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  • Trump is proposing to make ideas tax-free. What would that indicate for employees?

    Trump is proposing to make ideas tax-free. What would that indicate for employees?

    WASHINGTON (AP) — Previous President Donald Trump’s brand-new proposition to leave out ideas from federal taxes is getting strong evaluations from some Republican legislators, though significant concerns stay about the effect of the policy and how it would work.

    What’s particular is that a modification in the tax of ideas would impact millions. The U.S. Bureau of Labor Data approximates there are 2.24 million waiters and waitresses throughout the nation, with ideas comprising a big portion of their earnings.

    A take a look at what Trump’s proposing and the possible political and financial implications:

    TRUMP’S ELECTION-YEAR PITCH IN NEVADA

    Trump revealed his tax-free-tips prepare at a June 9 rally in Nevada, an essential battlefield state with 6 electoral votes in the race for the White Home. President Joe Biden won the state in 2020, however the Trump project wishes to put the state in play this fall.

    Nevada has the greatest concentration of tipped employees in the nation, with about 25.8 waiters and waitresses per 1,000 tasks, followed by Hawaii and Florida.

    “To those hotel employees and individuals who get ideas, you are going to be extremely delighted, due to the fact that when I get to workplace we are going to not charge taxes on ideas, individuals making ideas,” Trump stated at the rally. “… We’re going to do that right now, very first thing in workplace.”

    The pitch establishes a sharp political contrast in between Democrats and Republicans. While Trump presumes that a tax cut would assist employees, Democrats have actually typically backed efforts to increase per hour salaries — and it’s an open concern which approach resonates more with citizens.

    The Culinary Union, which represents 60,000 employees in Las Vegas and Reno and is backing Biden, dismissed Trump’s strategy as a stunt.

    “Relief is certainly required for idea earners, however Nevada employees are wise sufficient to understand the distinction in between genuine services and wild project guarantees from a founded guilty felon.” Culinary Union Secretary-Treasurer Ted Pappageorge stated in a declaration.

    Lael Brainard, director of the White Home National Economic Council, decreased to talk to the concept drifted by Trump due to the fact that, as a federal worker, she’s not expected to talk project politics.

    “What I can state is that President Biden has actually defended genuine services that really resolve employees’ genuine requirement for reasonable salaries, we believe, a lot more efficiently,” she stated, including that tipped employees in Nevada would get a $6,000 earnings increase from a greater base pay and the removal of the tipped base pay.

    HOW WOULD THE TAX EXEMPTION WORK?

    Trump has actually not defined whether he wishes to exempt ideas from simply earnings taxes or from the payroll tax too. The payroll tax funds Medicare and Social Security.

    For employees, a blanket exemption would indicate more take-home income. And for the federal government, it might indicate bigger deficit spending.

    The Committee for an Accountable Federal Spending plan, a nonpartisan financial guard dog group, has actually approximated that excusing ideas from both earnings and payroll taxes would decrease federal profits by $150 billion to $250 billion over the next years.

    The committee stated excusing ideas from tax would likewise lead companies and employees to reclassify salaries as ideas where possible. The more that takes place, the more that federal deficits would boost. A 10% increase in ideas, for instance, would bump up the committee’s forecast for lost federal income to a variety of $165 billion to $275 billion over the next years.

    Congress certainly would take a look at Trump’s proposition on ideas as it thinks about which parts of the 2017 Tax Cuts and Jobs Act are permitted to end after next year, consisting of the lower specific tax rates. Legislators are currently prepping for the job, though Trump’s proposition is something that lots of had actually not thought of till just recently.

    Rep. Vern Buchanan, R-Fla., a senior Home Ways and Way Committee member, stated legislators will need to think about the general expense of the ideas proposition and how to spend for it.

    “I wish to be delicate due to the fact that they strive, you can’t discover sufficient waiters, and undoubtedly a huge part of their profits is ideas,” Buchanan stated. “All these programs sound excellent. Everyone wants to pay less taxes, however we’ve got to foot the bill.”

