A federal judge has granted a preliminary injunction to halt enforcement of Senate Bill 399, a California law enacted in 2024 that restricts employer communications with workers on various issues, including union representation. The decision follows legal action filed last December by the California Chamber of Commerce, the California Restaurant Association, and the Western Growers Association. The plaintiffs argued that SB 399 violates employers’ First Amendment rights and is preempted by federal labor law.
The ruling was issued Monday by U.S. District Judge Daniel J. Calabretta. Details of the decision can be found at this link.
Jennifer Barrera, President & CEO of CalChamber, commented on the court’s decision: “We are pleased the court agreed with the key issues in this case. 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.”
Jot Condie, President & CEO of the California Restaurant Association, also responded: “The Eastern District Court ruling is encouraging, because it recognizes the overstep of SB 399. 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.”
Dave Puglia, President & CEO of Western Growers Association, stated: “This decision affirms what we have said from the beginning: SB 399 tramples on federal labor law and the First Amendment. 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.”
SB 399 had been labeled a “Job Killer” during the 2024 legislative session by CalChamber and was noted as being unique among its list for being signed into law.
California’s restaurant industry is significant for both employment and economic activity in the state; it generates more than $100 billion in sales annually and employs close to 1.4 million people.
