Kentucky Minimum Wage Laws




Minimum wage

Kentucky’s current minimum wage is $7.25.

Should the federal minimum hourly wage increase, the minimum hourly wage in Kentucky will also increase to the same amount.

KY Statute 337.275(1).



Tip minimum wage

Kentucky’s current tipped minimum wage is $2.13.

Kentucky’s tipped minimum wage is set to be the same as the tipped minimum wage established in the federal Fair Labor Standards Act. KY Statutes 337.275(2). Tips and gratuities are defined as voluntary monetary contributions paid by a customer for services rendered by an employee. KY Statutes 337.065(2). Employers may pay employees the tipped minimum wage if the employees customarily and regularly receive more than $30 per month in tips from customers. If an employer chooses to pay qualifying employees the tipped minimum wage rate, they must also ensure that the employees are paid the standard minimum wage rate when tipped wages are combined with tips earned. The difference between the tipped minimum wage and the standard minimum wage that may be credited to earned tips is called a tip credit. Fair Labor Standards Act. KY Statutes 337.275(2). If the tip credit is not sufficient to ensure tipped employees are paid the standard minimum wage, the employer must pay employees wages sufficient to cover the shortage.





Tip pooling and sharing

Employers are prohibited from requiring employees to participate in a tip pool or sharing agreement whereby employees are required to turn over to the pool any tip or portion of tips to be distributed among other employees. KY Statutes 337.065(3). Employees may voluntarily agree to enter into a tip pooling agreement among themselves. Employers may notify employees that a voluntary tip pool exits, provide the customary arrangements made for the tip pool, and provide a service for safeguarding tips placed in the pool at its own expense. When an employer safeguards tip pool funds, the employer is required to keep the account properly identified, keep the tips separate from his other business records, and allow open examination to the tip pool participants. KY Statutes 337.065(4).



Subminimum wage

Employees with disabilities

Kentucky minimum wage laws do not allow employers to pay employees with disabilities a subminimum wage rate that is lower than the standard minimum wage.



Trainees

Kentucky minimum wage laws do not allow employers to pay trainees a subminimum wage rate that is lower than the standard minimum wage.



Apprentices

Kentucky minimum wage laws do not allow employers to pay apprentices a subminimum wage rate that is lower than the standard minimum wage. KY Admin Rule 803-1:010(3)(e)



Learners

Kentucky minimum wage laws do not allow employers to pay learners a subminimum wage rate that is lower than the standard minimum wage.



Student learners

Kentucky minimum wage laws do not allow employers to pay student learners a subminimum wage rate that is lower than the standard minimum wage.



Student workers

Kentucky minimum wage laws do not allow employers to pay student workers a subminimum wage rate that is lower than the standard minimum wage.