Minimum Wage Disputes

Minimum wage laws set the lowest hourly rate that an employer can pay their employees. These laws ensure that workers receive fair compensation for their work.

Minimum wage laws have various nuances, such as different rates for tipped employees, exemptions for certain types of employees, and special provisions for minors and individuals with disabilities.

The minimum wage in Kentucky is $7.25, the same as the federal minimum wage. If the federal minimum wage increases, Kentucky's state minimum wage will also increase.The Fair Labor Standards Act (“FLSA”) allows for employees under the age of 20 to be paid a minimum wage of $4.25 for the first 90 calendar days that they are employed.

Some employees are exempt from being paid a minimum wage and overtime. The largest group of exempt employees under the FLSA are executive, administrative, and professional employees, which are exempt from minimum wage and overtime regulations.

Salaried employees are also exempt. To fall into this class, the employee must make at least $844 a week or $43,888 a year. On January 1, 2025, employees who make less than $58,656, or $1,128 per week, will be owed minimum wage.

Tipped employees may be paid $2.13 if added with his or her tips equals minimum wage, which is $7.25. A tipped employee is an employee who makes at least $30 a month in addition to the $2.13 minimum wage.

Kentucky law allows only voluntary tip pooling. Tip pooling, or tip sharing, is when tipped employees put all of their tips together and the tips are redistributed to tipped employees or non-tipped employees.

Employers cannot mandate or require employees to engage in tip-pooling programs. An employer may tell the employees about a voluntary tip pool, and the employees may ask for the employer to keep an accounting of the funds. If the employer keeps an accounting of the funds, the employer must not mix the tip funds with business funds and must keep records of the account of tip pooling funds available for employees.