A common provision in employment agreements may no longer be enforceable, at least for employers in Kentucky. At the commencement of employment, employers often have their new hires sign employment agreements outlining basic terms of their new employment. A common provision in these agreements is a requirement that any disputes related to employment be settled through binding arbitration as opposed to through the court system. Given the general support for arbitration agreements provided by Courts under the Federal Arbitration Act, these provisions are routinely upheld. However, a recent decision by the Kentucky Supreme Court has gone against this trend.
In Northern Kentucky Area Development District v. Danielle Snyder, The Kentucky Supreme Court held that the NKADD acted beyond the scope of its power when it conditioned employment upon an employee’s willingness to sign an arbitration agreement. The Court based this decision on a Kentucky Statute which prohibits employers from conditioning employment on an existing employee’s or prospective employee’s agreement to “waive, arbitrate, or otherwise diminish any existing or future claim, right, or benefit to which the employee or person seeking employment would otherwise be entitled….” KRS § 336.700(2). Because this statute does not specifically target or discriminate against arbitration agreements—instead prohibiting any agreement whatsoever that conditions employment on the employee’s agreement to waive any and all rights against the employer—the Court found that the FAA did not control.
While the Court’s decision focused specifically on a public employer, the language used in the opinion suggests that the same interpretation may be applied to private employers. Moving forward, employers in Kentucky seeking to enforce an arbitration agreement may need to show that an individual’s employment was not conditioned upon accepting such agreement
- Partner
Greg Robinson assists his clients in navigating the complex world of workplace laws and regulations. He has counseled clients on a wide array of employment matters, including wage and hour disputes, discrimination charges ...
Topics/Tags
Select- EEOC
- Employment Law
- Immigration
- Labor Law
- Department of Labor
- Diversity
- Wage & Hour
- NLRB
- Arbitration
- National Labor Relations Board
- Americans with Disabilities Act
- Discrimination
- FLSA
- Coronavirus
- Reasonable Accommodation
- Social Media
- Sexual Harassment
- National Enforcement Plan
- Sixth Circuit
- Employer Policies
- Title VII
- Employment Litigation
- Transgender Issues
- Religion Discrimination
- Employer Rules
- Holiday Policies
- Overtime Pay
- Workplace Violence
- Non-Compete Agreements
- Pregnancy Discrimination
- OSHA
- Employee Benefits and Executive Compensation
- Artificial Intelligence
- Privacy
- Department of Justice
- Independent Contractor
- Joint Employer
- Telework
- NLRA
- Compliance
- Paid Leave Laws
- Supreme Court
- Tax Credit
- Workplace Accommodations
- Federal Trade Commission
- Employee Tips
- One Big Beautiful Bill
- Litigation
- IRS
- Worker Classification
- Harassment
- Performance Improvement Plans
- Disability Discrimination
- Department of Homeland Security
- Foreign Nationals
- Immigration and Customs Enforcement
- Immigration and Nationality Act
- Medical Marijuana
- Retirement
- National Labor Relations Act
- Inclusion
- LGBTQ+
- Accommodation
- Sexual Orientation Discrimination
- Employer Handbook
- ADAAA
- ERISA
- Race Discrimination
- Unions
- ACA
- Affordable Car Act
- Technology
- Federal Arbitration Act
- Medical Cannabis Dispensaries
- Disability
- Whistleblower
- United States Supreme Court
- 401(k)
- Fair Labor Standards Act
- Employment Settlement Agreements
- Equal Employment Opportunity Commission
- Benefits
- Gender Identity Discrimination
- Posting Requirements
- Class Action Litigation
- Disability Law
- E-Discovery
- Evidence
- Paycheck Protection Program
- Environmental Law
- Family and Medical Leave Act
- Privacy Laws
- Securities Law
- Health Savings Account
- Preventive Care Benefits
- SECURE Act
- US Department of Labor Employee Benefits Security Administration
- Healthcare Reform
- Representative Election Regulations
- Older Workers' Benefit Protection Act (OWBPA)
- Affirmative Action
- Compensable Time
- Electronically Stored Information
- Equal Opportunity Clause
- Security Screening
- Telecommuting
- E-Discovery Case Law
- Electronic Data Discovery
- ESI
- Occupational Safety and Health Administration
- American Medical Association
- Attendance Policy
- Classification
- Fair Minimum Wage
- Federal Minimum Wage
- Misclassification
- Return to Work
- Seniority Rights
- State Minimum Wage
- Unemployment Insurance Integrity Act
- Wage Increase
- Confidentiality
- Disability Leave
- Equal Pay
- Genetic Information Discrimination
- Media Policy
- National Origin Discrimination
- Retaliation
- Social Media Content
- Employment Incentives
- HIRE Act
- Social Security Tax
- Taxation
- Antitrust
- FMLA
- Labor & Employment Law
Recent Posts
- Asking Is Protected: Sixth Circuit Expands FMLA Retaliation Protections
- New DHS Rule Will Restrict Student Periods of Admission from Duration of Status to Fixed End Date
- TPS Haiti Termination: How Employers Can Ensure I-9 Records Remain Compliant
- A New Enforcement Era: What Employers Should Know About the EEOC’s 2025–2029 National Enforcement Plan
- Beyond Paid Time Off: The Legal Side of Holiday Policies
- EEO-1 Reporting on the Chopping Block: What Employers Need to Know
- DOL Proposes New Joint Employer Rule: What Employers Need to Know
- Arbitration Agreements Take a Hit: What the Sixth Circuit's EFAA Decision Means for Your Workplace Agreements
- Bourbon, Ballots, and Bargaining Orders: Sixth Circuit Rejects NLRB’s Cemex Framework
- Independent Contractor and Joint Employer Rules: Looking to the Past for Future Compliance
