Prospect of Unemployment Insurance Funding Family Leave Prompts Lawsuit
WASHINGTON -- Business groups are promising to wage a court battle over government regulations that would allow states to use unemployment-insurance money to give new parents paid time off from their jobs.</br></br>The regulations, expected to be formally introduced today, would allow state governments to use unemployment-insurance funds to pay parents of newborn or adopted children while they are on leave from their jobs. A lawsuit challenging the rules is expected by the end of the week.</br></br>The guidelines would amend 1993's Family and Medical Leave Act, which allows parents to take as much as 12 weeks of unpaid leave to care for new children or sick relatives. White House officials say many Americans are simply unable to take such leave if it means doing without a regular paycheck. With jobs plentiful in a surging economy, the officials argue that excess unemployment-insurance funds can safely be shifted to pay for leaves.</br></br>"In today's strong economy, we can provide this important benefit without threatening the fiscal strength of the unemployment-insurance programs," said Labor Secretary Alexis Herman.</br></br>Nonsense, say many business groups, who accuse the White House of playing politics with money meant to provide a safety net for out-of-work Americans. They argue that the funds could run out if the economy were to slow, forcing companies to pay higher payroll taxes.