An L.A. judge ruled that California’s landmark law mandating that corporations diversify their boards with members from certain racial, ethnic or LGBT groups is unconstitutional.
LOS ANGELES -- A Los Angeles judge ruled Friday that California's landmark law mandating that corporations diversify their boards with members from certain racial, ethnic or LGBTQ+ groups is unconstitutional.
However, in its court filings, the state argued that the measure didn't"discriminate against, or grant preferential treatment to, any individual or group on the basis of race, sex, color, ethnicity, or national origin in the operation of public employment, public education, or public contracting." The measure requires at least two such directors by the end of 2022 on boards with four to nine directors. Three directors are required for boards with nine or more directors. Firms that don't comply could face fines of $100,00 for first violations and $300,000 for repeated violations.
In signing the bill, Gov. Gavin Newsom said it was important for minorities to have a voice on the boards of powerful corporations.
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