This month a U.S. Labor Department regulation is set to take effect allowing states to use unemployment insurance to pay employees who take leave for birth or adoption. But it faces a big legal challenge from several employer groups.
The U.S. Chamber of Commerce, the Society for Human Resourceand other groups jointly filed suit against the Labor Department in federal court to stop the regulation from taking effect as planned Aug. 14.
The lawsuit says the Clinton administration overstepped its authority and the intent of theAct in attempting to provide paid leave. The court had not taken action as of press time.