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General Assembly Permits Arbitration for Employment Matters

March 13, 2019

The Kentucky General Assembly has passed a bill to permit employers to require their employees to sign an agreement to arbitrate claims. Senate Bill 7 amends KRS 336.700, which previously prohibited employers from requiring arbitration agreements. Arbitration agreements have become prevalent over the past several decades. Arbitration allows parties to avoid crowded courts, maintain privacy, and have the matter heard by a person familiar with the issues involved. Arbitration can also result in a quicker resolution and less costs. The bill now heads to the Governor, whom I expect will sign the bill. Employers should consider whether to amend their employment contracts, policies, and handbooks to reflect this change when it becomes effective this summer.

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