Kentucky Minimum Wage Rate
Whether you are working within the Bluegrass State or running your business there, perhaps there’s a need for a magic number for 2025. The solution to your search begins here:
The minimum wage in Kentucky, the Bluegrass State, for 2025 will be $7.25 per hour.
It may seem familiar because it’s the same rate as the federal minimum wage. While some states have run swiftly ahead with raises and even tied some rates to inflation adjustments, the Bluegrass State’s rate keeps its rhythm consistent with federal standards as outlined within the Fair Labor Standards Act. That rate hasn’t changed at all since 2009.
As for tipped employees, who would be waitstaff, bartenders, and valet professionals, the minimum wage rate is $2.13 per hour. But there still needs to be a cumulative payment rate that meets that $7.25 per hour. So if it is a Tuesday night and tips are down, then it becomes necessary for the employer to fill the difference.
What Is the Kentucky State Minimum Wage and Why Does It Matter?
The lowest amount an employer can legally pay a worker for their labor for an hour of their time - the bottom dollar - as you know, is the federal minimum wage set by the government. This rate is governed by the Kentucky Labor Cabinet in the Bluegrass state, specifically, the Division of Wages and Hours.
$7.25 in 2025 buys a lot less than it did a decade ago, admittedly. It is a hot topic of conversation in breakrooms from Frankfort to Pikeville. While the legal minimum is usually $7.25, the labor market often dictates otherwise. Suppose you are in Downtown Louisville and you’re taking a stroll along the main streets, you will see that a lot of signs offering work have been put up in the windows of popular fast-food or retail chains. Those are actually advertising starting rates of $12, $14, or even $15 just to attract applicants!
It is equally important for employers to know this standard, because it is imperative for them to make sure that employees aren't being underpaid. Even if you are above the minimum wage rate, it will help you calculate your overtime payments.
Region-Wise Kentucky Minimum Wage Rates
One might wonder if it pays more to work in a bustling city like Louisville rather than in some remote rural town. In some states, like New York or Oregon, you will see a quilt of differently knitted rates, depending on which region you belong to.
Kentucky is visibly different- the rate is uniform across the board at $7.25 per hour.
It wasn't for a lack of trying, though, because a few years back, cities like Louisville and Lexington passed local ordinances to raise their minimum wages above the state level. However, the Kentucky Supreme Court struck these down in 2016 as they had made it implicitly clear that state law preempts local law in this matter. So, strictly speaking, a barista in downtown Louisville has the same legal minimum wage floor as a cashier in rural Harlan County.
Minimum Wage in Kentucky Cities Based on Employee Count
In many states, larger businesses pay a higher minimum wage than local mom-and-pop shops, indicating that the size of the business may affect the pay scale.
The general payment rule followed in Kentucky is still $7.25 per hour, regardless of whether the company has 5 employees or 5,000. There isn't a tiered system based on employee count, as you might find in California, for example.
There is one niche example that we need to bring to your notice here. Kentucky state law has a provision for certain retail stores, service industries, hotels, and restaurants.
If these businesses have an average annual gross volume of sales less than $95,000 for the past five years, they might be exempt from the state minimum wage requirements.
That said, most businesses today easily surpass that revenue threshold, and even if they don't, they are often covered by federal FLSA rules if they engage in interstate commerce.
Kentucky Minimum Wage Rate by Industry
While the standard rate is straightforward, the industry-specific rules can get a little nuanced.
Tipped Employees
The tipped minimum was fixed at a standard $2.13 per hour. This is technically a credit system. The employer can claim a tip credit later of up to $5.12 to meet the $7.25 per hour requirement after paying them a floor wage of $2.13 per hour.
If you are a server and you spend a significant amount of time doing non-tipped work (like polishing dishes, receiving goods, or cleaning for hours before the restaurant opens), strict rules apply to when that $2.13 per-hour rate can be used to ensure that the system is not gamed.
Youth Training Wage
Kentucky allows employers to pay a "training wage" to employees under the age of 20. These young workers can be paid $4.25 per hour for the first 90 days of their employment contract. Once the 90 days are up, or the employee turns 20, whichever is earlier, the pay must be bumped up to the standard $7.25 per hour.
Student Learners
There are also provisions for full-time high school or college students to be paid 85% of the minimum wage (which is roughly $6.16) in a specific work-study or part-time scenario, though this usually requires a special certificate from the US Department of Labor.
History of Kentucky Minimum Wage Rates
The history of minimum wage in Kentucky largely parallels federal policy. The state has taken no independent action to increase the wage floor in many years, choosing instead simply to adopt the federal changes as they occur.
