Massachusetts law prohibits workplace harassment and discrimination. But there’s a loophole: Those laws generally don’t apply to perpetrators who are investors, or potential investors, in a company.
That can be a problem for workers in a significant swath of Boston’s booming economy. In technology, biotech, and other fields seeded by venture capital and private equity, outside investors hold extraordinary power over the careers of entrepreneurs, who have little recourse if they’re mistreated.
Now, a group of lawmakers on Beacon Hill is pushing legislation that would subject investors to the same civil discrimination and harassment laws that apply to employers. The bill’s lead sponsor, State Senator Cindy F. Friedman, an Arlington Democrat, noted that the vast majority of venture capital in the United States now goes to white, male founders.