California Law Requiring Female Board Members Challenged In Court

Earlier this week, three taxpayers sued California Secretary of State Alex Padilla to prevent enforcement of Senate Bill 826.

Senate Bill 826, signed into law last year by former Governor Jerry Brown, requires that by the end of 2019, all publicly held foreign or domestic corporations whose principal executive offices are in California shall have at least one female director on their boards of directors. By 2021, such corporations are required to have at least two female directors if the board has five members or at least three female directors if the board has six or more members.

The lawsuit asserts that this "quota system" violates Article I, Section 31 of the California Constitution, which prevents discrimination based on sex. The Plaintiffs ask for a judgment declaring illegal all expenditure of taxpayer funds and taxpayer-resources to enforce SB 826 as well as an injunction permanently prohibiting Padilla from enforcing SB 826.

The lawsuit...