Overtime in Kentucky is governed by both the federal Fair Labor Standards Act (FLSA) and Kentucky state labor laws.
This article breaks down everything you need to know—from defining a workweek and understanding who qualifies for overtime, to calculating overtime for different pay types, including hourly, salaried, bonus-based, piece rate, and flat rate employees.
This Article Covers:
Understanding Overtime in Kentucky
- Which Overtime Laws Apply in Kentucky?
- How Do You Define a Workweek in Kentucky?
- How Much is Overtime Pay in Kentucky?
- Who is Eligible for Overtime Pay in Kentucky?
- Who is Exempt from Overtime Pay in Kentucky?
Overtime for Hourly Rate, Hourly Rate with Bonuses, and Salaried Employees in Kentucky
- How Do You Calculate Overtime for Hourly Employees in Kentucky?
- How Do You Calculate Overtime for Hourly Employees with Bonuses in Kentucky?
- How Do You Calculate Overtime for Salaried Employees in Kentucky?
Overtime for Complex Pay Structures in Kentucky
- How Do You Calculate Overtime Pay for Piece Rate Employees in Kentucky?
- How Do You Calculate Overtime for Flat Rate Employees in Kentucky?
Additional Considerations for Kentucky Overtime
- Can Employers Mandate Overtime Work in Kentucky?
- What are the Recordkeeping Requirements for Overtime Calculation in Kentucky?
Understanding Overtime in Kentucky
Which Overtime Laws Apply in Kentucky?
Kentucky’s overtime regulations are consistent with the Fair Labor Standards Act (FLSA) overtime guidelines. Under the FLSA, overtime pay is required for work beyond 40 hours in a workweek for non-exempt employees.
Each overtime hour must be compensated for additional hours at a rate no less than 1.5 times their standard hourly wage.
Additionally, In Kentucky, if an employee works seven days in a row, they get paid 1.5 times their usual rate for hours worked on the seventh day, with some exceptions.
Employers cannot average hours worked over multiple weeks for overtime calculations; every workweek is treated individually.
How Do You Define a Workweek in Kentucky?
A workweek in Kentucky is defined as a calendar week or any seven consecutive days chosen by the employer. An employer must set a workweek as a fixed schedule, without the intent to avoid overtime pay.
How Much is Overtime Pay in Kentucky?
Generally, in Kentucky, any hours worked beyond a 40-hour workweek must be compensated at a minimum of 1.5 times the employee’s standard rate of pay.
Given the current Kentucky minimum wage set at $7.25 per hour, this would put the minimum overtime way at $10.88 per overtime hour.
Who is Eligible for Overtime Pay in Kentucky?
Under Kentucky overtime laws, hourly employees are generally eligible for overtime pay.
Additionally, salaried employees in non-exempt sectors earning less than $684 per week (or $35,568 annually) qualify for overtime compensation.
However, overtime eligibility also depends on the employee’s job duties and the type of industry that business is in.
Who is Exempt from Overtime Pay in Kentucky?
FLSA overtime rules exempt salaried employees in Kentucky who earn at least $684 per week ($35,568 annually) from receiving overtime pay. These workers fall into one of four categories: administrative, executive, professional, or outside sales.
Other overtime exemptions under the FLSA include:
- Aircraft salespeople
- Airline employees
- Amusement/recreational employees in national parks/forests/Wildlife Refuge System
- Announcers, news editors, and chief engineers at major radio or TV stations
- Babysitters on a casual basis
- Boat salespeople
- Buyers of agricultural products (poultry, egg, milk, etc.)
- Companions for the elderly
- Country elevator workers (rural)
- Criminal investigators receiving availability pay
- Domestic workers
- Employees in national parks, amusement, or recreation facilities
- Farm implement salespeople
- Federal criminal investigators
- Firefighters working in small (less than 5 firefighters) public fire departments
- Fishing industry workers
- Forestry employees of small (less than 9 employees) firms
- Fruit & vegetable transportation employees
- Government employees
- Highly compensated employees earning at least $107,432 per year
- Homeworkers making wreaths
- House parents in non-profit educational institutions
- Independent contractors (under specific conditions)
- IT personnel earning at least $27.63 per hour
- Livestock auction workers
- Local delivery drivers and driver’s helpers
- Lumber operations employees of small (less than 9 employees) firms
- Motion picture theater employees
- Newspaper delivery workers
- Newspaper employees of limited circulation newspapers
- Police officers working in small (less than 5 officers) public police departments
- Radio station employees in small markets
- Railroad employees
- Seamen on American vessels
- Seamen on other than American vessels
- Sugar processing employees
- Switchboard operators
- Taxicab drivers
- Television station employees in small markets
- Truck and trailer salespeople
- Volunteers in religious, non-profit, charitable, or educational organizations
- Workers in maple syrup production
- Youth employed as actors or performers
- Youth employed by their parents
Overtime for Hourly Rate, Hourly Rate with Bonuses, and Salaried Employees in Kentucky
How Do You Calculate Overtime for Hourly Employees in Kentucky?
To understand overtime calculations for hourly employees in Kentucky, let’s take the following example.
John is an hourly employee and earns $12 per hour. He has worked 47 hours during the week and is eligible to earn overtime pay. To determine his overtime wages, we can use the following steps:
Since John earns $12.00 per hour, that would automatically be his regular rate of pay. |
Multiply the regular pay rate by 1.5. John’s overtime rate would then be: ($12 x 1.5 = $18.00) |
If John worked 47 hours in a week, his overtime hours would be seven: (47 hours – 40 hours = 7 overtime hours). |
Multiply the overtime hours by the overtime rate. From the example, John’s overtime pay would be a total of: (7 hours x $18.00 = $126.00). |
It’s important to note that the regular rate can change if the employee gets extra compensation or incentives during the week.
