In “California Bill Requiring Additional Board Diversity Is Overturned,” Directors & Boards turned to corporate partner Doug Raymond after a bill mandating ethnic, racial and LGBTQ+ diversity on boards, California Bill 979, was struck down in the Los Angeles County Superior Court.
Raymond explained that legal observers were concerned that the requirement violated the provision of the California constitution that forbids disparate treatment of similarly situated individuals based on race, sexual orientation or gender identity. “California does recognize that under ‘compelling circumstances,’ different treatment can be permitted, the court found that the state had not met that burden,” said Raymond.
“California Bill 979 was overturned based on the state’s constitution, which in general is broader than the current understanding of the U.S. Constitution and broader than the constitutions of many states,” Raymond added. “So, it will be a case-by-case analysis.”
Raymond suggested tax credits as a way that states could entice corporations to boost inclusivity in their leadership groups.