Statute of limitations reform bill heads to the governor’s desk

UPDATED: A bill that changes the statute of limitations to help ensure clarity in court cases between employers and former employees saw final passage Wednesday with a 29-7 vote in the Senate.

Sponsored by Rep. Daniel Elliott, the bill would more closely align Kentucky’s statutes for employment claims with federal law and neighboring states.

Kentucky Chamber Senior Vice President of Public Affairs Kate Shanks testified before a House committee in favor of House Bill 320, which she said would help improve Kentucky’s competitiveness by removing barriers to economic development by supporting job creators in the state.

Rob Hudson, an attorney with Frost Brown Todd, also testified in favor of the legislation, noting he frequently works on these employment cases, and it is often small businesses that are most negatively impacted. He added that lengthy periods of limitations tend to be problematic, because employment decisions are typically made with many managers and types of documentation like emails and texts, which end up being key evidence in the case.

Hudson stressed that longer statute of limitation laws become an issue because individuals with information about the claim and related documentation may not be available to contribute to the hearing.

House Bill 320 previously passed the House by a vote of 76-19 and now heads to the Governor’s desk.

Stay tuned to The Bottom Line for more updates.