On September 30, 2024, California Governor Gavin Newsom signed into law Senate Bill 399, which enacts the California Worker Freedom from Employer Intimidation Act, effectively banning certain types of “captive audience” meetings. The law will take effect January 1, 2025. This bill prohibits employers from subjecting employees to discharge, discrimination, retaliation, or other adverse actions because an employee declines to attend an employer-sponsored meeting that was organized for the purpose of communicating the employer’s opinion about religious or political matters. California employers who violate this section are exposed to a civil penalty of $500.00 per employee per violation.
There are some exceptions to the new rule. It does not prohibit the employer from communicating to its employees any information that the employers are required by law to communicate, or any information necessary for those employees to perform their job duties. Further, any entities that are exempt from the requirements of Title VII of the Civil Rights Act of 1964 are exempt from these requirements.
California is far from the first state to enact such a prohibition of captive audience meetings. Several other states have passed similar laws, including Connecticut, Hawaii, Illinois, Maine, Minnesota, New York, Oregon, Washington, and Vermont.
Challenges to SB 399 and Similar Bills:
SB 399 and other laws like it may conflict with established federal laws. For example, the National Labor Relations Act (NLRA) may preempt any such laws to the extent they may be found to violate the NLRA or violate employers’ First and Fourteenth Amendment rights. Federal Courts have ruled on similar topics, finding that the First Amendment applies to corporate entities as it does persons, and that corporations have constitutionally protected free expression rights that cannot be silenced by government interference. Indeed, the US Chambers of Commerce has challenged many laws like SB 399 on such grounds. Whether SB 399 will survive such a challenge remains to be seen.
How to Proceed Once SB 399 Takes Effect:
What is the best way for California employers to avoid violating SB 399?
First, any meetings that discuss political considerations or other topics encompassed by SB 399 should be voluntary for all employees. Employers should not schedule mandatory meetings that discuss any political or religious topics. Second, employers should not retaliate against employees who choose to not attend such a meeting. Finally, employers should be transparent about the purpose of meetings to discuss topics encomp, provide an acknowledgement form for employees to confirm voluntary attendance, and acknowledge they understand their rights under the law.
Anthony Bareno is an associate attorney with the law firm of Dunn DeSantis Walt & Kendrick. His practice focus is in civil litigation, primarily in connection with construction disputes and employment law matters.
Dunn DeSantis Walt & Kendrick provides a broad spectrum of legal services to businesses of all sizes, from small, local start-ups and non-profits to large, national companies.
You can find additional information and resources related to helping business owners and their businesses on the DDWK website.
