UNOFFICIAL COPY 24 RS BR 1905 Page 1 of 21 XXXX 2/8/2024 1:11 PM Jacketed AN ACT relating to wages and hours. 1 Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2 SECTION 1. A NEW SECTION OF KRS CHAPTER 337 IS CREATED TO 3 READ AS FOLLOWS: 4 The minimum wage and overtime compensation requirements under KRS 337.275 and 5 337.285 shall not apply to: 6 (1) Any individual employed in agriculture; 7 (2) Any individual employed in a bona fide executive, administrative, supervisory, or 8 professional capacity, or in the capacity of outside salesman, or as an outside 9 collector as the terms are defined by administrative regulations of the 10 commissioner; 11 (3) Any individual employed by the United States; 12 (4) Any individual employed in domestic service in or about a private home. The 13 provisions of this section shall include individuals employed in domestic service 14 in or about the home of an employer where there is more than one (1) domestic 15 servant regularly employed; 16 (5) Any individual classified and given a certificate by the commissioner showing a 17 status of learner, apprentice, worker with a disability, sheltered workshop 18 employee, and student under administrative procedures and administrative 19 regulations prescribed and promulgated by the commissioner. This certificate 20 shall authorize employment at the wages, less than the established fixed 21 minimum fair wage rates, and for the period of time fixed by the commissioner 22 and stated in the certificate issued to the person; 23 (6) Employees of retail stores, service industries, hotels, motels, and restaurant 24 operations whose average annual gross volume of sales made for business done is 25 less than ninety-five thousand dollars ($95,000) for the five (5) preceding years 26 exclusive of excise taxes at the retail level or if the employee is the parent, spouse, 27 UNOFFICIAL COPY 24 RS BR 1905 Page 2 of 21 XXXX 2/8/2024 1:11 PM Jacketed child, or other member of his or her employer's immediate family; 1 (7) Any individual employed as a baby-sitter in an employer's home, or an individual 2 employed as a companion by a sick, convalescing, or elderly person or by the 3 person's immediate family, to care for that sick, convalescing, or elderly person 4 and whose principal duties do not include housekeeping; 5 (8) Any individual engaged in the delivery of newspapers to the consumer; 6 (9) Any individual subject to the provisions of KRS Chapters 7, 16, 27A, 30A, and 7 18A, provided that the secretary of the Personnel Cabinet shall have the authority 8 to prescribe by administrative regulation those emergency employees, or others, 9 who shall receive overtime pay rates necessary for the efficient operation of 10 government and the protection of affected employees; 11 (10) Any employee employed by an establishment which is an organized nonprofit 12 camp, religious, or nonprofit educational conference center, if it does not operate 13 for more than two hundred ten (210) days in any calendar year; 14 (11) Any employee whose function is to provide twenty-four (24) hour residential care 15 on the employer's premises in a parental role to children who are primarily 16 dependent, neglected, and abused and who are in the care of private, nonprofit 17 childcaring facilities licensed by the Cabinet for Health and Family Services 18 under KRS 199.640; 19 (12) Any individual whose function is to provide twenty-four (24) hour residential care 20 in his or her own home as a family caregiver, family home provider, or adult 21 foster care provider and who is approved to provide family caregiver services to 22 an adult with a disability through a contractual relationship with a community 23 board for mental health or individuals with an intellectual disability established 24 under KRS 210.370 to 210.460 or through a contractual relationship with a 25 certified waiver provider as defined in 907 KAR 7:005 sec. 1(5), or is certified or 26 licensed by the Cabinet for Health and Family Services to provide adult foster 27 UNOFFICIAL COPY 24 RS BR 1905 Page 3 of 21 XXXX 2/8/2024 1:11 PM Jacketed care; 1 (13) A direct seller as defined in the Internal Revenue Code of 1986, 26 U.S.C. sec. 2 3508(b)(2); or 3 (14) Any individual whose function is to provide behavior support services, behavior 4 programming services, case management services, community living support 5 services, positive behavior support services, or respite services through a 6 contractual relationship with a certified waiver provider, as defined in 907 KAR 7 7:005 sec. 1(5), pursuant to a 1915(c) home and community based services waiver 8 program, as defined in 907 KAR 7:005 sec. 1(2). 9 SECTION 2. A NEW SECTION OF KRS CHAPTER 337 IS CREATED TO 10 READ AS FOLLOWS: 11 (1) Except as provided in subsection (3) of this section, no employer shall be subject 12 to any liability or punishment under this chapter for failure to pay an employee 13 minimum wages, or to pay an employee overtime compensation for or on account 14 of any of the following: 15 (a) Traveling to and from the actual place of performance of the principal 16 activity or activities which an employee is employed to perform; and 17 (b) Activities which are preliminary to or subsequent to said principal activity 18 or activities, which occur either prior to the time on any particular workday 19 at which an employee commences, or subsequent to the time on any 20 particular workday at which he or she ceases, such principal activity or 21 activities. 