Kentucky Labor Law Guide 2026: Wages, Overtime, Breaks, and Leave

Kentucky pairs a federal-level minimum wage with break rules that most Southern and Midwestern states do not have. Every employee is entitled to a lunch period and a paid 10-minute rest break for each four hours worked, employees who work seven days in a week get overtime on the seventh day, and minors have some of the most detailed hour limits in the country. The Kentucky Education and Labor Cabinet's Division of Wages and Hours enforces KRS Chapter 337 and the child labor provisions of KRS Chapter 339.

Minimum Wage in Kentucky

The Division of Wages and Hours states: "Effective July 1, 2009, the minimum wage is $7.25 per hour." Kentucky's statute tracks the federal rate, so the state figure rises automatically if Congress raises the federal minimum. Tipped employees may be paid $2.13 an hour with a $5.12 tip credit as long as tips make up the difference. The Kentucky Supreme Court ruled in 2016 that cities cannot set their own minimum wage, which ended the Louisville and Lexington ordinances.

For the tipped rules, the rate history, and how Kentucky compares with Ohio, Illinois, and Tennessee, see the Kentucky minimum wage guide and the national minimum wage by state table.

Overtime Rules

The Division states that "time and one-half must be paid for hours worked in excess of forty (40) hours in a work week." Kentucky adds a rule the federal law does not have: under KRS 337.050, an employee who works seven days in a workweek must be paid time and a half for all hours worked on the seventh day, unless the employee works fewer than 40 hours that week or the employer is a small retail or service business that meets the statutory exemption. There is no daily overtime.

Worked example at the minimum wage: an employee paid $7.25 works 45 hours over five days. Regular pay is 40 hours at $7.25, or $290.00, and overtime is 5 hours at $10.88, or $54.38, for $344.38 gross. If the same employee worked 8 hours a day for seven straight days, the entire seventh day would be paid at $10.88 even though the weekly total also triggers overtime. The overtime calculator models both rules, and the overtime pay laws in the US guide compares Kentucky with its neighbors.

Kentucky uses the federal $684 per week salary threshold and the federal duties tests for the executive, administrative, and professional exemptions.

Meal and Rest Breaks

Kentucky is one of the few states that mandates both meal and rest breaks for adults. The Division states: "You are entitled to a rest period of at least ten (10) minutes during each four hours you work. The rest period is a paid break." For lunch, KRS 337.355 requires a reasonable meal period, taken "no sooner than the third hour and no later than the fifth hour" of the shift unless the employer and employee agree otherwise. The lunch period is unpaid only if the employee is fully relieved of duty.

Break type	Requirement	Applies to
Rest period	At least 10 minutes, paid, during each 4 hours worked (KRS 337.365)	All employees
Lunch period	Reasonable period, typically 30 minutes, between the 3rd and 5th hour of the shift; unpaid if duty-free (KRS 337.355)	All employees
Minors	30-minute lunch before working more than 5 continuous hours, documented by the employer, plus the 10-minute rest per 4 hours	Under 18
Missed breaks	The Division can order back pay for rest periods that were worked; lunch periods worked must be paid	All employees

Employers must document the start and end of each minor's lunch period. For a contact center running 8-hour shifts, that means two paid 10-minute breaks and a lunch that starts between the third and fifth hour. The break time calculator lays out the timing, and the rest and meal break laws by state guide compares Kentucky's rules with other break states.

Paid Sick Leave and Other Leave

Kentucky has no paid sick leave or paid family leave mandate, and state law preempts local ordinances on wages and benefits.

Leave type	Kentucky rule
Paid sick leave	Not required by state law; employer policy governs
Federal FMLA	12 weeks unpaid at employers with 50 or more employees
Adoption	Up to 6 weeks of unpaid leave for the adoption of a child under 10, at employers of any size
Jury duty	Job-protected; unpaid unless policy provides
Voting	Up to 4 hours of unpaid time to vote with prior request
Court witness	Job-protected for employees subpoenaed to testify
Military	Federal USERRA plus state protections

See paid sick leave laws in the US and jury duty laws in the US for comparisons.

PTO Payout and Final Paychecks

Kentucky's final pay rule under KRS 337.055 is the same for discharges and resignations. The Division states: "When you leave employment for any reason your employer has until the next regular payday or fourteen (14) days whichever last occurs." Employers must pay at least semimonthly, and no more than 18 days after the end of a pay period.

Vacation and PTO payout depends on the employer's policy. Kentucky treats vested vacation pay as wages, so a policy or established practice that promises payout must be honored, while a policy that clearly conditions or forfeits unused time is generally enforceable. The PTO payout laws by state guide has the Kentucky entry.

Deductions beyond taxes and court orders require the employee's written authorization for the employee's benefit; deductions for cash shortages, breakage, or uniforms are restricted under KRS 337.060.

