Kentucky tip laws (2026)
Kentucky tipped workers get at least $2.13 an hour in cash, with a $5.12 tip credit to reach $7.25. Since April 10, 2026, employers can require tip pools, but salaried staff, managers and supervisors can't join. Every pool member has to meet the state's tipped-employee test.
Kentucky at a glance
Tip credit allowedKentucky: $7.25 an hour minimum wage. Tipped staff can be paid $2.13 cash, with up to $5.12 counted from tips.
| State minimum wage | $7.25/hr | Statewide from .[1] |
|---|---|---|
| Tipped cash wage | $2.13 | Plus up to $5.12 in tips = $7.25.[1] |
| Max tip credit | $5.12 | Counted from tips.[1] |
| Tip pooling | Allowed | Mandatory pools allowed.[2] |
| Card-fee deduction | Not allowed | The full tip goes to the worker.[2] |
| Card tip payout | State wages at least semimonthly, no more than 18 days behind. | Federally covered card tips are due by regular payday.[3] |
| Local minimum wages | None | None on file. |
Rates verified against the Kentucky Education and Labor Cabinet, Division of Wages and Hours on . Rates as of . Tipped totals are worked out from the rates above. Download this data (CSV)
02The yes/no sheet
Can you do this in Kentucky?
In Kentucky you can take a tip credit of up to $5.12 an hour, can require staff to join a tip pool and can't take card processing fees out of tips. Each answer below carries its condition and an official source.
| Number | Can you… | Answer | The condition |
|---|---|---|---|
| 01 | Take a tip credit against minimum wage? | Yes | Pay at least $2.13 cash and count up to $5.12 in tips. Tips must cover the gap.[1] |
| 02 | Make staff join a tip pool? | Yes | Allowed, as long as only eligible staff share.[2] |
| 03 | Include bartenders, bussers, runners and hosts? | Depends | Bartender, busser, food runner and host: must meet the 2026 tipped-employee test on service duties and monthly tips. No salaried, manager or supervisor status. Actual duties decide.[4][2] |
| 04 | Include cooks and dishwashers? | Depends | Every pool member must meet the 2026 tipped-employee test. A federal no-credit pool doesn't override state exclusions.[4] |
| 05 | Give managers or supervisors a share? | No | State pools can't include salaried employees, managers or supervisors. The federal manager rule also applies.[2] |
| 06 | Let an owner keep any of the tips? | No | Employers can't make workers hand over tips, except withholding the law requires. Federal law also bars employers from keeping tips.[2] |
| 07 | Pick your own split (hours, points or percentages)? | Depends | Employers may require a pool. Any account holding pool money must be labeled, kept apart from business records and open to members.[2] |
| 08 | Take card processing fees out of tips? | No | The worker gets the full tip on the slip.[2] |
| 09 | Hold card tips until payday? | Deadline | State wages at least semimonthly, no more than 18 days behind. Federally covered card tips are due by regular payday.[3] |
| 10 | Cover walkouts, breakage or register shortages from tips? | No | Not from tips.[2] |
| 11 | Keep a mandatory service charge for the house? | Federal rule | Voluntary tips differ from mandatory service charges. State rules use the federal 531.55(a) test for what isn't a tip.[5] |
| 12 | Pay tips on a payroll card? | Yes | Allowed. Offer another way to get paid too.[4][2] |
03State vs federal
Kentucky vs federal law
Kentucky sets a stricter rule than federal law on 1 of the 10 rules below. Where the two differ, the rule that is better for the worker applies.
