Businesses Weigh In on Supreme Court's Abortion Ruling

Strategic Insights -

The Supreme Court's decision to end the nation's constitutional protections for abortion has placed businesses in a difficult position, with many weighing the potential consequences of speaking out on the issue. While some companies, such as The Walt Disney Company and Meta, have announced they will reimburse employees who must travel out of state to get an abortion, others, like McDonald's and Walmart, have remained silent. The ruling has significant implications for businesses, particularly those in states with restrictive abortion laws, where they may struggle to attract and retain college-educated workers. The decision also raises concerns about the potential for companies to be targeted by anti-abortion lawmakers and the legal risks involved in offering travel benefits to employees.

Key Takeaways:

  • Over a dozen major businesses, including The Walt Disney Company, Meta, American Express, and Bank of America, have announced they will reimburse employees who must travel out of state to get an abortion.
  • Many companies, such as McDonald's and Walmart, have remained silent on the issue, despite the potential consequences of restrictive abortion laws.
  • The ruling threatens the technology boom in places like Austin, Texas, as companies like Dell may struggle to recruit newly minted tech graduates to their corporate hubs.
  • Emily M. Dickens, chief of staff and head of government affairs for the Society for Human Resource Management, noted that offering a health savings account to cover travel for reproductive care in another state will enhance an organization's ability to compete for talent, but how these policies interact with state laws is unclear.
  • Companies that use third-party administrators to process claims on their behalf are subject to the Employee Retirement Income Security Act rather than state law, while smaller businesses are subject to state regulations and have less flexibility in designing benefits.
  • Tech companies are facing tough questions about what they'll do if some of their millions of customers in the U.S. are prosecuted for having an abortion, raising concerns from privacy advocates about enforcers of abortion laws tapping into period apps and phone location data.
  • The Supreme Court ruling comes at a time when companies have become increasingly reliant on women to fill jobs, and especially as they face a nationwide labor shortage.
  • Women now account for nearly 50% of the U.S. workforce, up dramatically from 37.5% in 1970, according to the Bureau of Labor Statistics.
  • Denied access to abortion could hit low-income workers the hardest because they're typically in jobs with fewer protections and that are also demanding.
  • Mary Kay Henry, international president of the Service Employees International Union, said that as a direct result of the ruling, more women will be forced to choose between paying their rent or traveling long distances to receive safe abortion care.
  • Sara Nelson, president of the Association of Flight Attendants, called the ruling "devastating" and said it cuts to the core of all the work that the union has done for 75 years.

Statistics:

  • Nearly a quarter of organizations in a recent poll agreed that offering a health savings account to cover travel for reproductive care in another state will enhance their ability to compete for talent.
  • Women now account for nearly 50% of the U.S. workforce, up dramatically from 37.5% in 1970.
  • Denied access to abortion could hit low-income workers the hardest because they're typically in jobs with fewer protections and that are also demanding.
  • The Service Employees International Union, which represents nearly 2 million janitors, health care workers, and teachers in the U.S., said that as a direct result of the ruling, more women will be forced to choose between paying their rent or traveling long distances to receive safe abortion care.
  • The Association of Flight Attendants has been advocating for women's rights for 75 years.

Sources:

  • AP news wire
  • The Walt Disney Company
  • Meta
  • American Express
  • Bank of America
  • Facebook
  • Apple
  • Google
  • Microsoft
  • Citigroup
  • Texas State Representative Briscoe Cain
  • Justice Brett Kavanaugh
  • Teresa Collett, law professor at the University of St. Thomas
  • Luis von Ahn, CEO of Duolingo
  • Steven Pedigo, professor at the University of Texas at Austin
  • Emily M. Dickens, chief of staff and head of government affairs for the Society for Human Resource Management
  • Mary Kay Henry, international president of the Service Employees International Union
  • Sara Nelson, president of the Association of Flight Attendants
  • Maurice Schweitzer, professor at University of Pennsylvania's Wharton School of Business
  • Bureau of Labor Statistics
  • Service Employees International Union
  • Association of Flight Attendants
  • Wharton School of Business