Effective January 1, 2025, California’s Senate Bill (SB) 399 joined the ranks of similar laws in states like Illinois, Connecticut, and New York, limiting employers’ ability to hold mandatory “captive audience” meetings on religious or political matters, including labor organization discussions. The statute prohibits employers from requiring employees to attend meetings or engage in communications on these topics. Now a federal lawsuit has been filed challenging its constitutionality. 

Federal Lawsuit Challenges SB 399 

On December 31, 2024, business groups, including the California Chamber of Commerce, with the support of Western Growers, filed a lawsuit in the Eastern District of California seeking to block SB 399’s enforcement. The plaintiffs argue that the law violates employers’ rights under the First and Fourteenth Amendments to the U.S. Constitution, specifically targeting their freedom of speech and equal protection. 

The complaint outlines three primary legal challenges: 

1. Viewpoint Discrimination: Plaintiffs assert that SB 399 unfairly restricts employer speech on political and labor matters while allowing unions and other groups to advocate freely. 
2. Preemption by Federal Law: The lawsuit contends that the National Labor Relations Act (NLRA) preempts SB 399. Section 8(c) of the NLRA protects employer speech, provided it does not include threats or coercion. 
3. Overreach in Content-Based Restrictions: Plaintiffs argue that the law unconstitutionally stifles employers’ ability to communicate with their workforce, violating principles of free speech. 

Implications for California Employers 

As the litigation unfolds, the future of SB 399 remains uncertain. If the court sides with the plaintiffs, the law could be enjoined from enforcement, potentially halting its application in the state. However, until a resolution is reached, employers should tread carefully. 

What Employers Should Consider: 

• Voluntary Meetings: To mitigate legal risks, employers may opt to make attendance at workplace meetings on religious or political topics voluntary. 

• NLRA Compliance: Employers should ensure communications adhere to NLRA protections, avoiding any content that could be perceived as coercive. 

• Policy Review: Reviewing and updating workplace communication policies to align with SB 399’s requirements and NLRA standards may be prudent during this period of uncertainty. 

• Legal Guidance: Consult with counsel labor law expertise before conducting workplace meetings that could run afoul of the law.