Kentucky final paycheck law

Layoffs and other situations

The same rule covers every employee who 'leaves or is discharged'. An employee who is absent on payday, or not paid for any other reason, must be paid at any time afterward or upon 14 days' demand. Employers may not use any means to evade the requirement (KRS 337.055). Source: apps.legislature.ky.gov↗ (opens in a new tab)

Unused vacation and PTO

Required for vested vacation pay: KRS 337.010 defines 'wages' to include vested vacation pay, so it must be paid with final wages. The statute does not define 'vested'; whether accrued time is vested depends on the employer's policy. Source: apps.legislature.ky.gov↗ (opens in a new tab)

If the final paycheck is late

Civil penalty of $100 to $1,000 per violation of KRS 337.055, and each missed wage payment counts as a separate offense; employer must also pay the employee in full (KRS 337.990). KRS 337.385 separately allows unpaid wages plus an equal amount as liquidated damages, costs and attorney's fees for violations of KRS 337.020-337.285. Source: apps.legislature.ky.gov↗ (opens in a new tab)

Recent changes

HB 185 (2026, effective April 10, 2026) lets employers pay wages by payroll card under set conditions. Vested vacation pay is still part of wages, and the final pay rule did not change. Source: apps.legislature.ky.gov↗ (opens in a new tab)

The law and where to check

The law: Ky. Rev. Stat. § 337.055 (see also §§ 337.010, 337.385, 337.990) (opens in a new tab)

The agency: Kentucky Education and Labor Cabinet, Division of Wages and Hours (opens in a new tab)

What federal law says

The federal Fair Labor Standards Act does not require employers to give a final paycheck immediately. The U.S. Department of Labor says an employee who has not received final pay by the regular payday for their last pay period can contact its Wage and Hour Division or the state labor department. Source: U.S. Department of Labor↗ (opens in a new tab)

Final paycheck checklist for Kentucky employers

A simple order of work, based on the rules above. It is not a legal checklist.

1. Write down how the job ended: fired or let go, or the employee quit. If they quit, note whether and when they gave notice.
2. Find the deadline for that situation in the table above.
3. Add up all hours worked up to the last day, including any overtime.
4. Check your written vacation or PTO policy and the vacation rule above.
5. Add any commission or bonus that was earned, using the rules above.
6. Pay on time by your usual method, or by mail if the rules above allow it and the employee asks.
7. Keep a dated record of what you paid and when.

More Kentucky employment law guides

• All Kentucky employment laws
• Kentucky paid sick leave law
• Kentucky meal and rest break laws
• Kentucky overtime law
• Kentucky pay frequency law
• Kentucky vacation and PTO payout law
• Kentucky new hire reporting
• Kentucky at-will exceptions

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Disclaimer: This guide provides general information based on publicly available official sources and is for information only. It is not legal, tax, payroll or employment-law advice and does not guarantee compliance with federal, state or local requirements. Rules can depend on your location, industry, contracts and other circumstances, and laws change. Always check the official source, the relevant government agency or a qualified professional before making a decision. MadyHR.ai accepts no responsibility for any action taken based on this page.

Last checked: October 19, 2026. Every rule and source link on this page was checked against the official government source on this date. Laws change, so always open the source link before you act.