When planning time off in 2025, it’s important for employees and employers in Kentucky to be aware of Kentucky Leave Laws, holiday regulations, and tools like Day Off to manage their time efficiently. Kentucky offers a range of leave types, from paid time off (PTO) and sick leave to specific leaves for military service, jury duty, and more. Understanding the legal requirements for leave, including accrual rates, rollover options, and payment of unused leave upon termination, can help both workers and businesses navigate the year ahead. This article covers everything you need to know about Kentucky Leave Laws, holidays in 2025, and how Day Off can simplify leave tracking.
Paid Time Off (PTO) in Kentucky
Leave Quota
The amount of PTO an employee is eligible for, known as the leave quota, varies widely depending on the employer. Kentucky law does not require businesses to provide a minimum amount of PTO, so companies establish their own leave quotas based on factors such as:
- Years of Service: Many companies offer increasing amounts of PTO as an employee gains tenure. For example, an entry-level employee may receive 10 days of PTO per year, while someone with 5-10 years of service might be entitled to 15 or even 20 days annually.
- Job Role and Seniority: Higher-level positions or employees in executive roles may be offered more generous PTO quotas, while part-time employees typically receive fewer days or may not be eligible for PTO at all.
- Company Size and Industry: Larger corporations or industries with more competitive work environments may offer higher PTO quotas to attract and retain talent. For instance, tech companies and large corporations might offer 20-30 days of PTO annually.
Some companies also integrate other types of leave, such as sick leave or personal days, into the overall PTO quota, giving employees more flexibility in managing their time off.
Accrual
In Kentucky, most employers use an accrual system for PTO, which allows employees to earn time off incrementally. Common accrual methods include:
- Per Pay Period Accrual: Employees earn a set number of PTO hours based on each pay period. For example, an employee may earn 4 hours of PTO per biweekly pay period, equating to 104 hours or 13 days per year.
- Monthly or Annual Accrual: Some companies prefer to allow employees to earn a portion of their PTO on a monthly or annual basis. For instance, an employee might earn 1 day of PTO per month, which totals 12 days by the end of the year.
- Front-Loading PTO: In certain cases, employers may “front-load” PTO at the beginning of the year, giving employees immediate access to their total allotted PTO for the year. This allows employees to plan vacations and time off in advance, although if an employee leaves the company before fully earning their PTO, some employers may require repayment for any excess PTO used.
Accrual systems are typically outlined in the employee handbook or employment contract, providing transparency on how much PTO can be earned over time.
Rollover
Kentucky employers are not required by law to allow unused PTO to rollover to the next year, but many companies offer this as a benefit. There are three main approaches employers may take regarding rollover:
- Limited Rollover: Employees can carry over unused PTO into the next year, but only up to a certain limit. For example, an employer may allow a maximum of 40 hours (5 days) of unused PTO to roll over, with anything above that forfeited.
- Unlimited Rollover: A more flexible option, this allows employees to roll over all unused PTO to the next year. However, employers may still cap the total amount of PTO that can be accumulated.
- Use-It-Or-Lose-It Policy: Some employers adopt a “use-it-or-lose-it” policy, where employees must use their PTO within the calendar or fiscal year or forfeit any unused time. This encourages employees to take time off regularly rather than letting it accumulate indefinitely.
It’s important for employees to understand their company’s rollover policy so they can plan their time off accordingly. Many employers provide a grace period or a deadline by which unused PTO must be used to prevent loss.
Payment of Accrued, Unused Vacation on Termination
The payment of accrued, unused vacation time upon termination of employment is a complex issue in Kentucky, as the state does not have specific laws mandating this. However, certain scenarios commonly arise:
- Employer Policies: Many companies have policies that dictate whether employees will be paid for unused PTO when they leave. If an employer’s policy explicitly states that unused PTO will be paid out at termination, the employer is legally required to honor this policy. For example, an employee with 10 days of accrued, unused vacation may receive payment for those days in their final paycheck.
- Written Contracts: In some cases, individual employment contracts or collective bargaining agreements may guarantee the payment of unused vacation time upon termination. This often applies to higher-level employees or those in unionized industries.
- Discretionary Payment: In the absence of a written policy, some employers may choose to pay out accrued PTO as a gesture of goodwill, even though it is not legally required.
Kentucky employers should clearly outline their PTO policies, including accrual, rollover, and payout conditions, in employee handbooks to ensure transparency and prevent disputes. Employees are encouraged to review these policies carefully, particularly when planning to take extended leave or when approaching the end of their employment.
Sick Leave in Kentucky
Federal Laws
The federal government does not mandate a specific number of paid sick days for employees in private companies. However, there are key federal regulations that protect employees in certain situations, such as the Family and Medical Leave Act (FMLA).
