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HB 124

AN ACT relating to a living wage.

2026 Regular Session Introduced by George Brown and 2 co-sponsors

The bill requires certain newKentucky employers receiving government incentives or contracts to pay starting wages at least 130% of the county poverty level for the employee’s coun

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Bill Summary · HB 124

Summary of HB 124 (2026 Regular Session, Kentucky)

Purpose and intent

  • Establishes a new provision in KRS Chapter 337 to require a “living wage” for certain employers starting to do business in Kentucky.
  • Aims to ensure that starting base salaries meet a threshold defined as 130% of the poverty level for the employee’s county.

Key definitions

  • Living wage: A wage level equal to or greater than 130% of the poverty level for the county where the employee works.
  • The poverty level data referenced are the 2026 federal poverty guidelines published by the U.S. Department of Health and Human Services (for the contiguous states and D.C.).

Main provisions

  • Creates a new section within KRS Chapter 337 specifying the living wage standard and the conditions under which employers must pay it.
  • Applies to employers that begin doing business in Kentucky on or after the act’s effective date.
  • Employers subject to the living wage must pay all employees at least the starting base salary that meets the living wage requirement if the business:
    1. Receives any local, state, or federal government subsidies, economic incentives, tax incentives, financing, workforce assistance, loans, or grants.
    2. Is located in an enterprise zone or opportunity zone in Kentucky and tax incentives have been provided or will be provided to the business or investors.
    3. Contracts with any local, state, or federal government agency to provide goods or services.
    4. Leases or subleases any local, state, or federal government property.

Geographic and poverty data considerations

  • The 130% of poverty level is calculated based on the county where the employee is employed.
  • The accompanying analysis notes that county-level poverty data are not currently published in the same way as federal guidelines; it suggests that determining 130% of poverty level may require county-specific calculations, potentially introducing administrative complexity.

Fiscal and local government impact (as described in supporting materials)

  • Could positively affect counties and cities that impose an occupational license tax on workers whose wages rise to or beyond the living wage, potentially increasing local revenues.
  • Could negatively impact counties or municipalities that do not levy an occupational license tax, due to higher payroll costs without offsetting license revenue.
  • Many Kentucky counties (per the analysis) levy an occupational license tax somewhere in the range of 1% to 1.25% of payroll, and cities typically credit license fees against county fees.
  • Estimated potential effects:
    • Elevates wage costs for eligible new employers, especially those benefiting from subsidies, incentives, enterprise zones, or government contracts/leases.
    • Local revenue implications depend on whether the jurisdiction imposes an occupational license tax and how revenues interact with the new wage requirements.

Affected parties

  • Employers that begin operations in Kentucky on or after the act’s effective date and that benefit from government subsidies, zones, contracts, or government property leases.
  • Employees of those newly operating employers, who would be eligible for higher starting wages (130% of county poverty level).
  • Local governments (counties and cities) that impose occupational license taxes, with revenue implications depending on existing tax structures.

Timeline and procedural notes

  • Effective date not specified in the excerpt; the bill references “the effective date of this Act.”
  • The bill creates a new statutory section in KRS Chapter 337 and would become law upon passage and signing (subject to legislative process).
  • Supporting materials indicate ongoing fiscal impact analysis at the local government level and note potential need for county-level poverty determinations.

Administrative considerations

  • Determining the appropriate living wage requires county-level poverty calculations, which may necessitate establishing county-specific poverty thresholds for wage calculations.
  • Potential need for coordination with local governments (e.g., Kentucky Association of Counties, Kentucky League of Cities) to implement and administer the wage requirements.

If you want, I can provide a concise, one-page briefing with just the bottom-line impacts for policymakers or a side-by-side comparison with current Kentucky wage and employment practices.

Compiled from official sources — confirm details with the bill’s official record.

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