Kentucky Overtime Laws 2026

In 2025, Kentucky’s overtime rules largely mirror the federal Fair Labor Standards Act (FLSA), including the salary threshold for exempt status reverting to the 2019 level after a federal court judgment blocking the proposed increases. Additionally, Kentucky law requires that if employees work for seven consecutive days in a week, they must receive overtime pay for all hours worked on the seventh day at 1.5X their regular wage rate. 

Overview of Kentucky Overtime Laws 2026

Kentucky’s overtime law, as mentioned in KRS 337.285, requires all employers to pay non-exempt employees 1.5X their regular wage rate for all hours worked beyond 40 in a single week. Besides this, a unique provision in Kentucky’s law is the 7-day overtime regulation. Any employee who works all seven days is liable to receive overtime pay for all hours worked on the seventh day. This applies irrespective of whether the employee has already crossed the 40-hour workweek threshold.  

Key highlights: 

• Overtime rate: 1.5× the employee’s regular hourly rate.
• Weekly overtime: Applies after 40 hours in a workweek.
• Daily overtime: Not mandated under state law.
• Exemptions: Similar to FLSA, executive, administrative, and professional roles are exempt.
• Additional protection: Public employees and certain industries may have additional overtime provisions.

The table below shows key updates impacting overtime and wages in Kentucky for 2025:

Eligibility for Overtime in Kentucky

The state of Kentucky defines its eligibility based on two categories, namely, exempt and non-exempt.

• Non-exempt employees typically comprise those workers who either work on an hourly basis or earn a salary that’s less than the state/federal salary threshold and do not qualify for the duties test. Such employees are legally eligible and entitled to receive overtime wages.     
• Exempt employees, on the other hand, are the ones who earn a minimum of $684/week or $35,568/year and qualify for both the salary and duties test. Such employees are not entitled to receive overtime pay. The exempt category typically includes employees who perform job duties that are primarily executive, administrative, or professional.

Federal vs. Kentucky Overtime Rules

While Kentucky’s overtime laws largely mirror the federal FLSA, the 7th-day rule and additional wage protections set the state’s rules apart. For instance, Ann works 45 hours a week at $20/hour.

• According to federal law, she earns 40 hours of regular pay ($800) and 5 hours of overtime at 1.5X her wage rate ($150), totaling her weekly pay to $950.
• Under state law, the same rule applies. However, Kentucky adds extra protections, such as overtime pay for work on the 7th consecutive day in a workweek, timely wage payments, and strict employer recordkeeping to ensure that all workers receive fair compensation and legal safeguards.

The table below sheds light on other aspects. 

Exemptions in Kentucky

The following employees fall under exemptions in the state of Kentucky. 

• Executive Employees: Individuals who manage a department or enterprise, supervise at least two full-time employees, have hiring/firing authority, and earn at least $684 weekly ($35,568 annually) qualify as exempt under the FLSA.
• Administrative Employees: Workers performing office/non-manual work directly related to business operations or management policies who exercise independent judgment on matters of significance and meet the minimum salary threshold are classified as exempt.
• Professional Employees: Individuals whose work requires advanced knowledge in specialized fields (law, medicine, accounting, engineering), who possess relevant professional degrees or licenses, and who meet salary requirements, are exempt from overtime.
• Computer/IT Professionals: Employees performing systems analysis, programming, software engineering, or IT management who earn at least $684 weekly or $27.63 hourly are exempt.
• Agricultural Workers: Employees engaged in farming, crop production, livestock management, and related agricultural activities are exempt from Kentucky overtime requirements.
• Domestic Service Workers: Individuals providing domestic service in private households, including in-home companionship services for sick persons or older adults, qualify for exemption from overtime pay.
• Small Retail Store Employees: Employees of retail establishments with less than $95,000 annual gross volume of sales for the last five years are exempt from overtime requirements.
• Outside Salespersons: Employees who primarily conduct sales away from an employer’s premises qualify for the outside sales exemption.
• Special Care Employees: Employees providing 24-hour residential care to neglected and abused children through approved facilities are exempt from overtime pay.
• Kentucky Follows Federal FLSA Standards: Kentucky enforces federal FLSA exemptions without state-level modifications; the November 2024 federal court ruling maintains the $684 weekly salary threshold; overtime is calculated on hours over 40 per workweek only (not daily).

Employer Obligations and Employee Rights

Employers in Kentucky must follow the state and federal labor laws to ensure fair practices and wage payments.

• Timely Payment: Employers must ensure to pay all wages on time, or as established in the employment contract.
• Recordkeeping: Employers must maintain accurate records of all hours worked and wages paid for each non-exempt employee.
• Workweek Definition: Employers must clearly establish a fixed and recurring 168-hour workweek and cannot change it to avoid overtime payments.
• Penalties: Employers who violate overtime laws and fail to pay the wages can be held liable for unpaid wages, damages, and other legal costs.