Kentucky minimum wage in 2026 (and 2027)

The seventh-day rule and other Kentucky details

Overtime in Kentucky is due after 40 hours in a workweek, and also for hours on the seventh day when an employee works all seven days of the workweek. The seventh-day rule does not apply when the employee is not allowed to work more than 40 hours total that week. In practice, a part-timer who picks up a short shift every day of the week can trigger time and a half on day seven even without reaching 40 hours, unless you cap their hours.

County and local government employers may give compensating time off instead of overtime pay, but only when the employee asks for it in writing.

Kentucky restaurants can use the standard federal tip credit: $2.13 in cash, up to $5.12 counted from tips, for servers who pull in over $30 monthly. Kentucky businesses may also start teenagers under 20 at the federal $4.25 opportunity wage for 90 days.

Pay at $7.25 over a year

A Kentucky minimum wage job held full time for the year (2,080 hours) grosses $15,080.00. That is $1,256.67 in an average month and $290.00 in a standard week.

Seventh-day overtime is paid at $7.25 x 1.5 = $10.875 an hour. An eight-hour seventh day at that rate is $87.00, compared with $58.00 at straight time.

Employer taxes on a Kentucky minimum wage job

Kentucky's new-employer unemployment rate is 2.70%, and it stays at least that high until you have three years of experience. The wage base is $12,000. The Service Capacity Upgrade Fund surcharge is 0.0% for 2026 because the fund is at its cap.

That is $1,519.62 over wages. Kentucky's city and county occupational license taxes are a separate issue: some are withheld from employees and some fall on the employer, depending on the jurisdiction. See Kentucky local occupational taxes before you hire in Louisville or Lexington.

Recent history and 2027

DOL history tables list Kentucky at $7.25 from 2020 through 2024, and the 2026 rate is unchanged. As of October 2026 no 2027 increase has been announced. To the north, Ohio's rate is $11.00 for larger employers and rises to $11.40 in 2027, while Indiana and Tennessee stay at $7.25. The minimum wage by state page tracks every change.

Payroll setup for Kentucky hourly staff

Check that your time tracking can flag a seven-day stretch, because many tools only test for 40 hours. Kentucky registration and new hire reporting are covered on our Kentucky payroll tax page. On Gusto, the Simple tier lists $49 monthly with a $6 charge for each paid worker (October 16, 2026), and our ranked list of payroll software compares it with other payroll providers. Use the employee cost calculator for other wage levels.