| Rule | Federal (FLSA) | Kentucky | Comparison |
|---|---|---|---|
| Minimum wageSame as federal | Federal$7.25[6] | Kentucky$7.25[1] | Same as federal |
| Tipped cash wageSame as federal | Federal$2.13[6] | Kentucky$2.13[1] | Same as federal |
| Max tip creditSame as federal | Federal$5.12[6] | Kentucky$5.12[1] | Same as federal |
| Who counts as tippedState rule | FederalMore than $30 a month in tips, customarily and regularly received in the occupation.[6] | KentuckyMore than $30 a month in tips, plus the 2026 service-function test in state law.[4] | State rule |
| Managers in the poolState rule | FederalManagers/supervisors meeting the executive duties test cannot keep employees’ tips or receive from pools; they may keep only tips received directly for services they directly and solely provide. No salary-level test is used for this tip restriction.[6] | KentuckyState pools can't include salaried employees, managers or supervisors. The federal manager rule also applies.[2] | State rule |
| Kitchen in the poolState rule | FederalCooks and dishwashers may join a nontraditional mandatory pool only when all workers receive a direct cash wage of at least the full federal minimum wage and no tip credit is taken; employer/managers/supervisors remain excluded. State law may be stricter.[6] | KentuckyEvery pool member must meet the 2026 tipped-employee test. A federal no-credit pool doesn't override state exclusions.[4] | State rule |
| Card fees from tipsStricter | FederalOnly the actual proportional credit-card transaction fee may be deducted from charged tips; no deduction exceeding that fee or reducing required minimum wages; state law may forbid even that deduction.[6] | KentuckyNot allowed[2] | Stricter |
| Card tip payoutState rule | FederalCharged tips due by regular payday, without waiting for processor reimbursement. Employer-administered pools fully distributed by regular payday for the workweek/pay period; if the amount/distribution cannot be determined before payroll, distribute as soon as practicable afterward.[6] | KentuckyState wages at least semimonthly, no more than 18 days behind. Federally covered card tips are due by regular payday.[3] | State rule |
| Mandatory service chargesState rule | FederalA compulsory service charge is not an FLSA tip. Amounts distributed to employees are wages that may satisfy wage obligations and must enter the regular rate for overtime. This federal wage classification does not decide contractual or state-law ownership.[6] | KentuckyVoluntary tips differ from mandatory service charges. State rules use the federal 531.55(a) test for what isn't a tip.[5] | State rule |
| Overtime for tipped staffState rule | FederalFor covered nonexempt employees, overtime generally begins after 40 hours in a workweek. Use the full regular rate, at least the full federal minimum wage, not $2.13; the hourly tip credit is not increased for overtime. Voluntary tips above the tip credit are excluded; distributed service charges enter the regular rate.[6] | KentuckyRegular rate includes the tip credit, facilities and cash pay, not tips above the credit. Overtime after 40 hours; seventh-day rules may apply.[5] | State rule |
Every state starts from the same federal floor. Federal tip law baseline: the FLSA rules, rates and sources, and how Kentucky fits among the four tip credit classes.
04Wages
Minimum wage and the tip credit in Kentucky
In Kentucky employers can pay tipped staff $2.13 an hour and count up to $5.12 in tips toward the $7.25 minimum. If tips fall short, the employer makes up the difference.[1]
One server, one slow 30-hour week in Kentucky
A busy week with $153.60 or more in tips needs no top-up. Every tip above that is the server's. Fictional worker and tips.
- Tip credit conditions
- Worker must customarily get more than $30 a month in tips. Keep records proving weekly minimum wage. Tips count only for whoever received them.[5]
- Who counts as tipped
- More than $30 a month in tips, plus the 2026 service-function test in state law.[4]
- Overtime
- Regular rate includes the tip credit, facilities and cash pay, not tips above the credit. Overtime after 40 hours; seventh-day rules may apply.[5]
- Side work and dual jobs
- State tip credit applies only to hours in a job that qualifies as tipped. No automatic federal 80/20 rule.[5]
Other rates
One statewide rate. No employer-size, industry or youth rates in Kentucky.
Scheduled increases
No statewide increase with a published amount is on file as of .
05Local rates
City and county minimum wages in Kentucky
No city or county minimum wages above the $7.25 state rate are on file for Kentucky.
