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Do San Diego Business Contracts Now Need to Conform to the Three Gender Options?

In October 2017, California Governor Jerry Brown signed the Gender Recognition Act. This Act adds “non-binary” as a choice for California residents when required or asked to designate a gender for state documents like a driver’s license. The Act also amends the Civil Procedure Code to allow for petitions to change names and birth certificates to conform to the person’s gender identity. The Act’s preamble defines “non-binary” in this manner: “The binary gender designations of female and male fail to adequately represent the diversity of human experience. Nonbinary is an umbrella term for people with gender identities that fall somewhere outside of the traditional conceptions of strictly either female or male.” See text of Act here.

With respect to business contracts, one question that has arisen is whether contracts now need to conform to the new gender options. The answer is probably “yes,” and, likely, a review of your standard business contracts is in order. A good San Diego corporate attorney can help.

San Diego Corporate Law: What Changes are Needed to Our Business Contracts?

Many business contracts do not make any sort of reference to gender. A vendor supply contract, for example, probably does not use any boilerplate related to gender. However, personal and service contracts, such as an employment or independent contractor agreements, often do contain boilerplate language related to gender. Many well-drafted contracts contain something similar to Section 14 of the California Civil Procedure Code which uses this language: “(a) … words used in the masculine gender include the feminine and neuter; …”

Going forward, it may be important to change contract language to “… feminine, non-binary and neuter…” It may also be important to add language with respect to pronouns.

San Diego Corporate Law: Why are the Changes Needed?

Cal. Gov. Code, § 12940(j)(1) prohibits an employer from discriminating or harassing an employee on the basis of “race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status …” In general, it is probably not discrimination or harassment in and of itself to fail to conform business contracts to include the non-binary gender. However, there is no sound business reason to end up in litigation over the question. Moreover, discrimination lawsuits often compile a laundry-list of events, actions, and behaviors that “add up” to discrimination. See, for example, Husman v. Toyota Motor Credit Corp., 12 Cal. App. 5th 1168 (Cal. App. 2nd Dist. 2017) (claims of discrimination based on sexual orientation). Making changes to your business contracts can remove one item from the plaintiff’s list. Just as importantly, making changes to your business contracts can add an item to the non-discrimination counter-laundry-list compiled by your attorneys.

Contact San Diego Corporate Law

For further information, please contact Michael Leonard, Esq. of San Diego Corporate Law. Mr. Leonard has the experience to help review your employment and other personal service agreements to ensure that they comply with new and changing California laws. To schedule a consultation, contact Mr. Leonard via email or by calling (858) 483-9200. Mr. Leonard has been named a “Rising Star” three years running by SuperLawyers.com and “Best of the Bar” by the San Diego Business Journal.

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Do Business Contracts Now Need to Conform to the Three Gender Options?

SCHEDULE A CONSULTATION

Schedule a Consultation: 858.483.9200