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 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. However, an employee cannot be terminated if their discharge violates a well-established public policy. 

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: Employers in Kentucky are mandated by the federal Occupational Safety and Health Act (OSHA) to 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 and their dependents to maintain their health insurance benefits after losing employment due to qualifying reasons such as termination, reduction of work hours, death or divorce. It applies to employers with 20 or more employees. Kentucky also has a “mini-COBRA” law that extends coverage to small businesses with less than 20 employees.
• Employee Monitoring Laws: In Kentucky, employers can surveil employees in the workplace only if they provide prior written notice. This notice must include the employee activity that will be monitored, the method used for monitoring, the frequency of monitoring, the personnel authorized to access recorded information, and the reasons for monitoring employee activity. This notice must be posted in a conspicuous location. However, if an employer believes that an employee may be engaged in illegal activities, they can monitor the employee without their knowledge to produce evidence for investigation purposes.
• Whistleblower Protection Laws: Under the Kentucky Whistleblower Act, public employees in Kentucky are protected from employer retaliation if they report their employer in good faith to relevant authorities. This includes suspected law violations related to waste, fraud, abuse of authority, mismanagement, or danger to public health and safety.
• 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 be updated 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 tip 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, apprentices, workers 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 earning 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 on 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 consecutive 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 is comfortable and undisturbed.  

Kentucky law provides the following leave benefits to employees:

• Family and Medical Leave: Employers covered by the FLSA in Kentucky are required to offer their workers unpaid leave under the Family and Medical Leave Act (FMLA). Under the FMLA, employees are entitled to 12 weeks of unpaid leave 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, adopted, or foster placement child. Only employers with 50 or more workers are required to comply with FMLA regulations. Additionally,  employees are eligible for FMLA leave if they have worked for at least a year and completed 1,250 work hours with their employer.
• 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. The law does not obligate employers to pay workers for jury leave. Employers are also prohibited from punishing or firing employees for attending jury service, or requiring employees to use their accrued sick, annual or vacation leave to attend jury service.
• Voting Leave: Kentucky law requires employers to give their employees at least four hours of leave to vote on election day. This leave must be given without any negative consequences to the employee upon their return to work. The employer can choose the hours during which the employee can take voting leave.
• Military Leave: Employees in Kentucky who are members of the state National Guard are allowed unlimited unpaid leave for active military duty or training. Employees are entitled to return to their former job positions and benefits upon completion of their training or duty. They are also protected from employer retaliation or discrimination for performing military duty. .

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.

Minors are also required to obtain written parental or guardian permission for employment, which must be kept at the workplace.

Work hours for minors in Kentucky are based off their age group.

Minors aged 14 and 15 may work up to three hours per school day and eight hours per non-school day, with total weekly work hours not exceeding 18 in a week. Work hours may only be scheduled between 7 a.m. and 7 p.m. However, hours can be scheduled until 9 p.m. between June 1st and Labor Day.

Minors aged 16 and 17 can work up to six hours per school day with a total of 30 hours worked in a week. 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 the night before a non-school day. On non-school days, there are no work hour restrictions.

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.