California Looks to Outlaw Sexual Harassment by VCs

Legal ambiguity may help enable bad behavior. California is looking to change that.
Photographer: PeopleImages/Getty Images
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A rash of sexual harassment scandals this summer involving venture capitalists has laid bare a major weakness in laws meant to protect workers from unwelcome advances. While legislation is clear on many workplace interactions, there’s next to nothing on the books concerning the investor-entrepreneur relationships accounting for billions of dollars in startup funding.

California legislators want to address that shortcoming, creating the prospect of a wave of lawsuits against VCs. Changes to California law would also provide a template for other states.