California Corporate Diversity Law Struck Down

Last week a Los Angeles judge ruled that California’s Corporate diversity law was unconstitutional. The law required publicly traded companies that had their main headquarters in California to include a member of an ‘underrepresented community’ on their corporate board. The underrepresented community members included African American, Asian, Latino, Pacific Islander, or LBGTQ people. Effectively, the law instituted a corporate quota system.

On its face the law discriminates against people not in the underrepresented class. A lawsuit was brought by Judicial Watch, which argued that the legislation violated California’s constitution which requires equal protection under the law. The lower court agreed and relieved California companies of having to comply by invalidating it.

California is sure to appeal the ruling and you can expect a lengthy court battle given the surge of equity politics in the Golden State. What the left fails to realize when it imposes requirements like these on business, is it incentivizes them to leave California. Even if a corporation attempts compliance, they still must be concerned about strike suits from all their employees.

Employees who are not in the underrepresented category will sue for discrimination for lost opportunities, as will employees in the ‘protected’ class. The law puts employers in an impossible situation because it massively increases the amount of counter-party risk it must bear. Every added regulation or compliance requirement on business does this, but the California law would have made it impossible for companies to operate without constantly getting sued.

Businesses are leaving the state in droves. There does not seem to be any self-reflection as to why this is happening. California has veered so far left that those results are secondary to the woke agenda of identity politics. It does not matter if it destroys the business climate in the state, the ‘equity’ agenda must be installed at all costs.

Polling suggests that members of both parties are tired of viewing everything through the prism of race. The center left and center right are mobilizing to try and restore order before the damage becomes permanent. These anti-American ideologies must not be allowed to take hold. Last week’s ruling was a good first step.