22 (2) The use of an employer's vehicle by an employee for travel and activities 23 performed by an employee which are incidental to the use of such vehicle for 24 commuting shall not be considered part of the employee's principal activities if: 25 (a) The travel is within the normal commuting area for the employer's business 26 or establishment; and 27 UNOFFICIAL COPY 24 RS BR 1905 Page 4 of 21 XXXX 2/8/2024 1:11 PM Jacketed (b) The use of the employer's vehicle is subject to an agreement on the part of 1 the employer and the employee or representative of the employee. 2 (3) Notwithstanding subsection (1) of this section, the employer may be liable if the 3 activity is compensable by either: 4 (a) An express provision of a written or nonwritten contract in effect at the time 5 of the activity between the employee, his or her agent, or collective-6 bargaining representative and his or her employer; or 7 (b) A custom or practice in effect at the time of the activity at the employer's 8 establishment or other place where the employee is employed which covers 9 an activity not inconsistent with a written or nonwritten contract in effect at 10 the time of the activity between the employee, his or her agent or collective 11 bargaining representative, and his or her employer. 12 (4) For the purposes of subsection (3) of this section, an activity shall be considered 13 compensable under the contract provision or the custom or practice only when it 14 is engaged in during the portion of the day with respect to which it is so made 15 compensable. 16 (5) In the application of the minimum wage and overtime compensation provisions of 17 this chapter, in determining the time for which an employer employs an employee 18 with respect to traveling or other preliminary or subsequent activities described in 19 subsection (1) of this section, there shall be counted all that time, but only that 20 time, during which the employee engages in any such activity which is 21 compensable within the meaning of subsections (2) and (3) of this section. 22 SECTION 3. A NEW SECTION OF KRS CHAPTER 337 IS CREATED TO 23 READ AS FOLLOWS: 24 (1) As used in this section, "bona fide meal period" means a time when an employee 25 is completely relieved from any duties for the purposes of eating a meal. The 26 employee is not completely relieved if he or she is required to perform any duties, 27 UNOFFICIAL COPY 24 RS BR 1905 Page 5 of 21 XXXX 2/8/2024 1:11 PM Jacketed whether active or inactive, while eating. 1 (2) Employers shall pay employees for time spent eating food during a work shift 2 unless the employer provides a bona fide meal period. 3 (3) No payment shall be owed to an employee for time spent eating during a work-4 shift if the employer provides a bona fide meal period. 5 Section 4. KRS 337.010 is amended to read as follows: 6 [(1) ]As used in this chapter, unless the context requires otherwise: 7 (1)[(a)] "Commissioner" means the commissioner of the Department of Workplace 8 Standards under the direction and supervision of the secretary of the Education and 9 Labor Cabinet; 10 (2)[(b)] "Department" means the Department of Workplace Standards in the 11 Education and Labor Cabinet; 12 (3)[(c)] (a)[1.] "Wages" includes any compensation due to an employee by reason 13 of his or her employment, including salaries, commissions, vested vacation 14 pay, overtime pay, severance or dismissal pay, earned bonuses, and any other 15 similar advantages agreed upon by the employer and the employee or 16 provided to employees as an established policy. The wages shall be payable in 17 legal tender of the United States, checks on banks, direct deposits, or payroll 18 card accounts convertible into cash on demand at full face value, subject to 19 the allowances made in this chapter. However, an employee may not be 20 charged an activation fee and the payroll card account shall provide the 21 employee with the ability, without charge, to make at least one (1) withdrawal 22 per pay period for any amount up to and including the full account balance. 