Judge Blocks California ‘Captive Audience’ Law

A federal judge has preliminarily blocked enforcement of a California law restricting workplace communications between employers and employees.

The law—SB 399—which took effect Jan. 1, 2025, is materially identical to legislation passed by the Connecticut General Assembly in 2022 that is also the subject of a federal lawsuit.

In his Sept. 30 ruling, U.S. District Court Judge Daniel Calabretta called the law “a content-based regulation of speech that cannot withstand strict scrutiny” and “risks chilling one side of the debate between labor and management.”

“SB 399 risks interfering with employers’ statutory and First Amendment rights to express their opinions on whether or not to join a labor organization, or from otherwise engaging in noncoercive speech,” Calabretta noted in his 35-page decision.

“The court finds that the plaintiffs have shown a likelihood of success on the merits on their First Amendment argument.”

The judge also agreed with claims by plaintiffs—the California Chamber of Commerce and other business groups—that SB 399 was preempted by the National Labor Relations Act.

Connecticut Lawsuit

The ruling marks the first federal court decision addressing the merits of challenges to captive audience laws.

California is one of 12 states with laws restricting workplace communications. The others are Alaska, Connecticut, Hawaii, Illinois, Maine, Minnesota, New Jersey, New York, Oregon, Vermont, and Washington.

CBIA, the U.S. Chamber of Commerce, and a coalition of employer groups filed suit in 2022 in the U.S. District Court for the District of Connecticut challenging the state’s law.

“We must protect the constitutional rights of employers, particularly small businesses, to manage their workplaces free from government overreach.”

CBIA’s Chris DiPentima

At the time of the filing, CBIA president and CEO Chris DiPentima called the law “an unnecessary and unconstitutional infringement on the rights of employers to communicate with employees in the workplace.”

“The decision to file this lawsuit was not taken lightly,” he said. “We value our working relationships and the open lines of communication with the administration and state policymakers.

“However, we must protect the constitutional rights of employers, particularly small businesses, to manage their workplaces free from government overreach.”

A decision in the case is pending.