An economic backlash broadened Tuesday against a North Carolina law that critics say discriminates against lesbian, gay, bisexual and transgender people with PayPal announcing it has canceled a major expansion in the state.
North Carolina has come under heavy criticism since Gov. Pat McCrory signed the law requiring transgender people to use public bathrooms that match the sex of their birth certificates.
The law was passed in response to a Charlotte ordinance that offered protections to gay and transgender people. It also excludes sexual orientation and gender identity from the state’s anti-discrimination law and bars local governments from expanding anti-discrimination rules.
More than 100 corporate leaders have decried the law, saying it is unfair and makes it more difficult to attract talent.
Just days before signing the law last month, McCrory personally attended PayPal’s announcement that it was opening a new operation center in Charlotte, where he was once mayor. On Tuesday, the San Jose, California-based company said it was canceling the $3.6 million plan, which would have created 400 jobs.
“This decision reflects PayPal’s deepest values and our strong belief that every person has the right to be treated equally, and with dignity and respect,” the company said in a statement.
A group that supported the legislation said PayPal pulled out despite being promised millions in incentives. The North Carolina Values Coalition said in a statement that “a company with its hands in the pockets of the taxpayers of North Carolina shouldn’t insert itself into the bathroom policies of the state.”