Kentucky FLSA Laws

Ensure Compliance with Kentucky-Specific FLSA Auditing

Federal FLSA: $7.25/hour.
Kentucky Law: $7.25/hour (non-tipped) as of March 10, 2025, per the Kentucky Minimum Wage Law (KRS 337.275). Tipped employees: $2.13/hour, with a tip credit of $5.12/hour—employers must ensure tips plus wage meet or exceed $7.25/hour. No state increases planned; local minimum wage ordinances are preempted by state law (KRS 337.285(3)).
What You Need to Know: Federal and state rates align, but failing to cover tip shortfalls can lead to back wages, treble damages, and fines up to $1,000 per violation.

Federal FLSA: 1.5x regular rate for hours over 40/week.
Kentucky Specifics: Matches federal 40-hour rule (KRS 337.285). Overtime calculated at 1.5x regular rate (e.g., $10.88/hour for $7.25/hour workers). Employers with 7+ employees in one location must pay overtime after the 7th consecutive workday, even if under 40 hours/week (KRS 337.050). Exemptions align with FLSA: executive, administrative, professional employees earning ≥$1,128/week, and highly compensated employees ≥$151,164/year (U.S. DOL, January 2025).
Risk: Misapplying the 7-day rule or exemptions risks Kentucky Labor Cabinet or U.S. DOL audits, with significant penalties.

Kentucky Rules: Minors under 14 restricted to limited roles (e.g., newspaper delivery); 14–15 capped at 3 hours/school day, 8 hours/non-school day, 18 hours/school week (9 p.m. limit June 1–Labor Day); 16–17 limited to 6.5 hours/school day, 30 hours/school week unless parental consent allows 40 hours (KRS 339.230). Hazardous jobs (e.g., operating heavy machinery) prohibited under 18. Work permits required under 16.
Federal FLSA: Aligns with Kentucky, but state’s stricter hour limits and permit rules take precedence.
Compliance Note: Violations incur fines up to $1,000 per instance; federal penalties reach $15,629 per instance, or $71,031 if injury/death occurs.

Federal FLSA: 3-year retention of payroll, hours, and employment records.
Kentucky Addition: 1-year minimum retention of payroll records, including hours worked, wages, and deductions, but 5 years recommended for wage disputes (KRS 337.320). Employers must provide pay statements and allow employee access to records.
Key Detail: Non-compliance risks fines up to $1,000 per violation and weakens defenses in wage claims.

Federal: U.S. DOL enforces with back wages, liquidated damages, and fines up to $2,653 per wage violation (2025 rate). Child labor penalties: $15,629/instance, or $71,031 if injury/death occurs.
Kentucky: Kentucky Labor Cabinet enforces with back wages, treble damages (three times unpaid wages) for willful violations, and fines of $100–$1,000 per offense (KRS 337.990). Criminal penalties (misdemeanor, up to 1 year jail) possible for repeat willful violations.
Overlap: Dual enforcement heightens liability—federal and state penalties can compound.

CFOs and Managers: Kentucky’s static $7.25/hour minimum, unique 7-day overtime rule, and treble damage penalties create a deceptive simplicity—compliance errors can spiral into costly audits or lawsuits. The Kentucky Labor Cabinet’s focus on tipped wage enforcement adds scrutiny for hospitality sectors.
Avoid Costly Mistakes: Regular FLSA audits tailored to Kentucky’s quirks can prevent financial and legal fallout.

Protect your business—align with Kentucky’s labor laws and federal FLSA standards. Schedule an expert audit now.