California can’t require that corporate boards include women, judge rules

A Los Angeles judge has ruled that California’s 2018 law requiring gender diversity on corporate boards is unconstitutional.

The law, SB 826 by former State Sen. Hannah-Beth Jackson, D-Santa Barbara, had been challenged by the conservative legal group Judicial Watch, who argued in court that that requiring women to serve on a corporate board violates the Equal Protection Clause of the California Constitution, as well as other provisions.

Judicial Watch did not respond to a Bee request for comment by deadline. However, Judicial Watch President Tom Fitton said in a statement after the trial for the law concluded that, “This historic trial shows discriminatory gender quota mandate that is blatantly unlawful and unconstitutional. After weeks of taxpayer money being used to defend the law, we hope the trial court will strike down these pernicious gender quotas.”

The California Secretary of State’s Office, named as a defendant in the case, did not respond to a Bee request for comment by deadline.

SB 826 was one of two laws passed by lawmakers intended to increase diversity on the boards of California corporations; another law, AB 979, mandates a minimum number of under-represented and LGBTQ members of the board of directors. That law also is facing a legal challenge.

When he signed the bill in 2018, then-Gov. Jerry Brown acknowledged that the law would likely face a serious legal challenge.

Senate President Pro Tem Toni Atkins, D-San Diego, who jointly authored SB 826, released a statement on the court’s decision Monday afternoon.

“This disappointing ruling is a reminder that sometimes our legalities don’t match our realities. More women on corporate boards means better decisions and businesses that outperform the competition — that’s a studied, proven fact. We believe this law remains important — despite the disheartening ruling from the Los Angeles Superior Court — and it exemplifies equal access and opportunity, the very bedrock of our democracy. For those still afraid of women in positions of leadership, they need to work on figuring that out because the world is moving on without them,” Atkins said.

Former Sen. Jackson, reached by telephone, said that she too was disappointed in the ruling, but that she looked forward to it being challenged in the appellate court.

“I am confident that we will prevail. I think the decision was wrongly made,” Jackson said.

This story was originally published May 17, 2022 at 5:00 AM with the headline "California can’t require that corporate boards include women, judge rules."