Last year, we reported that Governor Gavin Newsom signed SB 399, codified as California Labor Code section 1137, into law. This statute bans employers from holding captive audience meetings, which are mandatory employer-sponsored meetings that discuss religious or political matters—including unionization. California is one of at least 12 states that have passed captive audience laws at the urging of labor unions.
On September 30, 2025, the U.S. District Court for the Eastern District of California issued a preliminary injunction in California Chamber of Commerce et al. v. Bonta et al., temporarily blocking enforcement of SB 399. Plaintiffs in the case argued that SB 399 is preempted by the National Labor Relations Act (NLRA) and infringes upon employers’ rights under the First Amendment of the U.S. Constitution. Defendants, meanwhile, asserted that SB 399 is an anti-retaliation statute targeting protected employee autonomy, and not a restriction on employer speech. They contended that SB 399 merely prohibits punishing employees who refrain from attending certain meetings.
The Court Held SB 399 Is Preempted by the NLRA
The Court, in ruling on the preliminary injunction, found that SB 399 conflicts with the NLRA in two principal ways: (1) Garmon preemption (San Diego Building Trades Council v. Garmon, 359 U.S. 236 (1959)); and (2) Machinists preemption (Lodge 76, International Association of Machinists v. Wisconsin Employment Relations Commission, 427 U.S. 132 (1976)).
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