Business & Tech

Texas Abortion Law Has Houston Company Hiring Elsewhere: Report

Solugen, a Silicon Valley-backed startup, plans to open a facility out of state because Texas' social policies make recruiting difficult.

Protesters hold up signs at a protest outside the Texas state capitol on May 29 in Austin, Texas. Thousands of protesters came out in response to a new bill outlawing abortions after a fetal heartbeat is detected signed Wednesday by Gov. Greg Abbott.
Protesters hold up signs at a protest outside the Texas state capitol on May 29 in Austin, Texas. Thousands of protesters came out in response to a new bill outlawing abortions after a fetal heartbeat is detected signed Wednesday by Gov. Greg Abbott. (Sergio Flores/Getty Images)

HOUSTON, TX — A Houston-based chemicals company is planning to hire more people outside Texas because of the state's recent social policies, including the abortion ban, according to a report from Axios.

Solugen, a startup backed by Silicon Valley venture capital firms, is expanding its research and development department and will build a facility in either California or Massachusetts, according to Axios.

The new law, Senate Bill 8, prohibits abortions after a fetal heartbeat has been detected, which occurs as early as six weeks. The law allows any person to sue abortion providers or anyone who aids or abets abortions after this period, including those who drive people seeking abortions to a clinic, for $10,000. The law went into effect Sept. 1.

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"We've come to the conclusion after talking to lots of candidates that they want to join Solugen but they don't feel comfortable coming to Texas, so for us it's become a no brainer to have R&D facilities elsewhere," Solugen CEO Gaurab Chakrabarti told Axios.

Several companies have announced pushback to the law since it took effect nearly a week ago. The Austin-based dating app Bumble announced Friday it was creating a relief fund to support reproductive rights. Uber and Lyft announced Saturday that they will cover the fees for any of its drivers who are sued for driving someone to receive an abortion.

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