Northern Kentucky Area Development District v. Snyder
Kentucky Supreme Court
2018 WL 4628143 (2018)
- Written by Tammy Boggs, JD
Facts
The Northern Kentucky Area Development District (NKAAD) (defendant) was a state agency that administered various public social programs. While Danielle Snyder (plaintiff) was an employee of NKAAD, she had to sign an arbitration agreement as a condition of employment. The arbitration agreement mandated arbitration of any employment-related dispute, and if an employee did not accept the terms, he or she would be terminated. Subsequently, Snyder sued NKAAD in court, asserting claims under the Kentucky Whistleblower Act and the Kentucky Wages and Hours Act. NKAAD filed a motion to compel arbitration. The trial court denied the motion, and NKAAD appealed. The court of appeals affirmed, concluding that a Kentucky law prohibited an employer’s conditioning employment on an employee’s agreement to arbitrate disputes and that the Federal Arbitration Act (FAA) did not preempt the state law. The Kentucky Supreme Court granted review.
Rule of Law
Issue
Holding and Reasoning (Minton, C.J.)
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