Minimum Wage $7.25 PER HOUR
Kentucky's minimum wage is $7.25 per hour, matching the federal minimum wage. The state rate has been $7.25 since July 1, 2009. The Kentucky minimum wage generally applies to covered employees, including most full-time, part-time, and temporary workers.
Qualifying tipped employees may be paid a cash wage as low as $2.13 per hour, with a tip credit of up to $5.12 per hour. The employee's cash wages and tips must equal at least $7.25 for every hour worked. If they do not, the employer must make up the difference.
Kentucky employers must generally pay wages at least twice each month. When employment ends, final wages generally must be paid by the next regular payday or within 14 days after the separation, whichever occurs first. Employers also may not make unlawful deductions that reduce an employee's earned wages below what the law requires.
Overtime Laws 1.5X RATE
Kentucky requires most covered, non-exempt employees to receive one and a half times their regular rate for hours worked over 40 in a workweek. At the $7.25 minimum wage, the overtime rate is $10.875 per hour, commonly rounded to $10.88. Overtime is generally calculated based on the employee's regular rate of pay, so workers earning more than minimum wage may be entitled to a higher overtime rate.
Kentucky also has a separate seventh-day overtime rule. When an employer permits a covered employee to work all seven days of a workweek, the employee generally must receive time and one-half for the hours worked on the seventh day, provided the employee works more than 40 hours during the workweek. This rule is separate from the ordinary 40-hour overtime calculation.
Being paid a salary does not automatically make an employee exempt from overtime. Exemptions generally depend on the employee's compensation and the duties actually performed. A job title alone does not determine whether an exemption applies.
Meal & Rest Breaks BREAKS REQUIRED
Kentucky requires employers to provide a reasonable meal period, ordinarily between the third and fifth hour of the work shift, unless the employee and employer agree to another arrangement. The meal period is separate from required rest periods.
Kentucky also requires a rest period of at least 10 minutes during each four hours worked. The rest period is paid and is in addition to the regularly scheduled meal period. Employees generally cannot be required to work through these required rest periods without compensation.
Employee Misclassification ECONOMIC REALITY TEST
Some Kentucky employers classify workers as independent contractors or exempt employees when the legal requirements for those classifications are not met. A job title or the label used on a contract or paycheck does not by itself determine whether a worker is properly classified. The actual working relationship, duties, compensation, and degree of control can matter.
The same principle applies to salaried workers treated as exempt. Exempt status generally depends on meeting the applicable salary and duties requirements. If you routinely perform non-exempt work but are classified as exempt, you may be entitled to overtime despite your salary or job title.
Filing a Claim 3 YEARS IN COURT
Kentucky's Wage and Hour Act generally gives workers three years to bring a court or administrative action for unpaid wages and overtime when no other specific limitations period applies. The three-year period applies under KRS 337.385 and was established by an amendment effective July 15, 2024. Claims involving conduct before that change may require a separate analysis of the applicable limitations period.
Kentucky law can provide liquidated damages equal to the amount of unpaid wages and overtime. In a qualifying case, a worker owed $10,000 in unpaid wages could potentially recover the $10,000 in wages plus an additional $10,000 in liquidated damages, along with allowable costs and reasonable attorney's fees. The court may limit or deny liquidated damages if the employer establishes good faith and reasonable grounds for believing its conduct was lawful.
Kentucky law also provides that an agreement between an employee and employer to work for less than the applicable wage is not a defense to an action for unpaid wages. The federal FLSA may provide a separate claim and may have different deadlines depending on the circumstances.
Unpaid Wages & Wage Deductions KENTUCKY WAGE LAW
Kentucky law requires employers to pay earned wages on a regular schedule and regulates when and how employers may withhold or deduct money from employee pay. Employers generally must pay wages at least twice each month, and Kentucky law provides remedies when an employer fails to pay wages that are legally due.
If you believe your employer withheld wages, made an unlawful deduction, failed to pay overtime, required you to work through compensable time, or otherwise failed to pay what you earned, the specific pay periods, records, deductions, and reason for the nonpayment can affect your legal rights and available remedies.
At-Will Employment & Retaliation AT-WILL / RIGHT TO WORK
Kentucky is an at-will employment state, meaning an employer or employee may generally end the employment relationship at any time for any lawful reason. Kentucky is also a right-to-work state, so employees generally cannot be required to join a union or pay union dues as a condition of employment.
At-will employment does not allow an employer to retaliate against a worker for exercising protected wage and hour rights. If you were disciplined, terminated, threatened, or otherwise treated adversely after complaining about unpaid wages, overtime, or other wage violations, the timing and circumstances of the employer's response may be important to your claim.
This article is provided for informational and educational purposes only and does not constitute legal advice. Reading this content does not create an attorney-client relationship with Josephson Dunlap LLP. Wage and hour laws vary by state, and the application of these laws depends on the specific facts of each situation. The figures and information cited above are current as of the date of publication and are subject to change. Prior results in other matters do not guarantee or predict a similar outcome in any future matter. If you believe your wages were not paid correctly, consult a qualified, licensed employment attorney.
Think You May Be Owed Back Wages?
Josephson Dunlap reviews wage claims for Kentucky workers at no cost. There is no fee unless wages are recovered. A case manager will go through your situation and tell you where you stand.