Kentucky Overtime Pay: A Practical Guide for Workers and Employers

Kentucky has its own overtime rules that work alongside the federal Fair Labor Standards Act (FLSA). Understanding how these laws fit together is essential for calculating overtime correctly, avoiding costly disputes, and ensuring workers are paid fairly.

This guide explains how overtime works in Kentucky, who is covered, who may be exempt, and what steps to take if overtime pay is missing or miscalculated.

1. The Legal Framework Behind Kentucky Overtime

Overtime rights in Kentucky are based on a combination of state and federal law:

• Kentucky statute: Kentucky Revised Statutes (KRS) 337.285 sets the state rule that most employees must receive higher pay for working more than 40 hours in a workweek.
• Federal law: The FLSA, enforced by the U.S. Department of Labor, requires covered employers nationwide to pay time-and-a-half for hours over 40 to non-exempt employees.
• State enforcement: The Kentucky Education and Labor Cabinet’s Division of Wages and Hours administers and enforces state wage and hour laws, including overtime.

In general, employers must follow whichever law (state or federal) is more protective of the employee.

2. When Overtime Pay Is Owed in Kentucky

For most non-exempt employees in Kentucky, overtime is built around the 40-hour workweek standard.

2.1 The 40-Hour Workweek Rule

• Overtime is owed when an eligible employee works more than 40 hours in a single workweek.
• The overtime rate must be at least 1.5 times the employee’s regular rate of pay for each hour over 40.
• A “workweek” is a fixed, recurring period of 168 hours (seven consecutive 24-hour days); employers cannot average hours across multiple weeks to avoid overtime.

2.2 No Daily Overtime Requirement

Kentucky does not require overtime just because an employee worked more than a certain number of hours in a day. Only the total weekly hours matter for state law purposes, unless an employer’s own policy or a contract provides better terms.

2.3 Seventh-Day Work in a Week

Kentucky has a special rule for employees who work all seven days in a defined workweek:

• If an employee works some hours on each of the seven consecutive days in a workweek and the total for the week exceeds 40 hours, all hours worked on the seventh day must be paid at the overtime rate (time-and-a-half).
• If the total for the week is 40 or fewer hours, the seventh day is not automatically overtime under state law.

3. Who Is Covered and Who Is Exempt?

Not every worker is entitled to overtime; some categories of employees are legally “exempt” from overtime requirements under federal and state law.

3.1 Non-Exempt Employees (Generally Entitled to Overtime)

Most workers are considered non-exempt, including:

• Most hourly employees in private and public sectors
• Many salaried workers who do not meet the criteria for an overtime exemption
• Employees who receive commissions or bonuses but whose primary job duties and pay level do not qualify them as exempt executives, administrators, or professionals

Being paid a salary alone does not automatically remove the right to overtime; job duties and salary level must meet specific tests.

3.2 Common Federal Exemptions Applied in Kentucky

Kentucky generally follows the federal FLSA exemptions for overtime. Under federal law, the most common white-collar exemptions are:

• Executive – management as the primary duty, supervising at least two full-time employees, and having real input on hiring or firing decisions.
• Administrative – office or non-manual work related to management or general business operations, with significant independent judgment and discretion.
• Professional – work requiring advanced knowledge in a field of science or learning, typically obtained through prolonged specialized education (for example, many lawyers, doctors, and certain engineers).

In addition to the duties test, these exemptions require the employee to be paid on a salary basis and to earn at least the applicable federal salary threshold set by the U.S. Department of Labor.

3.3 Kentucky-Specific Exclusions in the Statute

KRS 337.285, the Kentucky overtime statute, specifically excludes some workers from the state overtime requirement, including certain employees who may still be covered by federal law.

Because federal and state coverage can differ, employers often must analyze both sets of rules before deciding that a position is truly exempt from overtime.

4. How to Calculate the Overtime Rate

The starting point for overtime is the employee’s regular rate of pay. This is not always just the base hourly wage; federal law requires most non-discretionary bonuses, commissions, and certain other payments to be included when computing the regular rate.

4.1 Basic Formula

• Regular rate = Total straight-time pay for the workweek ÷ Total hours worked in that workweek.
• Overtime rate = Regular rate × 1.5 for each hour over 40.

Employers must apply this formula separately for each fixed workweek; they cannot blend multiple weeks to reduce or cancel overtime.

4.2 Multiple Pay Types (Hourly, Bonus, Commission)

When employees earn more than one type of pay in a week, employers should:

• Add all straight-time compensation that must be included in the regular rate (for example, hourly pay plus non-discretionary bonus).
• Divide by the total hours worked to find the regular rate.
• Apply the 1.5 multiplier to hours beyond 40.

Failure to include non-discretionary bonuses or commissions in the regular rate can lead to underpayment of overtime and potential liability.

5. Employer Responsibilities Under Kentucky Law

Kentucky employers must meet several core obligations related to overtime and wages.

5.1 Accurate Timekeeping

• Track all hours worked each day and each workweek for non-exempt employees.
• Include short periods of work (such as pre-shift tasks or mandatory training) as hours worked if employees must perform them for the employer’s benefit under federal standards.

5.2 Timely Payment of Overtime

Overtime wages must be paid promptly according to Kentucky’s wage payment rules. The Division of Wages and Hours oversees compliance with state wage payment and collection laws, including how often employees must be paid and what information pay statements must contain.

