The Learning Curve

New tricks for an old dog.

SiIde effects of minimum wage in Kentucky

(If you are looking to find out Kentucky’s minimum wage, it’s the same as the federal minimum wage. $7.25 per hour)

Whether or not you favor an increase in the federal minimum wage, as I do, the minimum wage serves as a baseline for several purposes other to set the lower pay limit for jobs. Here is a small collection of ways the minimum wage is used in Kentucky.

  1. Kentucky offers a limited amount of state tax credits to qualified companies who are approved to offer occupational skills upgrade training to existing employees who have been employed with the company for twelve months or more. The program is administered by the Bluegrass State Skills Corporation. One of the qualifications to receive the tax credit is that the employees to receive the training are paid a base hourly wage equal to 150% of the federal minimum wage, or more. (154.12-2084)
  2. KRS 154.12-207 proveds training grants. 90% of the participants must receive a base hourly wage which is 150% of the minimum wage.
  3. What’s the maximum amount of wage garnishment? Federal and Kentucky law place a lower limit on disposable earnings that be can seized to satisfy an ordinary judgment debt through a wage garnishment as a multiple of the minimum wage. This does not apply to tax levy, bankruptcy orders or support payments. Pay that does not exceed minimum wage x 30 in any one week, at the least, is exempt from garnishment to satisfy other types of debt.
  4. KRS 533.030 allows a court to impose a work requirement as a condition of probation. Where a victim of a crime has suffered monetary damage as a result of the crime, the probationer can be ordered to make restitution “by working for or on behalf of the victim” using minimum wage to value the labor.
  5. KRS 610.360 allows the court to require juveniles to perform community labor at minimum wage rates to pay off their court costs.
  6. KRS 42.4588 allows government Economic Development Programs to make job development incentive grants that will create “at least twenty-five (25) new full-time jobs held by Kentucky residents who receive a minimum wage of at least one hundred thirty percent (130%) of the federal minimum wage”. Existing employees at the project site must be paid an average wage of at least 150% of the minimum wage.
  7. The minimum budget for each property valuation administrator’s office in Kentucky, regardless of workload or need, includes the minimum wage requirements for two full-time deputies. 132.590(6)
  8. KRS 141.390 allows a state tax credit for recycling or composting equipment and defines a “major recycling project” as having at least 750 full-time employees earning an average hourly wage of more than 300% of the minimum wage, with other requirements.



Written by Tom Fox

04/07/2014 at 7:17 pm

Posted in Uncategorized

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