06Tip pool
Who can be in the tip pool in Kentucky
Kentucky allows tip pools, and employers can make them mandatory. Owners, managers and supervisors can't share in them. A tip pool collects tips and splits them among staff; a tip-out is one worker handing part of their tips to others.
| Role | Can share? | Condition |
|---|---|---|
| Front of house | ||
| Server | Depends | Must meet the 2026 tipped-employee test on service duties and monthly tips. No salaried, manager or supervisor status. Actual duties decide.[4] |
| Bartender | Depends | Must meet the 2026 tipped-employee test on service duties and monthly tips. No salaried, manager or supervisor status. Actual duties decide.[4] |
| Busser | Depends | Must meet the 2026 tipped-employee test on service duties and monthly tips. No salaried, manager or supervisor status. Actual duties decide.[4] |
| Food runner | Depends | Must meet the 2026 tipped-employee test on service duties and monthly tips. No salaried, manager or supervisor status. Actual duties decide.[4] |
| Host | Depends | Must meet the 2026 tipped-employee test on service duties and monthly tips. No salaried, manager or supervisor status. Actual duties decide.[4] |
| Barback | Depends | Must meet the 2026 tipped-employee test on service duties and monthly tips. No salaried, manager or supervisor status. Actual duties decide.[4] |
| Expo | Depends | Must meet the 2026 tipped-employee test on service duties and monthly tips. No salaried, manager or supervisor status. Actual duties decide.[4] |
| Back of house | ||
| Cook | Depends | Must meet the 2026 tipped-employee test on service duties and monthly tips. No salaried, manager or supervisor status. Actual duties decide.[4] |
| Dishwasher | Depends | Must meet the 2026 tipped-employee test on service duties and monthly tips. No salaried, manager or supervisor status. Actual duties decide.[4] |
| Leadership | ||
| Shift lead | Depends | Must meet the 2026 tipped-employee test on service duties and monthly tips. No salaried, manager or supervisor status. Actual duties decide.[4] |
| Manager or supervisor | Not allowed | Salaried staff, managers and supervisors are out. Employers can't keep tips.[2] |
| Owner | Not allowed | Salaried staff, managers and supervisors are out. Employers can't keep tips.[2] |
- Managers and supervisors
- State pools can't include salaried employees, managers or supervisors. The federal manager rule also applies.[2]
- Owners
- Employers can't make workers hand over tips, except withholding the law requires. Federal law also bars employers from keeping tips.[2]
- Back of house
- Every pool member must meet the 2026 tipped-employee test. A federal no-credit pool doesn't override state exclusions.[4]
- Who sets the percentages
- Employers may require a pool. Any account holding pool money must be labeled, kept apart from business records and open to members.[2]
- Cap on what a pool can take
- No state rule. Federal rule applies: no federal percentage or amount cap for a valid mandatory pool; eligibility, notice and minimum wage rules still apply.[6][2]
- Pooling allowed
- Yes.[2]
New in 2026
Kentucky's 2026 tip pool overhaul
HB 185 moved Kentucky from voluntary-only pools to pools an employer can require. An emergency rule filled in the paperwork in August.[4][2][5][7]
- In effectEmergency rule 803 KAR 1:081E adds pool administration and records rules.[5]
- Meets the 2026 tipped-employee definition, including service duties
- Customarily gets more than $30 a month in tips
- Not salaried
- Not a manager or supervisor
07Put it to work
Setting up a tip pool in Kentucky
Under Kentucky rules, 6 of the 10 staff in this example can share a $1,200 pool. The table splits the same pool by percentage, by points and by hours.
| Who | By % | By points | By hours |
|---|---|---|---|
| Maya | $268.29 | $250.00 | $211.78 |
| Jordan | $268.29 | $250.00 | $211.76 |
| Priya | $268.29 | $250.00 | $211.76 |
| Sam | $175.61 | $200.00 | $211.76 |
| Luis | $109.76 | $125.00 | $176.47 |
| Ava | $109.76 | $125.00 | $176.47 |
| Theo | Not in the pool. Out here: this pool includes servers paid with a tip credit. | ||
| Kim | Not in the pool. Out here: this pool includes servers paid with a tip credit. | ||
| Rafa | Not in the pool. Out here: this pool includes servers paid with a tip credit. | ||
| Dana | Not in the pool. Salaried staff, managers and supervisors are out. | ||
| Total | $1,200.00 | $1,200.00 | $1,200.00 |
Fictional restaurant and staff. The guest-facing staff here are assumed to meet Kentucky's condition for sharing (see who can be in the tip pool, above). Percentages and point weights are examples, not a recommendation. Shares are rounded to the cent, and any leftover cent goes to the first server. Run your own numbers in the tip pooling calculator.
