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AN ACT relating to paycheck protection. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 336.180 is amended to read as follows: 3
As used in this chapter, unless the context requires otherwise: 4
(1) "Candidate" has the same meaning as in KRS 121.015; 5
(2) "Committee" has the same meaning as in KRS 121.015; 6
(3) "Contributing organization" has the same meaning as in KRS 121.015; 7
(4) "Contribution" has the same meaning as in KRS 121.015; 8
(5) "Election" has the same meaning as in KRS 121.015; 9
[(1) The term "labor organization" means any organization of any kind, or any agency 10
or employee representation committee, association or union which exists for the 11
purpose, in whole or in part, of dealing with employers concerning wages, rates of 12
pay, hours of employment or conditions of work, or other forms of compensation;] 13
(6)[(2)] "Employer"[The term "employer"] means all persons, firms, associations, 14
corporations, public employers, public school employers, and public colleges, 15
universities, institutions, and education agencies;[ and] 16
(7) "Fundraiser" has the same meaning as in KRS 121.015; 17
(8) "Independent expenditure" has the same meaning as in KRS 121.015; 18
(9) "Labor organization" means any organization of any kind, or any agency or 19
employee representation committee, association, or union which exists for the 20
purpose, in whole or in part, of dealing with employers concerning wages, rates 21
of pay, hours of employment or conditions of work, or other forms of 22
compensation; 23
[(3) The term "public employee" means an employee of a "public agency" as that term 24
is defined in KRS 61.870(1).] 25
(10) "Political activities" means any contribution or independent expenditure made to 26
any committee, contributing organization, candidate, slate of candidates, or 27 UNOFFICIAL COPY 23 RS BR 1177
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fundraiser, or for any testimonial affair, or made in any manner intended to 1
influence the outcome of an election, otherwise promote or support the defeat of 2
any candidate, slate of candidates, or ballot measure, or advance any political 3
position regarding any election, candidate, slate of candidates, or ballot measure 4
held by any person or entity other than the state public employee; 5
(11) "Slate of candidates" has the same meaning as in KRS 121.015; 6
(12) "State public employee" is a public employee who is an active member of the 7
Kentucky Employees Retirement System, the State Police Retirement System, or 8
the Kentucky Teachers' Retirement System; 9
(13) "State public employer" means a public agency, board, commission, authority, or 10
instrumentality organized under the state branches of government and excludes 11
instrumentalities of a county, city, or municipality; and 12
(14) "Testimonial affair" has the same meaning as in KRS 121.015. 13
Section 2. KRS 336.134 is amended to read as follows: 14
(1) A public employer [or a labor organization representing public employees ]shall not 15
deduct membership dues, fees, assessments, or other charges of a labor 16
organization[an employee organization, association, or union ]from the wages, 17
earnings, or compensation of a state public employee [without the express written 18
consent of the public employee. This consent shall be made prior to any deductions 19
being made and may be revoked by the public employee at any time by written 20
notice to the employer].Labor organizations representing state public employees 21
shall be solely responsible for collecting membership dues, fees, assessments, or 22
other charges, including those that fund political activities, directly from the state 23
public employee enrolled as a member of that labor organization. 24
(2) State public employers shall provide notice to state public employees regarding 25
his or her right to abstain from enrolling as a member in a labor organization. 26
Written or electronic forms, approved by the Attorney General, utilized by state 27 UNOFFICIAL COPY 23 RS BR 1177
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public employers to meet the requirement of this subsection shall contain a 1
statement in fourteen (14) point boldface font reading: "The Commonwealth of 2
Kentucky wishes to make you aware that you have a First Amendment right to 3
refrain from joining and paying dues or fees to a labor organization. Your 4
membership and payment of dues are voluntary and you may not be 5
discriminated against for your refusal to join or financially support a labor 6
organization. By signing this form, you are acknowledging that you were 7
informed of this right." 8
SECTION 3. A NEW SECTION OF KRS CHAPTER 336 IS CREATED TO 9
READ AS FOLLOWS: 10
No employer shall collect financial information from state public employees, including 11
but not limited to bank or other financial account institution and routing, and transmit 12
