Kentucky Minimum Wage 2026
⚠️Informational only — not legal or tax advice.
Last Updated: February 4, 2026
Last Reviewed: February 4, 2026
Applicable Period: 2026
Jurisdiction: State of Kentucky, United States
Update Schedule: Quarterly reviews in 2026; annual reviews thereafter
Table of Contents
- Introduction
- Kentucky Minimum Wage – 2026 Quick Reference
- Overview of Minimum Wage Law in Kentucky
- Current Minimum Wage Rates in Kentucky 2026
- Minimum Wage for Tipped Employees
- Local Minimum Wage Ordinances in Kentucky
- Who Is Covered and Who Is Exempt
- Employer Obligations and Enforcement
- Kentucky Minimum Wage vs Federal Law
- Minimum Wage Posting Requirements
- Frequently Asked Questions
- Information Verification Log
Introduction
The minimum wage in Kentucky establishes the lowest hourly compensation that employers must legally provide to covered employees. For 2026, Kentucky adopts the federal minimum wage of $7.25 per hour, with specific provisions for tipped employees. No local jurisdictions in Kentucky are authorized to enact higher minimum wage ordinances.
Minimum wage regulations in Kentucky operate under Kentucky Revised Statutes Chapter 337 alongside federal requirements established by the Fair Labor Standards Act (FLSA). When state or local minimum wage rates exceed the federal standard, employers must comply with the higher applicable rate. Kentucky allows tip credits, and state law prohibits local jurisdictions from establishing higher minimum wage rates.
This page provides an authoritative overview of Kentucky minimum wage law for 2026, including current rates, tipped employee provisions, the prohibition on local wage ordinances, coverage and exemptions, enforcement procedures, and compliance requirements. All information is compiled from official government sources.
| Source | Last Verified | Full URL |
|---|---|---|
| Kentucky Revised Statutes § 337.275 (Minimum Wage) | February 4, 2026 | https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=32064 |
| Kentucky Labor Cabinet – Wages and Hours | February 4, 2026 | https://labor.ky.gov/standards/Pages/Wages-and-Hours.aspx |
| U.S. Department of Labor – State Minimum Wage Laws | February 4, 2026 | https://www.dol.gov/agencies/whd/minimum-wage/state |
| Fair Labor Standards Act (FLSA) | February 4, 2026 | https://www.dol.gov/agencies/whd/flsa |
| U.S. Department of Labor – Wage and Hour Division | February 4, 2026 | https://www.dol.gov/agencies/whd |
ast verified: February 4, 2026 via Kentucky Education and Labor Cabinet
Overview of Minimum Wage Law in Kentucky
Legal Authority
Kentucky minimum wage requirements are established under Kentucky Revised Statutes § 337.275. The Kentucky Education and Labor Cabinet, Division of Wages and Hours administers and enforces minimum wage regulations in Kentucky. The state minimum wage statute explicitly adopts the federal minimum wage rate by reference, meaning Kentucky’s rate automatically adjusts if the federal rate increases above the state rate.
Relationship to Federal Law
Under the Fair Labor Standards Act (FLSA), the federal minimum wage establishes a floor of $7.25 per hour for covered employers and employees. Kentucky law incorporates federal minimum wage standards by reference. When both state and federal minimum wage laws apply, employers must pay whichever rate is higher.
Kentucky adopts the federal minimum wage rate, requiring employers covered by the FLSA to pay at least $7.25 per hour. Under KRS 337.275, if the federal minimum hourly wage increases above the state rate, Kentucky’s minimum wage automatically increases to match the federal rate. The adoption includes only the federal minimum hourly rate and does not extend to other federal wage rates, conditions, exclusions, or exceptions.
Coverage Scope
Kentucky minimum wage law applies to most private sector employees. The law covers employers engaged in commerce or the production of goods for commerce, and employers with two or more employees. Specific industries and employee types are exempt under state law. Employers not subject to state minimum wage requirements but covered by federal law must comply with FLSA standards.
Higher Rate Principle
The principle of “higher prevailing rate” requires employers to pay the highest applicable minimum wage—whether federal or state. In Kentucky, this means employers must identify and apply whichever minimum wage rate provides employees the highest hourly compensation. Since Kentucky adopts the federal rate, both requirements are currently identical at $7.25 per hour.