    “I understand he’s attempting to ensure individuals at that earnings level have relief as much as possible. We may be able to do the exact same thing in making his tax cuts more irreversible and most likely to resolve lower-income individuals,” stated Rep. Kevin Hern, R-Okla., who likewise serves on the Ways and Way Committee, which has jurisdiction over tax policy.

    TRADE-OFFS OF NOT TAXING SUGGESTIONS

    Like lots of tax propositions, Trump’s push to exempt ideas might have unexpected repercussions.

    Howard Gleckman, a senior fellow at the Tax Policy Center, a joint endeavor of the Urban Institute and Brookings Organization, argues that Trump’s proposition might really backfire for lots of tipped employees.

    For instance, some clients might react to tax-free ideas by lowering their gratuity. Second of all, it might take the steam out of efforts in some states to slowly increase the base pay for tipped employees so that their base pay remains in line with the base pay for other employees.

    “The lure of tax-free earnings might turn lots of employees versus the shift from ideas to salaries,” Gleckman composed in a post.

    Gleckman likewise questioned why a service employee must prevent paying taxes on ideas rather than a storage facility employee making the exact same quantity. He kept in mind that while Trump assured to reverse the tax on ideas right now, just Congress can reverse federal taxes, and “for factors of performance, fairness, and sound tax administration, let’s hope it doesn’t.”

    LOOKING AHEAD

    Democrats have actually mostly dismissed Trump’s proposition as a trick to win over citizens.

    Sen. Debbie Stabenow, a senior member of the Senate Financing Committee, noted she was a waitress in college, calling it “truly effort.” She chooses increasing the base pay for tipped employees to match the base pay for other employees.

    “From my viewpoint, I don’t believe (Trump’s) proposition is severe and I don’t believe it does enough to resolve low-wage working individuals,” Stabenow stated.

    Sen. Ron Wyden, the chairman of the Senate Financing Committee, stated Trump was “tossing out great deals of concepts as he goes,” however his record as president shows a focus on tax breaks for the rich and corporations.

    “All these things he throws away every day, I’ll think it when I see it,” Wyden stated.

    However Trump’s interest for the concept appears to be growing. The tax guarantee has actually given that ended up being a staple of Trump’s rallies and conferences, and he raised his proposition while meeting GOP legislators and magnate in Washington recently.

    “I believe it’s really a really wise concept. The guys and females who count on ideas for their profits, they are working their tails off,” stated Sen. Ron Johnson, R-Wis. “That’s great, targeted tax reform right there.”

    Some legislators and allies have actually started tweeting pictures of their dining establishment costs with handwritten messages created to get the word out about Trump’s guarantee. Rep. Derrick Van Orden, R-Wis., composed “Vote Trump!” and “No Tax on ideas!” on his costs from a Milwaukee dining establishment.

    The artist Kid Rock, a popular Trump fan, shared a picture on X.

    “An elect Trump is a choose no tax on ideas!!” he composed on his invoice. He tipped $400 on a $1,143 costs at a costly steakhouse, according to the picture.

    ___

    Associated Press author Jonathan J. Cooper in Phoenix added to this report.

  • ‘My month-to-month pay will not purchase a bag of rice’

    ‘My month-to-month pay will not purchase a bag of rice’

    As an indefinite basic strike starts in Nigeria, one employee informs the BBC that it’s difficult to endure on what the federal government is proposing as a base pay as it is insufficient to purchase a bag of rice.

    Security personnel Mallam Magaji Garba states he requires 50kg of rice, which costs 75,000 naira ($56; £44), to feed his household every month, before taking other costs into account.

    The base pay is presently 30,000 naira, which the federal government is using to double.

    Nigeria’s unions under the umbrella of the Nigeria Labour Congress and the Trade Union Congress are requiring it be raised to 494,000 naira, which they state shows the existing financial truths.

    Nigerian info minister states accepting the union needs would maim the economy and result in task losses due to the fact that service would not have the ability to pay their employees therefore need to close.

    The walkout has actually triggered disturbance at the nation’s busiest airport, Murtala Muhammed International in Lagos, with travelers stating they have actually been left stranded outside the domestic terminal.

