Kentucky Employment Law Update — April 2019

Employment Agreements

On March 25, 2019, Kentucky Governor Matt Bevin signed legislation (S.B. 7) allowing all of the following:

• Arbitration, mediation, or alternative dispute resolution agreements to be required by employers as a condition or precondition to employment;
• A waiver of a claim to be required as a condition or precondition for rehiring of an employee;
• An agreement to reduce the period for limitations as a condition or precondition of employment, as long as the agreement:
  • Does not apply to state or federal law that preempts modifying limitations; and
  • Does not reduce the period of limitations by more than 50 percent of applicable time under the claim.
• An employee to be required to agree to a background check as a condition or precondition of employment in conformity with a state of federal law requiring background checks; however, employers must obtain the employee’s consent prior to receipt or use of the background check.

Additionally, under the law, arbitration agreements between an employer and employee:

• Are subject to general contract defenses;
• Must safeguard effective vindication of legal rights; and
• Arbitrators must disqualify themselves if there are conflicts.

All of these provisions are applicable retroactively and prospectively. However, they do not apply to collective bargaining agreements between employer and representatives of member employees.

The law is effective June 26, 2019.

Read KY S.B. 7