Now Profits Are a Justification for Discrimination?



The trial commenced this week in Crest v. Padilla, a lawsuit filed by Judicial Watch to enjoin California from requiring that publicly held corporations headquartered in California include at least one director who “self-identifies” as a woman. Pursuant to California’s SB 826, by the end of 2021, up to three self-identified women will be required, depending on the size of the board.

In September 2020, two years after enacting SB 826, California went even further, when Governor Newsom signed AB 979 into law. That law requires that California-headquartered public companies also include at least one director from an “underrepresented community,” and by the end of 2022, up to three such directors, depending on the size of the board. The statute defines a “director from an underrepresented community” to be an individual 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.” Arabs, Armenians, Persians, and Turks, who often are viewed as non-European whites, are excluded from the list of favored minority groups.

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