In a landmark decision on May 17, a California district court blocked a state law mandating racial quotas on corporate boards as it violated the U.S. Constitution.
The California law, AB979, required that a minimum number of people from “designated racial, ethnic, and LGBTQ backgrounds” have a seat on corporate boards.
But the court ruling stated (pdf) that the law “is unconstitutional on its face and Plaintiff is entitled to summary judgment in its favor as a matter of law.” The plaintiff in the case was the Alliance for Fair Board Recruitment.
“The Court made clear that California’s attempts at racial engineering are per se unlawful,” Michael Bushbacher, a partner at Boyden Gray, which represented the plaintiff, said. “The Constitution prohibits diversity mandates in every circumstance….