Are Religious Organizations Exempt from California’s New Captive Audience Law and Non-discrimination Laws?

What is California’s Captive Audience Law?

California Governor Gavin Newsom is at it again - placing more restrictions on employers. Starting January 1, 2025, employers are officially prohibited from requiring employees to attend meetings intended “to communicate the employer’s opinion about religious or political matters.”

The law states that “an employer who violates this section shall be subject to a civil penalty of five hundred dollars ($500) per employee for each violation.” The law may be enforced by the Labor Commissioner, or a lawsuit may be filed by “any employee who has suffered a violation” for damages caused by an adverse action of the employer, including punitive damages. There will likely be a lot of cases in the future interpreting these provisions.

Exemptions for Religious Organizations

The good news is that this section does not apply to a “religious corporation, entity, association, educational institution, or society that is exempt from the requirements of Title VII of the Civil Rights Act of 1964 (Public Law 88-352) pursuant to 42 U.S.C. 2000e-1(a) or is exempt from employment discrimination protections of state law, including, but not limited to, subdivision (d) of Section 12926 of the Government Code, except as provided in Section 12926.2 of the Government Code, and subdivision (d) of Section 98.6 of the Labor Code, with respect to speech on religious matters to employees who perform work connected with the activities undertaken by that religious corporation, entity, association, educational institution, or society.” This is consistent with other state law that exempts religious corporations and associations from certain non-discrimination laws. Gov. Code, § 12926.

In summary, corporations formed under the religious corporations law, ministry organizations, and educational institutions are generally exempt from the “captive audience” law and other non-discrimination laws - at least for those employees who perform work connected with the entity’s ministry activities. Some will argue that the hiring of a person for a position that is not responsible for handling ministry duties is not exempt from the scope of the captive audience law or the non-discrimination laws. For example, one may argue that a church employee whose sole responsibility is landscaping and maintenance is not exempt from these laws.

California law generally states that “a religious corporation may restrict eligibility for employment in any position involving the performance of religious duties to adherents of the religion for which the corporation is organized.” Gov. Code, § 12922.  And an “employer” for purposes of California’s non-discrimination laws “does not include a religious association or corporation not organized for private profit.” Gov. Code, § 12926.

Key Takeaways for Religious Employers

For religious organizations, the take-away is this: Religious corporations and organizations are exempted from the captive audience law and California’s non-discrimination laws. However, the exemptions for the non-discrimination laws are applicable to those positions involving the performance of religious duties. Significant argument has occurred in cases about what are religious duties. For this reason, we believe it is critical for religious organizations to make sure that job descriptions are written to describe all employees as having some religious roles and participation in ministry-related duties. This could include leading Bible studies, counseling, or just praying with visitors to the church or organization’s campus.  

This is not a simple area of law to discern, and we encourage you to consult our office or another attorney with experience in this area of law if your have ant questions.