Family and Medical Leave Act (FMLA): Under the FMLA, eligible employees are entitled to up to 12 weeks of unpaid, job-protected leave per year for serious health conditions, including their own or a family member’s illness. While this law guarantees job security during extended health-related absences, it does not require employers to provide paid sick leave.
- Eligibility for FMLA: To qualify for FMLA leave, an employee must work for an employer with at least 50 employees within a 75-mile radius and have worked at least 1,250 hours over the past 12 months.
- FMLA Qualifying Conditions: In addition to illness, FMLA leave can be used for childbirth, adoption, or to care for a spouse, child, or parent with a serious health condition.
Paid Sick Leave for Federal Contractors: Executive Order 13706 requires certain federal contractors to provide their employees with up to 7 days of paid sick leave per year. This leave can be used for the employee’s health needs, to care for a family member, or for issues related to domestic violence, sexual assault, or stalking.
While the FMLA offers job protection during illness or medical emergencies, it is important to note that paid sick leave is largely dependent on employer policies in Kentucky, unless an employee works for a covered federal contractor.
State Laws
Kentucky does not have a statewide law mandating paid sick leave for employees in private companies, leaving it to employers to establish their own policies. However, public sector employees, like government workers, often have different sick leave policies established at the state level.
Public Sector Employees: Kentucky state employees are generally entitled to paid sick leave. Full-time public employees accrue sick leave at a rate set by the state, which can typically be around 1 day per month of service. Unused sick leave can often roll over from year to year, allowing public employees to accumulate a substantial bank of sick leave over time.
Private Sector Employees: For private sector employees, the decision to offer paid sick leave is left to the employer. Many businesses voluntarily offer paid sick leave as part of their benefits package to remain competitive and attract talent. Common practices include offering 5-10 days of sick leave per year, with some companies allowing unused sick days to roll over to the next year.
Accrual and Usage: In companies that provide paid sick leave, the accrual method can vary. Employees might earn sick days over time, such as 1 day per month, or be given a full quota of sick days at the beginning of the year. Sick leave can be used for personal illness, doctor appointments, or caring for a sick family member.
Maternity, Paternity, FMLA in Kentucky
Federal Laws
Family and Medical Leave Act (FMLA)
The primary federal law governing parental leave is the Family and Medical Leave Act (FMLA). Under the FMLA, eligible employees are entitled to up to 12 weeks of unpaid, job-protected leave per year for specific family and medical reasons, including:
- The birth of a child and care for the newborn within the first year of life.
- The placement of a child for adoption or foster care and care for the child within the first year of placement.
- Caring for a spouse, child, or parent with a serious health condition.
Eligibility for FMLA:
To qualify for FMLA leave, employees must meet certain criteria:
- Employer Size: The employee must work for a company with 50 or more employees within a 75-mile radius.
- Work Duration: The employee must have worked for the employer for at least 12 months and completed 1,250 hours of service during that time.
FMLA for Maternity and Paternity Leave:
- FMLA guarantees unpaid leave, meaning employees are not entitled to any wages during their time off unless they use other paid leave options, such as accrued paid time off (PTO), vacation days, or sick leave. Some employers may allow or require employees to use paid leave concurrently with FMLA.
- The FMLA applies equally to mothers and fathers, allowing both parents to take time off to bond with their newborn or newly adopted child.
- FMLA provides job protection, meaning employees are entitled to return to their same or equivalent position after their leave ends.
State Laws
Kentucky leave laws, like many other states, does not currently have state-specific laws that mandate paid maternity or paternity leave. However, state employees and teachers often receive more generous benefits compared to those in the private sector.
Public Sector and Government Employees:
- State Employees: Kentucky state employees typically have access to paid sick leave or vacation time, which can be used in combination with FMLA leave. Public employees may also receive additional benefits like short-term disability insurance to help cover wages during maternity or paternity leave.
- School Employees: Teachers and school employees often have sick leave policies that allow them to take time off for childbirth and recovery, but these policies are specific to individual school districts and employment contracts.
While Kentucky does not offer mandated paid parental leave, some private employers voluntarily provide paid maternity and paternity leave benefits to attract and retain employees. These benefits are often outlined in employee handbooks or company policies and may include:
- Paid Parental Leave: Some employers offer a set number of weeks of paid parental leave for new mothers, fathers, or adoptive parents.
- Short-Term Disability: Many companies provide access to short-term disability insurance, which covers a portion of a new mother’s wages during maternity leave for childbirth and recovery.
