Laws meant to protect women make it harder to get hired, but easier to get promoted
What happened
New laws that weaken non-disclosure agreements in harassment cases make it harder for women to get hired at startups. But these same laws also push startups to promote more women into leadership roles and cause male managers to leave.
Why it matters
Laws meant to protect women have complicated effects. It turns out that startups respond to increased legal risk by hiring fewer junior women. But the same risk also forces internal changes, opening paths for women already inside the company.
The signal
Watch whether venture capital firms continue to reduce funding for startups in states with these laws, or if the internal restructuring eventually makes those firms more attractive.