(Bloomberg) -- Panera Bread locations in California owned by billionaire Greg Flynn will raise base pay to $20 hour when the state’s fast-food wage law comes into effect next month, regardless of whether the chain needs to comply with the new requirement.

Backed by Governor Gavin Newsom, the measure will lift minimum pay for more than hundreds of thousands of workers in fast food to $20 an hour from $16. 

Last week, Bloomberg News reported that Flynn urged the governor’s top aides to reconsider whether fast-casual chains such as Panera should be classified as fast food. While that measure wasn’t adopted, the key labor union that sponsored the bill agreed to a narrower exemption for chains that bake bread to secure Newsom’s support, Bloomberg reported, citing a person with knowledge of the negotiations.

Newsom’s office called the story “absurd” and that after it was published, it conducted a legal review of the law. Based on that review, they said it appeared that Panera wouldn’t benefit from the bread exemption, revising an earlier stance. 

“The exemption was never about Panera. It was always about defining fast food from fast casual,” said Erin Mellon, Newsom’s communications director.

Flynn’s company aims “to attract and retain the best team members to deliver the restaurant experience our guests know and love,” Flynn said Tuesday in a statement. 

“Regardless of whether the bakery exemption in AB 1228 applies to our bakery-cafes, California locations owned and operated by Flynn Group will increase all hourly pre-tip wages to $20 per hour or higher effective April 1,” Flynn said, using the bill’s number. 

Flynn, a long-time Newsom campaign donor and one of the world’s largest restaurant-franchise operators, said last Thursday that he suggested excluding fast-casual restaurants from the bill, but was surprised when chains that make and sell bread were exempted from the final legislation. 

“To be clear, at no time did I ask for an exemption or special considerations,” Flynn said. 

​Flynn also said he never met with the governor over the bill, though he “did meet with his staff in a group meeting with other restaurant owners.” 

--With assistance from Eliyahu Kamisher and Josh Eidelson.

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