Ferry Tip Manager: support pool split by hours
Servers and bartenders pay into the support pool, and Tip Manager splits it by hours worked. Each person sees their share, with no spreadsheet at close.
Who it's for Full-service restaurants that tip out bussers, runners and bar backs
08Service charges
Service charges vs tips in Kentucky
Kentucky has no service charge rule of its own. Under federal law a mandatory service charge is not a tip, and any part paid to staff counts as wages.
| Question | OptionalTip | MandatoryService charge |
|---|---|---|
| Who sets the amount | The guest | The business |
| Who it belongs to | The worker it was left for, or the pool | Voluntary tips differ from mandatory service charges. State rules use the federal 531.55(a) test for what isn't a tip.[5] |
| Can it go to staff? | Yes, through the pool | Yes. Amounts paid to staff are wages, not tips.[6] |
| How it's taxed (federal) | Tip income the worker reports | Regular wages, with payroll taxes[8][9] |
| Guest notice | None needed | No state rule. Federal law sets no menu or receipt notice rule.[2] |
- Step 1Did the guest choose whether to pay it, and how much?YesIt's a tip. It belongs to staff.NoIt's a mandatory charge. Go to step 2.
- Step 2What does Kentucky say?Federal ruleVoluntary tips differ from mandatory service charges. State rules use the federal 531.55(a) test for what isn't a tip.[5]
- Step 3Check the cityNo city service charge rules on file for Kentucky.
- Menu and receipt notice
- No state rule. Federal law sets no menu or receipt notice rule.[2]
- Large-party auto gratuities
- No state rule. Federal rule applies: mandatory automatic gratuities are service charges for federal tax purposes, even when distributed to employees; a label does not make the payment voluntary.[8][9][2]
Local service charge rules
No local service charge rules on file for Kentucky.
More on the difference: service charge vs tip.
09Card tips
Card tips in Kentucky: fees and payout timing
In Kentucky the card processing fee can't come out of a worker's tip; the full tip goes to the worker. Payout deadline: state wages at least semimonthly, no more than 18 days behind. Federally covered card tips are due by regular payday.
KRS 337.065 lets employers take tips only for legally required withholding. A card processing fee isn't that. No card fee exception found.[2]
When card tips have to land
- TonightGuest adds a tip On the card, at the table.
- CloseShift is tallied The pool is split by your rules.
- DeadlineKentucky rule State wages at least semimonthly, no more than 18 days behind. Federally covered card tips are due by regular payday.[3]
- Last dayFinal pay Due by the next normal pay period or 14 days after separation, whichever is later.[10]
Paydays: At least semimonthly, covering wages earned up to 18 days before payday. Some workers are excluded.[3]
Paying tips on a payroll card
- Allowed?Yes
- Worker consent needed?Yes (federal)No state rule. Federal rule applies: yes. The employer cannot require its payroll card.[11][2]
- Free way to get the money?State ruleNo activation fee. At least one free withdrawal per pay period, up to the full balance.[4]
- Must you offer another option?Yes
- Holding cash tipsState ruleAn employer can hold lawful pool money, but only in a labeled, separate account open to pool members.[2]
- Tips shown on the pay stubNo (federal)No state rule. Federal rule applies: no. FLSA does not require pay stubs; state laws and employer records are separate.[12][2]
Ferry Pay: each tip share, paid out digitally
Each person's direct tips, tip outs and payable amount in one view, then paid through Ferry Pay. No cash to keep on hand for payouts. Eligibility and fees apply.
