Business Maverick: California push to seat more women on boards ruled unlawful

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The first-in-the-nation mandate, signed into law in 2018, has been struck down by a Los Angeles state court judge after a trial, ruling the landmark requirement that corporate boards include women unconstitutional.

Superior Court Judge Maureen Duffy-Lewis said she wasn’t persuaded by California’s argument that more women on corporate boards would boost the economy or that the state could legally rectify historical discrimination with the legislation.

“We’re disappointed and appalled at this setback for women to be advancing in business,” said Betsy Berkhemer-Credair, CEO of 50/50 Women on Boards, and one of the proponents of the law when she was president of the California chapter of the National Association of Women Business Owners. The group expects the state to appeal, but has no assurances yet that it will, she said.

Still, the law’s invalidation shows that efforts in the U.S. to use legislation to catch up with Europe’s diversification of boards are fraught with legal peril. The decision comes on the heels of an April state courtby a different Los Angeles judge that a 2020 mandate to include minorities on corporate boards violates the California Constitution.

“Thankfully, California courts have upheld the core American value of equal protection under the law,” Judicial Watch President Tom Fitton said in a statement. “Judicial Watch’s taxpayer clients are heroes for standing up for civil rights against the Left’s pernicious efforts to undo anti-discrimination protections.”Enacted amid the #MeToo movement, the law calls for penalties for violations that range from $100,000 to $300,000.

 

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