Kentucky Labor Laws

In the US, the federal Fair Labor Standards Act (FLSA) manages the time spent by employees in the workplace, safeguarding their rights and guaranteeing fair pay for their efforts. These laws act as directives for employers, keeping them in check, and minimizing any forms of abuse or exploitation.

Kentucky’s time management laws stick closely to the federal regulations, with similar minimum wage and overtime provisions. Additionally, employers in Kentucky are also required to pay their workers overtime pay for all hours worked on the 7th consecutive day of a workweek only if they are authorized to labor for more than 40 hours in a week.

However, certain job categories, including executives, professionals, and administrative employees, are exempt from overtime pay depending on their job description and salary. Kentucky labor laws also outline additional provisions for employee meal and rest breaks. 

Employers who contravene state time management laws face severe legal ramifications, including fines, back pay, and damages. If workers feel that their employer has violated their rights, they can file complaints with the Kentucky Division of Wages and Hours for investigation and legal action.

When hiring and selecting employees in Kentucky, it’s important to note that employers cannot make discriminatory decisions against certain protected traits such as:

• Race
• Color
• Age (40 and over)
• Religion
• National origin
• Physical/mental disability

Kentucky also has an “employment-at-will” policy, meaning employers can terminate an employee at any time, and employees can leave a job for any reason without legal repercussions. 

After termination or resignation, an employee’s final paycheck must be issued on the next scheduled payday or within two weeks of separation, whichever occurs last. If an employee is not present at the time of payment set by the employer, they must be paid their final wages on demand, or within 14 days from the demand date.

Some important labor laws in Kentucky also include:

• Workplace Safety Laws: Both federal and state Kentucky laws require a safe working environment for employees. The federal Occupational Safety and Health Act (OSHA)mandates that employers must continually inspect and improve safety conditions in the workplace, with the ultimate goal of reducing the chances of injuries, illnesses, and deaths. To ensure proper workplace health and safety conditions, employers must offer training and education to new and existing employees, conduct regular safety demonstrations, and ensure that their premises are free of any recognized hazards that may cause harm. 
• Health Insurance Continuation Laws: The Consolidated Omnibus Budget Reconciliation Act (COBRA) allows employees to maintain their health insurance and benefits after leaving their job. It applies to employers with 20 or more employees but some states have “mini-COBRA” laws that extend coverage to small businesses with less than 20 employees. In Kentucky, for example, mini-COBRA provides 18 months of continuation coverage. However, employees terminated due to gross negligence or misconduct are not eligible for this coverage.
• Employee Monitoring Laws: In Kentucky, employers are not allowed to use electronic surveillance devices to monitor their employees in personal areas like restrooms and changing rooms. Additionally, state law regulates listening devices and prohibits employers from using them to listen in on, amplify, record, or transmit communications without signed consent from at least one party.
• Recordkeeping Laws: Employers in Kentucky are required to maintain employee records for one year after entry as per Kentucky labor laws. These records must include the employee’s name, Social Security Number, address, daily/weekly work hours, regular hourly wages, overtime wages, any additions or deductions from wages, total wages paid weekly and the date of wage payment.

Most employees in Kentucky are entitled to earn a minimum wage of $7.25 per hour as federal law prevails. 

If the federal minimum wage increases in the U.S., then the minimum wage in Kentucky will update to the same amount. 

Any employee regularly earning more than $30 per month in tips is considered a tipped employee as per Kentucky labor laws. Such employees are entitled to a minimum wage of $2.13 per hour, allowing employers to retain a tip credit of $5.12.

However, Kentucky employers must ensure that a tipped worker’s cash wages and earned tips equal the law-mandated minimum wage i.e. $7.25. If not, the employer is required to make up the difference.

Additionally, state law allows tipped employees to pool tips for equal distribution amongst themselves.

Some employees in Kentucky are exempt from minimum wage laws. These include, but are not limited to, the following:

• Agricultural employees
• Executives, administrators, and supervisors earning $684 weekly
• Outside salespeople
• U.S. government workers
• Domestic workers employed in a private home
• Learners, apprenworkers with disabilities, sheltered workshop employees, and students who have a commissioner’s certificate allowing sub-minimum wage
• Employees working in retail, hotels, motels and restaurants which earn an average of $95,000 per annum over a period of five years
• Casual babysitters
• Companions for the sick and elderly
• Newspaper delivery workers

In Kentucky, all employees are entitled to receive their wages on a semi-monthly basis. These wages must cover all work performed over 18 days before payday.

If an employee misses their payday, or is not paid on time, they must be paid within six days of making a demand for wages. 

Employees in Kentucky are entitled to earn overtime pay if they work more than 40 hours in a week, as per state law. These additional wages are calculated at 1.5 times the employee’s hourly wage rate. 

For minimum wage earners in Kentucky, overtime pay amounts to $10.88 per hour.

Kentucky state law also states that if an employee works for 7 consecutive days, the hours worked on the 7th day are considered overtime, which must be compensated at 1.5 times the employee’s regular hourly wage.

 However, the employee is not entitled to overtime pay on the 7th day of work if they are not authorized to work over 40 hours in a week by their employer.