    Employees in health, banking, air travel and other significant sectors are anticipated to keep away from work, a relocation that will maim the West African nation’s economy.

    Mr Magaji, who works for the education ministry in the northern city of Kano, states he and his household of 14 are having a hard time to endure.

    “I am getting in touch with the federal government to consider us and increase the base pay so that we can live and consume decently.

    “It’s unfair that we have leading federal government authorities making millions month-to-month and the tiniest employees make so little and discovering it tough to feed.”

    The 59-year-old stated he in some cases needs to stroll to work as he cannot pay for to spend for transportation.

    Nigerians have actually been struck by a double whammy of the elimination of a fuel aid and a collapse in the worth of the naira because President Bola Tinubu took workplace a year back.

    Mr Tinubu states the steps are needed to reform the economy so it works much better in the long term however in the short-term, inflation has actually increased to almost 34%.

    The federal government has actually ended the policy of pegging the worth of the naira to the United States dollar, enabling it to considerably diminish. Whereas 10,000 naira would have purchased $22 last May, it will now just acquire $6.80.

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  • Another prominent Lexington restaurant chain faces wage, tip lawsuit

    Another prominent Lexington restaurant chain faces wage, tip lawsuit

    Another prominent Kentucky restaurant chain has been sued for potential wage violations.

    An employee filed a class-action lawsuit against Drake’s, which is owned by Bluegrass Hospitality Group, headquartered in Lexington. The lawsuit alleges widespread violations involving the failure to uphold federal minimum wage standards across all 23 of its restaurant and bar locations.

    BHG owns and operates Drake’s locations in Kentucky, Tennessee, Missouri, Indiana, Alabama, North Carolina and Illinois.

    Amber Cook, the marketing director for BGH, did not immediately respond to a request for comment.

    The lawsuit was filed Wednesday by Lauren Boyer, a worker at the Cookeville, Tenn., restaurant on behalf of herself and other bartenders and servers.

    She claims in the suit BHG did not provide servers and bartenders with the legally required notice regarding the use of a tip credit toward their wages.

    The complaint explains Drake’s compensated its employees below the federal minimum wage while requiring them to perform non-tipped duties for more than 20% of their workweek. Some of these duties include sweeping, mopping, rolling silverware and other side work where employees are not being tipped.

    Federal law prohibits employers from taking a tip credit when an employee performs tip supporting work and non-tip generating duties for more than 20% of their work week. According to the suit, bartenders and servers are required to work for nearly an hour to set up and close the restaurants, clean and prepare tables and organize their sections.

    Boyer represents herself and two collectives which allege federal minimum wage violations. The Nationwide Substantial Side Work Collective and Nationwide 80/20 Collective are other plaintiffs listed in the suit.

    The lawsuit seeks compensation for unpaid wages and damages.

    Other federal wage, tip lawsuits against Lexington restaurants

    Drake’s is the third Lexington restaurant to face lawsuits over payment practices involving tipped employees.

    A lawsuit was announced against Jeff Ruby’s in February for alleged wage and tip theft. The lawsuit said the defendants took a portion of the tips earned by servers and bartenders and shared the money with back-of-house employees “who did not earn the tips and who did not interact with customers.”

    Tony’s Steak and Seafood restaurant agreed to pay $1.5 million as part of a settlement involving employees in Indiana, Kentucky and Ohio locations.

    The employees alleged the restaurant violated the Fair Labor Standards Act by forcing them and other tipped employees to participate in a tip pool that gave portions of tips to salaried members of management, according to federal court documents and settlement information.

    Three class-action lawsuits were filed against Tony’s in the three states, which were later consolidated into a single federal lawsuit. John Hartley, a former bartender at Tony’s, was the original person to file suit against Tony’s.

    The Tony’s settlement resolved claims for 79 servers in Kentucky, 42 servers in Ohio and 52 servers in Indiana, according to David Garrison, lead attorney in the two cases. In total, the award for plaintiffs in Kentucky was $546,237.65 — more than Indiana and Ohio’s settlement amounts combined. The average recovery for a class member who participates in the server settlement is $5,250. The largest settlement recovery is more than $35,000, according to court documents.

