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Bill Summary · HB 578

Summary of HB 578 (2026 Regular Session, Kentucky)

Purpose and high-level aim

HB 578 is an unemployment insurance (UI) bill intended to update and clarify definitions, administrative processes, and notice methods within Kentucky’s UI program. It emphasizes streamlined access to electronic communications, clarifies what constitutes approved training, and strengthens security requirements for accessing nonpublic UI information. The bill also aligns certain definitions with federal references and state workforce needs.

Key provisions and changes

  • Definitions and scope (Section 1, KRS 341.005 as amended)

    • Approved job training or certification program:
    • (a) Programs approved by the secretary leading to a short-term certificate, credential, industry-recognized certificate, diploma, or associate of applied science in Kentucky’s top five high-demand sectors, as identified by the Kentucky Workforce Innovation Board and Education and Labor Cabinet.
    • (b) Programs approved to improve employability in high-wage, high-demand occupations.
    • (c) Training programs approved under the federal Trade Act of 1974.
    • Enhanced federal benefits: Continues to define as temporary federally funded or partially funded benefits that supplement state benefits via federal-state agreements; explicitly excludes certain categories (e.g., regular state UI, extended benefits, shared work, disaster unemployment assistance, trade readjustment allowances, etc.).
    • Multi-factor authentication (MFA): Defines MFA as at least two of: knowledge (password), possession (token/text message), or inherence (biometrics).
    • State average unemployment rate: Maintains a six-month measurement framework, using current Bureau of Labor Statistics data for seasonal adjustments; specifies January 1 and July 1 as renewal points and uses prior months’ data for calculation.

  • Notice and communications (New Section of KRS Chapter 341)

    • Electronic notice preference: Requires that notices from the secretary or employers to employers or employees be delivered in writing by any recognized method (governmental, commercial, or electronic).
    • Electronic notice option: The secretary must allow employers and employees to opt for receiving notices exclusively via electronic means.
    • Privacy and security: The electronic system must include effective privacy controls and MFA for access to nonpublic information.

Who would be affected

  • UI claimants and employers:
    • Face potential changes in how notices are delivered (with option to switch to exclusive electronic notices).
    • Need to engage with MFA-secured systems for accessing nonpublic information.
  • Education and Labor Cabinet (and Secretary):
    • Responsible for approving training programs under the definitions.
    • Manage the electronic notice system, privacy controls, and MFA requirements.
  • Job training providers:
    • Programs must meet the criteria for being an “approved” training program (aligned with high-demand sectors and/or federal Act criteria).

Procedural and timeline aspects

  • Effective implementation: The bill delineates how notices must be delivered and the security standards for electronic access, but does not specify a separate phase-in timeline beyond mandating electronic options and MFA features.
  • Compliance and administration: Agencies would implement the MFA and electronic notice framework, and determine which programs qualify as approved training.

Practical impact and considerations

  • Potential reduction in paper-based communications if more entities opt for electronic notices.
  • Increased security for UI data through MFA and enhanced privacy controls.
  • Greater alignment of training opportunities with Kentucky’s high-demand sectors potentially improving claimant reemployment outcomes.
  • Administrative responsibility on the cabinet to maintain and verify approved training programs and to manage the optional electronic notice system.

If you’d like, I can map the bill’s provisions to the current Kentucky UI code sections to show exact section-by-section changes or provide a side-by-side comparison with existing law.

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

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