A federal judge has granted a preliminary injunction blocking the enforcement of California Senate Bill 399, a law enacted in 2024 that restricts employer communications with employees on topics such as union representation. The injunction was requested by the California Chamber of Commerce, the California Restaurant Association, and the Western Growers Association.
The ruling was issued Monday by U.S. District Judge Daniel J. Calabretta. The plaintiffs filed their legal challenge last December, arguing that SB 399 violates employers’ First Amendment rights and is preempted by the National Labor Relations Act.
“We are pleased the court agreed with the key issues in this case,” said CalChamber President & 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.”
Jot Condie, President & CEO of the California Restaurant Association, stated: “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, added: “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.”
Senate Bill 399 had been labeled a ‘Job Killer’ during its legislative session by CalChamber and was noted as being unique among problematic bills for being signed into law.
California’s restaurant industry represents a significant part of its economy, employing nearly 1.4 million workers and generating more than $100 billion in sales annually.