23 (b)[2.] For the purposes of calculating hourly wage rates for scheduled 24 overtime for professional firefighters, as defined in KRS 95A.210(8), "wages" 25 shall not include the distribution to qualified professional firefighters by local 26 governments of supplements received from the Firefighters Foundation 27 UNOFFICIAL COPY 24 RS BR 1905 Page 6 of 21 XXXX 2/8/2024 1:11 PM Jacketed Program Fund. For the purposes of calculating hourly wage rates for 1 unscheduled overtime for professional firefighters, as defined in KRS 2 95A.210(9), "wages" shall include the distribution to qualified professional 3 firefighters by local governments of supplements received from the 4 Firefighters Foundation Program Fund; 5 (4)[(d)] "Employer" is any person, either individual, corporation, partnership, agency, 6 or firm who employs an employee and includes any person, either individual, 7 corporation, partnership, agency, or firm acting directly or indirectly in the interest 8 of an employer in relation to an employee;[ and] 9 (5)[(e)] "Employee" is any person employed by or suffered or permitted to work for 10 an employer, except that: 11 (a)[1.] Notwithstanding any voluntary agreement entered into between the 12 United States Department of Labor and a franchisee, neither a franchisee nor a 13 franchisee's employee shall be deemed to be an employee of the franchisor for 14 any purpose under this chapter; and 15 (b)[2.] Notwithstanding any voluntary agreement entered into between the 16 United States Department of Labor and a franchisor, neither a franchisor nor a 17 franchisor's employee shall be deemed to be an employee of the franchisee for 18 any purpose under this chapter. 19 For purposes of this paragraph, "franchisee" and "franchisor" have the 20 same meanings as in 16 C.F.R. sec. 436.1[. 21 (2) As used in KRS 337.275 to 337.325, 337.345, and 337.385 to 337.405, 22 unless the context requires otherwise: 23 (a) "Employee" is any person employed by or suffered or permitted to work 24 for an employer, but shall not include: 25 1. Any individual employed in agriculture; 26 2. Any individual employed in a bona fide executive, administrative, 27 UNOFFICIAL COPY 24 RS BR 1905 Page 7 of 21 XXXX 2/8/2024 1:11 PM Jacketed supervisory, or professional capacity, or in the capacity of outside 1 salesman, or as an outside collector as the terms are defined by 2 administrative regulations of the commissioner; 3 3. Any individual employed by the United States; 4 4. Any individual employed in domestic service in or about a private 5 home. The provisions of this section shall include individuals employed 6 in domestic service in or about the home of an employer where there is 7 more than one (1) domestic servant regularly employed; 8 5. Any individual classified and given a certificate by the commissioner 9 showing a status of learner, apprentice, worker with a disability, 10 sheltered workshop employee, and student under administrative 11 procedures and administrative regulations prescribed and promulgated 12 by the commissioner. This certificate shall authorize employment at the 13 wages, less than the established fixed minimum fair wage rates, and for 14 the period of time fixed by the commissioner and stated in the certificate 15 issued to the person; 16 6. Employees of retail stores, service industries, hotels, motels, and 17 restaurant operations whose average annual gross volume of sales made 18 for business done is less than ninety-five thousand dollars ($95,000) for 19 the five (5) preceding years exclusive of excise taxes at the retail level 20 or if the employee is the parent, spouse, child, or other member of his or 21 her employer's immediate family; 22 7. Any individual employed as a baby-sitter in an employer's home, or an 23 individual employed as a companion by a sick, convalescing, or elderly 24 person or by the person's immediate family, to care for that sick, 25 convalescing, or elderly person and whose principal duties do not 26 include housekeeping; 27 UNOFFICIAL COPY 24 RS BR 1905 Page 8 of 21 XXXX 2/8/2024 1:11 PM Jacketed 8. Any individual engaged in the delivery of newspapers to the consumer; 1 9. Any individual subject to the provisions of KRS Chapters 7, 16, 27A, 2 30A, and 18A provided that the secretary of the Personnel Cabinet shall 3 have the authority to prescribe by administrative regulation those 4 emergency employees, or others, who shall receive overtime pay rates 5 necessary for the efficient operation of government and the protection of 6 affected employees; 7 10. Any employee employed by an establishment which is an organized 8 nonprofit camp, religious, or nonprofit educational conference center, if 9 it does not operate for more than two hundred ten (210) days in any 10 calendar year; 11 11. Any employee whose function is to provide twenty-four (24) hour 12 residential care on the employer's premises in a parental role to children 13 who are primarily dependent, neglected, and abused and who are in the 14 care of private, nonprofit childcaring facilities licensed by the Cabinet 15 for Health and Family Services under KRS 199.640 to 199.670; 16 12. Any individual whose function is to provide twenty-four (24) hour 17 residential care in his or her own home as a family caregiver, family 18 home provider, or adult foster care provider and who is approved to 19 provide family caregiver services to an adult with a disability through a 20 contractual relationship with a community board for mental health or 21 individuals with an intellectual disability established under KRS 22 210.370 to 210.460 or through a contractual relationship with a certified 23 waiver provider as defined in 907 KAR 7:005 sec. 1(5), or is certified or 24 licensed by the Cabinet for Health and Family Services to provide adult 25 foster care; 26 13. A direct seller as defined in Section 3508(b)(2) of the Internal Revenue 27 UNOFFICIAL COPY 24 RS BR 1905 Page 9 of 21 