Is there a higher state minimum wage than the federal minimum wage in Kentucky?

Name: 2025 Kentucky Minimum Wage
Creator: DOL

No. Kentucky's minimum wage is $7.25 per hour, which matches the federal minimum wage.

2025 Kentucky Minimum Wage

The 2025 Kentucky Minimum Wage is $7.25.

Hourly$7.25

Effective 2025-01-01Source: Kentucky Wage and Hour Laws (Kentucky Education and Labor Cabinet)Verified 2026-08-30

Compared with 2024

Every figure on this page is unchanged from 2024.

Item	2024	2025	Change
Hourly	$7.25	$7.25	+$0 (+0.0%)

Who it applies to

Employers and employees in the state of Kentucky subject to the Kentucky Minimum Wage Law

What changed this year, and why

Kentucky's minimum wage is $7.25 per hour for 2025.

Common questions

Is there a higher state minimum wage than the federal minimum wage in Kentucky?: No. Kentucky's minimum wage is $7.25 per hour, which matches the federal minimum wage.

Minors, students and training wages: who may be paid less than the rate on this page

Kentucky's Minimum Wage Law contains an opening statement that certain exemptions from the minimum wage and overtime rules apply, and it directs readers to call the state's labor office at (502)564-3534 for more information. This means that while the general minimum hourly rate in Kentucky is $7.25, there are categories of workers or situations where a lower rate may be lawful. The state labor office is the place to confirm whether a specific job or worker qualifies for one of those exemptions. Employers and employees in Kentucky who have questions about whether a reduced rate is permitted — whether for trainees, students, minors, tipped workers, or any other group — should contact that office directly rather than assuming the posted rate automatically applies in every circumstance.

Certain exemptions from minimum wage and overtime apply. For questions, please call (502)564-3534.
Kentucky Wage and Hour Laws (Kentucky Education and Labor Cabinet)

Overtime is paid at one and one-half times the regular rate

Kentucky law requires employers to pay overtime at one and one-half times the regular hourly rate for any hours worked beyond forty in a workweek. This means that if a Kentucky employee works more than forty hours in a single week, each extra hour must be compensated at a higher rate than their normal pay. The overtime calculation is based on the individual workweek, not averaged over multiple weeks. Employers cannot avoid this requirement by averaging hours across different pay periods. Workers in Kentucky should track their hours carefully to ensure they receive proper overtime compensation when they work more than forty hours in any given week. This overtime rule applies in addition to the base minimum wage requirement of $7.25 per hour.

The rate of pay for time in excess of forty hours shall be not less than one and one-half the hourly rate employed.
Kentucky Wage and Hour Laws (Kentucky Education and Labor Cabinet)

Who to ask about this rate, and where to take a wage complaint

When employees in Kentucky have questions about minimum wage or overtime rules, the state provides a direct contact number. The Kentucky Wage and Hour Laws state that certain exemptions from minimum wage and overtime apply, and for questions, workers and employers should call (502)564-3534. This phone number connects to the state labor office that can clarify whether specific workers qualify for exemptions or reduced wage rates. The Education and Labor Cabinet's Division of Wages and Hours in Frankfort, Kentucky, oversees these regulations and can address concerns about wage compliance. Workers who believe they are not being paid correctly or employers who need guidance on exemption requirements should reach out to this office for assistance.

Certain exemptions from minimum wage and overtime apply. For questions, please call (502)564-3534.
Kentucky Wage and Hour Laws (Kentucky Education and Labor Cabinet)

State minimum wage laws that give more than the federal rate

Kentucky's wage laws operate within a system that recognizes local, state, and federal authority. The state's regulations note that employers may be required to make deductions when required to do so by local, state, or federal law, showing that multiple levels of government establish wage requirements. For workers in Kentucky, this means both the state minimum wage of $7.25 per hour and federal wage laws may apply simultaneously. When both state and federal laws cover a worker, the employee receives the benefit of whichever standard is more protective. Kentucky's current minimum wage matches the federal floor, so workers in the Commonwealth are covered at the same rate under both systems. The state Division of Wages and Hours enforces these requirements alongside federal authorities.

No employer shall withhold from any employee's wages any part of the agreed wage rate; unless a) the employer is required to do so by local, state, or federal law; or
Kentucky Wage and Hour Laws (Kentucky Education and Labor Cabinet)

When tips, meals or lodging count toward the minimum wage

For tipped employees in Kentucky, the minimum wage rules work differently than for other workers. When an employee regularly receives more than $30 per month in tips, the employer may pay a base wage of $2.13 per hour, but only if the employee's tips combined with that base wage equal at least $7.25 per hour for each workweek. The employer must maintain records that prove this calculation is met weekly. Importantly, Kentucky law prohibits employers from using any tips received by employees toward payment of the minimum wage, and employees cannot be required to give their gratuities to the employer except for legally required withholdings. Workers may agree among themselves to pool and divide tips, and if an employer requires a tip pool, that account must be kept separate from other business records and remain accessible to the pool participants.

Any employee engaged in an occupation in which more than $30 dollars per month is customarily and regularly received in tips, the employer may pay a minimum of $2.13 per hour if the employer' records can establish for each week where credit is taken, when adding the tips received to wages paid, not less than the minimum wage is received by the employee.
Kentucky Wage and Hour Laws (Kentucky Education and Labor Cabinet)

What an employer may deduct from your pay

Kentucky law places strict limits on what employers can deduct from employee wages. Generally, no employer may withhold any part of the agreed wage rate, with only a few exceptions. Deductions are permitted when required by local, state, or federal law, or when the employee has provided written authorization for insurance premiums, medical dues, or other deductions that do not amount to a rebate from the standard wage. Union dues may also be deducted if authorized by collective bargaining agreements. However, Kentucky explicitly prohibits employers from deducting fines, cash shortages from shared registers, breakage, losses from accepting bad checks if the employee had discretion to refuse them, and losses from faulty workmanship, lost property, or customer defaults unless the employee acted willfully against the employer's interests. These protections ensure Kentucky workers receive the full wages they earned.

No employer shall deduct the following from the wages of employees: a) Fines b) Cash shortages in a common money till, cash box or register used by two (2) or more persons; c) Breakage; d) Losses due to acceptance by an employee of checks which are subsequently dishonored if such employee is given discretion to accept or reject any check; or e) Losses due to defective or faulty workmanship, lost or stolen property, damage to property, default of customer credit or nonpayment for goods or services received by the customer if such losses are not attributable to employee's willful or intentional disregard of employer's interest.
Kentucky Wage and Hour Laws (Kentucky Education and Labor Cabinet)

Why the federal rate applies when the state rate is lower

When a state sets its minimum wage below the federal floor, the federal rate takes precedence for covered workers. In Kentucky, this situation does not currently apply because the state minimum wage of $7.25 per hour matches the federal rate. However, the Kentucky wage laws recognize the role of federal requirements. For example, the tipped employee provisions note that employers may withhold amounts required by federal or state law, acknowledging that both levels of government establish wage standards. If Kentucky's state rate were ever lower than the federal minimum, employers would still be obligated to pay the higher federal amount to covered employees. Federal law sets the baseline protection, and state laws cannot reduce wages below that floor.