Learn more about hourly employee rights in Kentucky.
How Do You Calculate Overtime for Hourly Employees with Bonuses in Kentucky?
To calculate the overtime pay for hourly employees with bonuses in Kentucky, add up the total earnings for the workweek including the bonuses and then divide by the total hours worked.
The total earnings for the week are calculated by adding the weekly pay and bonuses. For instance, if an employee earns $600.00 per week and receives a $50.00 bonus, their total earnings for the week would be: ($600.00 + $50.00 = $650.00). |
The employees should divide the total weekly earnings by the hours worked. In this case, the regular pay rate is ($650.00 ÷ 46 hours = $14.13 per hour). |
The employee’s overtime rate is $21.19 and should receive an overtime pay of ($21.19 x 3 overtime hours = $63.58). |
How Do You Calculate Overtime for Salaried Employees in Kentucky?
To calculate the regular hourly rate for a salaried employee in Kentucky, you’ll first need to calculate their regular hourly rate. This can be done by dividing their weekly salary by the number of weekly hours it covers.
Let’s say an employee in Kentucky earns $600 weekly and works 50 hours in one week. Their overtime pay can be calculated as follows:
Given the employee earns a $600 weekly salary and works 50 hours in one week, their regular rate would be: ($600.00 ÷ 50 = $12.00 per hour). |
Next, you’ll need to multiply the regular pay by 1.5 to get the overtime rate. In this example, the regular rate is $12.00, so the overtime rate would be ($12.00 x 1.5 = $18.00 per overtime hour). |
The employee worked 50 hours, resulting in ten overtime hours (50 hours – 40 hours = 10 overtime hours). |
The employee’s overtime rate is $18.00. Therefore, the employee’s overtime pay for the week is ($18.00 x 10 hours = $180) for ten overtime hours. |
When a salary is not paid weekly, employees must convert it to a weekly salary amount. To do this:
- For a salary paid twice a month, employees should multiply the amount by 24 and divide by 52 to find the weekly equivalent.
- For a monthly salary, employees should multiply by 12 and divide by 52.
Learn more about salaried employee rights in Kentucky.
Overtime for Complex Pay Structures in Kentucky
How Do You Calculate Overtime Pay for Piece Rate Employees in Kentucky?
In Kentucky, if an employee is paid by the piece instead of by the hour, their regular hourly rate is calculated by adding up everything they earned for the week—including piece-rate pay, bonuses, and pay for time spent waiting—and dividing it by the total number of hours they worked.
If they work more than 40 hours in a week, they must be paid an extra half of their regular hourly rate for each overtime hour. This is because their regular pay is already included in their piece-rate earnings.
To better understand this, let’s say a piece-rate employee earns $705.00 for the week and worked 47 hours. You can calculate their overtime pay through the following steps:
Start by dividing the total earnings by the total number of hours worked to find the regular hourly rate: ($705.00 ÷ 47 hours = $15.00 per hour) |
Multiply the regular rate by 0.5 to get the overtime rate: ($15.00 x 0.5 = $7.50 per overtime hour) |
Overtime applies to any hours worked over 40 in a week. In this case: (47 hours – 40 hours = 7 overtime hours) |
Finally, multiply the overtime hours by the overtime rate to get the total overtime pay: (7 hours x $7.50 = $52.50) |
How Do You Calculate Overtime for Flat Rate Employees in Kentucky?
A flat rate employee in Kentucky is paid a fixed amount to complete a specific task or job, regardless of the time it takes. In contrast, an hourly employee is paid based on the actual number of hours they work.
For example, an employee is paid a flat rate of $540.00 for the week and worked 48 hours. Here’s a step-by-step example of how you can calculate their overtime pay:
Start by dividing the total weekly pay by the number of hours worked: ($540.00 ÷ 48 hours = $11.25 per hour). This gives you the employee’s regular rate of pay. |
Since the flat-rate pay already covers straight-time, overtime is paid at half the regular hourly rate: ($11.25 × 0.5 = $5.62 per overtime hour). |
Next, subtract 40 from the total hours worked to find the overtime hours: (48 hours – 40 hours = 8 overtime hours). |
Now, multiply the overtime hours by the overtime rate: (8 hours × $5.62 = $44.96). This is the total overtime pay due for the week. |
Additional Considerations for Kentucky Overtime
Can Employers Mandate Overtime Work in Kentucky?
In Kentucky, employers can mandate overtime for employees during a workweek. This practice is permissible under overtime laws as long as the workers receive appropriate overtime pay, which is one-and-a-half times their standard hourly rate.
Under Kentucky’s 7th Day Overtime Law, if an employee works for seven consecutive days within a workweek, they are eligible to earn overtime pay at 1.5 times their regular hourly rate for all hours worked on the seventh day.
What are the Recordkeeping Requirements for Overtime Calculation in Kentucky?
In Kentucky, employers are required to keep detailed records of employees’ work hours and wage payments to calculate overtime accurately. These records must be kept for at least one year after the date of entry and they include:
- Employee Details: Full name, Social Security number, home address, date of birth (if under 18), gender, and occupation.
- Work Schedules and Hours: The time and day the workweek starts, along with the hours worked each day and week.
- Payroll Information: Regular pay rate, total earnings, overtime pay, additions or deductions from wages, and total wages each pay period.
Important Cautionary Note
This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.
