Kentucky: State Supreme Court Bars Mandatory Arbitration Agreements

In Northern Kentucky Area Development Dist. v. Snyder, the Kentucky Supreme Court stated that mandatory arbitration agreements violate KRS § 336.700; moreover, the law prohibits employers from refusing to hire or terminating employees on the condition that they waive any existing rights they would otherwise have against the employer. There, an employee claimed she was terminated in violation of the state’s Whistleblower Act. Because she signed a mandatory arbitration agreement, the employer unsuccessfully sought to enforce it. As a result, all employers should immediately have their arbitration agreements reviewed, updated, and re-signed by current employees, as applicable.