NFIB, Connecticut Employer Groups File ‘Captive Audience’ Lawsuit

Date: November 11, 2022

NFIB, CBIA, the U.S. Chamber of Commerce, and a coalition of employer groups filed a lawsuit in the U.S. District Court for the District of Connecticut Nov. 1 challenging Connecticut’s so-called captive audience law.

The Restaurant Law Center, Connecticut Restaurant Association, National Federation of Independent Business, National Retail Federation, Connecticut Retail Merchants Association, Coalition for a Democratic Workforce, National Association of Home Builders, Associated Builders and Contractors, and Associated Builders and Contractors of Connecticut are all part of the coalition.

Connecticut’s law took effect July 1, 2022 and threatens employers with liability for speaking with employees about a range of important workplace issues, including pending laws or regulations.

The controversial law drastically restricts employers from communicating with employees about “political matters,” with that term broadly defined to include legislative or regulatory proposals.

The state legislature approved the measure this year after a decade-plus of failed attempts to pass similar legislation.

Beth Milito, the executive director of NFIB’s Small Business Legal Center, said “Connecticut’s small employers are at risk of being held liable for communicating with their employees about important workplace matters under this law.” 

“Small business owners expect the freedom to communicate with their employees regarding various business issues,” she added. “This law is an example of government overreach and threatens to restrict the relationships between employer and employees.

“NFIB is challenging this law to protect small employers and their employees and to uphold their rights guaranteed by the First Amendment and NLRA.”

CBIA president and CEO Chris DiPentima said the law was so broadly written that small businesses “face expensive and time-consuming complaints and litigation for simply communicating openly with their employees.”

“The Connecticut law is essentially a gag order—an unnecessary and unconstitutional infringement on the rights of employers to communicate with employees in the workplace,” DiPentima said.

“The decision to file this lawsuit was not taken lightly. However, we must protect the constitutional rights of employers, particularly small businesses, to manage their workplaces free from government overreach.

“By restricting employer’s speech, the law suppresses important communications and hinders the ability of workers to make informed decisions about critical issues impacting the workplace.”

The suit contends the law conflicts with employer free speech rights guaranteed by the National Labor Relations Act and infringes on the free speech guarantees of the First Amendment.

“Connecticut’s law is at odds with well-established First Amendment and NLRA precedents regarding the free speech rights of employers,” said Glenn Spencer, senior vice president of the U.S. Chamber of Commerce’s Employment Policy Division.

“Over a decade ago, the chamber sued the state of California over a similar law and won in the U.S. Supreme Court.

“We’ll continue to defend an employer’s right to share opinions with employees so that they can make informed decisions.”

Associated Builders & Contractors of Connecticut president Chris Fryxell said state government intrusion in workplace communications “isn’t just wrong, it’s unconstitutional.”

“We are accustomed to defending our members from state government’s assaults on competitive bidding and free enterprise; but the trampling of federal law to stifle speech between employer and employee is a new level of government overreach,” he said.

“Businesses must be permitted to openly connect with their employees on important issues related to legislation, regulation, and unionization so that employees are able to make informed decisions about their own future and the future of the company.”

 

Related Content: Small Business News | Connecticut

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