Business groups sue over state ban on “captive audience” meetings.

The California Chamber of Commerce and the California Restaurant Association challenge a recently passed law in the state, which prohibits employers from applying repressions against employees who refuse to attend the so-called enthusiastic audience meetings where employers can make speeches that promote an anti-union stance or discourage workers from joining unions.

Two groups submitted a federal lawsuit December 31, the day before California Employee Freedom from Intimidation by Employer Act (SB 399) took effect. Employers who violate the law can face a civil penalty of up to $500.

In a statement, the business groups said the law violates the companies’ rights to free speech and equal protection under the First and 14th Amendments to the U.S. Constitution. In addition, plaintiffs argue that SB 399 is preempted under the National Labor Relations Act.

National Council on Labor Relations decided that companies can hold audience meetings where unionization is discussed as long as attendance is voluntary, employees who do not attend face no adverse consequences, and attendance records are not kept.

According to the groups, the complaint violates the constitution by “discriminating against employers’ views on political issues, regulating the content of employers’ communications with their employees, and chilling and prohibiting employers’ speech.” CalChamber President and CEO Jennifer Barrera called it a “huge overreach.”

California Restaurant Association President and CEO Jot Condi said the law “creates restrictions that are unenforceable, and the unintended consequences of this new law outweigh any perceived benefits.”