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Employer responsibilities for wages under the law

Employment laws ensure fair treatment of employees, but they also provide protection for employers. Managers and company executives need to understand and apply the laws regarding wages and other facets of employment.

Federal wage and overtime laws

As explained by, a compliance tool for businesses, a federal law governing wages and working hours exists. Individual states may elect to follow the guidance set forth in the Fair Labor Standards Act. They may also choose to enact additional regulations overseeing these issues.

Kentucky adheres to the FLSA for hours worked beyond 40 in a single workweek. For these hours, the overtime rate of pay would be one-and-a-half times the normal hourly wage.

Kentucky wage and overtime laws

According to the Commonwealth of Kentucky Labor Cabinet, employers may choose whether or not to require an employee to work overtime. However, per Kentucky law, overtime pay may not be mandatory for daily working hours that exceed eight. When identifying an employee’s status as full-time or part-time, the employer may determine the number of hours that may be part-time or full-time work status. If an employee works seven days in a workweek, they must receive time-and-a-half pay for the seventh day.

Businesses in Kentucky may or may not offer paid holidays for their employees. State law leaves that decision to the discretion of the employer. Another choice left to employers is the decision to use direct deposit. However, when an employee’s financial institution has a direct deposit fee, the employer cannot enforce direct deposit payments.

When an employer adjusts an employee’s rate of pay, the employee should receive a notice prior to the change taking effect.