Current Minimum Wage Rates in Kentucky 2026
Standard Hourly Minimum Wage
As of 2026, the standard minimum wage in Kentucky is $7.25 per hour for covered employees. This rate matches the federal minimum wage established under the Fair Labor Standards Act. Kentucky’s statute adopts the federal minimum wage by reference under KRS 337.275, meaning if Congress raises the federal rate, Kentucky’s rate will automatically increase to match.
The $7.25 hourly rate has remained unchanged since July 24, 2009, when the final phase of federal minimum wage increases took effect. Kentucky law contains no provision for annual cost-of-living adjustments or scheduled increases independent of federal action.
No Scheduled Increases
No minimum wage increases are currently scheduled in Kentucky. The rate will remain at $7.25 per hour unless the federal government raises the federal minimum wage or the Kentucky General Assembly enacts legislation to establish a higher state rate. Under current law, any increase to the federal minimum wage would automatically increase Kentucky’s minimum wage to match.
Kentucky’s legislature has considered proposals to raise the state minimum wage above the federal level. However, no such legislation has been enacted. The minimum wage remains tied exclusively to the federal rate established under the FLSA.
Minimum Wage for Tipped Employees
Tipped Employee Cash Wage
Kentucky permits employers to pay tipped employees a reduced cash wage, provided that employee tips combined with the cash wage equal at least the full minimum wage. This provision follows federal law under the Fair Labor Standards Act.
Cash wage requirement: $2.13 per hour
Maximum tip credit: $5.12 per hour
Total minimum compensation: $7.25 per hour (cash wage + tips)
Who Qualifies as a Tipped Employee
Under KRS 337.275, a “tipped employee” is defined as an employee engaged in an occupation in which they customarily and regularly receive more than $30 per month in tips from patrons or others. Qualifying occupations typically include:
- Restaurant servers and bartenders
- Hotel and hospitality service workers
- Casino and gaming service staff
- Parking attendants and valets
- Delivery drivers who receive tips
- Bellhops and hotel porters
- Tour guides and entertainment staff
Employer Obligations for Tipped Workers
Employers who claim a tip credit must comply with specific requirements under federal and Kentucky law:
- Inform employees of the tip credit provisions before the employer uses tips to satisfy minimum wage obligations
- Ensure total compensation (cash wage plus tips) equals or exceeds $7.25 for all hours worked
- Pay the difference if an employee’s tips fail to bring total compensation to the minimum wage
- Maintain accurate records of employee tips and hours worked, documenting that employees receive at least minimum wage when tips are combined with direct wages
- Allow employees to retain all tips received, except for valid tip pooling arrangements
According to the Kentucky Education and Labor Cabinet, employers must establish through their records that for each workweek where tip credit is claimed, the combination of tips received plus wages paid equals at least the minimum wage.
Tip Pooling and Sharing
Kentucky follows federal regulations on tip pooling. Employers may require employees to participate in valid tip pools, but several restrictions apply:
Permitted participants: Only employees who customarily and regularly receive tips may participate in tip pools. This typically includes servers, bartenders, bussers, and similar service staff.
Prohibited participants: Employers, managers, and supervisors cannot participate in tip pools or retain any portion of employees’ tips. This prohibition applies regardless of whether the employer takes a tip credit.
No employer retention: Employers cannot use employee tips to satisfy minimum wage obligations beyond the allowed tip credit. Employers cannot retain any portion of tips for operational expenses, credit card processing fees, or other business costs.
Tip pooling arrangements: When tip pooling is implemented, the arrangement must be reasonable and customary. All contributions to and distributions from tip pools must be documented.
Service Charges and Automatic Gratuities
Mandatory service charges added to customer bills are not considered tips under Kentucky law. Employers may retain service charges unless the employer has explicitly designated them as gratuities to be distributed to employees. Employees have no legal right to service charges unless the employer has established a policy distributing them to staff.
Local Minimum Wage Ordinances in Kentucky
Kentucky law prohibits cities and counties from enacting their own minimum wage ordinances that exceed the state minimum wage. All employers in Kentucky must comply with the uniform statewide rate of $7.25 per hour, which matches the federal minimum wage.
State Preemption of Local Minimum Wage Laws
In 2015 and 2016, the cities of Louisville and Lexington passed local ordinances to raise minimum wages within their jurisdictions. Louisville’s minimum wage was raised to $7.75 on July 1, 2015, and was scheduled to increase to $9.00 per hour by July 1, 2017. Lexington similarly passed a local minimum wage ordinance.
