Employer of Record for Kentucky

Working Hours in Kentucky

Kentucky has specific employment and labor laws governing working hours, designed to protect employees’ rights and ensure fair compensation. Whether you’re hiring local employees or working with an Employer of Record (EOR), it's essential to understand the state's regulations around working hours to ensure compliance.  

1. Standard Workweek and Overtime

 
• A standard workweek in Kentucky typically consists of 40 hours.
 
• Employees working beyond 40 hours in a workweek are entitled to overtime pay.

2. State-Specific Working Hour Regulations

 
• Employers are required to pay overtime at a rate of 1.5 times the regular pay for hours worked over 40 in a workweek.
 
• Certain exemptions apply for specific job categories and industries.

3. Meal and Rest Breaks

 
• Employees working 7.5 hours or more must be provided with a reasonable meal period, typically 30 minutes, between the third and fifth hour of work.
 
• Meal breaks are unpaid if the employee is relieved of all duties.
 
• Employees are entitled to a paid 10-minute rest period for every four hours worked.

Minimum Wage in Kentucky

 As of 2024, the minimum wage in Kentucky is $7.25 per hour.  

 
• Kentucky follows the federal minimum wage.
 
• There are no regional variations within the state.

Overtime in Kentucky

 In Kentucky, non-exempt employees are entitled to overtime pay at 1.5 times their regular rate for hours worked over 40 in a workweek. Certain employees, such as those in executive, administrative, or professional roles, may be exempt from overtime provisions.  

Payroll taxes in Kentucky are deductions employers must take from employees’ wages and remit to the state. These taxes fund various state programs and services, including unemployment benefits and disability insurance. Examples of payroll taxes include:  

 
• State Income Tax: Kentucky imposes a flat state income tax rate of 4% on employee wages.
 
• State Unemployment Insurance (SUI): Employers contribute to SUI at rates ranging from 0.3% to 9% on the first $11,100 of each employee's wages, depending on the employer's experience rating.

Payroll Cycle in Kentucky

 Employers in Kentucky are required to pay employees at least semi-monthly, with paydays scheduled no more than 18 days apart. Specific industries may have additional regulations, and employers must provide employees with a statement of wages detailing hours worked and deductions made.  

Employment taxes and statutory fees affect both your payroll and your employees’ paychecks in Kentucky. Understanding the tax obligations for both employers and employees is crucial when operating in Kentucky's business landscape.  

Employer Tax Contributions

Employers in Kentucky are responsible for several employment taxes, including State Unemployment Insurance (SUI) and federal taxes such as Social Security and Medicare.  Employer payroll contributions are generally estimated at an additional 7.65% on top of the employee salary in Kentucky.  

Employee Tax Contributions

 Employee tax contributions are generally estimated at 7.65% of employee salary in Kentucky.  

In Kentucky, employers are mandated to provide certain benefits, such as workers' compensation insurance and unemployment insurance. While not required by state law, many employers choose to offer additional employee benefits to attract and retain talent.  

Employee Benefits for Kentucky

Competitive benefits are essential for attracting and retaining top talent in Kentucky. Offering the right package helps employees feel valued and motivated. Our benefits experts understand the local labor market's trends, requirements, and expectations, ensuring your employees feel valued and supported. Common benefits in our Kentucky packages include:

• Pension or 401(K)
• Vision Insurance
• Life Insurance
• Medical Insurance
• Dental Insurance
• Health Savings Plan (HSA)
• Flexible Spending Account (FSA)
 

Family and Medical Leave

Under the federal Family and Medical Leave Act (FMLA), eligible employees are entitled to up to 12 weeks of unpaid leave within a 12-month period for specific family and medical reasons.  

Voting Leave

Kentucky law requires employers to grant employees at least four hours of leave to vote.  

Adoption Leave

Employers must provide unpaid leave for the adoption of a child under the age of 10.  

Jury Duty Leave

Employers are required to grant unpaid leave for jury duty without penalizing the employee.  

Sick Leave

Sick leave is not mandated but may be offered at the employer’s discretion.