Who it's for Operators who want to stop the nightly cash run
“Since launching this card program, we've reduced our cash-carrying costs by over 66 percent”
How the rule reads
Card fees and tips in Kentucky
KRS 337.065 lets an employer take tips only to withhold what the law requires. A card processing fee isn't on that list.[2]
10Records
Records and notices in Kentucky
Keep each tipped worker's tips and hours on record, shift by shift. Kentucky: at least 1 year under state law.
Kentucky State
- Tip records Keep hours and pay records under KRS 337.320 and 803 KAR 1:068. Required pools add federal tip records under the emergency rule.[5]
- How long to keep them At least 1 year under state law. Federal payroll and tip records may need longer.[13]
- Tip credit notice Required. Federally covered employers give advance notice of cash wage, credit and tip retention. State weekly records must show wages plus tips reach minimum wage.[6]
- Posters and forms Covered employers must conspicuously post state-issued wage/hour law summaries under KRS 337.325; state provides copies free on request.[14]
Everywhere Federal
- Tip records Maintain employee identity, time and pay records. Tip-credit employers additionally retain tipped employee, reported tips, credit amounts and hours/earnings by tipped and nontipped occupation. No-tip-credit employers operating mandatory pools record each recipient and weekly/monthly tips. IRS daily records/reporting are separate obligations.[6]
- How long to keep them FLSA: payroll records at least three years; underlying wage-computation records two years. Tax retention is separate.[15]
- Tip credit notice Oral or written notice must state cash wage; tip credit amount; credit cannot exceed actual tips; employee retains tips except valid traditional pool; credit unavailable until informed. Traditional pool contribution amounts also disclosed.[6]
- A written pool policy Good practice, not a federal rule: who's in, how it splits, when it pays. Share it with staff. How to write one.
Think your tips were handled wrong in Kentucky?
Workers in Kentucky can file a tip or wage claim with the Kentucky Education and Labor Cabinet, Division of Wages and Hours (502-564-3534). Filing is free, and this page can't settle a dispute; the state can.[16]
Retaliation: KRS 337.990(9) prohibits retaliation for state minimum-wage/overtime complaints and proceedings, with $100–$1,000 civil penalties. Federal complaint protections independently apply without requiring FLSA wage coverage.[17]
Penalties: Unpaid wages or overtime plus an equal amount in liquidated damages, plus attorney fees and costs. A court may adjust for good faith.[18]
Can they take this out of my tips?
- Walkouts and dine-and-dashNot allowedTips can't be handed to the employer for business costs. Legally required withholding is the only exception.[2]
- BreakageNot allowedTips can't be handed to the employer for business costs. Legally required withholding is the only exception.[2]
- Register shortagesNot allowedTips can't be handed to the employer for business costs. Legally required withholding is the only exception.[2]
- UniformsNot allowedTips can't be handed to the employer for business costs. Legally required withholding is the only exception.[2]
- Card processing feesNot allowedTips go to the employer only for legally required withholding. No processing fee exception found.[2]
- A manager's shareNot allowedSalaried staff, managers and supervisors can't get pool tips. Employers can't keep tips.[2]
11Law changes
What changed in Kentucky tip law, and what's coming
No statewide increase with a published amount is on file for Kentucky as of . Most recent change: Emergency rule 803 KAR 1:081E added pool administration and records rules after HB 185. A permanent version is proposed ().
Key statutes
- KRS 337.010, .020, .055, .060, .065, .070, .275, .320, .385
- 803 KAR 1:081E
- 803 KAR 1:068
Not covered here? Ask the Kentucky Education and Labor Cabinet, Division of Wages and Hours at 502-564-3534 or on elc.ky.gov/workplace-standards/Pages/Wages-and-Hours.aspx.
12FAQ
Kentucky tip law questions
Plain answers to the 8 questions restaurant owners and staff ask most about Kentucky tip law, each linked to its source.
What is Kentucky's tipped minimum wage?
What changed for tip pools in 2026?
Can Kentucky employers require tip pooling?
Can cooks or dishwashers get pooled tips?
Can a restaurant keep part of tips for card fees?