that information to any labor organization, person, or other legal entity to facilitate the 13
collection of dues, fees, assessments, payments, or other charges if any such funds are 14
to be used for political activities. 15
SECTION 4. A NEW SECTION OF KRS CHAPTER 336 IS CREATED TO 16
READ AS FOLLOWS: 17
Sections 2, 3, 4, 5, 6, 7, and 8 of this Act shall not apply to any deductions from a state 18
public employee's wages, compensation, or earnings made by the state public 19
employee's employer in accordance with any joint wage agreement or collective 20
bargaining contracts entered into, modified, renewed, or extended prior to the effective 21
date of this Act. However, any joint wage agreements or collective bargaining contracts 22
entered into, modified, renewed, or extended after the effective date of this Act, as well 23
as any deductions made to a state public employee's wages, compensation, or earnings 24
made in accordance with those joint wage agreements or collective bargaining 25
contracts or otherwise made after the effective date of this Act, shall comply with 26
Sections 2, 3, 4, 5, 6, 7, or 8 of this Act. 27 UNOFFICIAL COPY 23 RS BR 1177
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Section 5. KRS 336.135 is amended to read as follows: 1
(1) As used in this section, "employee" means any person employed by or suffered or 2
permitted to work for a public or private employer, except "employee" shall not 3
mean any person covered by the Federal Railway Labor Act and the National Labor 4
Relations Act. 5
(2) An employee shall not be enrolled as a member of a labor organization unless the 6
employee has affirmatively requested membership in writing. 7
(3) An employee enrolled as a member of a labor organization shall, on an annual 8
basis, submit in writing his or her request to continue enrollment as a member 9
with the labor organization or his or her status as a member shall lapse. 10
(4)[(3)] A sum shall not be withheld from the earnings of any employee for the 11
purpose of paying union dues or other fees paid by members of a labor organization 12
or employees who are non-members except upon the written or electronic 13
authorization of the employee member or employee non-member unless the 14
employer is a public employer, in which case Section 2 of this Act applies to that 15
employer. 16
(5)[(4)] The requirements in this section shall not be waived by any member or non-17
member of a labor organization, nor required to be waived as a condition of 18
obtaining or maintaining employment. 19
(6)[(5)] Signing or refraining from signing the authorization set forth in subsections 20
(2) and (3) of this section shall not be made a condition of obtaining or maintaining 21
employment. 22
(7)[(6)] (a) A labor organization shall maintain financial records substantially 23
similar to and no less comprehensive than the records required to be 24
maintained under 29 U.S.C. sec. 431(b). 25
(b) These records shall be kept in a searchable electronic format and provided to 26
every employee it represents. 27 UNOFFICIAL COPY 23 RS BR 1177
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(c) The records and the data or summary by which the records can be verified, 1
explained, or clarified shall be kept for a period of not less than five (5) years. 2
(d) A labor organization shall transmit financial records detailing the labor 3
organization's quarterly expenses to all members of the labor organization 4
on an annual basis. 5
(8)[(7)] This section shall not apply to any agreement between employers and 6
employees or labor organizations entered into before January 9, 2017, but any such 7
agreement entered into, opted in, renewed, or extended on or after January 9, 2017, 8
and which violates this section shall be unlawful and void. 9
(9)[(8)] This section shall be known as the "Paycheck Protection Act." 10
Section 6. KRS 65.158 is amended to read as follows: 11
Any city, consolidated local government, or urban-county government which makes 12
deductions from the pay of its employees for any cause other than taxes shall, upon the 13
written request of at least thirty percent (30%) of all employees within a department or 14
division, deduct the amount from the pay of an employee as he may note on a signed 15
payroll notification card or voucher for the purposes of employee benefits, insurance, or 16
community projects[, or union dues]. No deduction shall be made pursuant to this section 17
from the pay of any employee who does not sign a payroll notification card or voucher. 18
For any deduction from the wages of any employee who is also a state public employee, 19
as defined in Section 1 of this Act, made under this section in connection with labor 20
organization or union dues, fees, assessments, or other charges, the payroll notification 21
card or voucher shall comply with Section 2 of this Act. Upon these deductions, the city, 22
