This article uses data from employer surveys and the March Current Population Survey to investigate the impact of the Family and Medical Leave Act (FMLA) on coverage, leave-taking, employment, and earnings. The variation in state laws prior to the FMLA and the variation in coverage under the FMLA provides a “natural experiment” in which the effect of the law can be compared for treatment and con-trol groups. Although the FMLA covers less than half of workers in the private sector (many of whom already had coverage pre-FMLA), this article finds that leave cover-age and usage did increase post-FMLA. The other surprising finding is that this mandated benefit had no significant negative effects on women's employment or wages. ©1999 by the Association for Public Policy Analysis and Management.