Link: Why Is Panera Exempted From California's New Minimum Wage Law?

Bodhisattva

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This is so shocking.

When fast food restaurants across California have to start paying workers $20 per hour on April 1, one major chain will be exempted from the mandate—and it just so happens to have a connection to a longtime friend and donor to Gov. Gavin Newsom.
...


The deeper lesson is that giving the government more power to set wages (or regulate other aspects of the economy) creates the conditions for exactly this sort of thing to happen. It could be that a wealthy special interest used his connections to the governor to secure special treatment, or that a governor tried to help out his friend. Either way, it couldn't have happened without the government injecting itself into the relationship between workers and employers.

And the more the government does that, the more opportunities there will be for officials to reward their friends and punish their enemies. That's not fair, nor should it be desirable. Panera—or any business—shouldn't survive or fail in California because of its connections in the halls of power.
Reason

More regulations for thee, but not for me. Reminds me of the incident about 15 years ago when Nancy Pelosi, ever the champion of the little guy, exempted American Samoa from a federal minimum wage increase. Why? Because StarKist is based in her district, and StarKist has thousands of employees on the island. Government corruption stinks worse than the tuna.
 

Jon

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This is so shocking.



Reason

More regulations for thee, but not for me. Reminds me of the incident about 15 years ago when Nancy Pelosi, ever the champion of the little guy, exempted American Samoa from a federal minimum wage increase. Why? Because StarKist is based in her district, and StarKist has thousands of employees on the island. Government corruption stinks worse than the tuna.
i expect this ends badly for Panera, who will want to work for under minimum when they can go literally anywhere else in the state for more per hour

I agree with you that this is garbage
 

Bodhisattva

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i expect this ends badly for Panera, who will want to work for under minimum when they can go literally anywhere else in the state for more per hour

I agree with you that this is garbage
I don't agree with minimum wage laws, but if you are going to have them (or any other regulation) they need to apply to everyone. Government picking and choosing winners is what corrupt governments do.
 

Bodhisattva

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I understand an exemption for A.S. because I'm sure the cost of living is relatively low but I cant understand a Panara exemption.
That partially makes my point about being opposed to minimum wage laws. One-size-fits-all is silly. NYC, San Francisco, rural Alabama, American Samoa ... not the same at all. These laws distort local markets.
 

Bodhisattva

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92tide

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Doesn't Subway still bake their sub rolls and wouldn't that exempt them too? :unsure:
subway has frozen dough shipped to the stores so i imagine the below applies to them as well

To be exempt from the minimum wage law under the bakery exemption, restaurants must produce bread on-site. Newsom’s office said chain bakeries such as Panera mix dough at an off-site location and ship it to the restaurant to be baked.
 

Bodhisattva

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Doesn't Subway still bake their sub rolls and wouldn't that exempt them too? :unsure:
"[The new legislation] does not apply to restaurants that have on-site bakeries and sell bread as a stand-alone menu item"

I think Subway and Jimmy Johns and the other chains bake their own bread, but do they sell bread as a stand alone?
 

Its On A Slab

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That partially makes my point about being opposed to minimum wage laws. One-size-fits-all is silly. NYC, San Francisco, rural Alabama, American Samoa ... not the same at all. These laws distort local markets.
When I worked for Merck (Big Pharma), they paid really, really well. And to top it off, we were paid in the same salary range as our counterparts in NJ, where the C.O.L. was way higher.

The NJ folks hated us. :D
 

CrimsonJazz

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Interesting. Somebody at Bloomberg got bad information. Or Newsome reconsidered. I wonder why bakeries still get the exemption?
I'm thinking this flew back into his face with unexpected explosiveness and had to make a few "last second" changes to the legislation to keep his butt out of hot water. Someone smarter would have seen this coming a mile away. JMO.
 

Bodhisattva

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When I worked for Merck (Big Pharma), they paid really, really well. And to top it off, we were paid in the same salary range as our counterparts in NJ, where the C.O.L. was way higher.

The NJ folks hated us. :D
I had somewhat the opposite experience. When I first started working for the government, I was sent to Fort Monmouth in NJ for six weeks of training. Six weeks turned into four months because government is slow. I lived in Virginia and paid Virginia income taxes. But, if you work in NJ, you pay NJ income taxes. So, for four months, I got taxed twice. :mad:
 

AWRTR

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When I worked for Merck (Big Pharma), they paid really, really well. And to top it off, we were paid in the same salary range as our counterparts in NJ, where the C.O.L. was way higher.

The NJ folks hated us. :D
Why would anyone want to live in NJ. If you live there you just gotta take your lumps.
 
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AWRTR

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I'm thinking this flew back into his face with unexpected explosiveness and had to make a few "last second" changes to the legislation to keep his butt out of hot water. Someone smarter would have seen this coming a mile away. JMO.
Newsome got slapped in the face and had to back up.
 
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Its On A Slab

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I had somewhat the opposite experience. When I first started working for the government, I was sent to Fort Monmouth in NJ for six weeks of training. Six weeks turned into four months because government is slow. I lived in Virginia and paid Virginia income taxes. But, if you work in NJ, you pay NJ income taxes. So, for four months, I got taxed twice. :mad:
I have done the multi-state thing before, but it seems like I got credit for taxes paid out-of-state. That sucks if they tax you twice.
 

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