A federal judge has granted a preliminary injunction blocking enforcement of California Senate Bill 399, following a request from the California Chamber of Commerce, the California Restaurant Association, and the Western Growers Association. The law, enacted in 2024, would have restricted employer communications with workers on topics such as union representation.
The ruling was issued Monday by U.S. District Judge Daniel J. Calabretta. The plaintiffs had filed legal action last December, arguing that SB 399 violated employers’ First Amendment rights and conflicted with the National Labor Relations Act.
Jennifer Barrera, President & CEO of CalChamber, stated: “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, 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 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 was labeled a “Job Killer” by CalChamber during its legislative session—the only bill on its list to be signed into law.
California’s restaurant industry generates more than $100 billion in sales annually and employs nearly 1.4 million people.
