In a major win for California employers, the U.S. District Court for the Eastern District of California has granted a preliminary injunction halting enforcement of California’s Senate Bill 399 (SB 399). As previously reported here, Western Growers, the California Chamber of Commerce, and coalition partners challenged the law, which sought to prohibit employers from requiring employees to attend meetings where political or religious matters are discussed, including the decision of whether to join or support a labor union. 

The Court sided with the plaintiffs on two critical grounds: 

• NLRA Preemption: The Court held that SB 399 is preempted by the National Labor Relations Act (NLRA) to the extent it restricts employer communications about unionization. While the National Labor Relations Board (NLRB) may regulate such activity, states cannot intrude into this federally protected area of labor relations 

• First Amendment Violation: The Court found that SB 399 regulates speech based on its content and viewpoint. Because it singles out employer communications on political and religious issues – especially union-related speech – it cannot withstand strict scrutiny. The Court concluded that SB 399 chills noncoercive speech and improperly puts “a thumb on the scale” in favor of unionization 

Why It Matters 

Had it taken effect, SB 399 (Labor Code § 1137) would have given employees the right to refuse to attend or listen to meetings where employers communicate with employees about unionization and other workplace matters, while still being paid for that time. Employers feared the law would silence their ability to speak directly to their employees about such matters. 

The Court recognized this concern, holding that SB 399 directly interfered with the balanced framework Congress created in the NLRA, and that it impermissibly restricted free expression in the workplace. 

Western Growers filed the lawsuit alongside the California Chamber of Commerce and other business associations, emphasizing that SB 399 distorted workplace conversations and unfairly burdened family farmers and other employers. 

“This decision affirms what we have said from the beginning: SB 399 tramples on federal labor law and the First Amendment,” said Dave Puglia, President and CEO of Western Growers.  “By enjoining this unconstitutional law, the court has preserved the right of agricultural and all California employers to communicate openly with their employees without the State tipping the scales in union organizing campaigns. We are proud to stand with our coalition partners in defending these fundamental rights.”  

What’s Next 

The preliminary injunction blocks enforcement of SB 399 while the case proceeds. The state may appeal, but for now, employers can continue to communicate freely with employees under the protections of federal law.