On January 1, 2025, Senate (SB) Bill 399, officially went into effect in California. California joined other states, including Illinois, Connecticut, Hawaii, New York, and Oregon, in enacting statutes that prohibit “captive audience” meetings, similarly limiting employers’ ability to conduct mandatory meetings on religious or political matters, including a labor organization.

Several business groups have filed a federal lawsuit challenging the constitutionality of SB 399 and seeking declaratory and injunctive relief. The lawsuit, filed in the Eastern District of California, argues that the law infringes on employers’ rights to free speech and equal protection under the First and Fourteenth Amendments of the U.S. Constitution. The plaintiffs contend that SB 399 discriminates against employers’ viewpoints on political matters and restricts the content of their communications with employees. They argue that the law stifles employer speech and is preempted by the National Labor Relations Act (NLRA), which protects employer free speech under Section 8(c).

The legal battle over SB 399 highlights the ongoing tension between protecting workers’ rights and preserving employers’ freedom of speech.

If plaintiffs are successful, SB 399 may be blocked from enforcement but employers will need to wait to see how the court views the case. While litigation is pending, California employers may need to consider whether it is in their organization’s best interest to make such meeting attendance voluntary or proceed in accordance with the NLRA.