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Kentucky Updates

 

Consumer Data Protection Act

 
Effective January 1, 2026, the Kentucky Consumer Data Protection Act (the Act) gives Kentucky residents privacy rights with respect to their personal data and establishes certain requirements and limitations for covered businesses.

The Act's protections do not apply to individuals acting in an employment context or to employment-related data.

 

Previous Updates

 

Safety and Health Standards Aligned With Federal Law

 
Kentucky law prohibits the adoption of new occupational safety and health regulations that are more stringent than federal law. Effective June 27, 2025, Kentucky also prohibits the enforcement of any state occupational safety and health regulation that is more stringent than federal law or that federal OSHA has not already adopted.

 

 

Legalizes Medical Use of Marijuana

 
Effective January 1, 2025, Kentucky legalizes the medical use of cannabis by qualified patients with specified medical conditions who register to become cardholders authorized to purchase and use cannabis.

Employers remain able to establish policies and procedures to limit the use of cannabis in the workplace. The law contains extensive employer protections.

Additionally, the law does not require a private workers’ compensation carrier or self-funded employer providing workers' compensation benefits to reimburse a person for costs associated with the use of medicinal cannabis.

 

Lexington CROWN Act

Lexington has become the fourth city in Kentucky to protect hairstyles. The Lexington CROWN Act (Ordinance No. 49-2023), an acronym for "Creating a Respectful and Open World for Natural Hair," expands the definitions of race, religion, and national origin discrimination to include an individual’s natural hair texture, color, head coverings, and protective hairstyles including afros, braids, locs, twists, cornrows, and Bantu Knots.

Frankfort, Louisville, and Covington, Kentucky, have also passed their own versions of the CROWN Act.

 

Kentucky’s Work Share Program

KY employers can now apply for Kentucky’s Work Share Program as a temporary alternative to layoffs if an employer’s production or services have been reduced. The program allows employees to receive unemployment benefits to supplement their wages and hours when reduced by 10% to 40%.

Employers may apply here.

 

Shared Work Program

Effective January 1, 2023, Kentucky's unemployment compensation law is amended to create a shared work program, which allows eligible employers to reduce weekly hours for a group of employees for up to 12 months to avoid layoffs.

 

Medical Marijuana Use Protected

The governor issued an executive order allowing Kentuckians diagnosed with certain medical conditions and receiving palliative care to purchase, possess, and use medical cannabis. Kentucky’s executive order does not prohibit employer policies on employee drug use and testing. It is possible this executive order may be challenged in Kentucky.

 

Tip Pools

Effective July 14, 2022, Kentucky employers may now mandate tip pools (previously only voluntary) under certain circumstances. For example:

 

  • No mixed pools – an employer cannot allow tipped employees to participate in a pool with non-tipped employees (such as back-of-house employees like cook and dishwasher)
  • No management – employers, including managers and supervisors, are prohibited from participating in a tip pool or otherwise keeping employees’ tips

 

Employers taking a tip credit must also be aware of the FLSA’s 80/20 rule, which provides that an employer may lose the tip credit for time spent performing non-tipped side work, such as rolling silverware, in excess of 20% of hours worked. Employers must also pay tipped employees the full minimum wage when they spend at least 30 continuous minutes on duties that do not generate tips.

 

 

New Law Gives Employers Clearance to Hire Workers with Criminal Backgrounds

 

Effective in July 2021, employers can hire qualified applicants with criminal records without fearing legal liabilities. HB497, created a certificate of employability program for eligible individuals to encourage second-chance employment opportunities. The Department of Corrections will equip persons leaving incarceration that meet the necessary requirements with a certificate.

 

The bill provides legal protection from negligent-hiring lawsuits if an employer decides to hire certificate of employability holders, and allows them to assess a formerly incarcerated individual based on their qualifications like any other applicant.

 

Kentucky Expands Adoption Leave Protections

Kentucky law is amended to provide that if an employer's leave policy provides time off for birth parents that is greater than six weeks, that period of time must be the minimum period of leave available to adoptive parents.

 

The law has also been amended to allow employees to use leave for the adoption of a child under the age of 10 (currently, leave is available for a child under the age of seven).

 

If an employer provides paid leave or any other benefits to employees who are birth parents following the birth of a child, it must also provide the same type, amount, and duration of paid leave and other benefits to employees following the adoption of a child.

 

This does not apply to an adoption by a fictive kin (unrelated by birth, adoption or marriage), stepparent, stepsibling, blood relative including a relative of half-blood, first counsel, aunt, uncle, nephew, niece, and a person of a preceding generation (e.g. grandparent, great grandparent, or great-great-grandparent), or a foster parent who adopts a foster child who is already in their care.

 

The amendments take effect June 29, 2021, or 90 days after the Kentucky legislature adjourns (i.e., March 30, 2021).