In this case study we examine the impact of North Carolina’s House Bill 2 (HB2) on businesses in the state. We draw on secondary information sources including local and national media outlets, and state and federal government publications.  The case outlines the political, legal, and public circumstances leading to, and the reactions following the passage of House Bill 2.  Next, we chart the impact of these events on businesses operating in and out of the State. We show that the bill and subsequent events had both immediate and lagged negative effects on the North Carolina’s business community. We predict that HB2 will have an enduring and intensifying negative impact on the business environment in North Carolina.  We conclude with recommendations for businesses on how to adapt to North Carolina’s changing legal and business environment.