Kentucky’s employment laws balance foundational employee protections with practical employer guidelines. While the state mirrors a few federal standards, it adds its own requirements around final paychecks, wage transparency, meal and rest breaks, and workplace safety.
When it comes to talent and workforce management, Kentucky-based employers need to comply with the following state employment laws:
The below information was last updated July 21, 2025. It is not intended as legal advice. Also, unless otherwise noted below, the following laws predominantly apply to the private sector.
A subset of employment law, labor law focuses on the relationships between employers, employees, and labor unions, particularly in the context of collective bargaining and workplace rights.
Central to US labor law is the National Labor Relations Act (NLRA), which protects employees’ rights to organize, join unions, and negotiate working conditions while restricting unfair labor practices. Still, states can enact additional laws, such as Right-to-Work statutes, that influence union membership and dues requirements.
Right-to-work states prohibit employers from requiring union membership or dues as a condition of employment (a.k.a. union security agreements).
Kentucky is one of 26 states that currently have right-to-work laws.
Employment law governs the individual rights of employees and their professional relationship with their employers, such as working hours, fair wages, anti-discrimination protections, and workplace safety.
| Kentucky Minimum Wage | The state of Kentucky mirrors the federal minimum wage rate of $7.25, including the tipped minimum wage rate of $2.13 for employees who earn tips with their base pay. |
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Kentucky Overtime Pay Laws |
Kentucky currently has no overtime pay laws or regulations. However, Kentucky-based employers must still comply with the Fair Labor Standards Act's (FLSA) requirement that nonexempt employees receive 1.5 times their normal rate of pay when working over 40 hours a week. |
Kentucky Pay Equity Law |
Under Kentucky statutes, employers may not pay wages to employees at lower rates than those paid to employees of the opposite sex for comparable work on jobs requiring comparable skill, effort, and responsibility. Furthermore, employers may not reduce employee wage rates to comply with the equal pay provisions. Persons may not cause (or attempt to cause) employers to discriminate against employees in violation of the equal pay provisions. Employers may not discharge or discriminate against employees for invoking or assisting with enforcement. These requirements apply to private and public employers (with two or more employees), including the state and its political subdivisions, and excluding those covered by the federal FLSA when requirements are comparable or greater. |
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Kentucky Pay Transparency Law |
In May 2023, Kentucky passed HB 198 and became one of 15 states (plus Washington D.C.) to have pay transparency laws. The law requires all employers to include wages or wage ranges in any public job posting, covering both internal and external notices. |
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Kentucky Final Paycheck Law |
In Kentucky, employees who voluntarily resign from a job or are involuntarily terminated must receive their final paycheck by the later of the next regular payday or within 14 days after termination. |
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Kentucky PTO Payout Laws |
Kentucky currently requires employers to pay out “vested vacation pay” regardless of whether the employee is terminated or leaves voluntarily. It does not, however, have any regulations regarding the use of "use-it-or-lose-it" policies. |
| Kentucky Paid Sick Leave (PSL) | Kentucky currently has no paid sick leave laws or regulations. |
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Kentucky Paid Family and Medical Leave (PFML) |
Kentucky currently has no PFML laws or regulations. However, employers with 50 or more employees must still comply with the federal Family and Medical Leave Act (FMLA), which provides eligible employees up to 12 weeks of unpaid leave every 12 months for various reasons. |
| Kentucky Maternity Leave | Kentucky doesn't have a maternity leave law, as this type of leave is an employer-provided benefit. Since the state also doesn’t have a mandated PFML program, employees must instead use FMLA leave or another type of employer-provided leave. |
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Kentucky Voting Leave Law |
Kentucky currently has no voting leave laws or regulations. |
All states must comply with federal health and safety standards overseen by the Occupational Safety and Health Administration (OSHA).
Kentucky, however, also adopted and imposes additional, OSHA-approved regulations that are identical to those federal standards. Kentucky’s State OSHA Plan is overseen by the Kentucky Department of Workplace Standards.
Under Kentucky's state meal and rest break law, employers must provide employees with a rest period of at least 10 minutes during each four-hour working period. Employers must also provide a reasonable period for lunch, as close to the middle of an employee's shift as possible.
As described by the Kentucky Civil Rights Act, and enforced by the Kentucky Commission on Human Rights, employers in Kentucky are prohibited from discriminating against employees based on:
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Kentucky also requires employers to comply with specific anti-harassment mandates, also outlined in the state’s Civil Rights Act. Employers must, for example, investigate complaints promptly and take corrective actions.
Kentucky doesn't, however, require employees to complete any harassment or discrimination training courses.
| Kentucky Non-Compete Agreement Laws | Kentucky is one of several states that limit the use of non-compete agreements. Specifically, covenants not to compete are enforceable against former employees if they’re reasonable in terms of time and territorial limits, they’re necessary to protect the employer's legitimate business interests, and they don’t impose an undue hardship on the former employee. Covenants signed after the start of employment are enforceable only if the employee stays with the employer for a long period and then voluntarily leaves. |
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Kentucky Retirement Plan Laws |
Kentucky currently has no mandatory retirement plan laws or regulations. |
This information is provided as a courtesy and may be updated at any time. It is not intended as legal guidance. If you have questions or concerns, we encourage you to seek the advice of a qualified employment or labor attorney or advisor.
Between constantly changing employment laws and updates to the Affordable Care Act (ACA), keeping your workplace compliant can be a time-consuming and costly challenge. Eliminate the stress and stay up to date with our Compliance Dashboard. View compliance alerts and get a bird’s eye view of what you need to do to avoid fines and penalties.