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  • Minneapolis Is About To Kill Ride-Sharing

    Minneapolis Is About To Kill Ride-Sharing

    Just last month, Seattle’s disastrous attempt to enact a minimum wage for app-based food delivery drivers was in the news. The result was $26 coffees, city residents deleting their delivery apps, and drivers themselves seeing their earnings drop by half. Now, the Minneapolis City Council has decided to join the fray in the multifront progressive war against the gig economy—and this time, the outcome could be even worse.

    In March, the Minneapolis City Council enacted an ordinance that creates a minimum wage rate for ride-share drivers in the city. It does so via a per-minute and per-mile calculation, which is currently set at $1.40 per mile and $0.51 per minute. It also sets a floor of $5 if the trip is short and otherwise would cost below that level.

    The council claims it enacted the ordinance to ensure that ride-share drivers in the city were paid at an amount analogous to the city’s $15.57 per hour minimum wage. Even putting aside the traditional economic arguments against the minimum wage—see California’s recent fast-food minimum wage law as Exhibit A—the council’s logic fails on its own terms. The day after the city council initially passed the ordinance, the state Department of Labor and Industry released a report showing that a lower $0.89 per mile and $0.49 per minute rate would be sufficient to make driver pay equivalent to the $15.57 minimum wage.

    As a result, the ordinance was immediately vetoed by Minneapolis’ liberal mayor—the second time in two years the mayor has vetoed such a measure from the council—only for the council to then override the veto a week later. While the council did not have access to the state’s report for the first vote, it had over a week to review it before the veto-override vote. Incredibly, one city council member even suggested that the state’s report somehow convinced her to change her vote from “no” to “yes” on the minimum wage between the initial vote and the override vote.

    In response to the council’s override, ride-sharing companies like Uber and Lyft have announced they are planning to pull out of the Minneapolis market entirely unless the council reverses course. The ride-share companies originally were set to leave the city on May 1 when the ordinance went into effect, but after a last-minute agreement by the council to delay the ordinance’s effective date to July 1, the ride-share companies are in wait-and-see mode.  

    If the council refuses to back down by July, it will cause even deeper ramifications for city residents than the higher food prices that Seattleites saw in the wake of their aforementioned minimum wage hike for delivery drivers. The ride-share companies have indicated that while they would support the minimum compensation levels proposed in the state’s study, the city’s higher rates are cost-prohibitive.

    Panic has set in among many lawmakers at the state capital, with some calling for the Legislature to preempt the Minneapolis ordinance. Democratic Gov. Tim Walz, who previously vetoed a statewide version of a minimum wage bill for ride-share drivers, has stated that he is “deeply concerned” about the prospect of losing ride-sharing services in the Twin Cities. 

    The concern is well-founded since a ride-share pullout would disproportionately impact the city’s senior citizens and disabled residents who often rely on these services to survive. Accordingly, advocates from the Minnesota chapter of the National Federation of the Blind, the Minneapolis Advisory Committee on Aging, and the Minneapolis Advisory Committee on People with Disabilities have all expressed opposition to the ordinance. 

    The possibility of losing ride-sharing has also created concern about the potential impact on the city’s drunk driving rates. Evidence has linked the availability of ride-sharing to lower incidents of alcohol-impaired driving and alcohol-related car accidents, underscoring just how high the stakes may be.  

    Moreover, if the city council’s move goes unchecked, deleterious minimum wage hikes will inevitably spread to other parts of the Twin Cities’ gig economy. The Minneapolis ordinance is limited to ride-share drivers for now, but if the past is prologue, food delivery drivers are next. 

    Seattle first passed a minimum wage rule for ride-share drivers in 2020, only to follow that up with this year’s food delivery minimum rate. New York City likewise followed a similar two-step trajectory of locking in minimum rates for ride-share drivers before moving on to food delivery drivers years later. Given that many ride-share drivers double as food delivery drivers—often on the same app—the progressive pressure to expand the minimum wage to delivery may be substantial. 

