Kentucky overtime laws, a crucial component of the broader Kentucky labor laws, govern how employees are paid when they work beyond standard hours. These laws are designed to protect workers by establishing overtime pay rules while helping employers stay compliant with wage regulations.
This guide explains Kentucky overtime laws in 2026, including overtime rates, eligibility, exemptions, and compliance requirements for employers and employees.
Kentucky Overtime Laws Summary
| Kentucky overtime law | Overtime applies when an employee works more than 40 hours in a workweek, and for hours worked on the seventh consecutive day |
| Overtime pay rate | 1.5 times the employee’s regular hourly rate |
| Kentucky minimum wage | $7.25 per hour |
| Minimum overtime rate | $10.88 per hour |
| Comp time instead of overtime pay | Allowed only for county government employees upon written request |
| Salary threshold for overtime exemption | $684 per week |
This Article Covers
- Kentucky Overtime Pay Rates
- Who is Entitled to Overtime Pay in Kentucky?
- Overtime Exemptions in Kentucky
- Compensatory Time in Kentucky
- Overtime Pay for Tipped Employees in Kentucky
- Overtime Pay for Salaried Employees in Kentucky
- Overtime Pay for Commissioned Employees in Kentucky
Kentucky Overtime Pay Rates
Under Kentucky overtime laws, non-exempt employees are entitled to overtime pay at 1.5 times their regular hourly rate for hours worked over 40 in a workweek.
Employers are not required to pay overtime for hours worked beyond eight in a single day, or for work performed on weekends, holidays, or regular rest days.
Overtime applies only when an employee actually works more than 40 hours in a workweek. Employers cannot average hours across multiple weeks to avoid paying overtime.
Kentucky also has a seventh-day overtime rule. When an employee works seven consecutive days in a workweek, they must receive overtime pay for hours worked on the seventh day. However, this 7th-day overtime rule does not apply if an employee is not authorized to work over 40 hours in a week or if another statutory exception applies.
Since Kentucky’s minimum wage remains aligned with the federal rate of $7.25 per hour, the minimum overtime rate is $10.88 per hour for covered employees earning minimum wage.
What counts as a workweek under Kentucky law?
Under Kentucky law, an employee’s workweek is defined as a fixed, recurring period of 168 hours, that is, seven consecutive 24‑hour days. The workweek does not need to align with the calendar week and may begin on any day and at any hour chosen by the employer.
Employers may set a single workweek for the entire establishment or designate different workweeks for specific employees or groups.
Once the start time of an employee’s workweek is established, it must remain fixed regardless of the employee’s schedule. Employers may change the start of the workweek only if the change is permanent and not intended to avoid overtime obligations.
Who is Entitled to Overtime Pay in Kentucky?
According to Kentucky overtime laws, overtime pay is required for covered non-exempt employees. Entitlement depends on the employee’s pay structure, job duties, and whether any exemption applies under the federal FLSA.
Employees working in non-exempt industries who make less than $684 per week ($35,568 annually) are entitled to overtime compensation.
However, salary alone does not make an employee exempt, and job titles are not enough to remove overtime rights. An employee’s overall eligibility for overtime pay depends on their salary level, job duties, and industry type.
Learn more about your overtime rights in Kentucky.
Overtime Exemptions in Kentucky
Kentucky overtime rules primarily follow federal exemptions under the FLSA.
Employees earning at least $684 per week ($35,568 annually) and performing exempt duties are not entitled to overtime pay if they also meet the job duty criteria for exemption.
Common exempt categories include:
- Executive, administrative, and professional employees
- Outside sales employees
- Certain computer employees
Under Kentucky overtime laws, the following occupations are also exempt from overtime pay:
- Retail store employees involved in selling, purchasing, and distributing goods
- Hotel, motel, and restaurant employees
- Workers providing 24‑hour residential care in nonprofit child‑caring facilities for dependent, neglected, or abused children
- Individuals employed by a third‑party agency to provide in‑home companionship services for sick, recovering, or elderly people
In addition, Kentucky’s seventh-day overtime law exempts certain types of workers and industries from overtime pay for hours worked on the 7th consecutive day. These exempt employees include:
- Employees who are not permitted to work more than 40 hours in a workweek
- Telephone exchanges with fewer than 500 subscribers
- Stenographers and bookkeepers
- Technical assistants in licensed professions, such as those of doctors, accountants, and lawyers
- Employees covered by the Federal Railway Labor Act
- Seamen or workers operating boats or other water transportation facilities on navigable streams
- Workers engaged in icing railroad cars
- Common carriers regulated by the Department of Vehicle Regulation
- Employees in supervisory roles, such as officers, superintendents, foremen, or supervisors
Compensatory Time in Kentucky
Under Kentucky overtime laws, compensatory time (comp time) is allowed only in limited public-sector situations. Employees of any county government, including employees of a county-elected official, can receive comp time instead of overtime pay upon written request.
