Wage Payment Law Summaries
Kentucky, Wage Payment Law Summaries
Kentucky's wage payment law is codified in the Kentucky Revised Statutes Annotated at Title XXVII, Chapter 337. The full text of the law is available at Wages-Hours ¶18-46,001.
DEFINITIONS
“Employee” is any person employed by or suffered or permitted to work for an employer (Sec. 337.010, as amended by Ch. 154 (S. 139), L. 1998).
“Employer” is any person, either individual, corporation, partnership, agency, or firm who employs an employee and includes any person, either individual, corporation, partnership, agency, or firm acting directly or indirectly in the interest of an employer in relation to an employee (Sec. 337.010, as amended by Ch. 154 (S. 139), L. 1998).
“Wages” include any compensation due to an employee by reason of his or her employment, such compensation to include salaries, commissions, vested vacation pay, overtime pay, severance or dismissal pay, earned bonuses, and any other similar advantages agreed upon by the employer and the employee or provided to employees as an established policy; such wages to be payable in legal tender of the United States or checks on banks convertible into cash on demand at full face value, subject to such allowances made in Kentucky's wage payment law (Sec. 337.010, as amended by Ch. 154 (S. 139), L. 1998).
“Gratuity” means voluntary monetary contribution received by an employee from a guest, patron, or customer for services rendered (Sec. 337.065).
COVERAGE
Kentucky's wage payment law covers any person, either individual, corporation, partnership, agency, or firm who employs an employee and includes any person, either individual, corporation, partnership, agency, or firm acting directly or indirectly in the interest of an employer in relation to an employee (Sec. 337.010, as amended by Ch. 154 (S. 139), L. 1998).
WHAT THE EMPLOYER MUST DO
Form of payment.- Wages must be paid in legal tender of the United States as checks on banks convertible into cash on demand at full face value, subject to such allowances made in Kentucky's wage payment law (Sec. 337.010, as amended by Ch. 154 (S. 139), L. 1998).
Persons employed in mining work must be paid in lawful money of the United States (Title XXVIII, Ch. 352, Sec. 352.540).
Frequency of payment.- Every employer doing business in Kentucky, except those employing individuals in a bona fide executive, administrative, supervisory or professional capacity or in the capacity of an outside salesperson or outside collector, must, as often as semimonthly, pay to each of its employees all wages or salary earned to a day not more than 18 days prior to the date of that payment. Any employee who is absent at the time fixed for payment, or who, for any other reason, is not paid at that time, must be paid thereafter at any time upon six days' demand. No employer subject to this section may, by any means, secure exemption from it (Sec. 337.020).
All persons employing persons in mining work must, on or before the 15th and 30th days of each month, pay to each employee, within 15 days of the 15th or 30th day, respectively, the full amount of wages due the employee, unless prevented by an unavoidable casualty. If, at any time of payment, the employee is absent from his or her place of labor, the employee is entitled to such payment at any reasonable time thereafter on demand (Title XXVIII, Ch. 352, Sec. 352.540).
Payment upon discharge.- Any employee who is discharged from employment must be paid in full all wages or salary earned by him or her not later than the next normal pay period following the date of dismissal or 14 days following such date of dismissal, whichever occurs last. Any employee who is absent at the time fixed for payment by an employer, or who, for any other reason, is not paid at that time, must be paid thereafter at any time or upon 14 days' demand. No employer may, by any means, secure exemption from this section (Sec. 337.055).
Payment when employee quits.- Any employee who leaves employment must be paid in full all wages or salary earned by him or her not later than the next normal pay period following the date of voluntary leaving or 14 days following such date of voluntary leaving, whichever occurs last. Any employee who is absent at the time fixed for payment by an employer, or who, for any other reason, is not paid at that time, must be paid thereafter at any time or upon 14 days' demand. No employer may, by any means, secure exemption from this section (Sec. 337.055).
Deductions from wages.- No employer may withhold from any employee any part of the wage agreed upon. Employers may, however, withhold or divert any portion of an employee's wage when the employer is authorized to do so by local, state, or federal law, or when a deduction is expressly authorized in writing by the employee to cover insurance premiums, hospital and medical dues, or other deductions not amounting to a rebate or deduction from the standard wage arrived at by collective bargaining or pursuant to wage agreement or statute. Employers may also make deductions for union dues where such deductions are authorized by joint wage agreements or collective bargaining contracts negotiated between employers and employees or their representative (Sec. 337.060).