XXXX 2/8/2024 1:11 PM Jacketed Code of 1986; or 1 14. Any individual whose function is to provide behavior support services, 2 behavior programming services, case management services, community 3 living support services, positive behavior support services, or respite 4 services through a contractual relationship with a certified waiver 5 provider, as defined in 907 KAR 7:005 sec. 1(5), pursuant to a 1915(c) 6 home and community based services waiver program, as defined in 907 7 KAR 7:005 sec. 1(2)]; 8 (6)[(b)] "Agriculture" means farming in all its branches, including but not limited to 9 cultivation and tillage of the soil; dairying; production, cultivation, growing, and 10 harvesting of any agricultural or horticultural commodities[commodity]; the raising 11 of livestock, bees, furbearing animals, or poultry; and any practice, including any 12 forestry or lumbering operations, performed by a farmer or on a farm in 13 conjunction with the farming operations, including preparation for market,[and] 14 delivery[ of produce] to storage or[,] to market[,] or to carriers for transportation to 15 market; 16 (7)[(c)] "Gratuity" means voluntary monetary contribution received by an employee 17 from a guest, patron, or customer for services rendered; 18 (8)[(d)] "Tipped employee" means any employee engaged in an occupation in which 19 he or she customarily and regularly receives more than thirty dollars ($30) per 20 month in tips; and 21 (9)[(e)] "U.S.C." means the United States Code. 22 Section 5. KRS 337.385 is amended to read as follows: 23 (1) Except as provided in subsection (3) of this section, any employer who pays any 24 employee less than wages and overtime compensation to which such employee is 25 entitled under or by virtue of KRS 337.020 to 337.285 shall be liable to such 26 employee affected for the full amount of such wages and overtime compensation, 27 UNOFFICIAL COPY 24 RS BR 1905 Page 10 of 21 XXXX 2/8/2024 1:11 PM Jacketed less any amount actually paid to such employee by the employer, for an additional 1 equal amount as liquidated damages, and for costs and such reasonable attorney's 2 fees as may be allowed by the court. 3 (2) If, in any action commenced to recover such unpaid wages or liquidated damages, 4 the employer shows to the satisfaction of the court that the act or omission giving 5 rise to such action was in good faith and that he or she had reasonable grounds for 6 believing that his or her act or omission was not a violation of KRS 337.020 to 7 337.285, the court may, in its sound discretion, award no liquidated damages, or 8 award any amount thereof not to exceed the amount specified in this section. Any 9 agreement between such employee and the employer to work for less than the 10 applicable wage rate shall be no defense to such action. Such action may be 11 maintained in any court of competent jurisdiction by any one (1) or more 12 employees for and in behalf of himself, herself, or themselves. 13 (3) If the court finds that the employer has subjected the employee to forced labor or 14 services as defined in KRS 529.010, the court shall award the employee punitive 15 damages not less than three (3) times the full amount of the wages and overtime 16 compensation due, less any amount actually paid to such employee by the 17 employer, and for costs and such reasonable attorney's fees as may be allowed by 18 the court, including interest thereon. 19 (4) At the written request of any employee paid less than the amount to which he or she 20 is entitled under the provisions of KRS 337.020 to 337.285, the commissioner may 21 take an assignment of such wage claim in trust for the assigning employee and may 22 bring any legal action necessary to collect such claim, and the employer shall be 23 required to pay the costs and such reasonable attorney's fees as may be allowed by 24 the court. The commissioner in case of suit shall have power to join various 25 claimants against the same employer in one (1) action. 26 (5) An employer shall not discharge or in any other manner discriminate against any 27 UNOFFICIAL COPY 24 RS BR 1905 Page 11 of 21 XXXX 2/8/2024 1:11 PM Jacketed employee who: 1 (a) Made any complaint to his or her employer, to the commissioner, or to the 2 commissioner's authorized representative that he or she has not been paid 3 wages in accordance with KRS 337.275 and 337.285 or administrative 4 regulations issued thereunder; 5 (b) Caused to be instituted or is about to cause to be instituted any proceeding 6 under or related to KRS 337.385; or 7 (c) Testified or is about to testify in any proceeding. 8 (6) Any employer who violates subsection (5) of this section shall be liable to the 9 employee for his or her lost wages and overtime compensation, less any amount 10 actually paid to the employee, for an equal amount as liquidated damages, and 11 for costs and reasonable attorney fees, and any other relief ordered by the court 12 for any action initiated under this section. 