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California November 2019 HR Updates

Emily Hartman /

Every month we cover timely California legislative and regulatory employment updates. Check out what you need to know and gain compliance tips to help you stay on top of HR the right way.

California Mandates Women on Boards of Directors

Who: Publicly-traded corporations

When: December 31, 2019

What:

Former California Governor Brown signed legislation that by the end of December 2019, publicly held corporations must have at least 1 female board member.

By the end of 2021, if a board has 5 directors, at least 2 members will need to be women, and a board with 6 directors will need at least 3 women.

The California Secretary of State may impose fines for any violations of the bill. A first violation will be fined $100,000, and a second or additional violation(s) will be fined the amount of $300,000. It should be noted that a female director who has held a seat for at least a portion of the calendar year isn’t considered a violation. If a seat isn’t held by a female during at least a portion of the calendar year, it is considered a violation.

How:

  • If this new law applies to your company, review your current board members to determine if you are compliant with the new law.
  • Assess board member term lengths and strategize how best to recruit female board members.

Additional Resource

SB 826

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