Kentucky Supreme Court Holds Employers May Not Require Arbitration Agreements as a Condition of Employment

October 08, 2018

The Kentucky Supreme Court has issued its opinion holding that Kentucky employers may not require employees to sign arbitration agreements as a condition of their employment. The Court relied on its interpretation of a state statute. The Court held the federal law did not preempt the state statute. Kentucky employers would be well-served to review their employment agreements and consider offering employees an opportunity to opt out of arbitration agreements such that they are not a condition of employment. Employers also may offer other incentives to employees to encourage them to agree to arbitrate disputes. We recommend all employment-related agreements be reviewed by SESCO to ensure legal compliance.