Breaking: PayPal Will Move 400 Jobs, $3.6 Million Investment Outside of North Carolina, Citing HB2

HRC staff

Today, HRC released the following statement after PayPal CEO Dan Schulman announced that the company will seek an alternative location for its new “global operations center.” PayPal had announced plans for the $3.6 million facility at an event with Gov. Pat McCrory March 18.

"PayPal’s announcement today sends a loud and clear message to Governor McCrory that discrimination is not only bad for North Carolina and bad for people -- it's bad for business," said HRC President Chad Griffin. “With every passing day that HB2 remains on the books, Governor McCrory is inflicting damage on the state’s economy and reputation. The fact also remains that this destructive and appalling bill continues to put people across the state at risk of harm and discrimination. It is time for Governor McCrory to stop this senseless crusade against equality and repeal HB2 once and for all."

PayPal’s CEO, Dan Schulman, had previously joined dozens of CEOs from across the nation and signed a joint letter from HRC and Equality North Carolina calling for the repeal of HB2.  A copy of the updated letter and its signatories can be found here.

PayPal’s investment was expected to bring 400 skilled jobs to North Carolina, with an annual payroll impact of more than $20 million. In its statement today, Schulman said, “The new law perpetuates discrimination and it violates the values and principles that are at the core of PayPal’s mission and culture.”

HB2 has eliminated existing municipal non-discrimination protections for LGBT people and prevents such protections from being passed by cities in the future. The legislation also forces transgender students in public schools to use restrooms and other facilities inconsistent with their gender identity, putting 4.5 billion dollars in federal funding under Title IX at risk. It also compels the same type of discrimination against transgender people to take place in publicly-owned buildings, including in public universities.  Lawmakers passed the legislation in a hurried, single-day session last Wednesday, and Governor McCrory quickly signed it into law in the dead of night.

North Carolina has the unfortunate distinction of becoming the first state in the country to enact a law attacking transgender students, even after similar proposals were rejected across the country this year -- including a high-profile veto by the Republican Governor Dennis Daugaard of South Dakota. North Carolina school districts that comply with the law will now be in direct violation of Title IX, subjecting the school districts to massive liability and putting an estimated $4.5 billion of federal funding from the U.S. Department of Education, as well as funding received by schools from other federal agencies, at risk. This section of House Bill 2 offers costly supposed solutions to non-existent problems, and it forces schools to choose between complying with federal law -- plus doing the right thing for their students -- or complying with a state law that violates students’ civil rights. Read more about how this bill puts federal funding at risk here.  North Carolina is the third state to pass a law preempting cities from passing LGBT-inclusive non-discrimination ordinances, after Arkansas and Tennessee.


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