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A California state senator says she will introduce legislation to clarify legal protections for entrepreneurs facing sexual harassment. State Sen. Hannah-Beth Jackson says the proposal, which she revealed Thursday, is in response to “recent and stunning” allegations by women entrepreneurs of harassment by venture capitalists. Such behavior is unacceptable from an industry that “prides itself as being the cutting edge and critical to our state’s economy,” she said.
The proposal would amend California’s Unruh Civil Rights Act, which prohibits sexual discrimination at California businesses, to clarify that it covers sexual harassment in relationships between entrepreneurs and potential investors. Current law specifies doctor-patient and attorney-client relationships, but does not explicitly mention entrepreneurs and potential investors.
In recent months, two prominent venture capitalists -- 500 Startups founder Dave McClure and Binary Capital's Justin Caldbeck -- resigned after allegations of unwanted advances from multiple women.
Jackson said she will attach the proposal to another piece of legislation in January, to allow for “thoughtful and deliberative” consideration by lawmakers. She said the proposal is particularly timely because of allegations of unfair treatment of women at two larger, more established tech companies, Uber and Google.
Equal Rights Advocates, a national nonprofit that champions gender rights in workplaces and schools, will support the measure. The organization has previously worked with Jackson to successfully strengthen California’s Equal Pay Law.
The tech industry “can’t claim to lead innovation at the same time it lives in the dark ages about the value of women and their ability,” said Noreen Farrell, executive director of Equal Rights Advocates, on a conference call with reporters. “This really is the moment for venture capitalists and tech to make a clean break from discrimination.”
The National Venture Capital Association, an industry trade group, welcomes these legislative efforts, says Kate Mitchell, founder of the NVCA’s diversity and inclusion task force. In early August, NVCA convened a special board meeting to discuss the recent sexual-harassment allegations and an industry response. The group has discussed publicizing behavioral best practices, adding anti-harassment clauses to term sheets, and other ideas. “We want to listen to the survivors, we want to listen to the limited partners,” in order to figure out the right thing to do, Mitchell says.
UPDATE, 8:00 pm, August 17: This story has been updated to include comments from the National Venture Capital Association.