Kentucky lets employers take tips only for withholding the law requires. The statute has no separate card processing fee exception.[2]
Can a restaurant hold tip pool money?
Yes, for a lawful pool. The account must be labeled, kept separate from business records and open to pool members.[2]
When is final pay due?
By the next normal pay period or 14 days after separation, whichever is later. That applies whether the worker quits or is let go.[10]
13Compare
How Kentucky compares with nearby states
Kentucky borders Illinois, Indiana, Missouri, Ohio, Tennessee, Virginia and West Virginia. Illinois, Missouri, Ohio, Virginia and West Virginia pay a higher minimum wage than Kentucky's $7.25. Running locations on both sides of a line? Each one follows its own state's rules.
Neighboring states
- Illinois tip laws$15.00 min wage $9.00 tipped cash wage Above $2.13
- Indiana tip laws$7.25 min wage $2.13 tipped cash wage $2.13 cash
- Missouri tip laws$15.00 min wage $7.50 tipped cash wage Above $2.13
- Ohio tip laws$11.00 min wage $5.50 tipped cash wage Above $2.13
- Tennessee tip laws$7.25 min wage Federal $2.13 cash wage Federal
- Virginia tip laws$12.77 min wage $2.13 tipped cash wage $2.13 cash
- West Virginia tip laws$8.75 min wage $2.62 tipped cash wage Above $2.13
States with the same rules
Same tip credit class as Kentucky: Tip credit, federal cash wage.
- North Carolina tip laws$7.25 min wage $2.13 tipped cash wage Also a $2.13 tipped cash wage
- Kansas tip laws$7.25 min wage $2.13 tipped cash wage Also a $2.13 tipped cash wage
- Nebraska tip laws$15.00 min wage $2.13 tipped cash wage Also a $2.13 tipped cash wage
- Oklahoma tip laws$7.25 min wage $2.13 tipped cash wage Also a $2.13 tipped cash wage
- Texas tip laws$7.25 min wage $2.13 tipped cash wage Also a $2.13 tipped cash wage
- Utah tip laws$7.25 min wage $2.13 tipped cash wage Also a $2.13 tipped cash wage
The law decides who's in. Ferry runs the split.
See how operators set pool rules in Ferry Tip Manager and pay tips out without a cash run. Bring your own Kentucky setup.
14Sources
Sources for Kentucky tip laws
Every figure on this page links to one of these 19 sources: 13 for Kentucky and 6 for the federal baseline. They are statutes, regulations and government agency pages, each with the date it was checked.
- 1Minimum Wages for Tipped Employees July 1 2026United States Department of Labor · Official source · Page updated · Checked Pinpoint: Kentucky rowwww.dol.gov/agencies/whd/state/minimum-wage/tipped
What the source says
“Kentucky $7.25 $5.12 $2.13 More than $30”
- 2KRS 337.065 Gratuities and Tip PoolingKentucky General Assembly · Official source · Checked Pinpoint: KRS 337.065(3); KRS 337.065(4); eligibility definition 337.010(2)(d); KRS 337.065(1)apps.legislature.ky.gov/law/statutes/statute.aspx?id=56807
What the source says
“funds placed in a tip pool mandated by the employer or voluntarily entered into amongst the employees,”
“A tip pooling arrangement shall not include salaried employees, managers, or supervisors.”
“No employer shall require an employee to remit to the employer any gratuity, or any portion thereof, except for the purpose of withholding amounts required by federal or state law.”
- 3KRS 337.020 Wage Payment TimingKentucky General Assembly · Official source · Checked Pinpoint: KRS 337.020apps.legislature.ky.gov/law/statutes/statute.aspx?id=32046
What the source says
“as often as semimonthly, pay to each of its employees all wages or salary earned to a day not more than eighteen (18) days prior to the date of that payment.”
