Law "violates the Equal Protection Clause of the California Constitution on its face," says judge. A measure meant to bring more diversity to the boards of companies headquartered in California is unconstitutional, says the Los Angeles County Superior Court.
The diversity requirement—signed into law in September 2020—said that publicly held companies with headquarters in California must have at least one director from an "underrepresented community," meaning someone who "self-identifies as Black, African American, Hispanic, Latino, Asian, Pacific Islander, Native American, Native Hawaiian, or Alaska Native, or who self-identifies as gay, lesbian, bisexual, or transgender." Depending on board size, the number of board members from these communities would have to increase by the end of 2022.
