At a glance
- Minimum wage: $7.25 an hour. The state rate matches the federal $7.25.
- Tipped cash wage: $2.13.
- Overtime: after 40 hours in a workweek.
- Final paycheck if fired: by the next regular payday or within 14 days, whichever is later.
- Paid sick leave: No. Paid family leave program: No.
What Kentucky employers need to know
Kentucky's minimum wage matches the federal $7.25, but its break rules are stricter than most of the South. Employers must give a paid 10-minute rest break for every 4 hours worked and a meal period between the 3rd and 5th hour, which makes Kentucky one of only a few states that require both. Louisville and Lexington once passed higher local minimums, but a 2016 Kentucky Supreme Court ruling struck down local wage ordinances.
Kentucky minimum wage
| Minimum wage | $7.25 The state rate matches the federal $7.25. |
|---|---|
| Tipped cash wage | $2.13 |
| Next change | None scheduled |
Pay the highest rate that applies where the employee works: federal, state, or local. For comparison, neighboring states pay Illinois ($15.00), Indiana ($7.25), Ohio ($11.00), West Virginia ($8.75), Virginia ($12.77), Tennessee ($7.25), Missouri ($15.00). See every state side by side in our minimum wage by state table, and convert between hourly and annual pay with the salary to hourly calculator.
Kentucky overtime rules
The federal FLSA rule applies: overtime at 1.5 times the regular rate after 40 hours in a workweek. There is no daily overtime rule.
Exempt salary test: the federal minimum of $684 a week ($35,568 a year) applies. Duties tests apply too, so job titles alone don't make someone exempt.
Work out overtime owed with our overtime calculator, compare states in overtime laws by state, and check classification with our guide to exempt vs non-exempt employees.
Kentucky meal and rest break laws
Meal breaks: A reasonable meal period, usually 30 minutes, given between the 3rd and 5th hour of work. It doesn't have to be paid if the employee is relieved of duty.
Rest breaks: A paid 10-minute rest period for each 4 hours worked, in addition to the meal period.
Many states have stricter break rules for minors. Compare adult rules nationwide in break laws by state, and total up shifts with the time card calculator.
Kentucky final paycheck law
| If you fire or lay off the employee | By the next regular payday or within 14 days, whichever is later. |
|---|---|
| If the employee quits | By the next regular payday or within 14 days, whichever is later. |
| Unused vacation or PTO | Not required by state law. Follow your written policy or contract, and apply it consistently. |
Build the deadline into your offboarding checklist. Our offboarding guide covers the full process, the PTO payout calculator works out the amount, and the final paycheck laws by state table compares every state.
Kentucky paid sick leave and family leave
Paid sick leave: No statewide paid sick leave law. Check city and county rules, and federal contractor rules (Executive Order 13706) if they apply.
Paid family and medical leave: No state paid family leave program. The federal FMLA gives eligible employees of employers with 50 or more employees up to 12 weeks of unpaid, job-protected leave.
Federal FMLA: employers with 50 or more employees within 75 miles must also give eligible employees up to 12 weeks of unpaid, job-protected leave. Read our FMLA guide, and compare states in paid leave laws by state.
Hiring, pay transparency, and payroll setup
Pay transparency: No statewide pay transparency law requiring pay ranges in job postings.
New hire reporting: Report each new hire within 20 days of the hire date, the federal deadline.
State income tax withholding: Yes. Register with the state tax agency before the first payroll.
Our pay transparency laws guide explains posting rules in more depth, and our job description templates include pay data for 50 common roles.
What trips up Kentucky employers
- Paid 10-minute rest breaks are required for every 4 hours worked.
- The meal period must start between the 3rd and 5th hour, not at the end of a shift.
- Cities can't set their own minimum wage after a 2016 state Supreme Court ruling.
Sources and the agency to contact
- Kentucky Labor Cabinet (state labor agency)
- US Department of Labor: state minimum wage laws
- US Department of Labor: minimum wages for tipped employees by state
- US Department of Labor: state meal period requirements
General information for US employers, not legal advice. Laws change and have exceptions by industry, employer size, and city. Confirm current rules with the state agency or employment counsel before you rely on them.
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<a href="https://www.hrtally.com/state-labor-laws/kentucky/">Kentucky labor laws for employers (2026)</a> (source: HRTally)
Suggested citation: HRTally Research Team. "Kentucky labor laws for employers (2026)." HRTally, updated October 20, 2026. https://www.hrtally.com/state-labor-laws/kentucky/
Frequently asked questions
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Written by the HRTally Research Team
Our guides are written and reviewed by people with hands-on US HR, payroll, and HR technology experience. Legal and tax facts are checked against primary sources, such as the Department of Labor, IRS, EEOC, and USCIS, and linked at the end of each guide. Vendors never review or pay for our editorial content.