• Disclosure
  • Privacy Policy
  • DMCA Policy
  • CCPA
  • Medical Disclaimer
Wednesday, March 22, 2023
Montgomery County News Online
  • Home
  • News
  • Business
  • Technology
    • Crytpocurrency
    • Gaming
    • Gadgets
  • Sports
  • Health
  • General
    • Business Services
  • Travel
  • Press Releases
  • Popular
No Result
View All Result
  • Home
  • News
  • Business
  • Technology
    • Crytpocurrency
    • Gaming
    • Gadgets
  • Sports
  • Health
  • General
    • Business Services
  • Travel
  • Press Releases
  • Popular
No Result
View All Result
No Result
View All Result
Home Business

A California Law Requiring More Diversity On Company Boards Is Unconstitutional, Judge Rules – CNN

a-california-law-requiring-more-diversity-on-company-boards-is-unconstitutional,-judge-rules-–-cnn
Share on FacebookShare on Twitter

(CNN)A judge in Los Angeles has ruled a law requiring public companies headquartered in California to diversify their boards violates the state’s constitution, court documents show.

On Friday, Judge Terry Green of Los Angeles County Superior Court sided with Judicial Watch, a conservative legal group that filed a lawsuit arguing the measure violates the equal protection clause of California’s constitution.

The law, Assembly Bill 979, was signed by California Gov. Gavin Newsom in 2020 and was part of the state’s efforts to address racial disparities in the workplace. It required companies to have at least one board member from an underrepresented community by the end of 2021 and at least two or three — depending on the board’s size — by the end of 2022.

    California will now require more diversity on company boards

    People from underrepresented communities are defined in the bill as anyone 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.

      Companies that did not comply could face fines of $100,000 for first violations and $300,000 for repeated violations, according to the law.

          In his ruling, Green did not specify the reasoning for his decision.

          Tom Fitton, president of Judicial Watch, applauded the judge’s ruling and said the state law is “one of the most blatant and significant attacks in the modern era on constitutional prohibitions against discrimination.”

          In a statement to CNN, the governor’s office said the state is committed to ensuring pathways to success for diverse groups.

          The governor “recognizes the work that still must be done to counter discrimination and create a more inclusive and equitable future.”

          California State Rep. Chris Holden, who co-sponsored the legislation, said he was disappointed by the judge’s ruling because his intention was “to give people from diverse backgrounds a seat at the table in boardrooms where decision making occurs.”

          Holden said he is waiting for state officials to provide insight on the next course of actions, and added he is hopeful companies have already seen the value of diversity on corporate boards.

          In a report issued last month, the secretary of state’s office said about 42% of the 716 publicly held corporations with a principal executive office in California showed they were complying with the law’s requirements in the 2021 company disclosure statements they submitted to the state.

          Esther Aguilera, president and CEO of the Latino Corporate Directors Association, said her group has been actively helping connect companies with qualified Latino candidates in recent years and she doesn’t expect the judge’s ruling “to slow us down.”

            Meanwhile, another state law concerning diversity in the state is being reviewed by a court. In a separate lawsuit, Judicial Watch argued a California 2018 law requiring a minimum number of women directors is a “quota system for female representation” and is unconstitutional.

            A judge has not yet ruled on that lawsuit.

            Montgomery County News Online

            © 2021 Montgomery County News Online

            Navigate Site

            • Disclosure
            • Privacy Policy
            • DMCA Policy
            • CCPA
            • Medical Disclaimer

            Follow Us

            No Result
            View All Result
            • Home
            • DMCA Policy
            • Medical Disclaimer
            • Privacy Policy
            • Disclosure
            • CCPA
            • Terms of Use

            © 2021 Montgomery County News Online

            We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
            Cookie SettingsAccept All
            Manage consent

            Privacy Overview

            This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
            Necessary
            Always Enabled
            Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
            CookieDurationDescription
            cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
            cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
            cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
            cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
            cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
            viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
            Functional
            Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
            Performance
            Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
            Analytics
            Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
            Advertisement
            Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
            Others
            Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
            SAVE & ACCEPT