The Kentucky Supreme Court struck down the City of Louisville’s minimum wage ordinance by a 6-1 vote, ruling that the state, not a city, has the authority to raise the minimum wage. Because Kentucky has comprehensive state statutes regulating wages, the Court concluded that municipalities cannot enact conflicting ordinances. Kentucky’s state minimum wage is $7.25 per hour, which is the same as the federal minimum wage.
The Supreme Court ruling addressed Louisville’s ordinance in particular, but it would apply to any local government’s ability to enact these local minimum wage ordinances, including Lexington. As a result, Lexington’s mandated minimum wage increase is no longer valid. The minimum wage in Lexington and Louisville will revert back to $7.25 per hour.
In 2015, several business organizations filed suit against the City of Louisville after it passed an ordinance increasing the local minimum wage above the state and federal level of $7.25 per hour.
In November 2015, the Lexington-Fayette Urban County Council passed a similar ordinance to the City of Louisville with a higher ultimate wage, increasing Lexington's minimum wage from $7.25 per hour to $10.10 per hour over a three-year period. The ordinance went into effect on July 1, 2016 with the first mandated increase to $8.20 per hour.
FOR MORE INFORMATION:
If you are an employer and have questions, please contact the City of Lexington’s Department of Revenue at (859) 258-3340. To read the Kentucky Supreme Court opinion on-line, CLICK HERE.
Commerce Lexington Inc. remains committed to working with the Mayor and Urban County Council members to find alternative policy solutions that will help lift families out of poverty more effectively, without hurting businesses in Lexington -- such as through education and workforce training efforts.
The Supreme Court ruling addressed Louisville’s ordinance in particular, but it would apply to any local government’s ability to enact these local minimum wage ordinances, including Lexington. As a result, Lexington’s mandated minimum wage increase is no longer valid. The minimum wage in Lexington and Louisville will revert back to $7.25 per hour.
In 2015, several business organizations filed suit against the City of Louisville after it passed an ordinance increasing the local minimum wage above the state and federal level of $7.25 per hour.
In November 2015, the Lexington-Fayette Urban County Council passed a similar ordinance to the City of Louisville with a higher ultimate wage, increasing Lexington's minimum wage from $7.25 per hour to $10.10 per hour over a three-year period. The ordinance went into effect on July 1, 2016 with the first mandated increase to $8.20 per hour.
FOR MORE INFORMATION:
If you are an employer and have questions, please contact the City of Lexington’s Department of Revenue at (859) 258-3340. To read the Kentucky Supreme Court opinion on-line, CLICK HERE.
Commerce Lexington Inc. remains committed to working with the Mayor and Urban County Council members to find alternative policy solutions that will help lift families out of poverty more effectively, without hurting businesses in Lexington -- such as through education and workforce training efforts.
RSS Feed
