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Bill Summary · HB 814

Summary of HB 814 (2026 Regular Session, Kentucky)

Purpose and scope

  • The bill amends Kentucky employment law (KRS Chapter 337) to address wrongful discharge and establish procedural and damages-related provisions for employees alleging wrongful termination.

Key definitions (Section 1)

  • Constructs and terms:
    • Constructive discharge: resignation due to working conditions that a reasonable person would find intolerable; does not include resignations tied to pay/promotions or other terms the employee seeks to change.
    • Discharge: termination of employment, including constructive discharge, resignation, elimination of a job, layoff, failure to recall, or other staff reductions.
    • Fringe benefits: value of employer-paid benefits (vacation/sick leave, health, disability, life insurance, pensions/retirement) active at termination.
    • Good cause: reasonable, job-related grounds for dismissal (performance issues, disruption, or other legitimate business reasons).
    • Lost wages: gross wages that would have been reported on W-2, including certain deferred compensation.
    • Public policy: current public health, safety, or welfare policy expressed by constitution, statute, or administrative regulation.

Wrongful discharge and probationary period (Section 2)

  • A discharge is wrongful if:
    • Retaliation for an employee’s refusal to violate public policy, reporting a violation, or reasonably believed violation; or
    • Discharge not for good cause after the employee has completed the employer’s probationary period; or
    • Violation of the employer’s explicit written personnel policy.
  • Probationary period:
    • Up to 9 months during which either party may terminate employment for any lawful reason or for no reason (at-will).
    • If no specific probationary period is stated by the employer, a default 6-month probation applies.

Damages and relief (Section 3)

  • Remedies for wrongful discharge:
    • Lost wages and fringe benefits: recoverable for up to 4 years from discharge, plus interest. Interim earnings (what the employee could have earned during the interim) must be deducted, after deducting reasonable job-search/relocation expenses.
    • Punitive damages: recoverable if, by clear and convincing evidence, the employer acted with oppression, fraud, or malice (pursuant to existing statutes KRS 411.184 and 411.186).
    • Other damages: employee may recover other damages or relief available under other statutes or common law; nothing in this Act bars such relief.
    • Standing to sue: an action may be brought by one or more employees on behalf of themselves and others in similar circumstances.
    • Filing deadline: an action under Section 2 must be filed within 1 year of the discharge.
  • Internal remedies (procedure before court):
    • If the employer has a written internal disciplinary/appeals process, the employee must first exhaust those procedures before pursuing court action.
    • If internal procedures are not completed within 90 days from initiation, the employee may file suit.
    • The statute of limitations is tolled while internal procedures are being exhausted, but cannot extend more than 120 days beyond the time needed to complete those procedures.

Who is affected

  • Employers and employees in Kentucky covered under KRS Chapter 337.
  • Employees alleging wrongful discharge, including those claiming retaliation for public-policy-related reporting or refusals, those who have passed a probationary period, and those alleging violations of an employer’s written personnel policy.

Procedural and timeline considerations

  • Probationary period defaults (6 months if not specified; up to 9 months if stated by employer).
  • Action must be filed within 1 year of discharge.
  • Exhaustion of internal appeal procedures is required if the employer has such a process; if not completed within 90 days, court action may proceed.
  • Tolling: filing deadline paused during internal procedures, but not extended beyond an additional 120 days.

Overall impact

  • Clarifies and broadens protections against wrongful discharge, including protections against retaliation for public-policy concerns.
  • Establishes a structured damages framework, including potential lost wages, fringe benefits, punitive damages, and attorneys' ability to pursue collective or representative actions.
  • Introduces a clear probationary-period framework and mandatory internal remedies prior to court for employers with formal internal processes.

Note: This summary reflects the text of the bill as filed and does not account for amendments that may be adopted during the legislative process.

Compiled from official sources — confirm details with the bill’s official record.

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