consolidated local government, or urban-county government shall, within thirty (30) 23
days, pay to the elected representative or designated recipient for the employees of the 24
department or division the total amount of the deductions minus the actual cost to the 25
city, consolidated local government, or urban-county government of processing the 26
deductions. 27 UNOFFICIAL COPY 23 RS BR 1177
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Section 7. KRS 161.158 is amended to read as follows: 1
(1) (a) Each district board of education may form its employees into a group or 2
groups or recognize existing groups for the purpose of obtaining the 3
advantages of group life, disability, medical, and dental insurance, or any 4
group insurance plans to aid its employees including the state employee health 5
insurance group as described in KRS 18A.225 to 18A.2287, as long as the 6
employees continue to be employed by the board of education. Medical and 7
dental group insurance plans obtained under authority of this section may 8
include insurance benefits for the families of the insured group or groups of 9
employees. Any district board of education may pay all or part of the 10
premium on the policies, and may deduct from the salaries of the employees 11
that part of the premium which is to be paid by them and may contract with 12
the insurer to provide the above benefits. As permitted in KRS 160.280(4), 13
board members shall be eligible to participate in any group medical or dental 14
insurance provided by the district for employees. 15
(b) If a district board of education participates in the state employee health 16
insurance program, as described in KRS 18A.225 to 18A.2287, for its active 17
employees and terminates participation and there is a state appropriation 18
approved by the General Assembly for the employer's contribution for active 19
employees' health insurance coverage, neither the board of education nor the 20
employees shall receive the state-funded contribution after termination from 21
the state employee health insurance program. 22
(c) If a district board of education participates in the state employee health 23
insurance program as described in KRS 18A.225 to 18A.2287 for its active 24
employees, all district employees who are required to be offered health 25
insurance coverage for purposes of, and in accordance with, the federal 26
Patient Protection and Affordable Care Act of 2010, Pub. L. No. 111-148, 27 UNOFFICIAL COPY 23 RS BR 1177
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shall be eligible for the state-funded contribution appropriated by the General 1
Assembly for the employer's contribution for active employees' health 2
insurance coverage. 3
(2) (a) Each district board of education shall adopt policies or regulations which will 4
provide for: 5
1. a. Deductions from salaries of its employees or groups of employees 6
whenever a request is presented to the board by said employees or 7
groups thereof. 8
b. The deductions shall be made from salaries earned in at least eight 9
(8) different pay periods. 10
c. The deductions may be made for, but are not limited to, 11
membership dues, tax-sheltered annuities, and group insurance 12
premiums. 13
d. The district board is prohibited from deducting membership dues 14
of an employee organization, membership organization, or labor 15
organization[ without the express written consent of the employee. 16
Express written consent of the employee may be revoked in 17
writing by the employee at any time]. This provision shall apply to 18
contracts entered into, opted in, extended or renewed on or after 19
January 9, 2017. 20
e. With the exception of membership dues, the board shall not be 21
required to make more than one (1) remittance of amounts 22
deducted during a pay period for a separate type of deduction; and 23
2. Deductions from payments for the per diem and actual expenses 24
provided under KRS 160.280(1) to members of the district board of 25
education whenever a request is presented by a board member to the 26
board. The deductions may be made for but not be limited to 27 UNOFFICIAL COPY 23 RS BR 1177
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membership dues, health insurance purchases, scholarship funds, and 1
contributions to a political action committee. 2
(b) The deductions under paragraph (a)1. and 2. of this subsection shall be 3
remitted to the appropriate organization or association as specified by the 4
employees within thirty (30) days following the deduction, provided the 5
district has received appropriate invoices or necessary documentation. 6
(c) Health insurance, life insurance, and tax-sheltered annuities shall be 7
interpreted as separate types of deductions. When amounts have been 8
correctly deducted and remitted by the board, the board shall bear no further 9
responsibility or liability for subsequent transaction. 10
