01KRS 337.275 adopts federal rate; cities cannot override
Kentucky's minimum wage is $7.25/hr — the federal floor — and has been unchanged since July 24, 2009. KRS 337.275 explicitly adopts the federal minimum wage by reference: 'If the federal minimum hourly wage as prescribed in 29 USC 206(a)(1) is increased in excess of the minimum hourly wage under this section, the minimum hourly wage under this section shall be increased to the same amount.' The reference framework provides automatic adjustment if Congress raises the federal rate.
Tipped workers earn $2.13/hr cash + up to $5.12 tip credit ($7.25 - $2.13), with total compensation including tips required to reach $7.25. Workers earning more than $30/month in tips qualify as tipped employees (federal threshold). Kentucky follows federal tip credit framework with no state-specific 80/20 rule.
State preemption: Kentucky preempts local minimum wage ordinances. Louisville-Jefferson County passed a $9.00/hr ordinance in 2014; the Kentucky Supreme Court ruled in 2016 that the ordinance was preempted by state law (Kentucky Restaurant Association v. Louisville/Jefferson County Metro Government). Lexington-Fayette Urban County also enacted an ordinance that was struck down. No Kentucky city has enacted a local minimum wage that has survived legal challenge.
Federal $684/week ($35,568/year) exempt threshold applies. Kentucky does not set a higher state-specific exempt threshold. KRS 337.010 follows federal exempt classifications and duties tests under FLSA. The DOL's attempted 2024 increase to $1,128/week was vacated by the Eastern District of Texas in November 2024, leaving the federal $684 in place.
Coverage exemptions under KRS 337.010: executive, administrative, professional, outside sales (matching federal FLSA). Plus narrow Kentucky-specific carve-outs: workers in a retail or service establishment with $500,000+ gross sales; certain agricultural workers; certain commission-paid workers; certain transportation workers; in-home companionship services for sick/elderly persons. The Kentucky Education and Labor Cabinet, Division of Wages and Hours administers and enforces minimum wage and overtime regulations.
Read the full Kentucky federal $7.25 by reference + state preemption guide →
021.5× rate for all hours on 7th consecutive workday
KRS 337.050 establishes Kentucky's seventh-day overtime framework: 'Any employer who permits any employee to work seven (7) days in any one (1) workweek shall pay him at the rate of time and one-half for the time worked on the seventh day.' The statute is among the simplest seventh-day OT frameworks in the country.
Coverage: applies to all employers covered by KRS Chapter 337 (which is nearly all private-sector employers in Kentucky, with narrow exemptions matching federal FLSA exemptions). Workers eligible under KRS 337.050 are those subject to standard wage and hour protections — non-exempt workers performing covered work.
Workweek definition: any 7 consecutive 24-hour periods (168 hours) designated by the employer. The workweek must be regular and consistent; employers cannot manipulate workweek designations to avoid the 7th-day trigger. Workweek changes require legitimate business purpose and proper notice; pattern manipulation defeats the framework.
Calculation: 1.5× regular rate for ALL hours worked on the 7th consecutive day. Important: the seventh-day OT trigger is independent of the 40-hour weekly trigger. A worker who works 5 hours/day for 7 days (35 total) still receives 1.5× rate for the 5 hours on day 7, even though weekly OT wouldn't otherwise apply. Combined 40-hour and 7th-day calculations: standard 40-hour OT applies to hours over 40 in the week regardless of the day; 7th-day OT applies to hours on day 7 regardless of total. Both triggers may apply simultaneously.
Operational implications: multi-state operators with KY workforces need: (1) workweek designation per worker (typically uniform Sunday-Saturday or Monday-Sunday); (2) per-worker hours tracking across all 7 days of the workweek; (3) detection logic that flags any 7-consecutive-day pattern; (4) automatic 1.5× premium application for all hours on the 7th day. Operations with rotating 6-on-1-off schedules or 7-day operating windows (healthcare, manufacturing, retail) need careful scheduling to manage 7th-day exposure.
