HIGHLIGHTS

“Colorado and several other states have filed a federal suit against the United States Department of Labor (“DOL”), alleging that the agency breached the terms of grant agreements and acted in bad faith when it suddenly terminated several grants awarded to assist in efforts to modernize unemployment insurance programs. The DOL stated that the grants “no longer effectuate […] priorities for its grant funding,” while the affected states say a shift in priorities does not void valid agreements, nor do the terms and conditions of the agreement allow a termination for this reason.”