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Minimum Wage in Kentucky in 2023

Last Updated on:

04 January 2023
Minimum Wage in Kentucky

Workers and employees within the United States are required by federal law to make at least a minimum amount of money each month. And in exchange for the individual's work hours, the employer must pay them a certain compensation. This compensation should be sufficient for that individual to maintain a minimum standard of living in that state.

Since businesses may constantly look for ways to pay their employees less, the minimum wage law was established to protect workers' rights from being violated. It is because businesses will always look for ways to cut costs, and employees often end up drawing the short end of the proverbial stick.

To combat this, the Federal government has set a nationwide minimum wage amount. However, each state also has its state minimum wage laws and rates. To help prevent any exploitation, the Fair Labor Standards Act (FLSA) further mandated that workers/employees are entitled to receive whichever rate is higher between their state and federal rates.

In this article, we shall discuss the minimum wage in Kentucky, the rates, the exemptions, and other crucial bits of information. Let's begin!

What is the Minimum Wage in Kentucky?

According to the FLSA, all employees are entitled to receive the highest amount between Federal Minimum Wage and their state minimum wage. The current minimum wage in Kentucky in 2023 is $7.25 hourly, the same as the Federal Minimum Wage. So almost all employees in Kentucky will receive $7.25 hourly since both rates are the same, except for a few exemptions.

Exemptions to Kentucky Minimum Wage

The following are exempted from receiving minimum wage in Kentucky:

  • Administrators, Executives, Professionals, and White-collar employees who make $684 weekly
  • Agricultural workers
  • Businesses that have been earning less than $95k in the last five years of their business
  • Employees who are family members of their employer
  • Employees and workers in IT
  • Employees and workers that work in hospitality businesses
  • Employees engaged in domestic services who live in
  • Employees working in certain agricultural work
  • Employees working in NGOs and volunteers working in educational or religious institutes(assuming they do not have to work more than seven months yearly)
  • Employees working directly under the US government
  • Employees and workers working as caregivers, babysitters, and NPOs
  • Salespersons from a different state
  • Newspaper Delivery personnel

Weekly Minimum Wage in Kentucky

A state's weekly minimum wage is typically calculated based on the assumption that a worker or an employee would work 40 hours per week. Therefore, if an employee or worker in Kentucky gets $7.25 per hour, then Kentucky's weekly minimum wage is $290.

Yearly Minimum Wage in Kentucky

The annual minimum wage in each state is typically calculated based on the assumption that an employee or worker will work 40 hours per week, 52 weeks per year; hence, the yearly minimum wage in Kentucky is $15,080.

Overtime Minimum Wage in Kentucky

According to the Fair Labor Standards Act, all employees who work overtime, or more than 40 hours per week, are entitled to receive 1.5 X their Federal or State Minimum wage as overtime compensation. Accordingly, the overtime minimum wage in Kentucky is $10.875 for each extra hour worked beyond the 40 hours per week standard.

For instance, let us assume that an individual works 60 hours per week. So they should earn their regular minimum wage + additional overtime minimum wage. So the breakdown should be something like this:

40 x $7.25= $290 as regular income,

20 x $10.875= $217.5 as overtime income.

So this employee from Kentucky should expect to earn at least $507.5 for working 60 hours that week.

Kentucky Overtime Wage Exemptions

The following are exempted from receiving overtime wages in Kentucky

  • Administrators, Executives, Professionals, and White-collar employees who make $684 weekly
  • Agricultural workers
  • Businesses that have been earning less than $95k since the last five years of their business
  • Employees who are family members of their employer
  • Employees and workers in IT
  • Employees and workers that work in hospitality businesses
  • Employees engaged in domestic services who live in
  • Employees working in certain agricultural work
  • Employees working in NGOs and volunteers working in educational or religious institutes(assuming they do not have to work more than seven months yearly)
  • Employees working directly under the US government
  • Employees and workers working as caregivers, babysitters, and NPOs
  • Salespersons from a different state
  • Newspaper Delivery personnel

Tipped Minimum Wage in Kentucky

In Kentucky, the minimum hourly wage for tipped employees is $2.13. However, if the total amount of money an employee earns in a week is less than the amount the individual would earn from minimum wage, the employer is legally obligated to compensate for the difference in compensation.