Exempt vs Non-Exempt Employees

Kentucky follows the federal salary basis, salary level ($684 per week), and duties tests, and KRS 337.010 lists the state's own exclusions, including certain retail and service employees and supervisors in some settings. Because the state break and seventh-day rules apply to non-exempt staff, classification affects more than overtime. Our exempt vs non-exempt employees guide covers the tests and the FLSA exemption flowchart helps classify a role.

Child Labor Rules

KRS 339.210 to 339.450 set Kentucky's child labor rules, and the state's child labor poster lays out the hour limits for minors 14 to 17. Employers of minors must post an abstract of the law, the list of prohibited occupations, and the minors' daily working hours.

Age group	Hours and time limits	Other rules
14 and 15, school in session	3 hours on a school day, 8 on a non-school day, 18 hours a week; 7 AM to 7 PM (9 PM from June 1 through Labor Day)	30-minute lunch before 5 continuous hours; 10-minute rest per 4 hours
14 and 15, school not in session	8 hours a day, 40 hours a week
16 and 17, school in session	6 hours on a school day, 8 on a non-school day, 30 hours a week; 6 AM to 10:30 PM before a school day, 1 AM before a non-school day	With written parental permission: 6.5 hours a day and 32.5 hours a week, or 40 hours with a school certification of a 2.0 GPA; 11 PM before a school day
16 and 17, school not in session	No restrictions
High school graduates	Hour restrictions do not apply

The prohibited occupations for minors under 18 include manufacturing and mining, motor vehicle driving, power-driven woodworking, metal forming, bakery and meat slicing machines, forklifts, roofing, excavation, demolition, and most work where alcohol is sold. Parental permission and school certifications must be kept at the workplace. See child labor laws in the US for the federal rules.

Other Kentucky Employment Rules

• Local preemption. The 2016 Kentucky Supreme Court decision and a 2017 statute bar cities and counties from setting minimum wages or employment benefits above state law.
• Pregnant Workers Act. Employers with 15 or more employees must reasonably accommodate pregnancy, childbirth, and related conditions.
• Drug testing. Permitted under employer policy; no state statute restricts private-sector testing.
• Non-competes. Enforceable if reasonable in scope and supported by consideration; a 2024 law limits non-competes for healthcare workers in some settings.
• Wage discrimination. KRS 337.423 prohibits paying different wages based on sex for comparable work.
• Smoking. Employers may not discriminate against employees for lawful tobacco use off duty.

Hiring, Termination, and Record-Keeping

Kentucky is an at-will state with exceptions for discrimination, retaliation, and public policy. The Kentucky Civil Rights Act covers employers with 8 or more employees and protects race, color, religion, national origin, sex, age (40 and over), disability, and tobacco use, with a 15-employee threshold for disability. The Kentucky Commission on Human Rights enforces it.

Keep records of hours worked, wages, deductions, rest and lunch periods, and, for minors, documented lunch periods, parental permissions, and school certifications, for at least 3 years under the FLSA and 1 year under state rules. Post the Kentucky wage and hour poster, the child labor abstract where minors work, and the federal notices. Because the seventh-day rule and the 10-minute rest entitlement are both enforced from time records, a time card calculator that shows consecutive days and breaks, backed by a written timekeeping policy, keeps a Division audit simple.

Frequently Asked Questions

Is Kentucky an at-will state? Yes, with exceptions for discrimination, retaliation, and public policy.

Does Kentucky require lunch breaks? Yes. Employees get a reasonable lunch period between the third and fifth hour of the shift, plus a paid 10-minute rest period during each four hours worked. Minors get a 30-minute lunch before five continuous hours.

When is overtime paid in Kentucky? After 40 hours in a workweek, and for all hours worked on the seventh consecutive day of a workweek under the state's seventh-day rule.

When is the final paycheck due in Kentucky? By the next regular payday or within 14 days of the last day worked, whichever is later, for both discharges and resignations.

Does Kentucky have paid sick leave? No. Kentucky has no paid sick leave or paid family leave mandate.

How many hours can a minor work in Kentucky? Ages 14 and 15: 3 hours on a school day and 18 in a school week, or 8 a day and 40 a week when school is out. Ages 16 and 17: 6 hours on a school day and 30 in a school week, expandable to 32.5 or 40 hours with parental permission and a school GPA certification.

Does Kentucky require rest breaks? Yes. A paid rest period of at least 10 minutes during each four hours worked, for every employee.

Does Kentucky pay out unused PTO? Vested vacation promised by policy or practice must be paid at separation; a clear forfeiture policy is generally enforceable.

Sources

• Kentucky Education and Labor Cabinet: Wages and Hours
• Kentucky Child Labor Laws poster (PDF)
• KRS 337.055: Payment of wages on dismissal or voluntary leaving
• US Department of Labor: State Payday Requirements
• US Department of Labor: State Minimum Wage Laws