Minimum Wage Requirements in Kentucky 2024

Overview of Kentucky's Minimum Wage Requirements

The minimum wage in Kentucky is $7.25 per hour, which is the same as the federal minimum wage. This rate applies to all hours worked in Kentucky, regardless of whether the work is performed within the state's borders or not. However, it's important to note that there are some exceptions to this rule. For instance, tipped workers and certain types of trainees may be subject to different wage requirements.

Additionally, some cities and counties in Kentucky have their own minimum wage laws that are higher than the state's. In these areas, workers are entitled to the higher wage. In terms of overtime, employers are required to pay premium pay after designated hours, specifically after 40 hours in a week and on the seventh day of work.

Understanding Local Minimum Wage Variations

The minimum wage in most counties in Kentucky, including Jefferson, Fayette, Louisville, Lexington, Bowling Green, Owensboro, and Covington, is $7.25 per hour, which aligns with the Federal Minimum Wage rate. However, Boone County has a different minimum wage requirement governed by the Davis-Bacon Act and the relevant Executive Orders. As of June 12, 2023, for contracts initiated, renewed, or extended on or after January 30, 2022, the minimum wage is set at $16.20 per hour.

It's important to note that if the federal minimum wage were to increase, Kentucky's minimum wage would adjust accordingly. As of now, there is no future enacted increase mentioned, and the minimum wage has not been indexed for automatic annual adjustments.

Minimum Wage Eligibility and Exemptions

In the state of Kentucky, the basic minimum wage rate is $7.25 per hour, as of the last update on September 30, 2023. This applies to employers who permit their employees to work seven days in any one workweek. However, there are certain exemptions to this rule.

Individuals who are exempt from both the minimum wage and overtime requirements include those employed in a bona fide executive, administrative, supervisory, or professional capacity, or in the capacity of outside salesman or outside collector. Standard exemptions to Kentucky's minimum wage include farm and domestic workers, government employees, and certain employees at small retail businesses.

Minimum Wage Considerations and Compliance Tips

As a food business employer in Kentucky, it's crucial to stay updated on the state's minimum wage laws and compliance considerations. As of January 1, 2024, the basic combined cash and tip minimum wage rate is $7.25. This means that the total amount of cash wages and tips received by an employee should not be less than this rate. The maximum tip credit against the minimum wage is $5.12.

In addition to wage considerations, employers are also required to adhere to several labor laws. The Division of Wages and Hours in Kentucky oversees the enforcement of these laws. These include laws related to overtime, wage payment, lunch breaks, rest periods, payroll deductions, child labor, and wage discrimination. For more information, employers can contact the Division of Wages and Hours at (502) 564-3534 or email wages@ky.gov.

FAQs

• What is the current minimum wage in Kentucky? The current minimum wage in Kentucky is $7.25 per hour.
• Are there any exceptions to the minimum wage in Kentucky? Yes, there are exceptions for tipped workers, certain trainees, and those employed in a bona fide executive, administrative, supervisory, or professional capacity.
• What is the minimum wage for tipped workers in Kentucky? The minimum cash wage that must be paid to tipped employees is $2.13.

Information Source Links

• Kentucky Minimum Wage
• Federal Minimum Wage
• Kentucky Division of Wages and Hours
• Fair Labor Standards Act (FLSA)
• SAM.gov Wage Determination

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