Read the full Kentucky seventh-day overtime (krs 337.050) guide →
03Reasonable meal between hours 3-5; 10-min paid rest per 4 hours
KRS 337.355 establishes Kentucky's meal break framework: 'no employer shall require any employee to take the meal period in less than 3 nor more than 5 hours from the time he or she begins his or her workday, unless the employer and employee mutually agree to some other arrangement.' The meal period must be 'reasonable' (typically 30 minutes; 20 minutes acceptable in some interpretations).
Meal period payment: the meal break is unpaid if the worker is fully relieved of duties. Workers performing duties during the meal break (eating at workstation, answering phones, monitoring equipment) must be compensated for that time. The 'fully relieved' standard tracks federal FLSA Fact Sheet #22 framework.
Rest breaks under KRS 337.365: 'Each employee shall be allowed to take, during each work shift of seven and one-half (7½) hours or more, a rest break of at least ten (10) minutes for each four (4) hours worked or any major fraction thereof.' The 'major fraction thereof' language extends rest break entitlement to workers in the 2-4 hour zone of a 4-hour increment.
Rest break payment: rest breaks under KRS 337.355/365 are PAID. The 10-minute rest period counts as compensable work time. Rest breaks may not be combined with meal breaks (the meal break is separate). Workers may not be required to spend rest breaks in any particular location.
Federal Railway Labor Act exemption: employers qualifying as 'carriers' under the federal Railway Labor Act are exempt from meal and rest break requirements. Limited exemption applies to railroad and certain transportation operations. Operationally, multi-state operators with KY workforces need: (1) shift-length detection (rest breaks for 4+ hour shifts; meal breaks for 6+ hour shifts within the 3-5 hour window); (2) break period scheduling within the 3-5 hour zone for meal breaks; (3) paid time tracking for rest breaks; (4) duty-free meal break documentation.
Read the full Kentucky meal and rest breaks (krs 337.355/365) guide →
04Longest state wage SOL in the country; double damages framework
KRS 337.385 establishes Kentucky's wage claim statute of limitations: 'An action to recover unpaid wages or liquidated damages under KRS 337.055, 337.275, or 337.285 shall be commenced within five (5) years after the cause of action accrued.' The 5-year SOL is the longest in the country for state wage claims.
Comparison to other state wage SOLs: CA 3-4 years (varies by claim); NY 6 years (one of the longest, but NY has specific framework); MA 3 years; NJ 6 years; IN 3 years; NC 2 years (3 if willful); SC 3 years (PWA framework); TN 1 year (very short). Federal FLSA: 2 years (3 if willful). Kentucky's 5-year framework creates the longest reach-back among non-NY states.
Liquidated damages framework under KRS 337.385: workers may recover unpaid wages PLUS an additional equal amount as liquidated damages (effectively doubling recovery) PLUS reasonable attorney fees. Coverage extends to: KRS 337.055 (final pay); KRS 337.275 (minimum wage); KRS 337.285 (overtime). Plus the 5-year SOL on each.
Good faith defense: courts may decline to award liquidated damages if the employer establishes that the violation was in good faith and the employer had reasonable grounds for believing the action was not a violation. The defense requires affirmative documentation: legal advice obtained, policy review undertaken, wage calculation methodology documented. Pattern violations, ignorance after notice, and systematic noncompliance defeat good-faith defense.
Recordkeeping implications: while federal FLSA requires 3-year retention under 29 CFR § 516, Kentucky's 5-year SOL effectively extends retention discipline. Best practice for KY workforces: 5-year retention of payroll records, time records, classification documentation, schedule records, policy commitments, and wage statement copies. Wage records gaps within the 5-year window are typically interpreted against the employer in litigation. Multi-state operators should adjust retention schedules to account for KY's longer SOL when KY workers are within scope.
Read the full Kentucky 5-year sol + liquidated damages (krs 337.385) guide →
05Semi-monthly pay; final pay by next payday or 14 days, later
KRS 337.020 establishes Kentucky's pay frequency requirement: 'Every employer shall pay all wages or salaries earned to an employee, except those exempt under KRS 337.010(2)(a)2., 7., 8., 9., 10., 11., 12., 14., or 17., at least semi-monthly, in lawful money of the United States or by check, draft, or by direct deposit, in an amount which shall include all wages earned to a point not more than 18 days prior to the date of payment.' Semi-monthly minimum compliant frequency.