    Also of note, the Minnesota Legislature is considering a bill that would make it more difficult to be classified as an independent contractor in the state, creating yet more foreboding storm clouds on the horizon for gig work.

    Despite the fresh lessons from the Seattle food delivery debacle, Minneapolis council members appear oblivious to the on-the-ground reality. Ironically, it was none other than Karl Marx who famously declared that history repeats itself “first as tragedy, second as farce.” The city council—which contains several openly socialist members—should pay more heed to its intellectual forefather.

    The post Minneapolis Is About To Kill Ride-Sharing appeared first on Reason.com.

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  • Is Indiana’s minimum wage fight over?

    Is Indiana’s minimum wage fight over?

    The eclipse is over and I’m glad that, if nothing else, it gave us a chance to talk about Bonnie Tyler again.

    Tyler’s 1983 song, “Total Eclipse of the Heart,” is an absolute banger. Beyond that, she got away with making it a seven-minute track at a time when radio dictated the terms of new music with tight constraints.

    The album it appeared on? You’ve got to go back and look at the cover for “Faster than the Speed of Night.” The hair. The laser beam going through her head. This is the most 1980s thing you will ever see.

    Tyler is a legend, and her 40-year-old song was the eclipse anthem we needed.

    Now, onto the mailbag. If you want to submit questions for future mailbags, you can email me or use the Google form at the bottom of the online article page.

    Louis Clark: Why is nobody talking about raising the minimum wage in Indiana?

    Raising Indiana’s $7.25 minimum wage has long been a nonstarter. Republicans control Indiana and they accept business owners’ arguments that any mandated increase would run them out of business by driving up costs.

    Democrats in the past have sought to exploit this issue. But even Democrats aren’t talking about the minimum wage as much as they used to because the weird pandemic-era economy has scrambled the debate.

    To get a sense for how strange the issue has become, consider that, in 2017, the City-County Council set a $13-an-hour wage floor for city and county workers. The state bans municipalities from creating regional minimum wages, so Indianapolis Democrats made a show of raising pay for government workers as a way to put pressure on the private sector to at least meet them at $13 an hour.

    Seven years later, the $13 minimum wage that city officials were proud of amounts to about $10.29 in 2017 buying power.

    Meanwhile, McDonald’s restaurants across the city have neon signs advertising that same $13-an-hour starting pay. Anyone who lives in, or can drive to, Carmel can get at least $15 to work for McDonald’s. Even at those wages, McDonald’s can’t fill jobs and is increasingly turning to kiosks to take orders.

    A Michigan McDonald's advertises wages at $13 an hour.
    A Michigan McDonald’s advertises wages at $13 an hour.

    To get another sense for how our idea of wages has changed, look back to the last Indiana gubernatorial election in 2020. Democratic lieutenant governor candidate Linda Lawson called for a $15 minimum wage. Four years later, Democrats would have to propose an $18 minimum to get the same bang — and create a wage that isn’t already readily available at McDonald’s.

    The economy is about as close as it gets to full employment. Wage gains have outpaced price increases, especially for people on the lower end of the pay spectrum. Employers have no choice but to keep giving people raises, so the minimum wage fight has lost salience for the moment.

    That doesn’t mean it’s dead. Minimum wage increases are popular and Indiana Democrats probably would do well to make an issue of it again. But it’s not as easy to talk about as it was a few years ago.

    Attabey Rodríguez Benítez: There’s a building right at end of 16th and Delaware that advertises Harrison Center’s upcoming artist for First Friday alongside a gaping hole in its corner (made at least on a twice-a-year basis). My hypothesis is that the wicked, misaligned street lanes are at fault, fast-tracking some drivers to the building instead of Delaware. Now, to my question: What’s the logic behind the misaligned lanes and why the city hasn’t done anything for this intersection given that a pedestrian crossing is right in at the crosshairs?

    I’ve gotten multiple questions about this building, with another person estimating it gets hit by cars monthly. These are slight exaggerations.

    Cars have struck the building at 16th and Delaware streets at least five times since 2017, per the city’s Department of Public Works.

