KRS 341.301: Penalty for payment with nonnegotiable instrument.

(1) If any check tendered to the cabinet in payment of any contribution or penalty due

under this chapter or as restitution for the overpayment of benefits is not paid when

presented to the drawee bank for payment, there shall be paid as a penalty by the

party who tendered the check, upon notice and demand of the cabinet, an amount

equal to ten percent (10%) of such check. The penalty under this section shall not be

less than ten dollars ($10) or more than one hundred dollars ($100).

(2) If the party who tender ed the check demonstrates to the cabinet's satisfaction that

failure to pay the check resulted from error by other parties, then the cabinet shall

waive the penalty.

(3) Penalties collected under this section shall be credited to the unemployment

compensation administration fund.