What SB 399 Does

SB 399, codified in California Labor Code section 1137, took effect January 1, 2025. It prohibits employers from threatening or taking adverse action against employees who refuse to attend employer-sponsored meetings or receive communications concerning the employer’s religious or political views.

“Political matters” under the statute include discussions about elections, political parties, legislation and regulation, and labor-union organizing.

CalChamber’s Challenge

The California Chamber of Commerce filed suit, arguing that SB 399 violates the First and Fourteenth Amendments by unlawfully restricting employer speech and “chilling” communication on lawful topics. CalChamber also claimed the law is preempted by the National Labor Relations Act (NLRA), which governs labor-related communications at the federal level.

The State’s Position

The State of California defended the law, contending that it regulates conduct, not speech, because it merely prohibits employers from retaliating against employees who decline to listen. The State also asserted a compelling interest in protecting employees as “captive audiences” from unwanted speech in the workplace.

The federal district court rejected these arguments, finding that the captive-audience doctrine requires an expectation of privacy that generally does not exist in the workplace.

The Court’s Reasoning

The court agreed with CalChamber that SB 399 improperly regulates speech under the guise of regulating conduct. Determining whether an employer took an adverse action under the law would require analyzing the content of the employer’s statements — a hallmark of unconstitutional, content-based regulation. Because SB 399 restricts political speech, it triggers the highest level of judicial scrutiny under the First Amendment.

The court also concluded that the portion of SB 399 dealing with labor-organizing communications is preempted by the NLRA, which gives the National Labor Relations Board (NLRB) exclusive jurisdiction over such matters.

What’s Next

The court’s order is a preliminary injunction, not a final ruling. However, the judge found that CalChamber is likely to succeed on the merits. The State may still appeal, and further proceedings are expected.

Employers should also be aware that in late 2024, the NLRB ruled that employers may not require employees to attend meetings about unionization. That decision came under a prior administration and General Counsel, but it highlights the ongoing uncertainty around workplace speech and organizing issues.

Practical Takeaway

Until the case is resolved, enforcement of SB 399 is on hold, but the legal landscape remains complex. Employers should consult experienced counsel before conducting meetings or communications involving political, religious, or labor-related topics to ensure compliance with both California and federal law.