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    Newsom Faces Questions Over Panera Amid Fast Food Wage Law Exemption

    The California governor last year said a fast-food minimum wage law didn’t apply to Panera Bread because of the “nature of negotiation.” He changed course after a scathing report suggested otherwise.Gov. Gavin Newsom of California has increasingly been a national presence, flying to Washington to meet with President Biden, appearing on Sunday news shows and targeting conservative states with ads for reproductive rights.This week, however, a more local concern abruptly drew his attention to Sacramento: allegations that the Democratic governor favored a campaign donor who owns two dozen Panera Bread franchises by pushing for a carve-out in a new minimum wage law.The controversy, triggered by a report in Bloomberg, has unleashed a flurry of charges and countercharges. The State Legislature’s Republican leaders have written to the California attorney general, demanding an investigation. Editorial boards have weighed in. (“Californians knead answers,” the Los Angeles Times opinion page declared.) A spokesman for the governor’s office dismissed the accusation of favoritism as “absurd.” Political analysts compared the furor to another restaurant-related pickle involving Mr. Newsom.“It’s hard not to think of the French Laundry,” said Dan Schnur, who teaches political communications at the University of Southern California and the University of California, Berkeley, alluding to the 2020 haute cuisine dinner the governor had during pandemic lockdown that helped fuel an unsuccessful but still troublesome recall effort against Mr. Newsom.“It’s déjà vu all over again, although this time Newsom seems to be trying to address it before a small problem turns into a big problem,” Mr. Schnur said. “Still, his office still hasn’t provided a credible explanation for why the bill was drafted the way it was.”At issue is legislation signed by the governor in September that will increase the minimum wage for more than a half-million fast-food workers to $20 per hour starting next month. We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Restaurants and Unions Agree to Raise Pay to $20 an Hour in California

    The deal will avoid a ballot fight over a law passed last year that could have resulted in higher pay and other changes opposed by restaurant companies and franchisees.Labor groups and fast-food companies in California reached an agreement over the weekend that will pave the way for workers in the industry to receive a minimum wage of $20 per hour.The deal, which will result in changes to Assembly Bill 1228, was announced by the Service Employees International Union on Monday, and will mean an increase to the minimum wage for California fast-food workers by April. In exchange, labor groups and their allies in the Legislature will agree to the fast-food industry’s demands to remove a provision from the bill that could have made restaurant companies liable for workplace violations committed by their franchisees.The agreement is contingent on the withdrawal of a referendum proposal by restaurant companies in California that would have challenged the proposed legislation in the 2024 ballot. Businesses, labor groups and others have often used ballot measures in California to block legislation or advance their causes. The proposed legislation would also create a council for overseeing future increases to the minimum wage and enact workplace regulations.“With these important changes, A.B. 1228 clears the path for us to start making much-needed improvements to the policies that affect our workplaces and the lives of more than half a million fast-food workers in our state,” Ingrid Vilorio, a fast-food worker and union member, said in a statement released by the S.E.I.U.Sean Kennedy, executive vice president of public affairs at the National Restaurant Association, said the deal also benefited restaurants. “This agreement protects local restaurant owners from significant threats that would have made it difficult to continue to operate in California,” he said. “It provides a more predictable and stable future for restaurants, workers and consumers.”Last year, the California Legislature passed Assembly Bill 257, which would have created a council with the authority to raise the minimum wage to $22 per hour for restaurant workers. Gov. Gavin Newsom signed it on Labor Day last year.But the bill met fierce opposition from business interests and restaurant companies, and a petition received enough signatures to put a measure on the November 2024 ballot to stop the law from going into effect.Other business groups in California have successfully used that tactic to change or reverse legislation they opposed.In 2020, ride-sharing and delivery companies like Uber and Instacart campaigned for and received an exemption from a key provision of Assembly Bill 5, which was signed by Mr. Newsom and would have made it much harder for the companies to classify drivers as independent contractors rather than employees.Those companies collected enough signatures to get the issue on the ballot as Proposition 22, which passed in November 2020. More than $200 million was spent on that measure, making it the costliest ballot initiative in the state at the time.And in February, oil companies received enough signatures for a measure that aims to block legislation banning new drilling projects near homes and schools. That initiative will be on the 2024 ballot.In response to calls from advocacy groups who have said the referendum process unfairly benefits wealthy special-interest groups, and in an effort to demystify a system that many Californians say is confusing, Mr. Newsom signed legislation on Sept. 8 that aims to simplify the referendum process. More