Kentucky minimum wage is increasing. What does this mean for you? Find out in this article. In addition, you’ll learn about the tax credit for employers and overtime exceptions. Most importantly, find out how it affects the economy. Read on to learn about these changes in Kentucky’s minimum wage. It may be just the thing you need to make more money and live in a more comfortable way. Then, get out and vote for the minimum wage increase!
Kentucky minimum wage Increases
The increase in Kentucky’s minimum wage will be phased in over the next five years. The current minimum wage is $7.25 an hour and is scheduled to reach $15 an hour by 2026. The state has a low unemployment rate, but there is a shortage of workers in Kentucky. As a result, Kentucky employers have a difficult time filling job vacancies. A recent study showed that 50 percent of small business owners in Kentucky couldn’t fill job openings during August. That number is higher than the 48-year historical average. The governor’s proposal to increase the minimum wage will gradually roll out the increase in earnest, and he has included language that distinguishes between small businesses and large corporations.
While the increases in minimum wage in Kentucky may be beneficial to employers, they may also harm the bottom line. While it may be more cost-effective to hire less qualified staff, it can negatively affect employee morale and the ability to attract new talent. The Kentucky Supreme Court has ruled that municipalities cannot change uniform statewide employment laws unilaterally. As such, any changes to local employment laws must be approved by the Kentucky General Assembly and Congress. This should give employers some reassurance.
Overtime exceptions for Kentucky minimum wage
There are some exceptions to the Kentucky minimum wage and overtime rules that are not subject to federal law. For example, certain white collar positions do not require overtime pay in the state. To qualify, employees must make at least $684 a week in salary. Regardless of the industry, there are some exceptions that apply to you. Here are some examples of situations in which Kentucky employers need to pay overtime. Read on to learn more.
Many jobs in the United States qualify for an exemption under the federal Fair Labor Standards Act. In Kentucky, there are certain professions that are specifically exempt from overtime requirements. Some are administrative, outside sales, and executive. Each of these categories requires an extensive analysis of duties. Just because an employee has the title of “administrator” does not mean they are exempt from the law. Besides, the federal and state overtime laws are subject to change, so it’s important to know exactly what exemptions apply to you.
Tax credit for employers
Small businesses in Kentucky can qualify for a tax credit that covers some or all of the costs associated with creating new jobs. The tax credit will be equal to the lesser of three thousand dollars for each new full-time employee or five thousand dollars for the purchase of qualifying technology or equipment. The credit can be claimed for a period of one year. Businesses that meet the requirements of the program are eligible for this tax credit as long as they are a for-profit company with no more than 50 employees.
- To qualify for the tax credit, companies must pay their employees Kentucky minimum wage , which is equal to the federal rate.
- Kentucky minimum wage has increased to $7.25 per hour in 2008 and is equivalent to the federal rate.
- This means that if employees receive tips, they must be paid a minimum of $ 2.13 per hour and must make up the difference with additional compensation.
- Businesses with ten or more employees must file payslips showing the total amount paid for the pay period and all deductions. However, companies are not allowed to deduct tips from employee salaries, which may lower their pay below the state minimum wage.
Impact on economy
While the idea of a higher Kentucky minimum wage is intended to protect low-skilled workers, it is out of step with the laws of supply and demand. A $15-an-hour minimum wage would increase wages for 533,000 Kentuckians and 159,000 workers in the state. Ultimately, it would destroy jobs and increase the state’s dependence on government. It is important to keep in mind that the Kentucky minimum wage hike would likely hurt small businesses, which are more likely to suffer a labor shortage than large corporations.
If you want to learn about Mexico minimum wage, you can click on it. Overtime workers are entitled to at least 1.5 times the regular minimum wage, although some states require an additional daily limit. The Kentucky minimum wage law does not specify a daily overtime limit, although the FLSA guarantees adequate compensation for qualifying hours worked. An employee who works more than the required number of hours may file an unpaid overtime claim with the Kentucky Department of Labor. The Kentucky minimum wage law will take effect in 2019.
Kentucky Minimum Wage Conclusion
The current minimum wage in Kentucky is $7.25, which ranks as a full 33 cents higher than the federal minimum wage of $6.55. Nonetheless, Kentucky’s minimum wage is decidedly lower than other nearby states. Missouri’s minimum wage sits at $7.35 per hour, while Tennessee’s sits at $7.25 per hour, and Indiana’s sits at $7.20 per hour. Ultimately, Kentucky may soon be left behind its immediate neighbors unless the state raises its minimum wage in the near future.
Kentucky Minimum Wage FAQ
What is Kentucky’s minimum wage in 2022?
Because the State Minimum Wage Rate for Kentucky was 7.25000 $ per Hour in January of 2022, many minimum wage workers did not earn a living wage.
Is minimum wage going up to $15 an hour in Kentucky?
Kentucky lawmakers are considering a bill that would gradually raise the state’s minimum wage to $15 per hour by July 2026. It is an effort to address the rising cost of living in America.
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