Ensuring FLSA Exempt Status in Kentucky Requires a $684/week Salary Basis
Kentucky law, through KRS 337.010, explicitly incorporates federal Fair Labor Standards Act (FLSA) definitions for exempt employee classifications. This means employers in Kentucky must adhere to the federal salary threshold of $684 per week ($35,568 annually) in addition to satisfying the established duties tests for executive, administrative, or professional exemptions. Misclassification carries significant penalties, including back pay and liquidated damages.
FLSA Exempt Classification
Validates exempt against $684/week federal salary basis + duties test. KY tracks federal threshold under KRS 337.010.
What those rules do as a Kentucky shift is created.
Teambridge's compliance engine integrates Kentucky's adoption of federal FLSA standards directly into your scheduling and payroll processes. This proactive validation ensures that exempt classifications are rigorously maintained, preventing common missteps that lead to costly penalties.
Exempt Salary Threshold Enforcement
If an employee classified as exempt in Kentucky is scheduled for a workweek where their effective salary falls below $684, Teambridge flags this immediately. The system will alert administrators to the potential misclassification and recommend adjustments to salary or classification.
Duties Test Prompt
For new hires or reclassifications, Teambridge prompts employers to confirm that the employee's primary duties meet the federal executive, administrative, or professional exemptions. This structured questionnaire helps document compliance with the qualitative aspects of the FLSA test.
Overtime Calculation Override
In cases where an exempt employee's salary temporarily dips below the threshold due to unpaid leave or other deductions, Teambridge will automatically reclassify them as non-exempt for that pay period and calculate overtime based on actual hours worked, mitigating risk.
Kentucky compliance,
on autopilot.
No more manual tracking. No more missed updates. Teambridge keeps you compliant, effortlessly.
Kentucky adopts federal FLSA standards for white-collar exemptions.
Kentucky Revised Statute 337.010 defines "employee" and "employer" broadly, and through its wage and hour regulations, explicitly references and incorporates the federal Fair Labor Standards Act (FLSA) for determining minimum wage and overtime exemptions. This means that for an employee to be properly classified as exempt from overtime pay in Kentucky, they must meet both the federal salary basis test and the federal duties test.
KRS 337.010(2)(a): "Employee means any person employed by or suffered or permitted to work for an employer... but shall not include any individual who is exempt from the provisions of the Fair Labor Standards Act..."
29 CFR Part 541: Defines the specific salary and duties tests for executive, administrative, and professional employees.
Salary Basis Test
Under federal regulations adopted by Kentucky, an employee must be paid on a salary basis at a rate not less than $684 per week ($35,568 annually). This salary must be a predetermined amount that is not subject to reduction because of variations in the quality or quantity of the work performed. Limited exceptions for certain deductions (e.g., full-day absences for personal reasons, sickness/disability under a bona fide plan) apply, but improper deductions can lead to loss of the exemption.
Duties Test
In addition to the salary threshold, the employee's primary duties must meet the specific requirements for the executive, administrative, or professional exemptions as defined by the FLSA. These tests are qualitative and focus on the nature of the work performed, such as managing a department, exercising discretion and independent judgment, or performing work requiring advanced knowledge. Kentucky does not have separate state-specific duties tests that diverge from the federal standard for these "white-collar" exemptions.
Teambridge monitors Kentucky's FLSA exemption rules so you don't have to.
Teambridge's platform continuously tracks the federal FLSA salary threshold, which Kentucky directly adopts, ensuring your exempt classifications remain compliant even as federal rates change. Our system provides real-time alerts and tools to manage employee classifications effectively.
Automatic Threshold Updates
Teambridge automatically incorporates any changes to the federal FLSA salary threshold, ensuring your system is always up-to-date with Kentucky's adopted requirements without manual intervention.
Salary Basis Check
Before processing payroll, Teambridge validates that all employees classified as exempt meet the minimum $684 per week salary basis. Any discrepancies trigger immediate alerts for review.
Structured Exemption Attestation
For each exempt employee, Teambridge provides a structured workflow to document and attest that their primary duties satisfy the federal executive, administrative, or professional criteria, creating an auditable record.
Automatic Overtime Recalculation
If an exempt employee's pay falls below the threshold for a given period, Teambridge can automatically adjust their status to non-exempt for that period and calculate applicable overtime, preventing inadvertent violations.
People also ask.
What is the minimum salary for an exempt employee in Kentucky?
As of 2026, the minimum salary for an exempt employee in Kentucky is $684 per week ($35,568 annually). This directly follows the federal Fair Labor Standards Act (FLSA) threshold, which Kentucky adopts via KRS 337.010.
Does Kentucky have its own duties tests for exempt employees?
No, Kentucky does not have separate state-specific duties tests for "white-collar" exemptions. Employers in Kentucky must adhere to the federal FLSA duties tests for executive, administrative, and professional employees.
What happens if an exempt employee's salary falls below the $684/week threshold?
If an employee's salary falls below the $684 per week threshold for a given pay period due to improper deductions or other reasons, they may lose their exempt status for that period. This would require the employer to pay them overtime for all hours worked over 40 in that workweek, and potentially pay back wages and liquidated damages for misclassification.
Are highly compensated employees in Kentucky exempt from overtime?
Kentucky follows the federal FLSA's highly compensated employee (HCE) exemption. As of 2026, an employee is exempt if they earn at least $107,432 annually (including at least $684 per week on a salary basis) and primarily perform office or non-manual work, and customarily and regularly perform at least one of the exempt duties of an executive, administrative, or professional employee.
Can an employer deduct from an exempt employee's salary in Kentucky?
Deductions from an exempt employee's salary are generally prohibited under federal FLSA rules, which Kentucky follows. However, exceptions exist for full-day absences for personal reasons, sickness or disability (if under a bona fide plan), penalties for infractions of safety rules of major significance, and certain disciplinary suspensions. Improper deductions can result in the loss of the exemption.
Where can I find the specific Kentucky statute regarding FLSA exemptions?
The primary Kentucky statute referencing FLSA exemptions is KRS 337.010. While it doesn't detail the specific salary and duties tests, it incorporates the federal FLSA definitions, meaning you should refer to 29 CFR Part 541 for the detailed federal regulations.