US Judge Grants Chamber Request to Block SB 399
Law Imposed Limits on Employer Communications
A federal judge has issued a preliminary injunction requested by the California Chamber of Commerce, the California Restaurant Association, and the Western Growers Association, to block enforcement of a 2024 state law placing limits on employer communications with workers on a variety of issues, including possible union representation.
A copy of the ruling, issued on Sept. 30 by U.S. District Judge Daniel J. Calabretta, can be found here.
The group of plaintiffs filed legal action last December over the enactment of last year’s Senate Bill 399, arguing that it violates the rights of employers under the First Amendment and that the state law is preempted by the National Labor Relations Act.
“We are pleased the court agreed with the key issues in this case,” said CalChamber President and CEO Jennifer Barrera. “SB 399 sought to wrongly limit the speech of employers across California while also exposing companies of all sizes to new legal liabilities if their leaders communicate important political and legal updates that impact the workplace.”
CalChamber’s co-plaintiffs also issued statements on the ruling.
“The Eastern District Court ruling is encouraging, because it recognizes the overstep of SB 399,” said Jot Condie, president and CEO of the California Restaurant Association. “This law would put employers in the impossible position of deciding what is ‘political’ and what is not and goes beyond regulating the so called ‘captive audience’ meetings already regulated at the Federal level.”
“This decision affirms what we have said from the beginning: SB 399 tramples on federal labor law and the First Amendment,” said Dave Puglia, president and CEO of the Western Growers Association. “By enjoining this unconstitutional law, the court has preserved the right of agricultural and all California employers to communicate openly with their employees without the State tipping the scales in union organizing campaigns. We are proud to stand with our coalition partners in defending these fundamental rights.”
CalChamber identified SB 399 as a ‘Job Killer’ during the 2024 legislative session, the only proposal on the organization’s list of problematic bills that was signed into law.