Tipped minimum wage / Kentucky

By NorseHorse. Rates in force on October 15, 2026, checked against the sources at the bottom of this page. General information, not legal advice.

What employers must pay

In Kentucky, the minimum wage is $7.25 an hour. An employer can pay a tipped employee as little as $2.13 an hour in cash, as long as tips bring the total to at least $7.25. The difference, $5.12, is the tip credit.

Who counts as a tipped employee: more than $30 a month in tips.

If your cash wage plus tips comes up short of $7.25 an hour in a workweek, your employer has to make up the difference.

What changes next

No change to the Kentucky minimum wage is scheduled. Kentucky follows the federal minimum, so the rate changes only if lawmakers or Congress change it.

Tip pooling and service charges

Employers may require a tip pool among tipped employees, but it may not include salaried employees, managers or supervisors, and the employer may not keep any tips. Since April 10, 2026, staff who directly support tipped workers and deal with customers or work where customers can see them also count as tipped employees and can be part of the pool.

Overtime

Time and a half after 40 hours a week, plus time and a half for the seventh day when an employee works all seven days of a workweek. For tipped workers overtime is 1.5 times the full $7.25 minus the tip credit, so at least $5.76 an hour in cash.

Taxes on your tips

Kentucky taxes wage income, and tips are wages, so its income tax applies to your tips. Federal income tax, Social Security and Medicare still apply. The federal tip deduction can cut the income tax part: see how the No Tax on Tips deduction works.

Check a week's pay

If you are underpaid

Start by comparing your pay stubs with your own record of hours and tips. If the numbers don't add up, you can file a complaint with the Kentucky Education and Labor Cabinet, Division of Wages and Hours: how to file. You can also call the U.S. Department of Labor, Wage and Hour Division, at 1-866-487-9243.

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