News & Analysis as of

California Quotas

Snell & Wilmer

Board Diversity Initiatives Falter in the Courts but Investor Interest Is Likely to Remain Strong

Snell & Wilmer on

Last year, Superior Courts in Los Angeles County invalidated two California statutes requiring specific diversity mandates for California public company boards (Senate Bill 826 “SB 826” and Assembly Bill 979 “AB 979”). The...more

Jackson Lewis P.C.

Reminder About California’s Warehouse Quota Law

Jackson Lewis P.C. on

Recently the State of Washington passed a law pertaining to warehouse quotas, which was similar to a law California passed in 2021. California’s law took effect January 1, 2022, and shortly after the effective date the...more

Jackson Lewis P.C.

Distribution Centers Should Brace for Restrictions on Their Use of Production Quotas

Jackson Lewis P.C. on

Warehouse distribution centers should prepare for increased regulation over their use of employee production quotas. Many employers use quotas to monitor employee performance and set minimum standards for productivity. The...more

Allen Matkins

Court Of Appeal Declines To "Sit On" Board Diversity Judgment

Allen Matkins on

In July, California Secretary of State Shirley Weber filed a petition for a writ of supersedeas in the California Court of Appeal with respect to the trial court's judgment in Crest v. Padilla.  In that case, the trial court...more

Snell & Wilmer

California’s Board and Ethnic Diversity Statutes Declared Unconstitutional

Snell & Wilmer on

In a ruling on April 1, 2022, a Superior Court in the County of Los Angeles invalidated Assembly Bill 979 (“AB 979”), a California bill requiring increased diversity on public company boards, which was signed into law by...more

A&O Shearman

California Superior Court Strikes Down Director Diversity Mandate

A&O Shearman on

On May 13, 2022, Judge Maureen Duffy Lewis of the Superior Court of the State of California for Los Angeles County entered judgement in favor of three taxpayers bringing state constitutional challenges to S.B. 826, a bill for...more

Wilson Sonsini Goodrich & Rosati

Court Rules Against California’s Mandated Board Diversity for Second Time and Strikes Down Gender Diversity Law

On May 13, 2022, a Los Angeles Superior Court judge struck down California's legislation requiring representation of women on the boards of publicly held companies with principal executive offices in California. The law,...more

Allen Matkins

The Verdict Is In On California's Female Director Quota Law

Allen Matkins on

As I noted yesterday, Los Angeles Superior Court Judge Maureen Duffy-Lewis has found California's female director quota law, SB 826, to violate the Equal Protection clause of the California Constitution (A person may not be ....more

Allen Matkins

Judge Finds California Female Director Quota Law To Be Unconstitutional

Allen Matkins on

Following a lengthy trial, Los Angeles Superior Court Judge Maureen Duffy-Lewis has found that California's female director quota law violates the Equal Protection Clause of the California Constitution...more

Allen Matkins

More On Board Nominations

Allen Matkins on

Yesterday's discussion of an amicus brief filed by 17 law professors in a case challenging SB 826, California's female director quota mandate, reminded me of a related question that I raised a few years ago...more

Allen Matkins

17 Law Professors File Amicus Brief Assailing Corporate Democracy

Allen Matkins on

Earlier this year, the trial of one of the challenges to SB 826, California's female director quota law, concluded but Los Angeles Superior Court Judge Maureen Duffy-Lewis has yet to release her decision.  Crest v. Weber,...more

Wilson Sonsini Goodrich & Rosati

Court Rules Against California's Mandated Underrepresented Communities Board Diversity Law

On April 1, 2022, a Superior Court judge in Los Angeles struck down California's landmark legislation requiring representation of "underrepresented communities" on the boards of publicly held companies based in California....more

Allen Matkins

Judge Green Explains Why AB 979 Violates The Constitution

Allen Matkins on

When I reported last Friday that Los Angeles Superior Court Judge Terry Green had ruled in favor of the plaintiffs in their challenge to California's board quota law, AB 979, all I had was a brief minute order from the...more

Allen Matkins

Plaintiffs Prevail In Constitutional Challenge To California Board Quota Law

Allen Matkins on

This afternoon, Judge Terry Green granted the plaintiff's summary judgment motion in a case challenging the constitutionality of AB 979.  Crest v. Padilla, LA Super. Ct. Case No. 20STCV37513...more

Allen Matkins

Judge Weighs Challenge To California Board Quota Law

Allen Matkins on

On Monday,  Los Angeles Superior Court Judge Terry Green heard arguments on opposing motions for summary judgment in a case challenging the constitutionality of AB 979.  Crest v. Padilla, L.A. Super. Ct. Case No....more

Sheppard Mullin Richter & Hampton LLP

Reminder to Employers with California Warehouse Employees

The Warehouse Quota Notices required by AB 701 are due today, January 31, 2022. AB 701 requires that employers who have 100 nonexempt employees in any one California warehouse distribution center, or 1,000 nonexempt...more

CDF Labor Law LLP

California Labor Commissioner Gives Insight into 2022’s Warehouse Distribution Quota Law

CDF Labor Law LLP on

On September 22, 2021, Governor Newsom signed AB 701, which creates new obligations for certain employers with warehouse distribution centers that use production quotas, effective January 1, 2022.  Under this new law,...more

BakerHostetler

A to Z of What California Employers Need to Know for 2022

BakerHostetler on

With the new year will come new laws that affect California employers. The following are the “A to Z” of changes in the laws that may affect your business in 2022. Under existing law, if a COVID-19 outbreak occurs at a...more

Jackson Lewis P.C.

California’s Labor Commissioner Publishes FAQ for Warehouse Quota Law

Jackson Lewis P.C. on

In September 2021, Governor Newsom signed Assembly Bill (AB) 701, which regulates the use of quotas at warehouse distribution centers in California. AB 701 requires employers with large warehouse distribution centers to...more

Allen Matkins

What Is And Is Not Mandatory With Respect To California's Female Director Quota Law

Allen Matkins on

On Monday, I noted that because California's female director quota law uses the word "shall", it is mandatory.  Confused?  Here's how I break down the law...more

Allen Matkins

Does A Statutory Fine Constitute A "Threat"?

Allen Matkins on

As the trial of of the constitutionality of SB 826, California's female director quota, law continues, the question of the plaintiffs' standing remains in contention.  As I reported in June of last year, Judge Maureen...more

Allen Matkins

Is Compliance With California's Female Quota Law Voluntary?

Allen Matkins on

California's female director quota law was on trial last week.  According to Brian Melley, a reporter for the Associated Press, a witness from the Secretary of State's office testified "It’s required but there’s no penalty,...more

Allen Matkins

Secretary Of State Argues SB 826 Does Not Require An Impermissible Quota

Allen Matkins on

SB 826 is scheduled to go on trial today before Los Angeles Superior Court Judge Maureen Duffy-Lewis.  Crest v. Weber, Cal. Super. Ct. Case No. 19STCV27561.   SB 826 requires all publicly held corporations headquartered in...more

Allen Matkins

Challenges To California Director Quota Law Keep Coming

Allen Matkins on

It should be a surprise to no one that California's laws imposing strict gender and diversity requirements on publicly held corporations continue to attract legal challenges.  Tomorrow, a trial is scheduled to begin in...more

Allen Matkins

Study Finds "A Robust and Significantly Negative Stock Market Reaction" To California's Gender Quota Mandate

Allen Matkins on

A study by an international team of scholars has concluded that California's imposition of a gender quota on publicly held corporations with their principal executive offices in the state resulted in a "robust and...more

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