(3) Payments and deductions made by the board of education under the authority of this 11
section are presumed to be for services rendered and for the benefit of the common 12
schools, and the payments and deductions shall not affect the eligibility of any 13
school system to participate in the public school funding program as established in 14
KRS Chapter 157. 15
Section 8. KRS 164.365 is amended to read as follows: 16
(1) Anything in any statute of the Commonwealth to the contrary notwithstanding, the 17
power over and control of appointments, qualifications, salaries, and compensation 18
payable out of the State Treasury or otherwise, promotions, and official relations of 19
all employees of Eastern Kentucky University, Western Kentucky University, 20
Murray State University, Northern Kentucky University, and Morehead State 21
University, as provided in KRS 164.350 and 164.360, and of Kentucky State 22
University and the Kentucky Community and Technical College System, shall be 23
under the exclusive jurisdiction of the respective governing boards of each of the 24
institutions named. 25
(2) The board of regents for the Kentucky Community and Technical College System 26
shall develop personnel rules for the governing of its members, officers, agents, and 27 UNOFFICIAL COPY 23 RS BR 1177
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employees by June 30, 1998. The board shall adopt interim policies to govern 1
employees hired from July 1, 1997, until the permanent rules are adopted. 2
(3) Upon receipt of a written authorization from an employee of the Kentucky 3
Community and Technical College System, the board shall deduct dues from the 4
employee's paycheck for employee membership organizations, except that no 5
deduction shall be made in association with membership dues, fees, assessments 6
or other charges funding political activity for a labor organization. Dues shall be 7
deducted at a rate established by the organization, and shall be discontinued upon 8
written notification by an employee to both the system and the employee 9
organization. On a quarterly basis, the Kentucky Community and Technical College 10
System shall provide to each employee membership organization an updated list 11
that includes the names and home addresses of the employees who are having dues 12
deducted from their paychecks for the purpose of maintaining membership in that 13
organization. 14
Section 9. KRS 336.990 is amended to read as follows: 15
(1) Upon proof that any person employed by the Education and Labor Cabinet as a 16
labor inspector has taken any part in any strike, lockout or similar labor dispute, the 17
person shall forfeit his or her office. 18
(2) The following civil penalties shall be imposed, in accordance with the provisions in 19
KRS 336.985, for violations of the provisions of this chapter: 20
(a) Any person who violates KRS 336.110 or 336.130 shall for each offense be 21
assessed a civil penalty of not less than one hundred dollars ($100) nor more 22
than one thousand dollars ($1,000); 23
(b) Any corporation, association, organization, or person that violates KRS 24
336.190 and 336.200 shall be assessed a civil penalty of not less than one 25
hundred dollars ($100) nor more than one thousand dollars ($1,000) for each 26
offense. Each act of violation, and each day during which such an agreement 27 UNOFFICIAL COPY 23 RS BR 1177
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remains in effect, shall constitute a separate offense; 1
(c) Any employer who violates the provisions of KRS 336.220 shall be assessed a 2
civil penalty of not less than one hundred dollars ($100) nor more than one 3
thousand dollars ($1,000) for each violation;[ and] 4
(d) Any labor organization who violates KRS 336.135 shall be assessed a civil 5
penalty of not less than one hundred dollars ($100) nor more than one 6
thousand dollars ($1,000) for each offense; and 7
(e) Any employer or labor organization that violates Sections 2, 3, 4, 5, 6, 7, or 8
8 of this Act shall be assessed a civil penalty of not less than one hundred 9
dollars ($100) nor more than one thousand dollars ($1,000) for each 10
offense. 11
(3) Any labor organization, employer, or other person who directly or indirectly 12
violates KRS 336.130(3) shall be guilty of a Class A misdemeanor. 13
(4) Any person aggrieved as a result of any violation or threatened violation of KRS 14
336.130(3) may seek abatement of the violation or threatened violation by 15
petitioning a court of competent jurisdiction for injunctive relief and shall be 16
entitled to costs and reasonable attorney fees if he or she prevails in the action. 17
(5) Any person injured as a result of any violation or threatened violation of KRS 18
336.130(3) may recover all damages resulting from the violation or threatened 19
violation and shall be entitled to costs and reasonable attorney fees if he or she 20
prevails in the action. 21