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ARTICLE · 09 APRIL 2019

Kentucky Enacts New Arbitration Law

On March 25, 2019, Kentucky Governor Matt Bevin signed into law a bill that reaffirms an employer's right to use arbitration agreements.

United StatesLitigation, Mediation & Arbitration

On March 25, 2019, Kentucky Governor Matt Bevin signed into law a bill that reaffirms an employer's right to use arbitration agreements. The law substantively amends the language of two state statutes: KRS § 336.700 and KRS § 417.050.

This development comes on the heels of the Kentucky Supreme Court's controversial decision last September in Northern Kentucky Area Development District v. Snyder, Case No. 2017-SC-00277, in which the court held that KRS § 336.070 bars government agencies from requiring mandatory arbitration as a condition of employment. The court specifically rejected Federal Arbitration Act (FAA) preemption, which should still have applied and precluded the holding. While the Snyder decision remains non-final, with a petition for rehearing pending, the plaintiff's bar had already begun to try to capitalize on broad language in the holding to assert that it also applied to private employers. At a minimum, the decision complicated the

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