NFIB’s Challenge to Minnesota’s “Captive Audience” Law Advances

September 25, 2024 Last Edit: June 9, 2025

NFIB's Challenge to Minnesota’s “Captive Audience” Law Advances

In September, a federal judge sided with the National Federation of Independent Business (NFIB), Associated Builders and Contractors of Minnesota (ABC-MN), and Laketown Electric Corporation and allowed a challenge to Minnesota’s “Captive Audience” law to proceed. Earlier this year, NFIB, ABC-MN, and Laketown Electric sued the state in federal court, arguing the law – which prohibits employers from discussing certain topics with employees in workplace meetings – is an unconstitutional infringement on the free speech rights of small employers and that federal labor law preempts this type of state regulation. Governor Walz and Attorney General Ellison sought to have the challenge dismissed before trial, claiming the law has not been enforced and there is no threat to enforce the law – despite the law being in effect and promises by Governor Walz to the contrary. WATCH: Gov. Walz Addresses National Labor Conference (April 2024) The federal judge rejected the Walz-Ellison arguments, finding that the state has threatened to enforce or is enforcing the anti-free speech law. The judge’s decision was based, in part, on comments made by Governor Walz to the North American Building Trades Union that “You go to jail now if you do that in Minnesota because you can’t intimidate people.” (Despite the assertion, the law does not include criminal penalties.) What’s the Workplace Meeting Gag Order Law? The gag order law was one of a flurry of mandates on small business to pass during the 2023 Minnesota Legislative Session. The law prohibits employers from requiring employees to attend meetings where “politics” are discussed, with politics defined broadly to include not just political campaigns but also legislation, regulations, public policy, and civic, fraternal, or labor organizations. It took effect on August 1, 2023. Employers are prohibited from discharging, penalizing or taking any disciplinary action against an employee who refuses to attend or participate in the meeting. Aggrieved employees can sue employers for alleged violations of the gag order and may seek reinstatement, back pay and benefits, and “any other appropriate relief” the court deems necessary. Employees may also seek attorney fees and costs. NFIB Minnesota, along with other business organizations in the state, argued in committee hearings that the law was overly vague, pre-empted by federal labor law, and an unconstitutional infringement on the free speech rights of small employers. The success of workplaces around the state depends on open communication and understanding the threats, challenges, and opportunities presented by external actors and influences. Despite the obvious flaws, the Legislature passed the gag order law in an omnibus bill and Governor Walz signed the bill into law.

Topics:

Taxes

State:

Minnesota

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