Since we are Louisvillians, one of the questions we’ve been getting a lot is about the changes in state & local minimum wage. Kentucky business owners wonder: do I have to raise my employees’ wages? To what amount? And by when?
A: It depends on your location and business sector. On July 1st, minimum wage in Louisville increased to $7.75, and minimum wage for Kentucky state government workers only increased to $10.10.
Here’s what this looks like:
Minimum Wage (effective July 1st, 2015):
—Kentucky state government workers: $10.10
—Louisville: $7.75 ($8.25 – July 2016, $9.00 – July 2017)
What Employers Need to Know:
1) If you are a Kentucky state government employer, the Kentucky minimum wage increase applies to you.
2) If you are a private employer in Kentucky, but not in Louisville, neither the Kentucky minimum wage increase nor the Louisville minimum wage increase apply to you.
3) If you are a private employer in Louisville, the Louisville minimum wage increase applies to you for now. (See below for more info.)
More about the Louisville ordinance:
- Louisville is set to see a slow increase in minimum wage to $9.00 over the next three years. As of July 1st, minimum wage in Louisville increased from $7.25 to $7.75; the rate will increase to $8.25 in July 2016 and $9.00 in July 2017.
- According to the Courier-Journal, “All companies in Jefferson County, including independent cities and unincorporated areas, are required to pay their hourly workers — except for tip workers — the new rate or above.”
- Louisville Mayor Greg Fischer says the government will not actively seek out employers who are not paying the new rates. However, he did set up an online form and tipline for employees to file complaints if they do not receive the wage increase.
- Local business groups sued the city in an attempt to stop the ordinance from taking effect, but the ordinance was upheld in county court, allowing it to take effect on July 1st. The business groups are expected to appeal to the state Supreme Court. Stay tuned for updates.
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