13 (7) Except as provided in Section 13 of this Act, any action to enforce any provision 14 of KRS Chapter 337 may be commenced within two (2) years after the cause of 15 action accrued. Any action initiated under this section shall be forever barred 16 unless commenced within two (2) years after the cause of action accrued, except 17 that a cause of action arising out of a willful violation may be commenced within 18 three (3) years after the cause of action accrued. 19 (8) Relief awarded in any claim to enforce any provision of KRS Chapter 337 shall 20 not include an award of punitive damages or an award of damages for emotional 21 distress, humiliation, or embarrassment. 22 Section 6. KRS 337.990 is amended to read as follows: 23 The following civil penalties shall be imposed by the Education and Labor Cabinet, in 24 accordance with the provisions in KRS 336.985, for violations of the provisions of this 25 chapter: 26 (1) Any firm, individual, partnership, or corporation that violates KRS 337.020 shall be 27 UNOFFICIAL COPY 24 RS BR 1905 Page 12 of 21 XXXX 2/8/2024 1:11 PM Jacketed assessed a civil penalty of not less than one hundred dollars ($100) nor more than 1 one thousand dollars ($1,000) for each offense. Each failure to pay an employee the 2 wages when due him under KRS 337.020 shall constitute a separate offense. 3 [(2) Any employer who violates KRS 337.050 shall be assessed a civil penalty of not 4 less than one hundred dollars ($100) nor more than one thousand dollars ($1,000).] 5 (2)[(3)] Any employer who violates KRS 337.055 shall be assessed a civil penalty of 6 not less than one hundred dollars ($100) nor more than one thousand dollars 7 ($1,000) for each offense and shall make full payment to the employee by reason of 8 the violation. Each failure to pay an employee the wages as required by KRS 9 337.055 shall constitute a separate offense. 10 (3)[(4)] Any employer who violates KRS 337.060 shall be assessed a civil penalty of 11 not less than one hundred dollars ($100) nor more than one thousand dollars 12 ($1,000) and shall also be liable to the affected employee for the amount withheld, 13 plus interest at the rate of ten percent (10%) per annum. 14 (4)[(5)] Any employer who violates the provisions of KRS 337.065 shall be assessed a 15 civil penalty of not less than one hundred dollars ($100) nor more than one 16 thousand dollars ($1,000) for each offense and shall make full payment to the 17 employee by reason of the violation. 18 (5)[(6)] Any person who fails to comply with KRS 337.070 shall be assessed a civil 19 penalty of not less than one hundred dollars ($100) nor more than one thousand 20 dollars ($1,000) for each offense and each day that the failure continues shall be 21 deemed a separate offense. 22 (6)[(7)] Any employer who violates any provision of KRS 337.275 to 337.325, KRS 23 337.345, and KRS 337.385 to 337.405, or willfully hinders or delays the 24 commissioner or the commissioner's authorized representative in the performance 25 of his or her duties under KRS 337.295, or fails to keep and preserve any records as 26 required under KRS 337.320 and 337.325, or falsifies any record, or refuses to 27 UNOFFICIAL COPY 24 RS BR 1905 Page 13 of 21 XXXX 2/8/2024 1:11 PM Jacketed make any record or transcription thereof accessible to the commissioner or the 1 commissioner's authorized representative shall be assessed a civil penalty of not 2 less than one hundred dollars ($100) nor more than one thousand dollars ($1,000). 3 A civil penalty of not less than one thousand dollars ($1,000) shall be assessed for 4 any subsequent violation of KRS 337.285(4) to (9) and each day the employer 5 violates KRS 337.285(4) to (9) shall constitute a separate offense and penalty. 6 (7)[(8)] Any employer who pays or agrees to pay wages at a rate less than the rate 7 applicable under KRS 337.275 and 337.285, or any wage order issued pursuant 8 thereto shall be assessed a civil penalty of not less than one hundred dollars ($100) 9 nor more than one thousand dollars ($1,000). 10 (8)[(9)] Any employer who discharges or in any other manner discriminates against 11 any employee because the employee has made any complaint to his or her 12 employer, to the commissioner, or to the commissioner's authorized representative 13 that he or she has not been paid wages in accordance with KRS 337.275 and 14 337.285 or regulations issued thereunder, or because the employee has caused to be 15 instituted or is about to cause to be instituted any proceeding under or related to 16 KRS 337.385, or because the employee has testified or is about to testify in any 17 such proceeding, shall be deemed in violation of KRS 337.275 to 337.325, KRS 18 337.345, and KRS 337.385 to 337.405 and shall be assessed a civil penalty of not 19 less than one hundred dollars ($100) nor more than one thousand dollars ($1,000). 20 [(10) Any employer who violates KRS 337.365 shall be assessed a civil penalty of not 21 less than one hundred dollars ($100) nor more than one thousand dollars ($1,000).] 22 (9)[(11)] A person shall be assessed a civil penalty of not less than one hundred dollars 23 ($100) nor more than one thousand dollars ($1,000) when that person discharges or 24 in any other manner discriminates against an employee because the employee has: 25 (a) Made any complaint to his or her employer, the commissioner, or any other 26 person; or 27 UNOFFICIAL COPY 24 RS BR 1905 Page 14 of 21 XXXX 2/8/2024 1:11 PM Jacketed (b) Instituted, or caused to be instituted, any proceeding under or related to KRS 1 337.420 to 337.433; or 2 (c) Testified, or is about to testify, in any such proceedings. 