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Friday, October 16, 2026

California corporate diversity law struck down - HRD America

Quotas based on race, ethnicity, sexual preference and gender have been ruled unconstitutional

The requirement under Assembly Bill 979 for certain corporations to appoint a specific number of directors based on race, ethnicity, sexual preference and transgender status is unconstitutional, the Superior Court of California, County of Los Angeles has ruled.

The brief ruling granted summary judgment to Judicial Watch, a conservative legal group that sought a permanent injunction against the measure. “This historic California court decision declared unconstitutional one of the most blatant and significant attacks in the modern era on constitutional prohibitions against discrimination,” said Tom Fitton, president of Judicial Watch, in a news release.

The court’s ruling “upheld the core American value of equal protection under the law,” Fitton added.

On Sept. 30, 2020, California Governor Gavin Newsom signed AB 979 into law. The legislation required boards of California-based, publicly-held domestic or foreign corporations to meet racial, ethnicity, sexual preference and transgender quotas by the end of the 2021 calendar year, with quotas to rise by the close of the following calendar year.

Under the law, a director from an underrepresented community is defined as someone “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.”

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Read Full Story: https://www.hcamag.com/us/specialization/employment-law/california-corporate-...