Federal judge blocks enforcement of California Senate Bill 399 after business groups challenge

Jot Condie, President and Chief Executive Officer at California Restaurant Association
Jot Condie, President and Chief Executive Officer at California Restaurant Association
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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 workers on issues such as 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.

U.S. District Judge Daniel J. Calabretta issued the ruling on Monday afternoon. The plaintiffs argued 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, commented: “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 the 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.”

CalChamber had previously labeled SB 399 as a ‘Job Killer’ during its review of legislative proposals in 2024.

The California Restaurant Association represents restaurants across California’s food service industry, which generates over $100 billion in sales annually and employs nearly 1.4 million workers.



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