PayPal, the California-based online payment company, has announced that the company “will not move forward” with a planned expansion in Charlotte because of recently-passed legislation that advocates are calling the worst anti-LGBT legislation in the nation.

PayPal announced two weeks ago that the company planned to open a new global operation center in Charlotte that would employ over 400 people, but PayPal President and CEO Dan Schulman said in a release the company will now “seek an alternative location for our operations center.”

Schulman wrote, “The new law perpetuates discrimination and it violates the values and principles that are at the core of PayPal’s mission and culture.”

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HB2 was passed in a special session of the General Assembly in late March after the Charlotte City Council voted to allow transgender individuals to use the bathroom of their gender identity rather than what is on their birth certificate. The law repealed that ordinance and banned municipalities from extending nondiscrimination ordinances put in place at the state level. House Bill 2 also prohibits local government from extending other ordinances that call for employers to pay a living wage, among other things.

Our decision is a clear and unambiguous one. But we do regret that we will not have the opportunity to be a part of the Charlotte community and to count as colleagues the skilled and talented people of the region. As a company that is committed to the principle that everyone deserves to live without fear of discrimination simply for being who they are, becoming an employer in North Carolina, where members of our teams will not have equal rights under the law, is simply untenable.

Schulman added that the company would “remain committed to working with the LGBT community in North Carolina to overturn this discriminatory legislation, alongside all those who are committed to equality.”

Proponents of HB2 have criticized PayPal for operating in Cuba but choosing not to expand in North Carolina since the decision was announced on Tuesday morning.