It was at $5.15 back in the mid-2000s, before Congress granted it a series of increases. Kentucky followed suit, going to $5.85 in 2007, then $6.55 in 2008, and finally landing at $7.25 in 2009.
Since that 2009 hike, the graph has been a flat line. While cost-of-living adjustments have driven wages up in neighboring states like Ohio and Missouri - both of which have higher minimum wages for 2025- Kentucky has held steady at the federal floor.
| Year | State Min ($/hr) | Effective Date | Key Law | Practical Min ($/hr) |
|---|---|---|---|---|
| 2005 | $5.15 | Jul 1, 1997 | KRS 337.275 | $5.15 |
| 2006 | $5.15 | Jul 1, 1997 | KRS 337.275 | $5.15 |
| 2007 | $5.85 | Jun 26, 2007 | KRS 337.275 | $5.85 |
| 2008 | $6.55 | Jul 1, 2008 | KRS 337.275 | $6.55 |
| 2009 | $7.25 | Jul 1, 2009 | KRS 337.275 | $7.25 |
| 2010 | $7.25 | Jul 1, 2009 | KRS 337.275 | $7.25 |
| 2011 | $7.25 | Jul 1, 2009 | KRS 337.275 | $7.25 |
| 2012 | $7.25 | Jul 1, 2009 | KRS 337.275 | $7.25 |
| 2013 | $7.25 | Jul 1, 2009 | KRS 337.275 | $7.25 |
| 2014 | $7.25 | Jul 1, 2009 | KRS 337.275 | $7.25 |
| 2015 | $7.25 | Jul 1, 2009 | KRS 337.275 | $7.25 |
| 2016 | $7.25 | Jul 1, 2009 | KRS 337.275 | $7.25 |
| 2017 | $7.25 | Jul 1, 2009 | KRS 337.275 | $7.25 |
| 2018 | $7.25 | Jul 1, 2009 | KRS 337.275 | $7.25 |
| 2019 | $7.25 | Jul 1, 2009 | KRS 337.275 | $7.25 |
| 2020 | $7.25 | Jul 1, 2009 | KRS 337.275 | $7.25 |
| 2021 | $7.25 | Jul 1, 2009 | KRS 337.275 | $7.25 |
| 2022 | $7.25 | Jul 1, 2009 | KRS 337.275 | $7.25 |
| 2023 | $7.25 | Jul 1, 2009 | KRS 337.275 | $7.25 |
| 2024 | $7.25 | Jul 1, 2009 | KRS 337.275 | $7.25 |
| 2025 | $7.25 | Jul 1, 2009 | KRS 337.275 | $7.25 |
To summarise:
- 2005 - 2006: The rate was steady at $5.15.
- 2007: Saw an increase to $5.85 following federal changes.
- 2008: The rate climbed again to $6.55.
- 2009: The final step of the federal increase brought the rate to $7.25 in July.
- 2010 - 2025: The rate has remained unchanged at $7.25 for fifteen years.
FAQs
1. What is the Kentucky minimum wage?
The minimum wage within the Bluegrass State for 2025 is $7.25 per hour.
2. Does Kentucky have a higher minimum wage for overtime?
Kentucky follows the standard overtime rule. If you were to say, work in excess of 40 hours in a single workweek, the rules mandate that you are entitled to something called time-and-a-half. With a minimum of $7.25, that overtime rate adds up to $10.88 per hour.
Kentucky also has a unique "seventh-day" rule - if you work seven days in a workweek, you are entitled to overtime for all hours worked on that extra seventh day. This is only provided you exceed 40 hours total in the workweek.
3. Can cities like Louisville raise their own minimum wage?
The Kentucky Supreme Court struck down calls for raising the Kentucky minimum wage by local governments in 2016. They had observed that state law prohibits setting minimum wages higher than the state mandate. Any change to the $7.25 floor has to come from the State Legislature or the US Congress.
4. When does an employer have to pay me?
Kentucky labor laws generally require employers to pay their staff at least twice a month (semi-monthly). The payday must occur within 18 days of the end of the pay period.
5. Are salaried employees exempt from minimum wage?
If they meet specific duties tests (like Executive, Administrative, or Professional roles). However, recent federal court rulings have created some flux regarding the salary threshold. As of 2025, enforcement often reverts to the 2019 threshold of $35,568 per year ($684 per week) after courts struck down attempted increases. You can always be up-to-date with the latest DOL guidelines for the most current salary threshold status.
6. What if my tips plus $2.13 don't equal $7.25?
The employer must make up the difference. You are legally guaranteed to earn at least $7.25 for every hour worked. If your employer claims the tip credit but you aren't making the minimum, they are violating wage and hour laws.