For instance, let us suppose an individual in Kentucky earns a total of $200 as a tipped employee in a week, of which $85.2 is from the $2.13 tipped hourly wage, and $114.8 is from tips received from customers.

The employer needs to compensate that individual an additional 90$ to make the total weekly earnings of that employee $290, which would be the weekly earnings for that employee at minimum wage.

The FLSA mandates employers to ensure this. Failure to maintain this will result in a violation of worker rights.

How is Kentucky Minimum Wage Different from the Federal Minimum Wage?

The minimum wage in Kentucky is equal to the Federal minimum wage, which is $7.25 hourly. However, unlike most other states, the subminimum wage in Kentucky is the same as their regular minimum wage.

Who Qualifies for Minimum Wage in Kentucky?

State and federal laws set different minimum wages for different categories of workers in Kentucky. Some classes of workers can be paid a lower minimum wage than others. Moreover, some employees are exempted from receiving the minimum wage altogether.

The following is a list of employees exempt from receiving minimum wage in Kentucky. They are;

  • Employees that receive tips
  • Specific student employees
  • Employees working as Admins, Executives, and Professionals
  • Employees that work as salespersons but are from a different state.
  • Employees that work in creative industries.
  • Employees that provide domestic services.
  • Employees that receive tips

Other than the employees mentioned above, any worker inside the state can qualify for the minimum wage in Kentucky.

Who are Subject to Subminimum Wage in Kentucky?

The following are subject to subminimum wage in Kentucky:

  • Employees that are minors
  • Employees that are students
  • Employees who have disabilities
  • Individuals under training
  • Individuals that are learning

Historical Change of Minimum Wage in Kentucky

Year

Minimum Wage Amount in USD

2023

7.25

2022

7.25

2021

7.25

2020

7.25

2019

7.25

2018

7.25

2017

7.25

2016

7.25

2015

7.25

2014

7.25

2013

7.25

2012

7.25

2011

7.25

2010

7.25

2009

7.25

2008

6.55

2007

5.85

2006

5.15

2005

5.15

2004

5.15

2003

5.15

2002

5.15

2001

5.15

2000

5.15

1999

5.15

1998

5.15

1997

4.25

1996

4.25

1995

4.25

1994

4.25

1993

4.25

1992

4.25

1991

4.25

1990

3.80

1989

3.35

1988

3.35

1987

3.35

1986

3.35

1985

2.60

FAQ

1. What is Tip-Pooling?

Tip-pooling is a practice in which all the tips employees and workers earn individually are collected and then divided equally among themselves. It is optional for workers and employees to do this. If an employer wishes to implement this, they must receive their employees' and workers' consent.

2. What is the Wage for Employees Under Training in Kentucky?

The subminimum wage for employees undergoing training in Kentucky is $7.25 hourly.

3. What is Mini-COBRA Law?

COBRA Law, which gives some employees the option to continue their healthcare benefits after a job loss, usually applies to employers with more than 20 employees. So many states in the US have adopted their version of COBRA law for employers with 20 or fewer employees. This one is known as Mini-COBRA Law.

4. What is the Mini-COBRA Law for Kentucky?

In the case of employers with less than 20 employees and workers, they are required to cover health care insurance for terminated employees for 18 months from the month of termination.


Josh Evan

Written by:

Josh Evan

Josh Evan is the professional career counselor and career development writer at When Work Works. He loves to see people from this field succeed through initiating the right thing in the right way. He never tells; he shows the way. We appointed John not because of his impressive CV. It was his counseling charisma which stood out of everything. He can implant idea, confidence and productive thoughts into mind almost effortlessly. His pen and mouth both speak for the greater good.


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