On May 13, 2022, a law requiring publicly held corporations headquartered in California to have women on the board of directors was enjoined from being enforced and declared unconstitutional after a bench trial in Los Angeles Superior Court. In Crest v. Padilla, a judge ruled that the law violated the Equal Protection Clause of the California Constitution because it created a suspect gender classification without a compelling state interest, and the law was not necessary or narrowly tailored to achieve the State's goals of remedying gender discrimination or benefiting the economy.
On September 30, 2018, Governor Jerry Brown signed Senate Bill 826 into law. It required public companies headquartered in California to have at least one female on the board of directors by the end of 2019. By the end of 2021, public companies in California with five directors were required to have at least two female directors, or three female directors if the company had six or more directors. The law authorized the Secretary of State to impose fines ranging from $100,000 to $300,000 per violation.
A group of California taxpayers filed suit in 2019 to enjoin implementation and enforcement of the law. The taxpayers alleged S.B. 826 violated the Equal Protection Clause and Article I, Section 31 (prohibiting discrimination based on sex in public employment, education, or contracting) of the California Constitution. Beginning in December 2021, the court commenced a bench trial and issued a lengthy...
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