- 4KRS 337.010 Definitions effective April 10 2026Kentucky General Assembly · Official source · Checked Pinpoint: KRS 337.010(2)(d)1; KRS 337.010(2)(d) monthly threshold and alternative service-function tests; 337.065(4) salaried/manager/supervisor exclusions also assessed; KRS 337.010(1)(c)1apps.legislature.ky.gov/law/statutes/statute.aspx?id=56806
What the source says
“Customarily and regularly receives more than thirty dollars ($30) per month in tips;”
“Directly supports or is itself the service function for which a customer would tip, regardless of whether the employee performs the service function; or”
“payroll card accounts convertible into cash on demand at full face value,”
- 5803 KAR 1:081E Emergency Allowances and Tipped EmployeesKentucky Legislative Research Commission · Official source · Page updated · Checked Pinpoint: 803 KAR 1:081E section 4(7)(b)1; 803 KAR 1:081E section 4(8); 803 KAR 1:081E section 4(3)(a)apps.legislature.ky.gov/law/kar/titles/803/001/081/18367
What the source says
“The tip credit shall be taken only for hours worked by the employee in an occupation in which the employee qualifies as a tipped employee.”
“Any tips received by the employee in excess of the tip credit need not be included in the regular rate.”
“Criteria established in 29 C.F.R. 531.55(a);”
- 6Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)U.S. Department of Labor · Official source · Checked Pinpoint: Tip Credit, paragraph 2; Federal advance notice; Federal Notice to Tipped Employeeswww.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa
What the source says
“An employer must pay a tipped worker at least $2.13 per hour under the FLSA.”
“the federal minimum wage, which is currently $7.25 per hour.”
“The maximum tip credit that an employer can currently claim is $5.12 per hour: ($7.25 - $2.13 direct (or cash) wage = $5.12).”
- 72026 HB 185 Final Enacted Version and HistoryKentucky General Assembly · Official source · Page updated · Checked apps.legislature.ky.gov/record/26rs/hb185.html
- 8Tip recordkeeping and reportingInternal Revenue Service · Official source · Checked Pinpoint: Service charges are not tips, paragraph 2; qualified tips deduction, net-income limit; tip income, Social Security/Medicarewww.irs.gov/businesses/small-businesses-self-employed/tip-recordkeeping-and-reporting
What the source says
“Service charges (also referred to as “auto-gratuities”), when distributed to an employee, are generally treated as wages paid by the employer to the employee rather than tips paid by the customer.”
“For self-employed individuals, the deduction may not exceed the individual’s net income (without regard to this deduction) from the trade or business in which the tips were earned.”
“These amounts are subject to federal income tax and generally are also subject to Social Security and Medicare taxes.”
- 9Revenue Ruling 2012-18Internal Revenue Service · Official source · Page updated 2012 · Checked Pinpoint: Q 1/A 1, four distinguishing factors; p. 1, ruling headingwww.irs.gov/pub/irs-drop/rr-12-18.pdf
What the source says
“compulsion; (2) the customer must have the unrestricted right to determine the amount; (3) the payment should not be the subject of negotiation or dictated by employer policy; and (4) generally, the customer has the right to determine who receives the payment.”
“Rev. Rul. 2012-18”
- 10KRS 337.055 Final WagesKentucky General Assembly · Official source · Checked Pinpoint: KRS 337.055, next normal period or 14 daysapps.legislature.ky.gov/law/statutes/statute.aspx?id=32050
What the source says
“whichever last occurs.”
- 11What is a payroll card?Consumer Financial Protection Bureau · Official source · Page updated · Checked Pinpoint: definition, paragraph 1; paragraph following definition; Federal Regulation Ewww.consumerfinance.gov/ask-cfpb/what-is-a-payroll-card-en-401
What the source says
“A payroll card is a prepaid card arranged by an employer for the purpose of paying its employees’ wages or salary.”
“Your employer can’t require you to receive your wages on a payroll card.”
“Your employer has to offer you at least one alternative to a payroll card.”
- 12Questions and Answers About the FLSA, DOL WHDU.S. Department of Labor · Official source · Checked Pinpoint: Recordkeeping and Notices, Are pay stubs required?www.dol.gov/agencies/whd/flsa/faq
What the source says
“However, the FLSA does not require an employer to provide employees pay stubs.”
