A California fast-food law exemption, which appears designed to benefit Panera Bread franchises, has been linked to political lobbying and campaign contributions by franchise owner Greg Flynn. The exemption, based on a technicality concerning bread production, is raising concerns over pay-for-play practices and regulatory capture in the legislative process.

A political ally of Gov. Gavin Newsom, associated with the Panera Bread chain, appeared to benefit from a legislative exemption in a new state law that would otherwise raise fast food workers’ wages to $20 per hour. This event raises concerns over the influence of political connections in shaping labor-related legislation.

A campaign donor of Governor Gavin Newsom, Greg Flynn, announced that the Panera Bread restaurants he owns in California will pay hourly workers at least $20 per hour, ahead of the new state minimum wage law for fast-food workers. The decision comes amid controversy over exemptions related to bread-making operations and reflects efforts to secure competitive worker compensation.

Workers at the Holcomb Bridge Panera Bread location in Atlanta delivered a demand letter on January 10, calling for improved wages, safer working conditions, fair scheduling, and benefits. The protest, which followed months of neglect including a faulty air conditioning system and inconsistent scheduling, was accompanied by mandatory meetings with lawyers aimed at dissuading unionization efforts.

Panera Bread faced multiple lawsuits and public scrutiny after a highly caffeinated Charged Lemonade, linked to a fatality in September 2022, raised serious concerns about its product safety. In response to legal pressures, the company moved the beverage behind the counter, updated its nutrition information with prominent caffeine warnings, and eventually discontinued the product as part of a menu transformation.

Panera Bread is facing a class action lawsuit alleging that it manipulated workers’ timesheets to avoid paying overtime wages, affecting baristas, cashiers, and bakers. The suit, filed in federal court in Buffalo, claims violations of the Fair Labor Standards Act and New York law.

An OpenSecrets profile reveals that Panera Bread did not spend any money on lobbying in 2015, indicating a non-engagement in corporate political behavior that can often support authoritarian practices.

A federal judge preliminarily approved a class action lawsuit settlement addressing allegations that Panera Bread franchisee Covelli Enterprises discriminated against Black employees by denying promotions and relegating them to lesser roles. The settlement marks a response to longstanding labor discrimination claims against the company.