    The city is planning to convert Delaware from a one-way street to a two-way street as part of a slew of conversions funded by federal grants over the next decade. Delaware will become two-way between Interstate 65 and Fall Creek Parkway South Drive.

    The city expects the Delaware conversion to solve the problem of cars crashing into the same building over and over again because it will slow speeds and put north-bound traffic in the right lane, where cars presumably won’t be hurtling toward the building like missiles (though, I’d say, never underestimate reckless drivers).

    The project doesn’t have a set timeline yet.

    Completely theoretical: If Indiana had a parliamentary system and voters could pick a party instead of individual candidates, what would the split be? Assuming Libertarians and Greens would field a candidate, any other parties and a vote guess?

    I love this question, but I have to be honest: I’m not smart enough to answer it.

    I threw the question to someone who has spent a lot of time analyzing Indiana election data. “I don’t think it’s really answerable without doing a dissertation-level amount of research,” he said. “One issue is that Indiana doesn’t have party registration. And, the overwhelming majority of people don’t believe any third party can actually win, so vote totals are hard to decipher.”

    Nonetheless, the person, who asked not to be named, took a shot at it.

    “Relative to other states,” he said, “Indiana is very Libertarian and very Not-Green. If you look at the presidential vote share in the last six elections, Indiana ranks 5th on average in Libertarian vote share.

    “Pair that with Donald Rainwater getting over 10% in the last gubernatorial election and I would say that, if I was a Libertarian organizer or analyst and this system was instituted, Indiana would be one of the first states I would invest in.”

    Thank you for reading! If you want to send questions for future mailbags, fill out the Google form on the online article page or email james.briggs@indystar.com.

    This article originally appeared on Indianapolis Star: COVID scrambled Indiana’s $15 minimum wage debate

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  • California fast food minimum wage just jumped to $20 an hour. Who actually gets it?

    California fast food minimum wage just jumped to $20 an hour. Who actually gets it?

    Whether someone prepares burgers, blends smoothies or tosses pizza dough, what determines which California fast food workers will be paid $20 an hour?

    Assembly Bill 1228 is in effect as of Monday, setting wages for California fast food workers $4 above than statewide minimum. It also creates a Fast Food Council to determine future minimum wage increases and to establish other employment standards at fast food restaurants, according to the Department of Industrial Relations.

    We answer these questions about the new California fast food wage law:

    • Which fast food workers will benefit from the pay increase?

    • What happened with Panera and the bread-making exemption?

    • Which fast-food restaurants are exempt from the new law?

    Which fast food workers will benefit from the pay increase?

    Employees of a “national fast food chain” — with more than 60 establishments across the country offering “limited-service” — will receive the wage increase.

    These establishments are characterized as those who use “standardized options for decor, marketing, packaging, products, and services,” the bill states. It covers “fast food restaurant employees,” regardless of whether they are employed by the national brand or a franchisee.

    They typically serve food and drinks for immediate consumption either on-site or to-go, with limited or no table service. This includes McDonald’s and Pizza Hut, which announced it anticipates laying off over 1,000 delivery drivers as a result of the new wages.

    In an email statement, Joseph Bryant, executive vice president for the Service Employees International Union, said livable wages “should be a priority for corporate fast-food companies.”

    Those who opposed the new minimum wage law have voiced concerns that Californians would have to pay more for these services.

    In a financial analysis conducted by the Roosevelt Institute — a nonprofit organization focused on corporate and public power, labor, wages, and the economics of race and gender inequality — concluded that the fast food industry’s “profit margins provide sufficient room to absorb higher wage costs.”

    Bryant used the term “scare tactics” when addressing the threats of price increases and job cuts.

    “Corporations need to pay their fair share and provide their operators with the resources they need to pay their workers a living wage without cutting jobs or passing the cost to consumers,” Bryant said.

    The Los Angeles Times reported last week that Starbucks, McDonald’s, Chipotle and other chains planned to raise prices due to the wage increase.

    Panera in the Crossroads shopping center in Riverbank, Calif. pictured Sept. 3, 2019.

    Panera in the Crossroads shopping center in Riverbank, Calif. pictured Sept. 3, 2019.

