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We’ve written before about potential impacts of the recent US Supreme Court decision overturning Roe v. Wade, and a Bloomberg article yesterday describes actions one of the world’s largest pharmaceutical companies is taking. In response to abortion restrictions recently passed in Eli Lilly’s home state of Indiana, the company announced it will “plan for more employment growth outside our home state.” Indiana is the first state to pass anti-abortion legislation since the Supreme Court decision. The law goes into effect on September 15.

According to the article:

A growing list of companies, including Citigroup Inc., Apple Inc., Bumble Inc. and Levi Strauss & Co., are offering benefits for reproductive-care services in states that have imposed restrictions. But Indianapolis-based Eli Lilly’s announcement marks a swift escalation by a multinational that employs 10,000 people in Indiana, where the drug maker was founded in 1876…

‘We are concerned that this law will hinder Lilly’s — and Indiana’s — ability to attract diverse scientific, engineering and business talent from around the world,’ according to [a statement issued by the company]. ‘Given this new law, we will be forced to plan for more employment growth outside our home state.’ 

Our view: I wouldn’t be surprised to see more employers following suit, adjusting their growth and hiring strategies to allow employees unfettered access to reproductive care. Laws like that in Indiana may create significant unintended consequences in lower tax revenue for states.

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The Editor

Lawrence Heim has been practicing in the field of ESG management for almost 40 years. He began his career as a legal assistant in the Environmental Practice of Vinson & Elkins working for a partner who is nationally recognized and an adjunct professor of environmental law at the University of Texas Law School. He moved into technical environmental consulting with ENSR Consulting & Engineering at the height of environmental regulatory development, working across a range of disciplines. He was one… View Profile