KRS § 199.887 — KY Code / Title XVII / Chapter 199 / Section 199.887
199.887 Termination of active contract
Status: in_force

199.887 Termination of active contract.

(1) Termination of an active contract between an employer, employee, child-care

provider, and the cabinet pursuant to this program shall occur in the following

circumstances:

(a) If the relationship between the employee and employer is severed, the

employer shall notify the child-care provider and the cabinet within three (3)

business days of the separation, and the contract is terminated on the calendar

date provided by the employer in the notification. If the employer fails to

make this notification and the cabinet issues a state match to the provider on

behalf of that employer's employee, then the employer shall reimburse the

cabinet for the unnecessary state match;

(b) If the employer fails to make a contribution or contributions for the eligible

child-care costs in accordance to the terms of the contract, the child-care

provider shall notify the cabinet within five (5) business days. After receiving

notification from the provider, the cabinet shall temporarily cease providing a

state match and shall notify the employer that the contract will be terminated

unless the employer remedies the nonpayment within five (5) business days of

receiving notification from the cabinet. If the provider fails to make this

notification and receives a state match from the cabinet on behalf of that

employer's employee, the provider shall reimburse the cabinet for the

unnecessary state match; or

(c) If the relationship between the employee and the child care provider is

severed and the employee ceases to utilize the child care provider's services,

the employee shall notify the employer within three (3) business days, and the

employer shall notify the cabinet and terminate the contract.

(2) Termination of an active contract between an employer, employee, child-care

provider, and the cabinet pursuant to this program may occur in the following

circumstances:

(a) If the employee fails to pay the child-care provider for costs not covered by

the employer contribution and the state match in accordance to the terms of

the contract, the child-care provider may give the employee reasonable time to

remedy the nonpayment. The child-care provider may notify the cabinet and

terminate the contract on the date that the notification was issued. If the child-

care provider voluntarily excuses the employee's nonpayment or the child-

care provider does not notify the cabinet within two (2) calendar months from

the date of the employee's nonpayment and continues to provide services, then

the contract made between all the parties will automatically reflect the

reduction in value;

(b) If the child-care provider ceases participation or otherwise loses its rating in

the rating system described in KRS 199.8943, it shall notify all parties to the

agreement immediately; and

(c) The employer, employee, or child-care provider may terminate the contract at

any time and for any reason. The terminating party shall notify all the parties

to the contract and specify the desired termination date, which shall occur no

sooner than two (2) weeks from the date of notification unless the child-care

provider gives its consent to an earlier termination date. All parties to the

contract shall be financially obligated, according to the provisions of the

contract, up to the termination date.

(3) Any child-care provider who receives an employer contribution as part of this

program or a state match for services not rendered and which will not be rendered

after the relationship between the employee and child care provider is severed or

after the termination of an active contract in accordance with this section shall

return those employer contributions and match funds to the respective parties within

five (5) days of receipt of the funds.