Understanding Paid Time Off (PTO) and leave policies under Kentucky Leave Laws is essential for both employers and employees. Kentucky Leave Laws provides flexibility in managing vacation, sick leave, and other types of leave, including “Day Off,” allowing companies to customize their policies. This guide covers key aspects of PTO, including vacation accrual, sick leave, maternity and paternity leave, and other time off, helping you navigate leave entitlements in Kentucky. Whether you’re crafting company policies or understanding your rights as an employee, this article provides the essential insights you need.
Paid Time Off (PTO) in Kentucky
Vacation Leave Quota
In Kentucky, there are no legally mandated vacation days. The state law does not require employers to provide vacation time or compensation for unused vacation days. This means that private sector employers in Kentucky are not obligated to offer paid or unpaid vacation leave to their employees. The decision to offer vacation leave is entirely at the discretion of each individual company. However, if an employer decides to provide vacation leave, they must adhere to relevant state laws, established company policies, and the terms of employment contracts.
Accrual
While vacation accrual is not mandatory in Kentucky, it is a common practice among employers. Companies are generally free to create their own vacation accrual systems, which can be based on weekly, semi monthly, or monthly increments, typically aligned with the pay period.
Employers may also impose caps on the amount of leave an employee can accrue, limiting the total number of vacation hours an employee can accumulate. There is no federal or state law in Kentucky that requires employers to pay out an employee’s accrued vacation or other PTO upon termination of employment.
Roll Over
In Kentucky, a Use It or Lose It policy is not prohibited by law, which means that employers are not required to allow employees to carry over unused vacation leave into the next year. This policy means that employees could potentially lose their remaining vacation days if they do not use them by the end of the year. Despite this, employers must ensure that employees have the opportunity to take their vacation time and be informed of the Use It or Lose It policy.
Statutory Provisions Addressing Vacation Pay
Vacation benefits in Kentucky are governed by the employment contract between the employer and employee. If an employer offers “vested vacation pay,” it is considered regular wages.
Payment of Accrued, Unused Vacation on Termination
Kentucky leave laws does not require employers to pay out accrued vacation time upon an employee’s termination. However, if an employer’s policy includes “vested vacation pay,” the employer is obligated to compensate the departing employee for any unused vacation time, regardless of whether the employee was terminated or resigned voluntarily. The terms of when and how vacation time vests depend on the company’s policies or any written agreements between the employer and the employee.
Payout
Employers are required to pay for accrued, unused vacation time upon termination only if their company policy explicitly promises this payout.
Sick Leave in Kentucky
Federal Law – Leave Quota
Under federal law, specifically the Family and Medical Leave Act (FMLA), eligible employees are entitled to up to 12 weeks of unpaid, job-protected sick leave. This leave can be used for personal medical reasons, to care for a close family member with a serious health condition, or for maternity or paternity leave.
Employees are eligible for FMLA leave if they have worked for their employer for at least 12 months, with a minimum of 25 hours per week or 1,250 hours in the past year, and work at a location with at least 50 employees within a 75-mile radius.
Kentucky State Laws
Kentucky does not require private employers to provide paid or unpaid sick leave. However, many employers, particularly larger companies, do offer sick leave as an important employee benefit. While Kentucky adheres to the FMLA, there are no additional state laws mandating sick leave. If an employer chooses to provide sick leave benefits, they must comply with the terms outlined in employment contracts or employee handbooks, potentially creating a legal obligation to provide such leave.
Maternity, Paternity, and FMLA in Kentucky
Federal Law
The FMLA also provides up to 12 weeks of unpaid leave for maternity or paternity purposes following the birth or adoption of a child. Unless otherwise specified by the employer, this leave must be taken in a continuous block. Eligibility requirements for FMLA leave include having worked for the employer for at least 12 months and at a location with at least 50 employees within a 75-mile radius.
The Pregnancy Discrimination Act (PDA) further protects pregnant employees from discrimination in all aspects of employment, including hiring, firing, pay, job assignments, promotions, and leave policies.
Additional State Laws in Kentucky
Kentucky has specific laws regarding adoption leave. Employers in the state are required to provide employees with six weeks of personal leave following the adoption of a child under 10 years of age. If an employer offers more than six weeks of leave for the birth of a biological child, they must extend the same amount of leave to adoptive parents. Additionally, adoptive parents must receive the same type, amount, and length of paid leave and benefits as biological parents. Employees must submit a written request to their employer to be granted adoption leave.
The Kentucky Civil Rights Act (KCRA) mandates that employers with at least 15 employees provide reasonable accommodations for workers affected by pregnancy or childbirth. These accommodations may include more frequent breaks, modified work schedules, and a private space for expressing breast milk.
Payout
Maternity leave in Kentucky is generally unpaid.