Additional Support for Parents
Though there is no mandated paid leave in Kentucky, employees who take unpaid FMLA leave may still be able to receive financial assistance through other programs:
- Short-Term Disability Insurance: If offered by the employer, this insurance typically covers a portion of the employee’s salary (usually 50-70%) during maternity leave, often for up to 6-8 weeks after childbirth. This benefit is more commonly available to mothers for recovery from childbirth.
- Paid Sick Days and Vacation Time: Employees may use their accrued paid sick leave or vacation days during maternity or paternity leave to receive income during their absence. Employers must specify if they require employees to use paid leave concurrently with FMLA leave.
Employer Policies on Maternity and Paternity Leave
In the absence of state-mandated paid parental leave, Kentucky employers have the flexibility to design their own maternity and paternity leave policies. Many large companies, particularly in competitive industries, offer generous leave benefits to attract and retain talent. These policies often include:
- Paid Parental Leave: Some companies provide paid parental leave beyond the FMLA-required unpaid leave, often offering 6 to 12 weeks of paid leave for new parents.
- Flextime or Remote Work: In some cases, employers may offer flexible work schedules or the option to work remotely for a certain period after the birth or adoption of a child.
- Extended Leave Options: Certain employers may allow parents to take additional unpaid leave beyond the FMLA period, giving new parents more flexibility in balancing work and family responsibilities.
Bereavement Leave in Kentucky
In 2025, Kentucky does not have specific state laws mandating bereavement leave for employees, leaving the provision of this benefit largely at the discretion of employers. Many companies, however, offer bereavement leave as part of their benefits package, typically allowing employees to take 3 to 5 days of paid time off following the death of an immediate family member. Some employers may extend this leave for more distant relatives or offer additional unpaid leave depending on company policy or employee needs. Public sector employees, such as state or government workers, often have formal bereavement leave policies in place, ensuring time off for grieving. It is important for employees in Kentucky to review their employer’s specific policies to understand their rights to bereavement leave in 2025.
Jury Duty Leave in Kentucky
In 2025, Kentucky leave laws requires employers to provide jury duty leave to employees summoned for jury service. Under Kentucky Revised Statutes, employees are entitled to time off for the duration of their jury duty, and employers are prohibited from penalizing or terminating employees for serving. While employers are not mandated to pay employees during their time on jury duty, many businesses offer paid leave for this civic duty as part of their benefits package. Public sector employees, such as state and government workers, typically receive paid jury duty leave. Employees should check their company’s specific jury duty leave policy to determine whether they will receive compensation during their service. Regardless of compensation, employers must allow employees to fulfill their jury duty obligations without retaliation.
Military Leave in Kentucky
In 2025, employees in Kentucky who serve in the military are protected under both federal and state laws that ensure they can take military leave without risking their civilian employment. Under the Uniformed Services Employment and Reemployment Rights Act (USERRA), employees called to active duty, training, or other military obligations are entitled to unpaid leave and job protection. Kentucky also has state laws that provide additional protections for members of the National Guard and Reserves. Public sector employees, including state and local government workers, may be entitled to paid military leave, often up to 21 days per year, depending on the circumstances. Upon returning from military service, employees are entitled to be reinstated to their previous position or an equivalent one, as long as certain eligibility requirements are met. Employers in Kentucky must ensure compliance with both federal and state regulations to support employees serving in the military.
Voting Leave in Kentucky
In 2025, Kentucky leave laws ensures that employees are granted voting leave to exercise their right to vote in local, state, and federal elections. Employers are required to provide employees at least four hours of leave to vote or to request an absentee ballot, provided that the employee’s request for time off is made prior to Election Day. This leave is typically unpaid, unless company policies state otherwise. Employers may specify the time during the day when leave can be taken, as long as it does not unduly interfere with the employee’s ability to vote. Kentucky law prohibits employers from penalizing or disciplining employees for taking voting leave, ensuring workers can participate in the democratic process without fear of retaliation.
Kentucky State Holidays in 2025
In 2025, Kentucky leave laws will observe several state holidays during which government offices and many businesses may close or operate on limited hours. Kentucky leave laws does not mandate that private employers provide paid time off for state holidays, many companies choose to offer paid holiday leave as part of their benefits package. Public sector employees, however, generally receive paid time off on state holidays. Employees should check with their employer’s specific holiday schedule to understand which days are observed and whether they are eligible for paid leave on these days.
Holiday
New Year’s Day
Martin Luther King Jr. Day
Presidents’ Day
Memorial Day
Independence Day
Labor Day
Veterans Day
Thanksgiving Day
Day After Thanksgiving
Christmas Day
Date
Wednesday, January 1
Monday, January 20
Monday, February 17
Monday, May 26
Friday, July 4
Monday, September 1
Tuesday, November 11
Thursday, November 27
Friday, November 28
Thursday, December 25