Notwithstanding the above withholding provisions, no employer may deduct the following from the wages of employees (Sec. 337.060):
fines;
cash shortages in a common money till, cash box or register used by two or more persons;
breakage;
losses due to acceptance by an employee of checks that are subsequently dishonored if such employee is given discretion to accept or reject any check; or
losses due to defective or faulty workmanship, lost or stolen property, damage to property, default of customer credit, or nonpayment for goods or services received by the customer if such losses are not attributable to the employee's willful or intentional disregard of the employer's interest.
Any city or urban-county government that makes deductions from its employees' pay for any reason other than taxes must, upon the written request of at least 30 percent of all employees within a department or division, deduct the amount from the pay of an employee as noted on a signed payroll notification card or voucher, for the purposes of employee benefits, insurance, community projects or union dues. No deduction may be made from the pay of any employee who does not sign a payroll notification card or voucher. After making deductions, the city or urban-county government must, within 30 days, pay to the elected representative or designated recipient for the employees of the department or division the total amount of the deductions minus the actual cost of processing the deductions (Sec. 65.158, as amended by H. 230, L. 1998, effective July 15, 1998).
Wage statements.- All employers who employ 10 or more and pay their employees by check or otherwise, making deductions from the salaries and wages due said employees, must state specifically the amount for which the deductions are made, and each such employer at the time of payment of salary or wage to each employee must furnish the employee a statement giving the amount of each deduction and the general purpose for which the deduction is made (Sec. 337.070).
Tips.- No employer may require an employee to remit to the employer any gratuity, or any portion of a gratuity, except for the purpose of withholding amounts required by federal or state law. The amount withheld from such gratuity may not exceed the amount required by federal or state law (Sec. 337.065).
Direct deposit.- The state treasurer must pay, by electronic fund transfer, the wages of any state employee who makes a prior written request to the employing state agency to be paid by electronic fund transfer (Sec. 41.165, as amended by Ch. 154, L. 1998, effective July 15, 1998).
DEADLINES
Frequency of payment, miners.- All persons employing persons in mining work must, on or before the 15th and 30th days of each month, pay to each employee, within 15 days of the 15th or 30th day, respectively, the full amount of wages due the employee, unless prevented by an unavoidable casualty. If, at any time of payment, the employee is absent from his or her place of labor, the employee is entitled to such payment at any reasonable time thereafter on demand (Title XXVIII, Ch. 352, Sec. 352.540).
Payment upon discharge.- Any employee who is discharged from employment must be paid in full all wages or salary earned by him or her not later than the next normal pay period following the date of dismissal or 14 days following such date of dismissal, whichever occurs last. Any employee who is absent at the time fixed for payment by an employer, or who, for any other reason, is not paid at that time, must be paid thereafter at any time or upon 14 days' demand (Sec. 337.055).
Payment when employee quits.- Any employee who leaves employment must be paid in full all wages or salary earned by him or her not later than the next normal pay period following the date of voluntary leaving or 14 days following such date of voluntary leaving, whichever occurs last. Any employee who is absent at the time fixed for payment by an employer, or who, for any other reason, is not paid at that time, must be paid thereafter at any time or upon 14 days' demand (Sec. 337.055).
ENFORCEMENT
Employees have a right of action against their employers for the full amount of wages due on each regular pay day (Sec. 337.020).
WHO TO CONTACT
Contact the Commissioner of Workplace Standards at Workers' Claims Department, Perimeter Park West, Bldg. C, 1270 Louisville Rd., Frankfort, KY 40601. Telephone: (502)564-3070.
PENALTIES
Liens.- A lien may be placed on all property, both real and personal, of an employer who has been assessed civil penalties by the Commissioner of Workplace Standards for violations of Kentucky's wage payment law, but not before all administrative and judicial appeals have been exhausted. The lien will be an amount totaling the unpaid wages and penalties due, together with interest at a rate of 12 percent per annum from the date the notice of the violation is final, but not before all administrative and judicial appeals have been exhausted (Sec. 337.075).
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