U.S. Labor Department regulators are moving to repeal a controversial parental leave wage subsidy that foodservice industry leaders fear may have diverted funds desperately needed by laid off workers.
The three-year old rule has allowed states to dip into their unemployment insurance funds to provide paid benefits to workers who take parental leave for birth or adoption.
National Restaurant Association lobbyists praise the dept. for reversing course and "recognizing that the UI system is designed to provide temporary assistance to individuals who are unemployed due to a lack of suitable work."