Pursuant to a legislative requirement, GAO reviewed the Department of Labor's (DOL) new rule on birth and adoption unemployment compensation. GAO noted that: (1) the final rule would allow state agencies that administer the Unemployment Compensation (UC) program to provide partial wage replacement, on a voluntary, experimental basis, to parents who take approved leave or who otherwise leave employment following the birth or placement for adoption of a child; (2) the rule permits interested states to experiment with methods for following the use of the UC program for this purpose; and (3) DOL complied with applicable requirements in promulgating the rule.

GAO noted that: (1) the final rule allows state agencies that administer the Unemployment Compensation (UC) program to provide partial wage replacement, on a voluntary, experimental basis, to parents who take approved leave or who otherwise leave employment following the birth or placement for adoption of a child; and (2) the rule permits interested states to experiment with methods for following the use of the UC program for this purpose.