U.S businesses paying for abortions to employees, could face legal disputes

U.S businesses paying for abortions to employees, could face legal disputes

Web Desk
June 27, 2022

U.S businesses paying for abortions to employees, could face legal disputes

Large American firms are increasingly offering to pay for employees’ travel expenses when they need to leave their home
U.S. Supreme Court decision overturning the landmark 1973 Roe v. Wade decision that had legalised abortion throughout the country,
Conde Nast CEO Roger Lynch sent a memo to staff outlining a travel reimbursement policy and referring to the court’s judgement

Large American firms are increasingly offering to pay for employees’ travel expenses when they need to leave their home states for abortions, but legal experts warned that these new practises could subject organisations to legal action and even potential criminal prosecution.

In anticipation of Friday’s U.S. Supreme Court decision overturning the landmark 1973 Roe v. Wade decision that had legalised abortion throughout the country, companies like Amazon.com Inc (AMZN.O), Apple Inc (AAPL.O), Lyft Inc (LYFT.O), Microsoft Corp (MSFT.O), and JPMorgan Chase & Co (JPM.N) announced plans to offer those benefits through their health insurance plans.

Conde Nast CEO Roger Lynch sent a memo to staff outlining a travel reimbursement policy and referring to the court’s judgement as “a catastrophic blow to reproductive rights” within an hour of the verdict being made public. According to a spokeswoman, Walt Disney Co. (DIS.N) released a comparable policy on Friday, informing staff that while it acknowledges the implications of the abortion verdict, it is nonetheless dedicated to offering full access to high-quality healthcare.

On Friday, companies like Alaska Airlines Inc [RIC:RIC:ALKAIR.UL], Dick’s Sporting Goods Inc (DKS.N), Paypal Holdings Inc (PYPL.O), health insurer Cigna Corp (CI.N), and others announced their reimbursement policies.

Following Friday’s decision, abortion restrictions that were already in place in 13 states took effect, and at least a dozen additional Republican-led states are anticipated to follow suit.

The Mississippi statute that forbids abortion beyond 15 weeks was upheld by the court in its ruling, which was influenced by its conservative majority. Some Democratic-led states are taking action to increase access to abortions in the meantime.

If businesses adopt policies that encourage employees getting abortions, they will have to navigate the patchwork of state laws and risk angering anti-abortion organisations and Republican-led states.

Texas state legislators have already threatened legal action against Lyft and Citigroup Inc. (C.N), both of which had previously revealed trip reimbursement programmes. Texas “will take immediate and decisive action” if the ride-hailing business implements the policy, a group of Republican lawmakers warned in a letter to Lyft CEO Logan Green last month.

The lawmakers also provided a list of measures pertaining to abortion, such as one that would prohibit businesses from operating in Texas if they paid for Texans to get abortions elsewhere.

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