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From Insider Louisville: Bill forcing workers to sign arbitration agreements advances

Berry Craig
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By JOE SONKA

A bill that would allow Kentucky employers to force workers into signing a binding arbitration agreement as a condition of employment moved closer to final passage on Tuesday, after clearing a state House committee on a party-line vote.

Senate Bill 7, sponsored by Republican Senate President Robert Stivers, stems from a unanimous ruling of the Kentucky Supreme Court in September, which banned the practice of requiring employees or prospective employees to sign an agreement waiving their right to file a civil lawsuit against the employer and compelling the settlement of a dispute through binding arbitration.

Previous to that court ruling, employers in every state — including Kentucky, where state law explicitly prohibits such arbitration requirements for workers — had been able to use such agreements as conditions of employment because of federal courts’ interpretation of the Federal Arbitration Act as superseding state laws, with broader rights for employers.

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