Policy Agenda

Kentucky’s economy benefits from a flexible labor market, but that flexibility is increasingly threatened by efforts to expand collective bargaining authority and impose rigid employment structures. Without reform, local labor agreements can create long-term fiscal liabilities for taxpayers while reducing opportunities for workers who rely on independent or nontraditional arrangements.

In the 2027 session, policymakers should preserve Kentucky’s pro-work environment by prohibiting new collective bargaining agreements at the local government level while maintaining existing agreements for stability. The state should also reinforce legal clarity for independent contractors and gig workers to ensure they are not forced into employment classifications that do not reflect their preferences.

To address gaps in benefits, Kentucky should establish a voluntary portable benefits framework that allows individuals to carry retirement savings, healthcare contributions, and other benefits from job to job. By encouraging private-sector innovation in benefit design, the state can support workers without imposing rigid systems. These reforms will promote workforce flexibility, reduce public liabilities, and support continued economic growth.