Legal Challenge to California Law Restricting Captive Audience Meetings
On September 27, 2024, Governor Newsom signed Senate Bill 399, adding the California Worker Freedom from Employer Intimidation Act to the Labor Code. The law prohibits employers from subjecting, or threatening to subject, an employee to discharge, discrimination, retaliation, or any other adverse action because the employee declines to attend an employer-sponsored meeting or affirmatively declines to participate in, receive, or listen to any communications with the employer or its agents or representatives, for the purpose of communicating the employer’s opinion about religious or political matters. Political matters include matters relating to elections for political office, political parties, legislation, regulation, and the decision to join or support any political party or political or labor organization. An employer who violates the law is subject to a civil penalty of $500 per employee for each violation in addition to other remedies available by law. Employees may also bring a civil action for damages, including punitive damages.
The law does not prevent employers from communicating to employees about information the employer is required to communicate by law (to the extent of that legal requirement) or from communicating to employees about information necessary to perform their job duties. The law also has exemptions for certain religious entities, political organizations, educational institutions, nonprofit training programs, and others pursuant to specified limitations, or to certain communications by institutes of higher education or public entities.
On December 31, 2024, just before the law’s January 1, 2025 effective date, the California Chamber of Commerce and the California Restaurant Association filed a lawsuit in federal court seeking to enjoin its enforcement. If the business groups are successful in those efforts, enforcement of the law could be impacted. Until then, employers should consult with legal counsel before holding mandatory meetings regarding matters relating to elections for political office, political parties, legislation, regulation, and the decision to join or support any political party or political or labor organization.
This legal update and any use of its information does not create an attorney-client relationship. Nothing contained on this website should be considered legal advice for any specific employer or employment situation. Consult legal counsel before taking any action as a result of information contained herein.
