Kentucky Supreme Court Rejects Arbitration as a Condition of Employment

Kentucky Supreme Court Rejects Arbitration as a Condition of Employment

      In a recent decision from the Kentucky Supreme Court, it has held that an employer may not condition employment upon the employee agreeing to arbitrate, rather than litigate, disputes arising out of or in connection with the employment relationship. Northern Kentucky Area Dev. District v. Snyder.

      Kentucky courts have a track record of opposition to arbitration agreements even as federal law, as embodied in the Federal Arbitration Act, has encouraged arbitration agreements. Only last year, the US Supreme Court struck down certain practices of Kentucky courts to undermine the enforcement of arbitration agreements. See Kindred Nursing Centers Ltd. Partnership v. Clark, 137 S. Ct. 1421 (2017).

      HERE IS A LINK to a discussion of this most recent decision from the Kentucky Supreme Court. As noted therein, it is possible that this determination will be taken to the US Supreme Court.