The Tasmanian Government today released a statement denying MP Paula Wriedt is facing sexual harassment allegations.
Tasmanian Premier David Bartlett said he received a letter last week from a lawyer representing a Government employee closely linked to Ms Wriedt's office which made several unproven claims.
Mr Bartlett says he informed Ms Wriedt of the legal action on Thursday and has passed on the letter to the solicitor-general.
The statement does not specify what the complaint is about but it is understood to be a workers compensation claim.
Ms Wriedt began a "long process" of recovery today after being rushed to hospital on Monday.
However, Ms Wriedt's sister, Sonia Morgan, told reporters she was "showing good signs".
Ms Morgan, accompanied by Ms Wriedt's estranged husband, Dale Rahmanovic, said she would not explain the medical reasons for her sister's hospital admission yesterday, because it was "not in Paula's best interests".
It is believed the 39-year-old succumbed psychologically to a build-up of pressure caused by the recent break-up of her marriage and her consideration of quitting politics this week.
"The breakdown of her marriage has had a profound effect on her," Ms Morgan said in a statement she read to reporters today.
"The pressures of public life, constant travel away from home and public scrutiny combined with motherhood is a difficult act to balance.
"I have spent several hours with Paula in hospital since last night. She is a strong person and is showing good signs.
"Her recovery will be a long process and she is getting all the support she needs, with her family and friends by her side every step of the way."
Premier David Bartlett announced that the minister for economic development and tourism had been rushed to Royal Hobart Hospital about 4pm (AEST) yesterday just two hours after a cabinet meeting.
The shaken premier has taken over Ms Wriedt's portfolios and says she will need treatment and time to recover.