California’s Lonely Effort To Diversify Corporate Boardrooms

Can California lead the way toward greater diversity in corporate boardrooms or will its efforts further incentivize corporations to leave the state?

In recent years, California has adopted new laws to diversify the faces in publicly traded corporate boardrooms in that state.

California Gov. Gavin Newsom recently signed into law AB-979 which requires  corporations to appoint directors from “underrepresented” communities on their boards by the end of 2121.

In 2018, California required corporations located in the state to appoint at least one woman to their board.

California’s efforts reflect the dismal representation of women and minorities on corporate boards but they also raise questions. What is the best way to effect change? Does this goal require a uniform national approach, with incentives and rewards, so that no single state suffers adverse consequences? Might California have sought out other states as allies, to achieve strength in numbers?

Corporations already are leaving California, which is ranked by The Tax Foundation as 48th in terms of regulatory and business climate. The financial services firm, Charles Schwab, is the latest to announce it is moving its corporate headquarters from San Francisco to Texas, which not only has a lower standard of living but is one of the states that is least friendly to workers.

Continue reading “California’s Lonely Effort To Diversify Corporate Boardrooms”

End Of The Road For ‘Misclassification’ of Workers by Lyft and Uber?

California Attorney General Xavier Becerra filed a motion Wednesday to enjoin Uber and Lyft from continuing to classify ride-hailing drivers as independent contractors rather than employees.

The motion, filed in San Francisco Superior Court, follows the 2019 passage of Assembly Bill 5 (AB5), a law codifying a landmark California Supreme Court ruling that places the burden on employers to show they are properly classifying workers as independent contractors rather than employees.  

In Dynamex Operations West, Inc. v. Superior Court, California’s high court said most workers should be classified as employees and receive sick leave and unemployment and workers’ compensation. 

Though AB5 went into effect on Jan. 1, Lyft and Uber continue to classify their drivers as independent contractors, while pocketing the cost of employee benefits. 

Along with several other app-coordinated services,  Uber and Lyft are furiously promoting a ballot measure for the November election to exempt gig workers from the AB5 rules. Continue reading “End Of The Road For ‘Misclassification’ of Workers by Lyft and Uber?”