5.3 Unauthorized Overtime

Under federal guidelines that also guide Kentucky employers:

• Employers must pay for all hours worked, even if the overtime was not preapproved.
• Employers can discipline employees for violating overtime or scheduling policies, but they may not withhold earned overtime pay as punishment.

6. Can Employees Agree to Give Up Overtime?

Employees cannot legally sign away the right to overtime if the law otherwise requires it. Both federal law and Kentucky wage standards treat overtime as a mandatory protection, not a benefit that can be waived by agreement.

Even if an employee agrees in writing to accept straight-time pay for overtime hours, the employer may still be liable for unpaid overtime under state or federal law.

7. Special Issues and Common Misconceptions

Several recurring misunderstandings can cause wage disputes in Kentucky workplaces.

7.1 Salary Does Not Automatically Mean Exempt

• Many salaried workers believe they are not entitled to overtime. In reality, overtime eligibility depends on duties and salary level, not the mere fact that someone is paid a salary.
• If a salaried employee does not meet the tests for an exemption, they may still be owed overtime when they work more than 40 hours in a week.

7.2 Comp Time in the Private Sector

Private employers generally cannot replace legally required overtime pay with “comp time” (paid time off in a future week) instead of paying time-and-a-half, except in limited situations allowed by the FLSA (such as certain public employers).

7.3 Independent Contractor vs. Employee

Overtime protections apply to employees, not genuine independent contractors. However, misclassifying workers as independent contractors when they function as employees can violate wage and hour laws and lead to back pay and penalties under federal and state enforcement actions.

8. What To Do If Overtime Is Not Paid

Workers who believe they have not received all overtime owed have several options.

8.1 Internal Resolution

• Review personal time records, pay stubs, and any written policies regarding work hours.
• Raise the issue with a supervisor or human resources department, preferably in writing.

8.2 Filing a Complaint With Kentucky Authorities

Employees can submit a complaint to the Division of Wages and Hours within the Kentucky Education and Labor Cabinet, which is responsible for enforcing state wage laws, including overtime provisions.

8.3 Federal Complaint or Private Legal Action

• Workers can also file a complaint with the U.S. Department of Labor’s Wage and Hour Division for violations of the FLSA.
• In some cases, employees may pursue civil litigation to seek unpaid wages, overtime, and in some circumstances liquidated damages and attorneys’ fees under federal or state law.

Deadlines (statutes of limitations) apply to wage claims, so getting timely legal advice from an employment attorney licensed in Kentucky can be important.

9. Practical Compliance Tips for Kentucky Employers

To reduce the risk of wage and hour problems, Kentucky employers can take several proactive steps.

• Define workweeks clearly in written policies and maintain the same schedule for each employee or group of employees.
• Audit classifications regularly to confirm which employees are truly exempt or non-exempt under both federal and Kentucky law.
• Train managers on when employees must be on the clock, how to handle pre- and post-shift work, and how to approve or monitor overtime.
• Review payroll systems to make sure bonuses, commissions, and incentive pay are included correctly when calculating the regular rate.
• Respond promptly to employee questions or complaints about pay to prevent small errors from becoming larger legal disputes.

10. Kentucky Overtime Laws: Frequently Asked Questions

Q1: How many hours must I work before overtime is required in Kentucky?

For most non-exempt employees, overtime is required when you work more than 40 hours in a single workweek. Hours in a day do not trigger overtime by themselves under Kentucky law.

Q2: Does Kentucky require overtime after eight hours in a day?

No. Kentucky does not have a daily overtime rule. You may work more than eight hours in a day without overtime, as long as your total weekly hours stay at or below 40, unless a contract or employer policy provides better terms.

Q3: Are salaried employees in Kentucky ever entitled to overtime?

Yes. A salaried employee may still be non-exempt if their job duties and pay level do not meet federal exemption tests. In that case, they must receive overtime pay for hours over 40 in a week, just like hourly employees.

Q4: Do restaurant or hotel workers in Kentucky get overtime?

Kentucky’s overtime statute excludes employees of restaurants, hotels, and motels from its state overtime requirement, but many of these workers are still protected by the federal FLSA. Employers must therefore review federal coverage and apply federal overtime rules where they apply.

Q5: Can my employer give me comp time instead of paying overtime?

In most private-sector jobs, no. Generally, non-exempt employees must receive cash overtime pay at 1.5 times their regular rate for hours over 40. Comp time in future weeks usually cannot substitute for legally required overtime, except in limited public-sector situations allowed by federal law.

Q6: Where can I get official information about Kentucky wage and hour rules?

The Kentucky Education and Labor Cabinet’s Division of Wages and Hours publishes official information and handles enforcement of Kentucky wage and hour laws, including overtime. The U.S. Department of Labor’s Wage and Hour Division provides guidance on federal FLSA requirements.

Similar Articles

Teen Tobacco Purchase Laws: Age Limits Explained

Corporal Punishment Laws for Parents in America

Middle Fingers and Free Speech: When Is It Legal?

Underage Drinking in the U.S.: Legal Risks and Real-Life Consequences

Bullying and the Law: Rights, Rules, and School Responsibilities

Serving Alcohol Under 21: State Laws Guide

Author

Sneha TeteBeauty & Lifestyle Writer

 

Sneha is a relationships and lifestyle writer with a strong foundation in applied linguistics and certified training in relationship coaching. She brings over five years of writing experience to waytolegal,  crafting thoughtful, research-driven content that empowers readers to build healthier relationships, boost emotional well-being, and embrace holistic living.

Read full bio of Sneha Tete