3 Section 7. KRS 95A.250 is amended to read as follows: 4 (1) (a) An eligible local government shall be entitled to receive an annual supplement 5 of three thousand dollars ($3,000) and, beginning July 1, 2018, an annual 6 supplement of four thousand dollars ($4,000) for each qualified professional 7 firefighter it employs, plus an amount equal to the required employer's 8 contribution on the supplement to the defined benefit pension plan, or to a 9 plan qualified under Section 401(a) or Section 457 of the Internal Revenue 10 Code of 1954 as amended. 11 (b) The employer's contribution to any of these plans on the supplement shall not 12 exceed the required employer's contribution to the County Employees 13 Retirement System pursuant to KRS Chapter 78 for the hazardous duty 14 category. The pension contribution on the supplement shall be paid whether 15 the professional firefighter entered the system under hazardous duty coverage 16 or nonhazardous coverage. 17 (c) The local unit of government shall pay the amount received for retirement 18 coverage to the appropriate retirement system to cover the required employer 19 contribution on the supplement. 20 (d) Should the foundation program funds be insufficient to pay employer 21 contributions to the system, then the total amount available for pension 22 payments shall be prorated to each eligible government so that each receives 23 the same percentage of required pension costs attributable to the supplement. 24 (e) 1. In addition to the payments received under paragraphs (a) and (b) of this 25 subsection, but only if sufficient funds are available to fully reimburse 26 each eligible local government for the employer contributions to the 27 UNOFFICIAL COPY 24 RS BR 1905 Page 15 of 21 XXXX 2/8/2024 1:11 PM Jacketed pension system, each local government shall receive an administrative 1 expense reimbursement in an amount equal to seven and sixty-five one-2 hundredths percent (7.65%) of the total annual supplement received 3 greater than three thousand one hundred dollars ($3,100) for each 4 qualified professional firefighter it employs, subject to the cap 5 established by subparagraph 3. of this paragraph. 6 2. The local government may use the moneys received under this 7 paragraph in any manner it deems necessary to partially cover the costs 8 of administering the payments received under paragraph (a) of this 9 subsection. 10 3. The total amount distributed under this paragraph shall not exceed the 11 total sum of two hundred fifty thousand dollars ($250,000) for each 12 fiscal year. If there are insufficient funds to provide for full 13 reimbursement as provided in subparagraph 1. of this paragraph, then 14 the amount shall be distributed pro rata to each eligible local 15 government so that each receives the same percentage attributable to its 16 total receipt of the cash salary supplement. 17 (2) (a) Each qualified professional firefighter, whose local government receives a 18 supplement pursuant to subsection (1)(a) of this section due to employment of 19 the firefighter, shall receive distribution of the supplement from that local 20 government in twelve (12) equal monthly installments with his or her pay for 21 the last pay period of each month. The monthly distribution shall be 22 calculated by dividing the supplement amount established in subsection (1)(a) 23 of this section by twelve (12). 24 (b) The supplement disbursed to a qualified professional firefighter pursuant to 25 this section shall not be considered "wages" as defined by KRS 26 337.010(3)(a)[337.010(1)(c)1.] and shall not be included in the hourly wage 27 UNOFFICIAL COPY 24 RS BR 1905 Page 16 of 21 XXXX 2/8/2024 1:11 PM Jacketed rate for calculation of overtime pursuant to KRS 337.285 for scheduled 1 overtime. The supplement shall be included in the hourly wage rates for 2 calculation of overtime for unscheduled overtime pursuant to KRS 337.285. 3 (c) To determine the addition to the hourly wage rate for calculation of overtime 4 on unscheduled overtime, the annual supplement shall be divided by two 5 thousand eighty (2,080). The overtime rate for unscheduled overtime shall be 6 calculated by adding the quotient, which is the amount of the annual 7 supplement divided by two thousand eighty (2,080), to the hourly wage rate 8 and multiplying the total by one and one-half (1.5). The enhanced overtime 9 rate shall be paid only for unscheduled overtime. Scheduled overtime shall be 10 paid at one and one-half (1.5) times the regular hourly wage rate, excluding 11 the supplement. 