    What to know about Panera and the bread-making exemption

    A fast food restaurant that “operates a bakery that produces for sale on the establishment’s premises bread,” as of Sept. 15, 2023, will be exempt from the new wage law, according to the bill.

    “This exemption applies only where the establishment produces for sale bread as a stand-alone menu item, and does not apply if the bread is available for sale solely as part of another menu item,” the bill states. In other words, it does not include eateries that sell bread as part of a burger, for example.

    “Producing bread includes making the dough (typically, flour, water, and yeast) and baking it,” an 18-item FAQ from the department stated. “Baking pre-made dough, i.e., dough that was mixed or prepared at another location, does not constitute “producing” bread at the establishment where the bread is sold.”

    In other words, franchises that make their own bread will not be required to pay their employees the new minimum wage starting April 1.

    Though Bloomberg News, which first reported on the topic, suggested this specific exemption could apply to restaurants such as Panera, Paris Baguette and Great Harvest Bread Co., it remains unclear whether those companies, or any others with more than 60 establishments, produce bread entirely on-site.

    After Bloomberg reported that Panera franchise owner Greg Flynn, a generous donor to Gov. Gavin Newsom, lobbied for the exemption, many Republicans called the exemption a “pay to play” move by labor and the governor. and as it appeared suggested that Panera Bread would be one of the major national chains to benefit.

    However, Newsom’s team has since said Panera is not exempt. Flynn has also said that his 24 California Panera franchises will pay the new $20 minimum wage to employees.

    A customer enters the Pizza Hut at 1100 Fulton Ave. in Arden Arcade on Wednesday, Dec. 27, 2023. The owner of the Sacramento County franchise is laying off delivery drivers to avoid paying the $20 an hour rate required by a new state law for fast-food workers.A customer enters the Pizza Hut at 1100 Fulton Ave. in Arden Arcade on Wednesday, Dec. 27, 2023. The owner of the Sacramento County franchise is laying off delivery drivers to avoid paying the $20 an hour rate required by a new state law for fast-food workers.

    A customer enters the Pizza Hut at 1100 Fulton Ave. in Arden Arcade on Wednesday, Dec. 27, 2023. The owner of the Sacramento County franchise is laying off delivery drivers to avoid paying the $20 an hour rate required by a new state law for fast-food workers.

    Other exemptions to new fast food wage law

    Last Monday, Newsom signed Assembly Bill 610 into law, which will exempt fast food restaurants located within “airports, hotels, event centers, theme parks, museums, and certain other locations, as prescribed” from the new fast food wage law.

    Fast food restaurants located within a “grocery establishment” are also exempt from the new law, according to the Department of Industrial Relations.

    A “grocery establishment” in California is characterized as a retail store that is over 15,000 square feet, primarily sells food for off-site consumption and sells other “household supplies or other products … secondary to the primary purpose of food sales.”

    The establishment must earn more than 50% of its gross income from the sale of food for offsite consumption and must employ the individuals working in the restaurant, the department says.

    If a Starbucks is located within a Safeway bigger than 15,000 square feet and employs the individuals working the coffee stand, the employees would not get the new wages.

    What about a fast food restaurant inside of another store that is not a grocery store?

    Employers are not exempt from the new minimum wage law for fast food restaurants located inside stores that earn less than 50% of their gross income from food sales.

    You’d be covered only for the hours you work in the fast food restaurant, not in other tasks like stocking merchandise shelves, according to the Department of Industrial Relations.

    A customer orders food at Chick-fil-A on Tuesday, Feb. 20, 2024, at 2101 Alta Arden Expressway.A customer orders food at Chick-fil-A on Tuesday, Feb. 20, 2024, at 2101 Alta Arden Expressway.

    A customer orders food at Chick-fil-A on Tuesday, Feb. 20, 2024, at 2101 Alta Arden Expressway.

    The Bee’s Andrew Sheeler contributed to this story.

    What do you want to know about life in Sacramento? Ask our service journalism team your top-of-mind questions in the module below or email servicejournalists@sacbee.com.

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