Final pay timing under KRS 337.055: 'Any employee who leaves or is discharged from his employment shall be paid in full all wages or salary earned by him; not later than the next normal pay period following the date of dismissal or voluntary leaving or fourteen (14) days following such date of dismissal or voluntary leaving, whichever last occurs.' The 'whichever last' framework gives Kentucky employers more time than 'whichever first' frameworks.
Wage statement disclosure under KRS 337.070: per-paycheck information required. Employers must provide written or electronic wage statements showing: amount and date of payment; hours worked; gross wages; net wages; itemized deductions. Records of hours worked and wages paid must be retained for 5 years (matching the SOL framework).
Wage deductions under KRS 337.060: 'No employer shall withhold from any employee any part of the wage agreed upon...' except for: (1) deductions required by law (taxes, court-ordered garnishments); (2) deductions specifically authorized in writing by the worker. Critical limit: deductions for 'cash shortages, breakage or loss of equipment, or for the cost of uniforms' are NOT permitted as deductions from wages, even with worker authorization. The limitation is more protective than federal FLSA's general rule that deductions cannot reduce below minimum.
Wage discrimination under KRS 337.420 (Kentucky Equal Pay Act): prohibits sex-based pay discrimination for 'comparable work.' Coverage extends to all employers regardless of size. Civil action available; recoverable: back pay differential, liquidated damages, attorney fees. SOL: 5 years (matching general wage claim SOL under § 337.385). The KY EPA is more protective than federal Equal Pay Act on the comparable work standard (federal EPA uses 'equal work' standard; some state laws use broader 'comparable' standard).
Read the full Kentucky final pay + pay frequency (krs 337.020/055) guide →
064 weeks gross payroll bond for new construction/mining employers
KRS 337.200 (Performance Bonds) establishes Kentucky's industry-specific performance bond requirement: 'Except for employers who have been doing business in the state for five (5) years, every employer engaged in construction work, or the severance, preparation, or transportation of minerals, shall furnish on a form prescribed by the Executive Director a performance bond to assure the payment of all wages due from the employer.'
Coverage: two industry categories — (1) construction work (residential, commercial, industrial); (2) severance, preparation, or transportation of minerals (coal mining, limestone quarrying, mineral hauling). Employers operating less than 5 continuous years in Kentucky must furnish the bond; those operating 5+ years are exempt.
Bond amount: 'Surety for the bond shall be an amount of money equal to the employer's gross payroll operating at full capacity for four (4) weeks.' The bond covers 4 weeks of full-capacity payroll, not actual current payroll. Employer must calculate maximum potential payroll based on full operational capacity. Bonds may be obtained from any certified surety company on the Treasury's Listing of Certified Companies.
Worker recovery from bond: 'Any employee whose wages are secured by a bond may obtain payment of those wages, liquidated damages, and attorney's fees as provided by law on presentation to the Executive Director of a final judgment entered by a court of competent jurisdiction.' Workers must obtain final judgment from KY court before claiming against the bond — administrative process through Kentucky Education and Labor Cabinet's Division of Wages and Hours.
Bond termination: bond may be terminated with Executive Director approval upon: (1) employer's statement under oath that operations have ceased in Kentucky AND all wages have been paid; (2) employer reaching 5+ continuous years of operation in Kentucky. Multi-state construction operators expanding to KY should: (1) calculate bond at project start; (2) maintain bond for the operating period; (3) coordinate with surety carrier on renewals; (4) document 5-year continuous operation milestone for termination eligibility.
Read the full Kentucky construction performance bonds (krs 337.200) guide →
078+ employee threshold; broader categories than Title VII
Kentucky Civil Rights Act under KRS Chapter 344 (specifically KRS § 344.030 et seq.) prohibits employment discrimination. Coverage: employers with 8 or more employees in the relevant geographic area. Lower threshold than federal Title VII (15 employees) and ADEA (20 employees), reaching smaller KY employers.
