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Kentucky Staffing Firms Cannot Charge Applicants and Employees for Drug Tests and Background Checks
State Labor Cabinet Offers 'Safe Harbor,' Waives Penalties for Staffing Firms That Voluntarily Comply
The Kentucky Labor Cabinet recently contacted the American Staffing Association to inform the association that certain staffing firms doing business in Kentucky allegedly are charging applicants and employees for drug tests and criminal background checks in violation of state law.
According to the Labor Cabinet, Kentucky Revised Statutes Section 336.220 prohibits employers from charging employees or applicants for medical examinations or for the cost of furnishing records required by the employer as a condition of employment. The Labor Cabinet considers drug tests to be medical examinations, and also considers the prohibition against charging for records to apply to criminal background checks.
The Labor Cabinet is offering a safe harbor proposal for staffing firms that have charged applicants or employees. Those firms that voluntarily contact the Labor Cabinet and make aggrieved workers whole will be subjected to a four-year statute of limitations for wage claims, rather than the usual five-year statute of limitations, and the Labor Cabinet will waive monetary penalties against such firms.
The safe harbor will not apply in the event the Labor Cabinet receives a complaint about a staffing firm or initiates its own investigation. In such case, staffing firms found in violation may face penalties ranging from $100 to $1,000.
To learn more about the safe harbor proposal, see the letter from the Labor Cabinet to ASA.
Staffing firms that have been charging employees should consult with their legal counsel, and firms that wish to take advantage of the safe harbor offer should contact the office of Commissioner Mike Dixon at 502-564-0977.
