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Can a Company Be Required to Have a Diverse Board of Directors?

January 12, 2022

Via: SHRM

Many state lawmakers have focused on improving workplace gender and racial equity in recent years, which has prompted legislation that encourages or requires diversity on corporate boards. But can a state’s efforts to promote diversity infringe on constitutional rights? Several lawsuits against California’s gender board diversity law make this claim.

“Despite the legal challenges, it appears that these diversity initiatives are here to stay,” noted Allison Scott, an attorney with Dykema in Los Angeles. She said employers should be mindful of federal and state anti-discrimination laws when implementing diversity and inclusion programs, including at the leadership level.

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