Thousands of activists gathered at the North Carolina legislature on Monday as it reconvened for the first time since enacting a law criticised as anti-gay.
Supporters and opponents of the bill held competing rallies outside the statehouse in Raleigh.
More than 50 critics of the legislation were arrested after entering and refusing to leave the building.
The controversial law invalidates local anti-discrimination measures that protected gay and transgender people.
It also requires people to use public toilets that correspond to the sex listed on their birth certificates.
Major companies such as Bank of America and Apple have criticised the law.
Other companies including Pay Pal and Deutsche Bank vowed to curtail their businesses in the state because of it.
"It took great courage for them to establish this bill," Doug Woods, 82, a supporter told the Associated Press. "They need to stand firm."
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