Kentucky’s labor framework blends federal wage standards with state-specific requirements around breaks, wage payment timing, and employee classification. For HR and global mobility teams supporting multi-state workforces, a clear understanding of Kentucky’s employment rules can help support smoother relocations and consistent workforce planning.

Below is a practical overview of Kentucky employment regulations, written to support informed decision-making and alignment across jurisdictions.

Minimum wage

Kentucky aligns its minimum wage requirements with the federal Fair Labor Standards Act (FLSA).

• Minimum wage: $7.25 per hour
• No separate state-level minimum wage applies at this time
• Coverage follows federal employer and employee eligibility criteria

Kentucky law adopts the federal rate automatically unless amended through state legislation.

Meal periods

Kentucky law provides guidance around meal periods for employees.

In practice, the Kentucky Labor Cabinet interprets a “reasonable” meal period as:

• Typically around 30 minutes
• Scheduled no earlier than 3 hours and no later than 5 hours after the start of a shift
• Time during which the employee is fully relieved of work duties
  

These provisions generally apply to adult employees unless a specific exemption is approved.

Rest breaks

Kentucky includes specific rest-break provisions within its wage and hour framework.

Employees are generally entitled to:

• A paid 10-minute rest break for every 4 hours worked
• Rest breaks counted as hours worked
• Breaks provided as close as reasonably possible to the midpoint of each 4-hour work period
  

Because rest-break rules vary significantly by state, this is an area HR teams often review carefully when managing multi-state roles.

Overtime (Federal Standards apply)

Kentucky does not establish separate overtime thresholds and follows federal overtime standards under the FLSA:

• Overtime pay at 1.5× the regular rate after 40 hours in a workweek
• Certain roles may qualify for exemption based on federal classification criteria
  

Paid sick leave

There is currently no statewide paid sick leave requirement in Kentucky.

• Local governments are not permitted to mandate paid sick leave
• Employers may choose to offer paid sick leave or PTO through internal policies or collective agreements
  

Workers’ compensation

Kentucky’s workers’ compensation framework applies broadly across employment types.

• Coverage is generally required for employers with one or more employees
• This typically includes full-time, part-time, seasonal, and temporary workers
• Statutory exemptions may apply in limited circumstances
  

Independent contractor classification

Kentucky applies different standards depending on the context:

• ABC Test for unemployment insurance purposes
• Right-to-control factors for wage-and-hour classification
  

Classification decisions can influence payroll, tax treatment, and unemployment insurance obligations, making alignment with applicable standards especially relevant for multi-state teams.

Final pay requirements

Kentucky law outlines timelines for issuing final wages after separation.

• Final pay is generally due by the next regular payday or within 14 days, whichever is later
• Applies to both voluntary and involuntary separations

Workforce planning considerations

When hiring or relocating employees into Kentucky, organizations often evaluate compensation and policy alignment based on the worksite location, rather than home country or headquarters benchmarks. This approach can help support consistency with local wage, break, and payroll expectations across jurisdictions.

The MOVEPLUS™ Platform centralizes mobility information, documents decisions, and supports coordination with specialist legal, tax, and immigration partners as requirements change by location and move type. Our global mobility teams ensure that relocation policies, benefits frameworks, and employee-facing guidance are implemented in a way that accounts for the employment protections and eligibility rules of the destination state. MovePlus supports organisations and global mobility teams by helping operationalize clear, scalable mobility policies and processes that take destination-specific considerations into account.