Kentucky Minimum Wage 2026: $7.25 per Hour, Tipped $2.13
Kentucky's minimum wage is $7.25 per hour in 2026, the same as the federal rate, with a $2.13 tipped cash wage. Overtime after 40 hours and on the seventh consecutive day, coverage rules, local ordinances, and what a full-time minimum wage worker earns.
Kentucky's minimum wage is $7.25 per hour in 2026. The state rate has matched the federal minimum since July 1, 2009, and Kentucky law ties it to the federal rate, so it moves only when Congress raises the federal floor. Tipped employees can be paid a cash wage of $2.13 per hour as long as tips bring them to $7.25. No increase is scheduled, and cities and counties in Kentucky cannot set their own rates.
- Kentucky's minimum wage is $7.25 per hour, unchanged since 2009 and equal to the federal rate
- Tipped workers can be paid $2.13 in cash wages with a tip credit of up to $5.12
- Kentucky adds a seventh-day overtime rule on top of the federal 40-hour rule
- Louisville and Lexington cannot set a higher local minimum wage; the Kentucky Supreme Court struck down both city ordinances in 2016
- Bills to raise the rate to $15 or more have been filed in recent sessions but none has passed
Current Kentucky Minimum Wage
Kentucky Revised Statute 337.275 sets the state minimum wage at $7.25 per hour and provides that if the federal minimum wage rises above the state rate, the state rate rises with it. The Kentucky Education and Labor Cabinet confirms the rate on its Wages and Hours page: "Effective July 1, 2009, the minimum wage is $7.25 per hour."
Because the state and federal rates are identical, most Kentucky employers simply follow the federal Fair Labor Standards Act. The state law matters for employers that are too small to be covered by the FLSA, and for the seventh-day overtime rule that the federal law does not have.
Proposals to raise the rate surface most sessions. In the 2025 session, House Bill 564 would have set a schedule rising to $11 on July 1, 2026 and $17 by 2030, and a 2026 bill (HB 349) was filed with a similar aim. As of September 2026 none has been enacted, and the rate remains $7.25.
Kentucky Minimum Wage vs Federal Minimum Wage
| Rate | Kentucky | Federal (FLSA) |
|---|---|---|
| Minimum wage | $7.25 per hour | $7.25 per hour |
| Tipped cash wage | $2.13 | $2.13 |
| Difference | Same as federal | Baseline |
| Last changed | See schedule below | July 24, 2009 |
When state and federal rates differ, the employer must pay the higher one for any employee covered by both laws. Because Kentucky's rate equals the federal minimum, the practical rate is $7.25 for nearly every worker, and the state law matters mainly for the employers and rules it covers that the FLSA does not. The federal rate has been $7.25 since July 24, 2009, and there is no scheduled federal increase. Our minimum wage by state guide compares every state.
Tipped Minimum Wage in Kentucky
Kentucky follows the federal tip credit model. An employer may pay a tipped employee a cash wage of $2.13 per hour and claim a tip credit of up to $5.12 per hour, provided the employee actually receives enough in tips to reach $7.25 for every hour worked in the pay period. If tips fall short, the employer must make up the difference.
Kentucky law defines a tipped employee as one who customarily and regularly receives more than $30 a month in tips, the same threshold as federal law. Employers must notify employees before taking a tip credit, and tips belong to the employee. Mandatory tip pools may include only employees who customarily receive tips, and managers may not take a share.
| Item | Kentucky (2026) | Federal |
|---|---|---|
| Full minimum wage | $7.25 | $7.25 |
| Minimum cash wage for tipped employees | $2.13 | $2.13 |
| Maximum tip credit | $5.12 | $5.12 |
Kentucky Minimum Wage Increase Schedule
| Effective date | Minimum wage |
|---|---|
| 2021 | $7.25 |
| 2022 | $7.25 |
| 2023 | $7.25 |
| 2024 | $7.25 |
| 2025 | $7.25 |
| 2026 | $7.25 |
No increase is scheduled. KRS 337.275 only moves the rate automatically if the federal minimum wage rises. A change would otherwise require the General Assembly to pass a bill, and the 2025 and 2026 proposals did not advance out of committee.
Local Minimum Wages in Kentucky
No Kentucky city or county can set a minimum wage above $7.25. Louisville Metro and Lexington-Fayette both passed local minimum wage ordinances in 2014 and 2015, but the Kentucky Supreme Court ruled in October 2016 (Kentucky Restaurant Association v. Louisville/Jefferson County Metro Government) that the state's minimum wage statute preempts local rates. Both ordinances were voided and the rate has been uniform statewide since.
How Kentucky Compares to Neighboring States
Employers that hire across state lines, or compete for workers with employers over the border, should know how Kentucky compares. Rates below are the US Department of Labor's figures as of July 1, 2026.
| State | 2026 minimum wage | Tipped cash wage |
|---|---|---|
| Ohio | $11.00 | $5.50 |
| Indiana | $7.25 | $2.13 |
| Illinois | $15.00 | $9.00 |
| Missouri | $15.00 | $7.50 |
| Tennessee | $7.25 | $2.13 |
| Virginia | $12.77 | $2.13 |
| West Virginia | $8.75 | $2.62 |
| Kentucky | $7.25 | $2.13 |
Indiana and Tennessee pay the same rate as Kentucky, while Ohio, Illinois, Missouri, Virginia and West Virginia pay more, which is why employers near those borders often pay above the legal minimum to compete for staff. Remote employees are generally owed the minimum wage of the state where they physically work, not where the employer is based, so a Kentucky company with staff in a neighboring state must apply that state's rate to those employees.