12 (3) (a) The Kentucky Community and Technical College System shall be entitled to 13 receive annually a supplement equal to the amount determined in subsection 14 (1) of this section for each Kentucky fire and rescue training coordinator 15 employed by the Kentucky Community and Technical College System who 16 meets the qualifications for individual firefighters required in KRS 95A.230, 17 plus an amount equal to the required employer's contribution on the 18 supplement to the defined benefit pension plan. 19 (b) The Department of Military Affairs shall be entitled to receive annually a 20 supplement equal to the amount determined in subsection (1) of this section 21 for each civilian firefighter employed by the Department of Military Affairs 22 who meets the qualifications for individual firefighters required in KRS 23 95A.230, plus an amount equal to the required employer's contribution on the 24 supplement to the defined benefit pension plan. 25 (c) Each fire and rescue training coordinator employed by the Kentucky 26 Community and Technical College System and each civilian firefighter 27 UNOFFICIAL COPY 24 RS BR 1905 Page 17 of 21 XXXX 2/8/2024 1:11 PM Jacketed employed by the Department of Military Affairs, whose employer receives a 1 supplement pursuant to this subsection, shall receive distribution from that 2 employer of the supplement which his or her qualifications brought to the 3 employer. The supplement distributed shall be in addition to his or her regular 4 salary. 5 Section 8. KRS 337.020 is amended to read as follows: 6 Every employer doing business in this state shall, as often as semimonthly, pay to each of 7 its employees all wages or salary earned to a day not more than eighteen (18) days prior 8 to the date of that payment. Any employee who is absent at the time fixed for payment, or 9 who, for any other reason, is not paid at that time, shall be paid thereafter at any time 10 upon six (6) days' demand. No employer subject to this section shall, by any means, 11 secure exemption from it. Every such employee shall have a right of action against any 12 such employer for the full amount of his wages due on each regular pay day. The 13 provisions of this section do not apply to those individuals defined in subsection (2) of 14 Section 1 of this Act[KRS 337.010(2)(a)2]. 15 Section 9. KRS 337.420 is amended to read as follows: 16 (1) "Employee" means any individual employed by any employer, including but not 17 limited to individuals employed by the state or any of its political subdivisions, 18 instrumentalities, or instrumentalities of political subdivisions. 19 (2) "Employer" means a person who has two (2) or more employees within the state in 20 each of twenty (20) or more calendar weeks in the current or preceding calendar 21 year and an agent of such a person. 22 (3) "Wage rate" means all compensation for employment, including payment in kind 23 and amounts paid by employers for employee benefits, as defined by the 24 commissioner in regulations issued under KRS 337.420 to 337.433 and 25 337.990(9)[337.990(11)]. 26 (4) "Employ" includes to suffer or permit to work. 27 UNOFFICIAL COPY 24 RS BR 1905 Page 18 of 21 XXXX 2/8/2024 1:11 PM Jacketed (5) "Occupation" includes any industry, trade, business, or branch thereof, or any 1 employment or class of employment. 2 (6) "Commissioner" means the commissioner of the Department of Workplace 3 Standards under the direction and supervision of the secretary of the Education and 4 Labor Cabinet. 5 (7) "Person" includes one (1) or more individuals, partnerships, corporations, legal 6 representatives, trustees, trustees in bankruptcy, or voluntary associations. 7 Section 10. KRS 337.423 is amended to read as follows: 8 (1) No employer shall discriminate between employees in the same establishment on 9 the basis of sex, by paying wages to any employee in any occupation in this state at 10 a rate less than the rate at which he or she pays any employee of the opposite sex 11 for comparable work on jobs which have comparable requirements relating to skill, 12 effort and responsibility. Differentials which are paid pursuant to established 13 seniority systems or merit increase systems, which do not discriminate on the basis 14 of sex, shall not be included within this prohibition. Nothing in KRS 337.420 to 15 337.433 and 337.990(9)[337.990(11)] shall apply to any employer who is subject to 16 the federal Fair Labor Standards Act of 1938, as amended, when that act imposes 17 comparable or greater requirements than contained in KRS 337.420 to 337.433 and 18 337.990(9)[337.990(11)] and when the employer files with the commissioner of the 19 Department of Workplace Standards a statement that the employer is covered by the 20 federal Fair Labor Standards Act of 1938, as amended. 21 (2) An employer who is paying a wage differential in violation of KRS 337.420 to 22 337.433 and 337.990(9)[337.990(11)] shall not, in order to comply with it, reduce 23 the wage rates of any employee. 24 (3) No person shall cause or attempt to cause an employer to discriminate against any 25 employee in violation of KRS 337.420 to 337.433 and 337.990(9)[337.990(11)]. 26 (4) No employer may discharge or discriminate against any employee by reason of any 27 UNOFFICIAL COPY 24 RS BR 1905 Page 19 of 21 XXXX 2/8/2024 1:11 PM Jacketed action taken by such employee to invoke or assist in any manner the enforcement of 1 KRS 337.420 to 337.433 and 337.990(9)[337.990(11)]. 