On October 20, 2016, the Kentucky Supreme Court struck down these local minimum wage increases in a consolidated case. The Court ruled that Kentucky cities and counties do not have the authority to establish minimum wage rates that differ from the state minimum wage. Following this decision, minimum wages in Louisville and Lexington reverted to the federal and state rate of $7.25 per hour.
Current Status
No cities or counties in Kentucky currently maintain minimum wage rates above the state minimum. The Kentucky Supreme Court’s 2016 decision established that state law preempts local regulation of minimum wages, preventing municipalities from establishing higher rates beyond state requirements.
Any change to Kentucky’s minimum wage must come through state legislation enacted by the Kentucky General Assembly or through an increase in the federal minimum wage, which Kentucky automatically adopts. Local governments lack authority to establish their own wage requirements.
Uniform Statewide Application
The $7.25 per hour minimum wage applies uniformly across all Kentucky jurisdictions. Employers in Louisville, Lexington, and all other cities and counties must pay the same state minimum wage. Geographic location within Kentucky does not affect minimum wage requirements.
Who Is Covered and Who Is Exempt
Employees Covered by Kentucky Minimum Wage
Kentucky minimum wage law covers most private sector employees. Unless specifically exempted, covered employees include:
- Private sector workers: Full-time and part-time employees of private businesses
- Hourly employees: Workers compensated on an hourly basis
- Salaried non-exempt employees: Employees paid on a salary basis who do not qualify for overtime exemption
- Temporary and seasonal workers: Employees hired for limited periods
- Minor employees: Workers under age 18, subject to child labor restrictions
Under KRS 337.010, an “employee” is any person employed by or suffered or permitted to work for an employer, subject to specified exemptions.
Exemptions from Minimum Wage Requirements
The following categories of employees are exempt from Kentucky minimum wage requirements under KRS 337.010:
Executive, Administrative, and Professional Employees
Employees performing bona fide executive, administrative, supervisory, or professional duties are exempt if they meet both salary and duties tests. For 2026, Kentucky follows federal standards requiring a minimum salary of $684 per week ($35,568 annually) for most exempt classifications. Employees with total annual compensation of at least $107,432 may qualify for exemption if they regularly perform exempt duties.
Outside Sales Employees
Employees whose primary duty is making sales away from the employer’s place of business and who are customarily and regularly engaged away from the employer’s business location are exempt from minimum wage requirements.
Agricultural Workers
Individuals employed in agriculture are exempt from Kentucky minimum wage requirements under KRS 337.010(2)(a)1.
Domestic Service Workers
Individuals employed in domestic service in or about a private home are generally exempt. However, if an employer regularly employs more than one domestic servant, those employees may be covered by minimum wage requirements.
Federal Government Employees
Individuals employed by the United States government are exempt from state minimum wage requirements.
Small Retail and Service Establishments
Under 803 KAR 1:076, employees of retail stores, service industries, hotels, motels, and restaurant operations whose average annual gross volume of sales is less than $95,000 for the five preceding years are exempt from both minimum wage and overtime provisions.
Independent Contractors
Properly classified independent contractors are not employees and therefore not covered by minimum wage requirements. Kentucky applies tests to determine independent contractor status, and misclassification may result in penalties and back wages.
Federal Minimum Wage May Still Apply
Even if exempt from Kentucky minimum wage requirements, employers covered by the Fair Labor Standards Act must pay at least the federal minimum wage of $7.25 per hour. Federal coverage generally includes enterprises with annual gross volume of sales of at least $500,000, or enterprises engaged in interstate commerce.
