaurants baking and selling bread as a standalone item to continue paying the current rate of $16 to its employees. That means billionaire Greg Flynn, a longtime donor to the governor, could save hundreds of thousands of dollars a year per each of his two-dozen Panera Bread franchise locations across California….
Interesting. What happened to all of Newsom’s “fair share” talk?
Flynn and Newsome go way back;
(Excerpt) Read more at americanthinker.com ...
The new rule takes effect in April, but fast food places are already going full automation. Carls Jr near my house has a “robotic” drive-thru and both McDonald’s have kiosk-only ordering inside.
Perfect! Newsom’s not only an idiot and is selling out CA voters with his insane policies, he’s also a crook. This action is no different than taking a bribe under the table, only this bribe is for the entire Democrat party. Are you voters in CA paying attention or do you just not give a damn?
When the law was passed a few months ago that was discussed here, but it looks like you had to be selling bread before that date for it to count. Newsome just rented himself our like a $20 whore.
>>“What good is it to get elected if you can’t help your friends?”<<
The politicians’ motto.
Heat up the tar! This guy has ruined the state.
This whole thing is based on the false premise that minimum wage increases translate into higher wages for unskilled workers. They don’t - they just get people laid off.
Let’s say I am employer and I am paying my employees what I think they are worth - $15 / hour. How do I know what they are worth? I learn from experience that at that wage, what they are able to produce can be sold for enough to pay for labor materials and overhead, and I still make enough profit to stay in business.
If I pay them more than they are worth, I don’t make a profit and go out of business.
If I pay them less than they are worth, they quit because they can earn more elsewhere, and I end up with a less productive workforce. That’s the way the market works.
Now let’s say the state says I must pay people who I know are worth $15/ hour $20/hour. Will I just do that and lose money and go out of business? Of course not. I will replace them with fewer people worth $20/hour.
If you are worth $15/hour, a minimum wage of $20 is not going to increase your wages - you will soon be replaced by someone worth $20/hour.
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