Get the latest tech news How to check Is Temu legit? How to delete trackers
TECH
Marc Benioff

PayPal co-founder urges tech CEOs to be wary of Indiana

Marco della Cava
USA TODAY
Max Levchin, one of the founders of PayPal, is speaking out against a new Indiana religious freedom law.

PayPal co-founder Max Levchin has added his name to the growing list of tech leaders condemning a new Indiana law that opponents say could allow discrimination against gays and lesbians, and that may soon be echoed by similar legislation in Arkansas.

The law, called the Religious Freedom Restoration Act, prohibits state or local governments from substantially burdening a person's ability to exercise their religion.

Business leaders including Apple's Tim Cook, Saleforce.com's Marc Benioff, and now Levchin say that it will protect business owners from legal repercussions if they choose to deny services to gays and lesbians based on their religious faith.

"What is happening in Indiana is pretty unbelievable. However it's dressed up, it's a signal that discrimination is welcome in this state," Levchin tweeted Monday.

He later went on CNBC and said that he would "encourage Paypal's new CEO and other CEOs in Silicon Valley to evaluate their relationship with the state of Indiana. If local bills and laws say that it is OK to discriminate, you have to make sure that you are protecting your employees and you keep them safe and comfortable."

Levchin was one of a group of entrepreneurs - including Tesla's Elon Musk and investor Peter Thiel - who in 1998 started PayPal, which was later bought by eBay Inc. eBay and PayPal are spinning off into separate companies later this year.

Levchin's comments come on the heels of an op-ed piece in The Washington Post by Apple's Cook, who wrote that "America's business community recognized a long time ago that discrimination, in all its forms, is bad for business. At Apple, we are in business to empower and enrich our customers' lives. We strive to do business in a way that is just and fair. That's why, on behalf of Apple, I'm standing up to oppose this new wave of legislation — wherever it emerges."

Cook was especially concerned that Arkansas was among a range of states also considering similar laws. Arkansas' senate passed such a measure on Friday, and Gov. Asa Hunchinson said he has no plans to block its passage into law. "This bill is designed to protect the religious freedoms of all Arkansans," Hutchinson said Friday. "It's no different than legislation that has passed in 20 other states, from Illinois to Connecticut. Arkansas is open for business, and we recognize and respect the diversity of our culture and economy."

Salesforce's Benioff was among the first tech luminaries to urge Indiana's governor Mike Pence not to pass the Religious Freedom Restoration Act. After it passed last week, he and others cautioned that the state was potentially taking itself out of the tech boom sweepstakes as the law would make it very difficult to recruit top talent.


Featured Weekly Ad