HR Management & Compliance

News Note: Government Increases Cost Estimate For Use Of Unemployment Insurance Funds For Family Leave

The federal Department of Labor has increased its projections of the cost of allowing states to pay unemployment insurance benefits to employees out on family leave. Original estimates were as high as $68 million based on the four to six states that initially expressed interest. But now the agency says that the new program could cost $196 million annually because at least 15 states are considering the concept. In related news, several groups have filed suit to stop the DOL from adopting this policy, contending that an act of Congress is necessary to make such an important change in the unemployment compensation program.

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