Protected categories under KRS 344.030: race, color, religion, national origin, sex (including pregnancy, childbirth, and related medical conditions), age (40+), disability, and 'smoker/nonsmoker status' (KY-distinctive provision under KRS 344.040(1)(d) protecting workers from off-duty smoking-status discrimination). Notable absences: sexual orientation and gender identity not explicitly protected at state level. Federal Bostock v. Clayton County (2020) extended Title VII's 'sex' protection to cover sexual orientation and gender identity, applying in KY regardless of state statute.
Kentucky Pregnant Workers Act: KRS § 344.030(8) (effective June 27, 2019) requires employers with 15+ employees to provide reasonable accommodations for pregnancy, childbirth, and related medical conditions. Covered accommodations: modified job duties; additional break periods; modified work schedules; private space for lactation; transfer to less strenuous or hazardous position; closer parking; chair/seating. Employers may decline accommodations posing undue hardship. Operates parallel to federal Pregnant Workers Fairness Act (effective June 27, 2023).
Kentucky Adoption Leave Act: KRS § 337.015 — if an employer's policy provides any duration of leave following the birth of a biological child, the SAME duration and type of leave must be extended to qualifying adoptive parents. The framework prevents disparate treatment of biological vs. adoptive parents in policy administration. Coverage: all employers regardless of size who offer parental leave (those without parental leave policies have no obligation under § 337.015).
Enforcement: Kentucky Commission on Human Rights (KCHR) investigates state-level claims. Workers may file with KCHR within 180 days of the alleged discriminatory act. Under work-share agreements, KCHR complaints often satisfy parallel EEOC filing requirements (federal Title VII). Workers may pursue parallel federal claims under Title VII, ADEA, ADA, GINA, or PWFA where applicable; coordination between state KCHR and federal EEOC is common in dual-filing scenarios.
Read the full Kentucky kentucky civil rights act (krs 344) guide →
08Multi-factor common law test; right-to-work state under KRS 336.130
Kentucky applies a multi-factor common law test for IC classification, structurally similar to the IRS framework under Rev. Rul. 87-41. Factors evaluated: behavioral control (instructions on how work is performed, training provided); financial control (method of payment, who provides tools and equipment, opportunity for profit or loss, unreimbursed business expenses); relationship type (written contracts, employee benefits, permanence of relationship, regular business of the employer).
The multi-factor test is more permissive than ABC test states (NJ, MA, CA, MD, CT, NV). Workers can be classified as IC in Kentucky even when the work is part of the employer's regular business — provided control is properly limited and other factors support IC classification. Right of control is typically weighted heavily but not exclusively.
Misclassification consequences: unemployment insurance back-contributions plus penalties (Kentucky Education and Labor Cabinet); workers' compensation premium back-payment plus exposure for any injuries during misclassified period (Kentucky Department of Workers' Claims); federal IRS Form SS-8 reclassification with Section 3509 employment tax penalties; potential wage exposure under FLSA and KY Wage and Hour Act if workers should have received minimum wage and OT.
Construction industry concentration: Kentucky has been an active enforcement jurisdiction for construction misclassification. The KRS 337.200 performance bond framework provides additional oversight. Kentucky Joint Enforcement effort (Education and Labor Cabinet + Department of Workers' Claims + Department of Revenue) targets 'sham' subcontractor patterns. Healthcare staffing classification scrutiny has also increased given KY's significant healthcare workforce.
Right-to-work framework under KRS § 336.130 (2017): Workers cannot be required to join a union or pay union dues as a condition of employment. Kentucky became the 27th right-to-work state in 2017. The framework prohibits closed shop, union shop, and agency shop arrangements. CBAs may not include compulsory membership clauses. Multi-state operators expanding to KY from union-active states should review CBA terms for compliance with KY's right-to-work framework. Anti-retaliation: protected for: filing wage complaints, exercising rights under KRS Chapter 337, refusing to violate law. Federal anti-retaliation provisions also apply (FLSA, FMLA, OSHA, Title VII).
Read the full Kentucky ic classification + right-to-work framework guide →