Employees working in any county government — including workers employed by a county-elected member — can request compensatory time off instead of overtime pay.   

Certain employees in Kentucky are not entitled to overtime pay even if they work over 40 hours per week as per state and federal law. Following the FLSA, executive, administrative, and professional employees are exempt from earning overtime pay, considering they earn at least $684 weekly or $35,568 annually. 

There are additional exemptions from overtime pay under the FLSA.

Furthermore, state law exempts the following occupations from overtime pay in Kentucky:

• Retail store employees involved in the selling, purchasing, and distribution of goods and commodities
• Hotel, motel and restaurant employees.
• Workers providing 24-hour care to children in a parental role in their employer’s premises
• Any worker employed by a third-party employer or agency to provide care to the sick or elderly in their residence

All employees in Kentucky are entitled to at least a 10-minute break for every four hours of consectuvie work. These rest breaks are paid and are scheduled in addition to the employee’s regular meal break.

Employers in Kentucky are mandated by state law to provide workers with a reasonably timed lunch break. 

This break must be scheduled in the middle of the employee’s work schedule, but no earlier than three hours after starting work and no later than five hours into the shift.

Federal law mandates that employers in Kentucky offer reasonable time for breastfeeding breaks to nursing employees for up to one year after a child’s birth.

Employers are also required to provide a designated, private space for breastfeeding employees. This location must be a separate room (not a bathroom stall) with a door to make sure the employee comfortable and undisturbed.  

Kentucky law provides the following leave benefits to employees:

• Family and Medical Leave: Kentucky employers are required to offer a specific kind of leave, regulated by the Family and Medical Leave Act (FMLA), to their employees. This kind of leave is available to all employees who have worked for at least a year and completed 1,250 work hours. The FMLA provides for 12 weeks of unpaid leave to be taken in a one-year period for several reasons, including the care for an employee’s own serious health condition, a family member’s serious health condition, or a newly-born or adopted child. Employers with over 50 workers are required to comply with FMLA regulations. Congress expanded the FMLA in 2008, adding provisions for up to 26 weeks of unpaid leave for employees caring for an Armed Forces member with a serious illness or injury. This leave is available only if the member in question is an employee’s spouse, parent, child, or next of kin.
• Jury Duty Leave: According to Kentucky law, employers are required to allow employees to take time off work if they have been summoned for jury duty. It’s important to note that employers are also prohibited from punishing or firing employees for fulfilling their civic duty.
• Voting Leave: Kentucky law requires employers to give their employees at least 4 hours of leave time to vote. This leave must be given without any negative consequences to the employee upon their return to work. However, if the employer can show that the employee did not use this leave to vote for reasons they could have controlled, then the employer is allowed to penalize that employee. It’s important for employees to use their voting leave for its intended purpose.
• Emergency Response Leave: If you work in Kentucky and serve as a volunteer firefighter, rescue squad member, ambulance driver, peace officer, or any other emergency response position, you are entitled to time off to respond to emergencies, thanks to state law. Your employer must provide this leave, which they may choose to make paid or unpaid. To prove your eligibility, you may need to provide a letter from your supervisor or institution where you did the emergency work, but your status cannot be punished or disciplined. Additionally, if you are injured while responding to an emergency, your leave can last up to 12 months. It is illegal for your employer to fire you during this time.
• Witness Leave: According to the law, employers must give their employees who are summoned to court the option of paid or unpaid leave. Employers can’t retaliate against these employees. However, employers can request documentation such as a court or administrative certificate as proof that the employee was indeed summoned to court.
• Adoption Leave: Employers need to grant up to 6 weeks of leave to their employees who are in the midst of the adoption process. This time allows them to complete the necessary paperwork and attend to any associated tasks related to obtaining custody.

The following are the official holidays that will be observed in Kentucky in 2025:

Any individual under the age of 18 is considered a minor as per Kentucky law.

Work Permits for Minors in Kentucky

All minors must provide documentation proving their age before being employed, such as a driver’s license or government-issued document. The employment of minors is restricted in terms of maximum work hours, starting times, and certain occupations that may be hazardous.

Minors in Kentucky can only work for certain hours, based on their age group.

Minors aged 14 and 15 may work up to three hours per school day and 18 hours per week, whereas they can work  up to eight hours per day and up to 40 hours per week when school is not in session. Work hours may only be scheduled between 7 a.m. and 7 p.m.

Minors aged 16 and 17 can work up to six hours per school day with a total of 30 hours worked in week. On non-school days, there are no work hour restrictions. However, work hours can only be scheduled between 10:30 p.m. and 6 a.m. before a school day. These minors are also prohibited from working between 1 a.m. and 6 a.m. on a night before a non-school day.

Minors in Kentucky aren’t allowed to work in risky and dangerous jobs as per state law. This includes:

• Working in plants or establishments making or storing explosives
• Coal mining
• Logging or sawmill jobs
• Handling power-driven hoisting equipment (including forklifts)
• Excavating
• Wrecking or demolishing sites
• Shipbreaking operations
• Working in distilleries or other establishments involved in making alcoholic beverages
• Any work related to a roof.