Kentucky Statewide Rule
Kentucky Minimum Wage Local Preemption
Key Facts
- Fees
- State minimum wage is $7.25/hour
- Measurement
- Local minimums preempted by KRS 337
- Authority
- Kentucky Supreme Court ruled 2016
- Fees
- Tipped wage is $2.13 per hour
- Measurement
- Overtime follows federal FLSA
Summary
Kentucky law sets the state minimum wage at the federal floor and bars local governments from establishing higher minimum wages. Court rulings have invalidated local ordinances that exceeded state law.
337.275 Minimum wage. (1) Except as may otherwise be provided by this chapter, every employer shall pay to each of his employees wages at a rate of not less than five dollars and eighty-five cents ($5.85) an hour beginning on June 26, 2007, not less than six dollars and fiftyfive cents ($6.55) an hour beginning July 1, 2008, and not less than seven dollars and twenty-five cents ($7.25) an hour beginning July 1, 2009. If the federal minimum hourly wage as prescribed by 29 U.S.C. sec. 206(a)(1) is increased in excess of the minimum hourly wage in effect under this subsection, the minimum hourly wage under this subsection shall be increased to the same amount, effective on the same date as the federal minimum hourly wage rate. If the state minimum hourly wage is increased to the federal minimum hourly wage, it shall include only the federal minimum hourly rate prescribed in 29 U.S.C. sec. 206(a)(1) and shall not include other wage rates or conditions, exclusions, or exceptions to the federal minimum hourly wage rate. In addition, the increase to the federal minimum hourly wage rate does not extend or modify the scope or coverage of the minimum wage rate required under this chapter.
Full Breakdown
KRS 337.275 establishes Kentucky's minimum wage, currently aligned with the federal $7.25 per hour rate. The Kentucky Supreme Court held in Kentucky Restaurant Ass'n v. Louisville/Jefferson County Metro Government (2016) that local minimum wage ordinances were preempted by state law. KRS Chapter 337 occupies the field of wage and hour regulation, and cities like Louisville and Lexington had to roll back local minimum wage increases. Tipped wages remain at $2.13 per hour with tip credit, and overtime requirements follow federal Fair Labor Standards Act standards.
Violations & Penalties
Local minimum wage ordinances are void and unenforceable. Wage violations under state law are enforced by the Department of Workplace Standards with civil penalties and back wage recovery.
Frequently Asked Questions
Can a Kentucky city raise its minimum wage above $7.25?
Does federal law set a higher floor?
Sources
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