Who Is Covered and Who Is Exempt
Kentucky's minimum wage law (KRS Chapter 337) covers most employers in the state. Employees covered by the federal FLSA are protected by both laws, and the higher standard applies. Kentucky exempts several groups from its state minimum wage, including:
- Employees in agriculture
- Domestic service workers in private homes and babysitters
- Employees of retail stores, service industries, hotels, motels, and restaurants whose average annual sales are below $95,000 for the previous five years
- Bona fide executive, administrative, supervisory, professional, and outside sales employees
- Certain employees of nonprofit camps and educational or religious institutions
These exemptions come from KRS 337.010 and 337.285 and are narrower than they look, because an employee exempt under state law may still be covered by the federal FLSA. When in doubt, assume the FLSA applies. Our guide to exempt vs non-exempt employees walks through the federal tests.
Overtime and the Minimum Wage
Kentucky also has a rule the FLSA lacks: under KRS 337.050, an employee who works seven days in a workweek must be paid time and a half for hours worked on the seventh day. The rule does not apply to employees whose weekly hours are under 40 or to several exempt occupations, but for contact centers and other seven-day operations it is a frequent source of back-pay claims.
Here is what a 45-hour week costs at the Kentucky minimum wage under the 40-hour rule:
| Line | Hours | Rate | Pay |
|---|---|---|---|
| Regular hours | 40 | $7.25 | $290.00 |
| Overtime hours | 5 | $10.88 (1.5x) | $54.38 |
| Gross pay for the week | 45 | $344.38 |
Overtime must be calculated on the employee's regular rate, which includes shift differentials and non-discretionary bonuses, not just the base wage. See our guide to overtime pay laws in the US and use the overtime calculator to check a specific week.
What a Minimum Wage Worker Earns in Kentucky
| Basis | Hourly | Weekly (40 hours) | Monthly (173.33 hours) | Annual (2,080 hours) |
|---|---|---|---|---|
| Full minimum wage | $7.25 | $290.00 | $1,256.64 | $15,080.00 |
| Tipped cash wage only | $2.13 | $85.20 | $369.19 | $4,430.40 |
These are gross figures before taxes and deductions, and they assume a full 40-hour week with no unpaid time off. A tipped employee's total pay must reach at least the full minimum wage row once tips are added. To convert a different hourly rate, use the salary to hourly calculator, and see our explainer on gross pay for what is included before deductions.
Employer Compliance Checklist
- Pay at least $7.25 per hour for every hour worked, including training, meetings, and time spent waiting or on call at the workplace
- If you take a tip credit, give written notice, track tips by pay period, and make up any shortfall to $7.25
- Display the required state and federal minimum wage posters where employees can see them
- Pay overtime at 1.5 times the regular rate after 40 hours in a workweek, and never average hours across weeks
- Keep accurate time records for at least three years; a time card calculator helps verify weekly totals before payroll runs
- Review exempt classifications against the salary and duties tests; a job title alone does not make an employee exempt
- Cross-check breaks, leave, and overtime rules in our Kentucky labor law guide
- Check the labor law compliance hub for related state rules on breaks, leave, and final pay
Frequently Asked Questions
What is the minimum wage in Kentucky in 2026?
Kentucky's minimum wage is $7.25 per hour in 2026, the same as the federal minimum wage. It has not changed since July 1, 2009.
Is Kentucky raising the minimum wage?
Not as of September 2026. Bills to raise it have been introduced in recent sessions, including a 2025 proposal for a phased increase to $17 by 2030, but none has passed. The rate rises automatically only if the federal minimum wage increases.
What is the tipped minimum wage in Kentucky?
Tipped employees may be paid a cash wage of $2.13 per hour. Tips must bring the employee to at least $7.25 for every hour worked, and the employer must pay the difference if they do not.
Can Louisville or Lexington set a higher minimum wage?
No. The Kentucky Supreme Court ruled in 2016 that state law preempts local minimum wage ordinances, which voided the Louisville and Lexington rates. The $7.25 rate applies statewide.
Does Kentucky require overtime after 8 hours in a day?
No. Kentucky follows the federal 40-hour weekly threshold. It adds a seventh-day rule: employees who work all seven days of a workweek earn time and a half on the seventh day.
Is there a training or youth minimum wage in Kentucky?
Kentucky has no separate state youth wage. Under the federal FLSA, employees under 20 may be paid $4.25 per hour during their first 90 consecutive calendar days with an employer.
How much does a minimum wage worker earn in Kentucky per year?
At $7.25 per hour, a full-time worker earns $290 a week and $15,080 a year before taxes, based on 2,080 hours.
Sources
Reviewed September 2026
Rates and rules on this page were checked against the US Department of Labor's state minimum wage tables (effective July 1, 2026) and the Kentucky sources listed above. Minimum wage laws change through legislation, ballot measures, indexing, and court decisions. Confirm the current rate with the state labor agency before setting pay, and see our labor law compliance guides for related rules.
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