On December 31, 2024, the California Chamber of Commerce and California Restaurant Association (CRA) filed a complaint in federal court seeking to enjoin enforcement of Senate Bill (S.B.) 399, signed into law by Governor Gavin Newsom in September of 2024.
Senate Bill 399, which went into effect on January 1, 2025, prohibits employers from mandating employees to attend employer information sessions that discuss the employer’s opinions on political or religious matters, including labor organizations, essentially banning captive audience meetings. In their complaint, the California Chamber of Commerce and CRA argue that S.B. 399 infringes on their members’ constitutional right to free speech, and is overbroad, discriminatory, and preempted by the National Labor Relations Act. Other business groups in Connecticut, Illinois and Minnesota also have pending court challenges involving their state’s bans or restrictions on captive audience meetings. The result of this litigation could decide how California employers will move forward when holding employer-sponsored meetings or communicating with their employees.