Kentucky labor laws in 2025 continue to align closely with federal standards, with notable updates in workplace safety, employee rights, and compensation structures.
This comprehensive guide provides an in-depth look at the key aspects of Kentucky labor laws as they stand today.
Minimum Wage and Wage Laws
As of 2025, Kentucky’s minimum wage remains at $7.25 per hour, consistent with the federal rate. This rate has been unchanged since 2009 and applies statewide. Notably, if federal legislation raises the minimum wage above this threshold, Kentucky’s rate will automatically adjust to match the federal increase.
Tipped Employees
For employees who customarily receive tips, such as servers, Kentucky law permits employers to count tips toward the minimum wage, provided the employee earns more than $30 per month in tips. Employers must pay a direct wage of at least $2.13 per hour, with the expectation that tips will make up the difference to meet the minimum wage.
Youth Wage
Workers under the age of 20 may be paid a training wage of $4.25 per hour during their first 90 consecutive calendar days of employment. This federal provision is designed to encourage the hiring of young workers while maintaining fair labor standards.
Overtime and Exemptions
Kentucky adheres to the federal Fair Labor Standards Act (FLSA) regarding overtime pay. Employees are entitled to overtime compensation at a rate of one and a half times their regular hourly wage for hours worked over 40 in a workweek. However, certain exemptions apply, including executive, administrative, professional, and outside sales employees.
As of January 1, 2025, the minimum salary threshold for these exemptions was set at $1,128 per week ($58,656 per year). It’s important to note that this change was subsequently struck down by a federal judge on November 15, 2024, and the previous salary threshold remains in effect.
Workplace Safety and Health
Effective June 27, 2025, Kentucky labor law amended its Occupational Safety and Health Act to bring state regulations in line with federal OSHA standards. House Bill 398 introduced significant changes, including the adoption of a formal limitations period for issuing violations, a new “de minimis” classification for administrative violations, and provisions allowing employers to recover costs and fees on appeal.
These updates aim to enhance workplace safety and ensure that Kentucky’s regulations are consistent with federal guidelines, providing clearer standards for employers and better protection for employees.
Employee Rights and Protections
Paid Family Leave
In December 2024, Governor Andy Beshear announced a new paid leave plan for state executive branch employees. Eligible employees can receive up to six weeks of paid leave to bond with a new child or manage a serious illness. This benefit is available three times during an employee’s career: upon initial hire, after 10 years, and after 20 years of service.
Discrimination Protections
Kentucky has expanded its anti-discrimination laws to include protections against discrimination based on natural hair texture and protective hairstyles. This move acknowledges the cultural significance of hairstyles and aims to promote inclusivity in the workplace.
Child Labor Laws
In early 2024, the Kentucky House voted to relax certain child labor rules. The proposed legislation would remove the cap on the number of hours older teens can work on school nights and limit state labor officials’ authority to exceed federal child labor protections. Supporters argue that the changes would provide valuable work experience for teenagers, while opponents express concerns about potential exploitation and the impact on education.
Compliance and Resources
Employers in Kentucky are required to post specific labor law notices in the workplace. These include information on minimum wage, discrimination, health and safety, and workers’ compensation. Updated posters reflecting the latest legal changes are available from the Kentucky Chamber of Commerce and other compliance resources.
Conclusion
Kentucky labor laws in 2025 continue to evolve, with significant updates in workplace safety, employee rights, and compensation structures. Employers and employees alike should stay informed about these changes to ensure compliance and promote a fair and safe working environment.
For more detailed information or specific legal advice, it’s advisable to consult with a labor law attorney or contact the Kentucky Labor Cabinet.
