Acting to quiet business's criticism and protect state unemployment insurance dollars, the U.S. Labor Depart-ment says it plans to repeal a Clinton administration regulation that gives states the option of dipping into their unemployment insurance fund to help pay workers who take unpaid time off to care for a new child.
No state has implemented the rule yet. But critics argued that it was a creative way to expand theAct and would have allowed for claims that Congress never intended to finance through unemployment coffers.
Labor Department officials cited the need to protect shrinking state unemployment reserves, which are
at risk in this shaky economy, as its reason for wanting to end the controversial Birth and Adoption Unemploy-ment Compensation Rule of 2000, or "Baby UI."