{"data":{"id":"us-ky/krs-199.887","jurisdiction":"us-ky","citation":"KRS 199.887","heading":"Termination of active contract.","body":"(1) Termination of an active contract between an employer, employee, child -care\nprovider, and a third-party administrator pursuant to this program shall occur in the\nfollowing circumstances:\n(a) If the relationship between the employee and employer is severed,  the\nemployer shall notify the child-care provider and the third-party administrator\nwithin three (3) business days of the separation, and the contract is terminated\non the calendar date provided by the employer in the notification. If the\nemployer fails t o make this notification and the third -party administrator\nissues a state match to the provider on behalf of that employer's employee,\nthen the employer shall reimburse the fund for the unnecessary state match;\n(b) If the employer fails to make a contribut ion or contributions for the eligible\nchild-care costs in accordance to the terms of the contract, the child -care\nprovider shall notify the third -party administrator within five (5) business\ndays. After receiving notification from the provider, the third -party\nadministrator shall temporarily cease providing a state match and shall notify\nthe employer that the contract will be terminated unless the employer\nremedies the nonpayment within five (5) business days of receiving\nnotification from the third -party a dministrator. If the provider fails to make\nthis notification and receives a state match from the third -party administrator\non behalf of that employer's employee, the provider shall reimburse the fund\nfor the unnecessary state match; or\n(c) If the relation ship between the employee and the child care provider is\nsevered and the employee ceases to utilize the child care provider's services,\nthe employee shall notify the employer within three (3) business days, and the\nemployer shall notify the third-party administrator and terminate the contract.\n(2) Termination of an active contract between an employer, employee, child -care\nprovider, and the third -party administrator pursuant to this program may occur in\nthe following circumstances:\n(a) If the employee fails to pay the child -care provider for costs not covered by\nthe employer contribution and the state match in accordance to the terms of\nthe contract, the child-care provider may give the employee reasonable time to\nremedy the nonpayment. The child -care provide r may notify the third -party\nadministrator and terminate the contract on the date that the notification was\nissued. If the child -care provider voluntarily excuses the employee's\nnonpayment or the child -care provider does not notify the third -party\nadministrator within two (2) calendar months from the date of the employee's\nnonpayment and continues to provide services, then the contract made\nbetween all the parties will automatically reflect the reduction in value;\n(b) If the child -care provider ceases parti cipation or otherwise loses its rating in\nthe rating system described in KRS 199.8943, it shall notify all parties to the\nagreement immediately; and\n(c) The employer, employee, or child -care provider may terminate the contract at\nany time and for any reaso n. The terminating party shall notify all the parties\nto the contract and specify the desired termination date, which shall occur no\nsooner than two (2) weeks from the date of notification unless the child -care\nprovider gives its consent to an earlier term ination date. All parties to the\ncontract shall be financially obligated, according to the provisions of the\ncontract, up to the termination date.\n(3) Any child -care provider who receives an employer contribution as part of this\nprogram or a state match fo r services not rendered and which will not be rendered\nafter the relationship between the employee and child care provider is severed or\nafter the termination of an active contract in accordance with this section shall\nreturn those employer contributions and match funds to the respective parties within\nfive (5) days of receipt of the funds.","path":["KRS Chapter 199"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=56911","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:55Z","sha256":"7473058464dd6862707fb679d758906622f12b438e5f651a96ed541c998ecf86","source_id":"us-ky","stale":false,"prev":"us-ky/krs-199.886","next":"us-ky/krs-199.888"},"notice":"GroundRules: Original legal text. Not legal advice."}