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HB 336

AN ACT relating to the establishment of minimum wages by local governments.

2026 Regular Session Introduced by Chad Aull and 1 co-sponsor

Allows local Kentucky governments to set higher minimum wages than the state, with local standards taking precedence within their jurisdictions.

to Local Government (H)
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Bill Summary · HB 336

Summary of HB 336 (2026 Session, Kentucky)

Purpose and intent

HB 336 seeks to regulate how minimum wage requirements can be set in Kentucky by clarifying and authorizing local governments to establish higher minimum wages than the state level. The bill aims to give cities, counties, and various forms of consolidated or unified local governments the authority to adopt ordinances that set a minimum wage above the statewide minimum, while otherwise preserving the state’s baseline wage framework.

Key provisions and changes

  • Limit on local wage mandates (Section 1, KRS 65.016):

    • State and local governments generally may not compel employers to pay a wage or provide fringe benefits beyond what an employer determines, with an important exception.
    • Local governments (cities, counties, urban counties, consolidated local governments, charter counties, and unified local governments) may adopt and enforce ordinances that establish a minimum wage higher than the base wage established by Section 2 of the Act.

  • Minimum wage framework (Section 2, KRS 337.275):

    • The baseline requirement remains that employers must pay employees at least the statutory minimum wage.
    • If a local government has enacted an ordinance under this Act, the local minimum wage applies in that jurisdiction and must be at least as high as the local ordinance.
    • If both a county-wide and a city within the county have adopted local minimum wage ordinances, the highest local minimum wage prevails within the city boundaries.
    • If the federal minimum wage increases above the state minimum, the state minimum is adjusted upward to match the federal minimum on the same date, but the adjustment aligns only with the federal minimum rate (not broader federal wage provisions), and it does not automatically expand coverage or alter other wage-related conditions.
    • The state’s minimum wage law continues to govern general provisions, including the interaction with federal law and any exceptions, with the caveat that higher local standards take precedence within their jurisdictions.

  • Tip credit provisions (Section 2, subsections 1 and 2):

    • For tipped employees in occupations where tips exceed $30 per month, employers may pay a minimum wage aligned with the federal tipped wage under 29 U.S.C. § 203 if properly documented.
    • Employers must keep records proving that weekly tips, when combined with wages, meet the required federal tipped minimum.
    • Tips cannot be used to offset the statutory minimum wage, though employees may voluntarily share tips.

Who is affected

  • Covered entities: Employers operating in Kentucky and subject to local government jurisdictions (cities, counties, urban counties, consolidated/local government structures, charter counties, unified local governments).
  • Local governments: Authorized to enact higher minimum wages within their boundaries, creating potential wage differentials between jurisdictions.

Procedural and timeline notes

  • The bill aligns Kentucky wage law with a framework that enables local minima and ties adjustments to federal increases.
  • It references existing state wage statutes and federal wage law for tipped employees, with local variations taking precedence locally.
  • The legislative history shows introduction and committee referrals in January 2026, with action moving to Local Government.

Potential impact

  • Localities can tailor minimum wage levels to local economic conditions, potentially increasing labor costs for employers in higher-wage jurisdictions.
  • Employees in jurisdictions with local minimum wage ordinances may benefit from higher standards than the statewide minimum.
  • Employers must track and comply with differing wage requirements across jurisdictions, especially near jurisdictional borders.

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

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