- 13KRS 337.320 Employment RecordsKentucky General Assembly · Official source · Checked Pinpoint: KRS 337.320(2)apps.legislature.ky.gov/law/statutes/statute.aspx?id=32071
What the source says
“Such records shall be kept on file for at least one (1) year after entry.”
- 14KRS 337.325 Posting wage and hour summariesKentucky Legislature · Official source · Checked apps.legislature.ky.gov/Law/statutes/statute.aspx?id=32072
What the source says
“posted in a conspicuous and accessible place in or about the premises wherein any person subject thereto is employed.”
- 15Fact Sheet #21: Recordkeeping Requirements under the Fair Labor Standards Act (FLSA)U.S. Department of Labor · Official source · Page updated · Checked Pinpoint: Posting, paragraph 1www.dol.gov/agencies/whd/fact-sheets/21-flsa-recordkeeping
What the source says
“Each employer shall preserve for at least three years payroll records, collective bargaining agreements, sales and purchase records.”
“Employers must display an official poster outlining the provisions of the Act, available at no cost from local offices of the Wage and Hour Division and toll-free, by calling 1-866-4USWage (1-866-487-9243).”
“Records on which wage computations are based should be retained for two years,”
- 16Wages and HoursKentucky Education and Labor Cabinet · Official source · Checked Pinpoint: Introduction; Page heading; Introduction contactelc.ky.gov/workplace-standards/Pages/Wages-and-Hours.aspx
What the source says
“The Division of Wages and Hours is responsible for the administration and enforcement of Kentucky’s labor laws”
“Wages and Hours”
“(502) 564-3534”
- 17KRS 337.990 PenaltiesKentucky General Assembly · Official source · Checked Pinpoint: KRS 337.990(9), PDF pp 1–2apps.legislature.ky.gov/law/statutes/statute.aspx?id=52428
What the source says
“Any employer who discharges or in any other manner discriminates against any employee because the employee has made any complaint”
- 18KRS 337.385 Unpaid Wages and DamagesKentucky General Assembly · Official source · Checked Pinpoint: KRS 337.385(1),(2)apps.legislature.ky.gov/law/statutes/statute.aspx?id=55338
What the source says
“for an additional equal amount as liquidated damages, and for costs and such reasonable attorney's fees as may be allowed by the court.”
- 19KRS 337.275 Minimum WageKentucky General Assembly · Official source · Checked Pinpoint: KRS 337.275(1)apps.legislature.ky.gov/law/statutes/statute.aspx?id=32064
What the source says
“seven dollars and twenty-five cents ($7.25) an hour beginning July 1, 2009.”
15Methodology
How we research these pages
Every figure on this page comes from an official source, a statute, a regulation or a government agency page, and links to it where it is used. Ferry checks the page against those sources on a schedule and logs every change.
- 1
Official sources only
Statutes, regulations, state labor agencies, city ordinances and the U.S. Department of Labor. No vendor blogs, no AI answers, no secondary summaries as the only source.
- 2
Every figure is linked
Each rate and rule carries a numbered link to the statute or agency page behind it, with the exact pinpoint and, where available, a link that opens at the sentence itself.
- 3
Re-checked on a schedule
Every page is re-checked each January and July, and whenever a state or city changes a rate. Cash wage plus tip credit is checked against the minimum wage on every build.
- 4
Gaps are left out, not guessed
If a rule can't be confirmed from an official source, it isn't shown. The page points to the state agency instead.
What changed on this page
- First version of this page. Every figure was checked against the official sources listed on this page.
Researched by Ferry's tip operations research team. Last reviewed .
Changes to the law itself are listed in What changed and what's coming.
16Every state
Tip laws in every state
Pick any state for its tip credit, tip pool, service charge and card tip rules. Each chip shows the state's tip credit class.
- No tip creditNo tip credit
- Above $2.13Tip credit, cash wage above federal
- $2.13 cashTip credit, federal cash wage
- FederalFederal rates apply
51 of 51 state pages. Open the master guide for the federal baseline, tip credit classes and the full comparison table.