California man sues to overturn ‘woman quota’ in state gender equity law
A previous version of this story misstated Creighton Meland’s role with OSI Inc. He is a shareholder.
A California law intended to create more gender equity in corporate boardrooms is facing a second legal challenge, this time in federal court.
The libertarian Pacific Legal Foundation sued California in the U.S. District Court for the Eastern District of California on behalf of retired corporate attorney Creighton Meland Jr.
Meland is a shareholder in the Hawthorne-based company OSI Inc., a manufacturer of security and health care systems. The company’s board is made up of seven men.
OSI will be required by law to seat two women on the board by the end of 2021 “or face fines for failing to comply with the Woman Quota,” the complaint alleges.
“The Woman Quota imposes a sex-based quota directly on shareholders, and seeks to force shareholders to perpetuate sex-based discrimination,” the complaint said.
The quota referred to in the complaint refers to Senate Bill 826, signed into law by then-Gov. Jerry Brown in 2018.
Sponsored by Sen. Hannah-Beth Jackson, D-Santa Barbara, the law mandates that publicly held corporations in California must have no fewer than one woman on their boards by the end of 2019, two or more by 2021 for boards of five, and three women by 2021 for boards of six or more.
Pacific Legal Foundation attorney Anastasia Boden called the law condescending, saying that it “puts equal numbers above equal treatment.”
“Women are capable of earning a spot on corporate boards without the government coercing businesses to hire them,” Boden said in prepared remarks.
This marks the second legal challenge against the law this year.
In August, the conservative group Judicial Watch sued the state in Los Angeles County Superior Court, calling it “brazenly unconstitutional.”
In a response to the lawsuit, Jackson said, “I certainly respect the constitutional right of anyone to challenge the law in our courts. However, I strongly believe that this measure meets constitutional requirements and will be held up in court.”
Jackson added that, “Significant research has shown the importance of adding women to boards to improve profitability and add to the economic well-being of the state, as well the interest of the state to advance gender equality.”
This story was originally published November 13, 2019 at 2:19 PM with the headline "California man sues to overturn ‘woman quota’ in state gender equity law."