2 Section 11. KRS 337.425 is amended to read as follows: 3 (1) For this purpose, the commissioner, or the commissioner's authorized 4 representative, may enter the place of employment of any employer to inspect and 5 copy payrolls and other employment records, to compare character of work and 6 operations on which persons employed by him or her are engaged, to question such 7 persons, and to obtain other information necessary to the administration and 8 enforcement of KRS 337.420 to 337.433 and 337.990(9)[337.990(11)]. 9 (2) The commissioner or the commissioner's authorized representative may examine 10 witnesses under oath, and require by subpoena the attendance and testimony of 11 witnesses and the production of any documentary evidence relating to the subject 12 matter of any investigation undertaken pursuant to KRS 337.420 to 337.433 and 13 337.990(9)[337.990(11)]. If a person fails to attend, testify or produce documents 14 under or in response to a subpoena, the Circuit Court in the judicial circuit where 15 the hearing is being held, on application of the commissioner or the commissioner's 16 representative, may issue an order requiring the person to appear before the 17 commissioner or the commissioner's authorized representative, or to produce 18 documentary evidence, and any failure to obey the order of the court may be 19 punished by the court as contempt. 20 (3) The commissioner may endeavor to eliminate pay practices unlawful under KRS 21 337.420 to 337.433 and 337.990(9)[337.990(11)] by informal methods of 22 conference, conciliation and persuasion, and supervise the payment of wages owing 23 to any employee under KRS 337.420 to 337.433 and 337.990(9)[337.990(11)]. 24 (4) The commissioner may issue regulations not inconsistent with the purpose of KRS 25 337.420 to 337.433 and 337.990(9)[337.990(11)], necessary or appropriate to carry 26 out its provisions. 27 UNOFFICIAL COPY 24 RS BR 1905 Page 20 of 21 XXXX 2/8/2024 1:11 PM Jacketed Section 12. KRS 337.427 is amended to read as follows: 1 (1) Any employer who violates the provisions of KRS 337.423 shall be liable to the 2 employee or employees affected in the amount of their unpaid wages, and in 3 instances of willful violation in employee suits under subsection (2) of this section, 4 up to an additional equal amount as liquidated damages. 5 (2) Action to recover the liability may be maintained in any court of competent 6 jurisdiction by any one (1) or more employees for and in behalf of himself, herself, 7 or themselves and other employees similarly situated. The court in the action shall, 8 in cases of violation in addition to any judgment awarded to the plaintiff or 9 plaintiffs, allow a reasonable attorney's fee to be paid by the defendant, and costs of 10 the action. 11 (3) An agreement by any employee to work for less than the wage to which the 12 employee is entitled under KRS 337.420 to 337.433 and 337.990(9)[337.990(11)] 13 shall not be a bar to any such action, or to a voluntary wage restitution of the full 14 amount due under KRS 337.420 to 337.433 and 337.990(9)[337.990(11)]. 15 (4) At the written request of any employee claiming to have been paid less than the 16 wage to which he may be entitled under KRS 337.420 to 337.433 and 17 337.990(9)[337.990(11)], the commissioner may bring any legal action necessary in 18 behalf of the employee to collect the claim for unpaid wages. The commissioner 19 shall not be required to pay the filing fee, or other costs, in connection with the 20 action. The commissioner shall have power to join various claims against the 21 employer in one (1) cause of action. 22 (5) In proceedings under this section, the court may order other affirmative action as 23 appropriate, including reinstatement of employees discharged in violation of KRS 24 337.420 to 337.433 and 337.990(9)[337.990(11)]. 25 (6) The commissioner may on his or her own motion petition any court of competent 26 jurisdiction to restrain violations of KRS 337.423, and petition for such affirmative 27 UNOFFICIAL COPY 24 RS BR 1905 Page 21 of 21 XXXX 2/8/2024 1:11 PM Jacketed relief as the court may deem appropriate, including restoration of unpaid wages and 1 reinstatement of employees, consistent with the purpose of KRS 337.420 to 337.433 2 and 337.990(9)[337.990(11)]. 3 Section 13. KRS 337.430 is amended to read as follows: 4 Court action under KRS 337.420 to 337.433 and 337.990(9)[337.990(11)] may be 5 commenced no later than six (6) months after the cause of action occurs. 6 Section 14. KRS 337.433 is amended to read as follows: 7 Every person subject to KRS 337.420 to 337.433 and 337.990(9)[337.990(11)] shall keep 8 an abstract or copy of KRS 337.420 to 337.433 and 337.990(9)[337.990(11)] posted in a 9 conspicuous place in or about the premises where any employee is employed. Employers 10 shall be furnished copies or abstracts of KRS 337.420 to 337.433 and 11 337.990(9)[337.990(11)] by the state on request without charge. 12 Section 15. The following KRS sections are repealed: 13 337.050 Time and a half for work done on seventh day of week -- Exceptions. 14 337.355 Lunch period requirements. 15 337.365 Rest periods for employees. 16