New England Biz Law Update
The California Chamber of Commerce and Restaurant Association have filed a federal lawsuit challenging a new state law that restricts employer-sponsored mandatory meetings about religious or political matters, including union organizing efforts.
The law took effect January 1, 2025. The lawsuit, filed December 31, 2024, argues that SB 399 violates both the First and Fourteenth Amendments to the U.S. Constitution and is preempted by the National Labor Relations Act (NLRA).
The plaintiff business groups contend that the law improperly discriminates against employers’ viewpoints and creates unconstitutional restrictions on workplace communications.
“Throughout legislative deliberations, we repeatedly underscored the fact that SB 399 was a huge overreach,” said CalChamber President and CEO Jennifer Barrera, in a statement. “SB 399 is clearly viewpoint-based discrimination, which runs afoul of the First Amendment.”
Captive audience meetings
Under SB 399, employers are prohibited from requiring employees to attend so-called “captive audience” meetings in which the employer’s opinions about religious or political matters, including labor organization efforts, are communicated.
The law defines “political matters” broadly to include discussions about elections, political parties, legislation, regulation, and decisions to join or support political or labor organizations. Under the law, mandatory attendance at such meetings is prohibited.
Employers who violate the law face civil penalties of $500 per employee per violation.
National issue
California joined other states, including Connecticut, Hawaii, Illinois, New York, and Oregon, in implementing these restrictions. However, the laws have faced mixed outcomes, with some being struck down or repealed.
The legal landscape was further complicated by developments at the federal level. National Labor Relations Board (NLRB) General Counsel Jennifer Abruzzo has advocated against captive audience meetings, issuing a memorandum in April 2022 arguing that such meetings violate the NLRA.
Legal challenges to Abruzzo’s memorandum are currently pending. Meanwhile, the incoming Trump administration is expected to appoint a new NLRB general counsel who will likely rescind several existing memos.
