As discussed in our recent article, the introduction of SB 399 in California (approved and added as California Labor Code section 1137) sparked significant discussion and concern among California employers with union employees. The legislation, which became effective January 1, 2025, restricts so-called “captive audience meetings” by prohibiting employers from discharging or disciplining employees for refusing to attend mandatory employer-sponsored meetings. Many employers believe the law unnecessarily restrains their ability to communicate effectively and transparently with employees about important issues.

In response to SB 399, the California Chamber of Commerce and the California Restaurant Association filed a federal lawsuit in the United States District Court for the Eastern District of California on December 31, 2024 (the “Lawsuit”). The Lawsuit challenges the constitutionality of SB 399, arguing it infringes on employers’ free speech rights and is otherwise preempted by the National Labor Relations Act (“NLRA”).

The California Worker Freedom from Employer Intimidation Act

SB 399, or the California Worker Freedom from Employer Intimidation Act (the “Act”), prohibits employers from taking adverse actions against employees who choose not to attend meetings where opinions on religious or political matters, including unionization, are expressed. Previously, employers were permitted to require employee attendance at such meetings. The Act is currently enforced by the...

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