Introduction to employment laws in Kentucky
Overview
Kentucky has a comprehensive set of employment laws and regulations that businesses must be aware of to ensure compliance. The state’s labor laws cover a wide range of topics, including minimum wage, overtime pay, rest breaks, child labor restrictions, discrimination protections, and workplace safety requirements.
In this guide, we’ll help keep you compliant as you onboard and manage workers in Kentucky.
Employing in Kentucky: Key employment laws and practices
Standard work hours
In Kentucky, full-time employment typically refers to a workweek ranging from 30 to 40 hours, which is consistent with the Fair Labor Standards Act (FLSA). Although this is not legally defined, most employers there accept it as the standard.
For contractual employees, working hours largely depend on the terms of their contracts. Part-time employees work fewer hours than full-time workers. The specific hours vary by employer and position. It is important to clarify the terms of employment, including working hours, during the hiring process to avoid misclassification and potential legal disputes.
Minimum wage and overtime
Kentucky follows the federal guidelines on minimum wage and overtime pay.
The current state minimum wage is $7.25 per hour. This rate applies to both full-time and part-time employees, though there are exemptions for certain types of workers like tipped employees and students.
Kentucky employees who work more than 40 hours in a workweek are entitled to overtime pay, which is 1.5 times the employee’s regular hourly wage.
Insurance and benefits
To comply with federal law found in the Affordable Care Act (ACA), employers of 50 or more staff should make employer-subsidized health insurance options available to their employees. Kentucky law mandates that employers offer certain benefits and insurance coverage to their employees.
Retirement benefits such as a 401k plan and dental or vision insurance are commonly offered by employers but are not mandated under Kentucky law. However, employers who choose to offer these plans must comply with federal regulations.
Benefit type | Description |
Unemployment insurance | Required |
Workers’ compensation insurance | Required |
Health insurance | Typically offered in accordance with federal regulations found in the Affordable Care Act |
Dental and vision insurance | Commonly offered, not required |
401k plan | Optional, must comply with federal regulations if offered |
Meal and rest periods
Kentucky employment laws stipulate specific requirements for breaks and meal periods during work hours. According to Kentucky HR compliance regulations, employees are entitled to a 10-minute paid rest break for every four hours worked in a shift. Employers are obligated, too, to provide a reasonable meal break of at least 30 minutes near the middle of the employee’s shift. This meal break cannot occur before three hours into the shift or after five hours of continuous work.
Multiplier makes it easy to manage benefits for Kentucky employees.
Anti-discrimination laws
Kentucky’s stance on workplace discrimination is firm and comprehensive. The Kentucky Civil Rights Act (KCRA) prohibits employment discrimination based on several protected characteristics, such as race, color, national origin, age, religion, sex (including pregnancy, childbirth, and related medical conditions), and disability.
The KCRA generally applies to employers with eight or more employees but extends to businesses with 15 or more employees for matters related to disability discrimination.
Employers must adhere strictly to these anti-discrimination laws to ensure a harmonious working environment while avoiding potential penalties for non-compliance.
Leave policies
Kentucky employment laws provide various types of leave for employees. These include vacation leave, sick leave, parental and maternity leave, bereavement leave, jury duty leave, military leave, and other forms of time off like adoption leave, court attendance leave, election official leave, and emergency responder leave.
Leave type | Description |
Parental/maternity leave | Time off for childbirth or child care |
Bereavement leave | Time off due to death in the family |
Jury duty leave | Time off to serve on a jury |
Adoption leave | Up to six weeks |
Emergency responder leave | Employer chooses whether to pay. Employee entitled up to 12 months of leave if injured while responding to an emergency |
Voting leave | At least four hours of leave time to vote |
Military leave | Time off for military service |
Termination laws
Kentucky operates on an at-will employment basis. This means that either the employer or employee can terminate the employment relationship at any time, for any reason, provided the reason is not illegal (such as discrimination or retaliation). However, it’s essential for employers to ensure their termination practices align with both state and federal laws and are not discriminatory or retaliatory.
Terminating an employee in Kentucky requires adherence to specific legal requirements. In the case of both voluntary resignations and involuntary terminations, employers must issue final pay by the later of the next normal pay period or 14 days following the termination or resignation.
Easily onboard employees in Kentucky?
Safety and health
Kentucky employment laws cover aspects related to workplace safety and health. Employers are obligated to adhere to state-specific safety regulations, which may vary depending on the nature of the industry, in addition to OSHA regulations.
Kentucky allows employees to keep legally concealed firearms and ammunition in their personal vehicles even on employer’s property. Employees also have the right to remove their gun from their car for self-defense.
Kentucky has a law prohibiting texting while driving in a bid to enhance safety not only within workplaces but also on roads.
Taxes in Kentucky
Employers in Kentucky have specific tax obligations for their employees. For instance, Kentucky has a flat state income tax of 4%. Employers are required to withhold these taxes from employee wages and remit them to the respective agencies.
Tax type | Description | Employees |
Federal taxes | Withheld from employee wages | Yes |
State taxes | Flat rate of 4% | Yes |
Social Security | Both employer and employee contribute | Yes |
Medicare | Both employer and employee contribute | Yes |
State unemployment insurance | Paid by employer at a rate of 0.3% to 9% at a taxable wage limit of $11,400 | No |
Managing Kentucky employees with an Employer of Record (EOR)
In a state like Kentucky, where employment laws and HR compliance can be complex, it’s crucial to stay abreast of regulatory requirements and best practices to maintain compliance. That’s where Multiplier comes in.
With our EOR Services, we enable businesses to hire full-time employees in Kentucky and other parts of the United States, without the need to establish a local entity.
With our payroll software, running payroll operations in Kentucky becomes a simple, streamlined task, ensuring that U.S. and international employees are paid in a timely fashion, handling taxes, contributions, and withholdings.
Through our all-in-one platform, we take the hassle out of onboarding and managing international employees and contractors. Our platform is designed for HR leaders, finance heads, and executives in companies of all sizes that aim to build globally distributed teams.
Book a demo today to see how Multiplier can streamline your HR operations.
FAQs
Kentucky employment laws offer robust protections against discrimination via the Kentucky Civil Rights Act (KCRA). This law bars discrimination based on race, color, national origin, age, religion, sex (including pregnancy), and disability. The Equal Opportunities Act further forbids discrimination based on physical disability or HIV/AIDS status.
Kentucky’s minimum wage is $7.25 an hour, matching the federal rate. Similar to the federal law, Kentucky mandates that employees who work more than 40 hours in a workweek earn overtime pay.
Kentucky’s healthcare continuation law mandates that employers allow coverage to continue for up to 18 months for covered members and their dependents.
Kentucky employment laws stipulate that all employers provide adoption leave, court attendance leave, jury duty leave, voting leave, election official leave, military leave, and emergency responder leave. The specifics of these leaves vary and are subject to both federal and state laws.
In terms of workplace safety, Kentucky law permits employees to keep legally concealed firearms in their personal vehicle on employer property. The state also prohibits texting while driving to ensure road safety. These laws are just part of broader health and safety regulations designed to maintain a safe and secure working environment.
