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You may not consider yourself political, preferring business development to legal developments in your state. Still, you can't ignore the law. It changes all the time and it impacts the climate in which you operate, as entrepreneurs and business owners in North Carolina can tell you first hand.
Last week, that state passed HB2, a law that many nationwide have deemed discriminatory against the LGBT community. Companies warned Governor McCrory that passage of the law would cause them to reconsider doing business in North Carolina. Now the state is starting to pay the price for ignoring them, according to NBC News.
Last month, PayPal announced plans to build a $3.6 million operations center in Charlotte and hire 400 employees to work there. North Carolina reportedly lured the company with $2.7 million in economic development grants, expecting it to generate about $20 million in payroll annually.
But after the bill passed in an emergency session, PayPal CEO Dan Schulman said the company was not settling down in North Carolina. He said in a statement that the new law "perpetuates discrimination" and violates the company's "values and principles," pledging to help the state's LGBT community get the new law repealed.
Similarly, Google Ventures reportedly will not invest in any North Carolina startups and its CEO joined a list of tech executives calling for HB2 to be overturned. Apple, Facebook, and Uber were among 90 companies who signed a Human Rights Campaign letter urging North Carolina to repeal the "discriminatory and radical new anti-LGBT law."
Insiders and Outsiders
People outside of North Carolina have plenty to say about the legal developments in that state, including Bruce Springsteen who refused to perform there. Local business owners must be dismayed, however, as opportunities to succeed disappear.
Efforts by outsiders to put pressure on North Carolina are working, and business owners may yet cheer. The lesson for you here is that changes in state laws can and will impact your business, wherever you operate.
If you are a business owner concerned about that state of your state's laws or any aspect of business operations, speak to a lawyer. Get guidance.
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