Overtime Pay for Tipped Employees in Kentucky
Any employee who regularly earns more than $30 per month in tips is considered a tipped employee in Kentucky. Under Kentucky overtime laws, tipped employees are entitled to overtime pay when they are classified as non-exempt.
Kentucky follows the federal tipped wage structure, which allows employers to pay a cash wage as low as $2.13 per hour as long as tips make up the difference to reach the required minimum wage.
Employers may claim a tip credit of up to $5.12 to make up the difference from the $7.25 hourly minimum wage.
However, overtime must be calculated based on the full minimum wage, not the lower cash wage.
Minimum overtime rate = $10.88/hour (1.5 × $7.25)
If a tipped employee’s total earnings (wages + tips) do not equal minimum wage, employers must make up the difference.
Learn how to calculate overtime in Kentucky or use our free overtime calculator for seamless calculations.
Overtime Pay for Salaried Employees in Kentucky
Salaried employees are not automatically exempt under Kentucky overtime law. If non-exempt, overtime must be paid at 1.5 times the employee’s regular rate of pay for all hours worked over 40 in a workweek and all hours worked on the seventh consecutive day.
Employers must calculate a salaried employee’s overtime pay as per the federal Fair Labor Standards Act (FLSA) rules.
Overtime pay = 1.5 x Regular hourly rate x Overtime hours
If an employee is paid a weekly salary, the regular hourly rate used to calculate overtime pay is determined by dividing the salary by the number of hours the salary is intended to cover.
Weekly salary / Hours the salary covers = Regular hourly rate
For example, if an employee earns a salary of $350 for a 35-hour workweek, the regular rate of pay is $10/hour ($350 divided by 35 hours). When that employee works overtime, they are entitled to receive $10/hour for the first 40 hours and $15/hour (1.5 overtime rate) for each additional hour.
When a salary covers a period longer than a workweek, such as a month, it needs to be converted to its equivalent weekly wage. To do this, a monthly salary is multiplied by 12 (months per year) and divided by 52 (weeks per year).
(Monthly salary x 12) / 52 = Weekly salary
Once the weekly wage is determined, the regular hourly rate of pay can be calculated as follows:
Weekly salary / Hours the salary covers = Regular hourly rate
If an employee has a regular monthly salary of $1,560 for a 40-hour workweek, their regular rate of pay would be $9/hour (calculated based on the formula given above).
Explore other rights of salaried employees in Kentucky.
Overtime Pay for Commissioned Employees in Kentucky
Employees who earn commissions in Kentucky may still be entitled to overtime pay if they are non-exempt.
Kentucky follows federal rules for calculating overtime pay for employees who earn commissions. The federal wage rule says: Commissions must be added to an employee’s total earnings while calculating their regular hourly rate for overtime calculation purposes
Employee’s total earnings in a week = Weekly wage + Commission amount
Regular hourly rate for the week = Total earnings in that workweek / Total hours worked
Overtime is then paid at one-half that regular rate for each overtime hour, because the straight-time portion has already been paid.
Overtime pay = 0.5 x Regular hourly rate for the week x Overtime hours
For any hours worked beyond 40 in a week, the employee must be paid additional compensation at a rate of half of the regular hourly rate.
For example, let’s say an employee works 45 hours a week and receives a wage of $400 for that week, plus an extra $50 in commissions.
Their total earnings for the week: $400 + $50 = $450
Regular hourly rate: $450 / 45 hours = $10 per hour
Overtime rate = $10 / 2 = $5 per overtime hour
Since the employee worked an extra five hours in the week, their overtime compensation will be: $5 x 5 hours = $25
The amount will vary according to the hours worked, hourly rate, and commission earned.
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.
