Kentucky Labor Cabinet Requesting Bond Payment from Coal Companies

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FRANKFORT, Ky. (AP) — The Kentucky Labor Cabinet has sent letters to coal and construction companies that might be in violation of a state law that requires a bond to cover employee wages.

The Lexington Herald-Leader reports that over the last few weeks, the cabinet wrote to 89 companies that have failed to pay the bond. Last week, Attorney General Andy Beshear said his office found that at least 30 coal companies were in violation of the law. The issue has received heightened attention after hundreds of Blackjewel coal employees in Kentucky had their checks bounce when the company went into bankruptcy.

The bond is required of coal and construction companies that have been in business for five years or less. The Labor Cabinet is giving companies 15 days to respond or pay the bond.