The state places five Hardin County-based social workers on paid leave and two others are put on notice facing major disciplinary action.
An investigation by the Cabinet for Health and Family Services found that the Hardin County-based social workers lied in court, altered documents and mocked parents as they removed children from families.
The investigation began after two Louisville-based child advocacy groups revealed problems.
Earlier in August, a Hardin County grand jury declined to indict the social worker.
Cabinet Spokeswoman Vikki Franklin would not name the seven workers and said that the disciplinary action was a personnel matter.