Employer Obligations and Enforcement
Employer Compliance Requirements
Employers subject to Kentucky minimum wage law must:
- Pay the applicable minimum wage of $7.25 per hour for all hours worked
- Maintain accurate payroll records documenting hours worked and wages paid for at least three years
- Display required posters informing employees of minimum wage rates and labor law rights
- Issue compliant wage statements to employees with 10 or more staff members
- Pay wages timely according to Kentucky payment requirements
- Comply with tip credit requirements if claiming tip credits for tipped employees
Recordkeeping Requirements: According to the Kentucky Education and Labor Cabinet, employers must maintain payroll records including:
- Employee names, addresses, and Social Security numbers
- Hours worked each workday and workweek
- Wage rates and total wages paid each pay period
- Deductions from wages
- Dates of payment and pay periods covered
Enforcement of Minimum Wage Law
The Kentucky Education and Labor Cabinet, Division of Wages and Hours enforces minimum wage requirements in Kentucky. The agency:
- Investigates wage complaints filed by employees
- Conducts compliance inspections and audits
- Issues citations and orders for wage violations
- Collects unpaid wages on behalf of employees
- Assesses civil penalties for violations
Filing a Complaint: Employees who believe they have not been paid proper minimum wage may file a complaint with the Division of Wages and Hours through:
- Online: Wages and Hours Online Complaint Form
- Phone: (502) 564-3534
- Email: wages@ky.gov
- Mail: Division of Wages and Hours, 500 Mero Street, 3rd Floor, Frankfort, KY 40601-4220
Kentucky law under KRS 337.405 prohibits retaliation against employees who file wage complaints or cooperate with investigations.
Penalties for Minimum Wage Violations
Employers who violate Kentucky minimum wage law may be subject to:
Back Wages: Under KRS 337.385, employers must pay employees the full amount of unpaid wages. Claims typically may be brought for violations occurring within the preceding two years, or three years for willful violations.
Liquidated Damages: Kentucky law authorizes liquidated damages equal to the amount of unpaid wages, effectively doubling the employer’s liability. Liquidated damages serve as compensation for delayed payment and serve a punitive purpose.
Civil Penalties: The Kentucky Education and Labor Cabinet may assess civil penalties against employers who violate minimum wage requirements. Penalties vary based on the nature and severity of violations.
Attorney Fees: Employees who prevail in minimum wage actions may recover reasonable attorney fees and costs of litigation under Kentucky law.
Criminal Penalties: Willful violations of wage laws may result in criminal prosecution under Kentucky statutes. Repeated or egregious violations may result in more severe penalties.
Kentucky Minimum Wage vs Federal Law
The Federal Minimum Wage Floor
The Fair Labor Standards Act (FLSA) establishes a federal minimum wage of $7.25 per hour, which has remained unchanged since July 24, 2009. This federal rate sets a floor for minimum wage requirements nationwide and applies to employers engaged in interstate commerce or with annual gross sales exceeding $500,000.
When State Law Applies
Kentucky adopts the federal minimum wage rate of $7.25 per hour by reference under KRS 337.275. For employers covered by both state and federal law, the requirements are identical. Kentucky law serves to extend minimum wage protection to some employers and employees who may fall outside federal coverage, though the rate remains the same.
If the federal minimum wage increases above $7.25 per hour, Kentucky’s minimum wage will automatically increase to match the federal rate. This automatic adoption ensures Kentucky workers benefit from federal minimum wage increases without requiring new state legislation.
Higher Applicable Rate Rule
The fundamental principle governing minimum wage compliance is that employers must pay whichever rate—federal or state—provides employees the highest hourly wage. This rule ensures workers receive maximum protection under applicable law.
Practical Application:
- Identify all minimum wage rates that may apply (federal and state)
- Determine which rates cover the specific employer and employee
- Pay the highest applicable rate
In Kentucky, the state and federal minimum wages are currently identical at $7.25 per hour. If either rate changes, employers must pay the higher rate.
Minimum Wage Posting Requirements
Kentucky law requires employers to display an official minimum wage notice in a conspicuous location accessible to all employees. The poster must include current wage rates, employee rights, and contact information for the Kentucky Education and Labor Cabinet.
Where to obtain posters:
- Download from Kentucky Education and Labor Cabinet
- Kentucky Wage and Hour Poster available in English and Spanish
Posting locations: The notice must be posted in each workplace location where employees can readily see it, typically near time clocks, in break rooms, employee entrances, or other prominent locations accessible to all staff.
Compliance: Failure to display required posters may result in citations and penalties from the Kentucky Education and Labor Cabinet. Employers must ensure posters remain visible and legible.
Frequently Asked Questions: Minimum Wage in Kentucky 2026
What is the minimum wage in Kentucky in 2026?
The minimum wage in Kentucky is $7.25 per hour, which matches the federal minimum wage. This rate applies statewide to all covered employers and employees. Kentucky law adopts the federal minimum wage by reference, so if the federal rate increases, Kentucky’s rate will automatically increase to match.
