Employers sue over tapping unemployment fund for family leave — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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Employers sue over tapping unemployment fund for family leave

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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 Resource Management and 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 the Family and Medical Leave Act in attempting to provide paid leave. The court had not taken action as of press time.

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