Kentucky Revised Statutes Title XXVII. Labor and Human Rights § 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 tendered 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.