When is the next minimum wage increase in Kentucky?
No minimum wage increases are currently scheduled in Kentucky. The rate will remain $7.25 per hour unless the U.S. Congress raises the federal minimum wage or the Kentucky General Assembly enacts legislation establishing a higher state rate. Under current Kentucky law, any federal minimum wage increase would automatically apply in Kentucky.
Does Kentucky allow tip credit?
Yes, Kentucky permits employers to pay tipped employees a cash wage of $2.13 per hour, with up to $5.12 in tip credit, provided total compensation reaches $7.25 per hour. Employees must regularly receive more than $30 per month in tips to qualify as tipped employees. If tips combined with the cash wage do not equal $7.25 per hour, employers must pay the difference.
Are there different minimum wages in different cities in Kentucky?
No, Kentucky maintains a uniform statewide minimum wage of $7.25 per hour. Local jurisdictions are prohibited from enacting different rates. In 2016, the Kentucky Supreme Court struck down local minimum wage ordinances in Louisville and Lexington, ruling that cities and counties lack authority to establish minimum wages above the state rate.
Who is exempt from minimum wage in Kentucky?
Common exemptions from Kentucky minimum wage include executive, administrative, supervisory, and professional employees meeting salary and duties tests (generally requiring at least $684 per week), outside sales employees, agricultural workers, domestic service workers in private homes, federal government employees, and employees of small retail establishments with annual sales below $95,000. Independent contractors are not covered.
What happens if an employer pays below minimum wage in Kentucky?
Employers who pay below minimum wage face back wage liability, liquidated damages equal to the unpaid amount (effectively doubling liability), civil penalties, and potential criminal prosecution for willful violations. Employees can file complaints with the Kentucky Education and Labor Cabinet Division of Wages and Hours to recover unpaid wages. Kentucky law prohibits retaliation against workers who report violations.
Do small businesses have to pay minimum wage in Kentucky?
Most small businesses in Kentucky must pay minimum wage regardless of size. However, employees of retail stores, service industries, hotels, motels, and restaurants with average annual gross sales below $95,000 for the previous five years are exempt from state minimum wage requirements. Federal minimum wage of $7.25 may still apply if the employer is covered by the FLSA.
Is Kentucky’s minimum wage higher than the federal minimum?
No, Kentucky’s minimum wage equals the federal minimum wage of $7.25 per hour. Kentucky law adopts the federal minimum wage by reference under KRS 337.275. The state and federal requirements are identical for covered employers. If the federal rate increases, Kentucky’s rate will automatically increase to match.
How often does Kentucky increase its minimum wage?
Kentucky’s minimum wage does not automatically increase on a regular schedule. The rate is set by legislation and remains unchanged unless the Kentucky General Assembly enacts new laws or the federal minimum wage increases. Under Kentucky law, the state minimum wage automatically adopts any federal minimum wage increase, but the federal rate has remained at $7.25 since 2009.
Can employers pay less than minimum wage during training?
Kentucky law does not authorize a separate training wage below minimum wage. Employers must pay at least $7.25 per hour from the first hour of employment. Federal law permits a youth minimum wage of $4.25 per hour for employees under age 20 during their first 90 consecutive calendar days of employment, which may apply to Kentucky employers covered by federal law.
How to file a minimum wage complaint in Kentucky
Employees who believe they have not received proper minimum wage compensation may file a wage complaint with the Kentucky Education and Labor Cabinet, Division of Wages and Hours. Filing methods include:
- Online portal: Wages and Hours Online Complaint Form
- Phone: (502) 564-3534
- Email: wages@ky.gov
- Mail: Division of Wages and Hours, 500 Mero Street, 3rd Floor, Frankfort, KY 40601-4220
The Division of Wages and Hours will investigate the complaint and may recover unpaid wages on behalf of the employee. Kentucky law prohibits employer retaliation against workers who file wage complaints or participate in investigations.
Do remote workers in Kentucky get the Kentucky minimum wage?
Generally, the minimum wage of the jurisdiction where the employee physically performs work applies. Remote workers located in Kentucky are typically entitled to Kentucky’s minimum wage of $7.25, even if their employer is based in another state. If the employer is located in a state with a higher minimum wage, that state’s law may require the higher rate for remote workers in Kentucky.
Information Verification Log
All information on this page has been compiled from official government sources and verified for accuracy as of the dates below.