Kentucky Minimum Wage 2026
The minimum wage in Kentucky is $7.25 per hour in 2026, effective July 24, 2009. Tipped employees can be paid a cash wage of $2.13 per hour, as long as tips bring them to the full minimum.
What is the minimum wage in Kentucky in 2026?
The Kentucky minimum wage is $7.25 per hour in 2026, level with the federal minimum since July 24, 2009. Kentucky's wage statute tracks the federal rate, and the General Assembly has not enacted an independent increase.
Kentucky is notable for having tried the local route and lost. Louisville and Lexington both passed citywide minimum wage ordinances in 2014 and 2015, and Louisville's rate had already climbed to $8.25 before the Kentucky Supreme Court struck the ordinances down in 2016, ruling that cities lack the authority to set wage floors. Affected workers saw their legal minimum drop back to $7.25 overnight.
Tipped minimum wage in Kentucky
Kentucky permits the full federal tip credit, so the tipped minimum wage is $2.13 per hour in direct cash wages. Combined cash wages and tips must equal at least $7.25 per hour for the workweek, with the employer paying any deficit.
One Kentucky-specific wrinkle: state law historically restricted mandatory tip pooling more tightly than federal law, so review any pooling arrangement carefully. The Kentucky Labor Cabinet enforces wage and hour rules at the state level alongside the federal DOL.
Kentucky minimum wage history: 2020 to 2026
| Year | Minimum wage | Tipped wage |
|---|---|---|
| 2020 | $7.25 | $2.13 |
| 2021 | $7.25 | $2.13 |
| 2022 | $7.25 | $2.13 |
| 2023 | $7.25 | $2.13 |
| 2024 | $7.25 | $2.13 |
| 2025 | $7.25 | $2.13 |
| 2026 | $7.25 | $2.13 |
Upcoming minimum wage increases in Kentucky
No increases are scheduled for Kentucky. After the 2016 Supreme Court ruling closed the local-ordinance path, the only routes to a higher minimum are the General Assembly in Frankfort or a federal increase from Congress.
Legislators file minimum wage bills most sessions, often targeting $15.00 over several years, but none has cleared committee. Employers in northern Kentucky should note that Ohio's minimum, $10.95 and inflation-indexed, sits just across the river and continues to pull the Cincinnati metro's wage expectations upward.
Minimum wage by city in Kentucky
Kentucky cities cannot set minimum wages. That was settled definitively in 2016, when the Kentucky Supreme Court invalidated Louisville's and Lexington's ordinances, holding that wage regulation belongs to the state.
The ruling means $7.25 applies from Paducah to Pikeville, but border markets behave differently. Covington and the rest of northern Kentucky share a labor market with Cincinnati, where Ohio's $10.95 minimum sets a higher baseline expectation for hourly candidates.
Its ordinance had reached $8.25 before the 2016 court decision voided it
Passed a local minimum in 2015 that was struck down alongside Louisville's
State rate; automotive manufacturing drives local wages above the floor
State rate, but competes with Ohio's $10.95 minimum across the river
What Kentucky employers need to know
Coverage
Kentucky's minimum wage law applies broadly to employers in the state, supplementing FLSA coverage. Exemptions exist for certain agricultural work, some retail and service businesses below revenue thresholds, and other narrow categories.
Overtime and the seventh day
Kentucky requires 1.5x pay after 40 hours per workweek and, unusually, time-and-a-half for work on the seventh consecutive day of a workweek for eligible employees. Factor the seventh-day rule into scheduling.
Tipped employees
Pay at least $2.13 per hour in cash wages and verify weekly that tips carry each employee to $7.25. Kentucky law also requires that employees retain their tips subject to valid pooling arrangements.
Rest and meal breaks
Unlike most federal-rate states, Kentucky mandates a paid 10-minute rest break per four hours worked and a reasonable meal period between the third and fifth hour. Break violations are a common Labor Cabinet finding.
How other states compare
See how Kentucky's $7.25 rate stacks up against other state minimum wages in 2026, or browse the full minimum wage index for all 50 states.
Last verified:
Sources: the US Department of Labor's state minimum wage table and official announcements from the Kentucky labor department. Minimum wage laws change frequently; confirm current rates with those sources or legal counsel before setting pay.
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