Bereavement Leave in Kentucky (Funeral Leave)
Kentucky does not require employers to provide bereavement leave. Bereavement leave allows employees to take time off following the death of a close family member. Although no federal or state law mandates paid or unpaid bereavement leave, employers who offer it must adhere to any established bereavement policies.
Payout
Bereavement leave in Kentucky is typically unpaid.
Jury Duty Leave in Kentucky
Employers in Kentucky are required to excuse employees from work to serve on a jury. This leave is job protected but unpaid. Employees may be required to provide their employer with a jury summons to be granted the necessary leave. Employers cannot penalize employees for missing work due to jury duty.
Payout
Jurors in Kentucky receive a daily stipend of $12.50 from the court for their service. Employers are not required to pay employees during jury duty leave, although many choose to do so due to the importance of civic duty.
Military Leave in Kentucky
Federal Law
The Uniformed Services Employment and Reemployment Rights Act (USERRA) is a federal law that provides leave rights to public and private employees with military obligations. It applies to all employers in the United States and protects National Guard and reserve members. USERRA ensures that employees can return to their previous or an equivalent position after military leave, with their seniority and benefits intact.
Kentucky State Law
Kentucky law may offer additional protections, benefits, and rights beyond those provided by USERRA. Members of the Kentucky National Guard, or the National Guard of any other state, are entitled to unlimited leave for training or active duty, with the right to return to their previous position with the same seniority, status, pay, and benefits. Employers are prohibited from discriminating against employees for their military service.
Payout
Military leave in Kentucky is unpaid.
Voting Leave in Kentucky
Kentucky law requires employers to provide employees with at least four hours of unpaid leave to vote in any election. Employers may specify the hours during which employees may take this leave. However, employees must apply for leave one day before the election. Employers cannot penalize employees for taking time off to vote, but they may take disciplinary action if the employee fails to vote without a valid reason.
Payout
Voting leave in Kentucky is unpaid.
Kentucky State Holidays in 2026
Kentucky law does not require private employers to provide paid or unpaid holiday leave. While many employers offer at least seven paid holidays, there is no legal obligation to do so. Private employers may require employees to work on holidays without providing premium pay unless the employee qualifies for overtime under standard overtime laws.
Kentucky officially observes 13 state holidays.
FAQ
Does Kentucky law require employers to provide paid vacation leave?
No. Kentucky law does not require employers to provide paid or unpaid vacation leave. However, if an employer offers vacation benefits, they must follow their written policy or employment agreement regarding accrual, use, and payout.
Are employers required to pay out unused vacation time when an employee leaves?
Yes, if the employer’s policy or contract specifies that unused vacation will be paid out upon termination, the employer must honor it. If the policy does not mention payout, the employer is not legally obligated to compensate for unused days.
Does Kentucky have a paid sick leave law?
No. Kentucky does not currently have a statewide paid sick leave law for private sector employees. However, individual employers may choose to offer paid or unpaid sick leave as part of their benefits package.
Does Kentucky have a paid family and medical leave program?
No. Kentucky does not have a state run paid family and medical leave program. Eligible employees may still take unpaid, job protected leave under the federal Family and Medical Leave Act (FMLA).
Is maternity or paternity leave paid in Kentucky?
No, Kentucky does not mandate paid maternity or paternity leave. However, employees may use accrued paid time off or vacation days during FMLA leave if allowed by company policy.
Are employers required to provide bereavement leave in Kentucky?
No. Bereavement leave is not required by Kentucky state law. Employers who offer this type of leave must comply with their internal policy or employee handbook terms.
Are employees entitled to jury duty leave in Kentucky?
Yes. Employers must provide employees with time off to serve on a jury. Employers cannot penalize or terminate employees for jury service. However, Kentucky law does not require employers to pay employees during jury duty.
Are employees entitled to voting leave in Kentucky?
Yes. Employees who are registered voters in Kentucky must be given at least four hours of unpaid leave to vote or to serve as election officers. Employers may determine the specific hours the employee can take off.
Are employers required to provide paid holiday leave in Kentucky?
No. Private employers are not legally required to provide paid or unpaid holiday leave. However, many businesses voluntarily offer paid holidays as part of their employee benefits.
What public holidays are observed in Kentucky?
Kentucky recognizes the following holidays for state employees:
New Year’s Day
Martin Luther King Jr. Day
Good Friday
Memorial Day
Independence Day
Labor Day
Veterans Day
Thanksgiving Day and the following Friday
Christmas Eve and Christmas Day
Do state employees in Kentucky get additional holidays?
Yes. State employees may receive additional days off as declared by the Governor, such as the Friday after Thanksgiving or extra time during the Christmas holiday season.
How can the Day Off app help Kentucky businesses manage leave and holidays?
The Day Off app simplifies leave and absence management for Kentucky employers by tracking PTO, vacation, sick days, and holidays in one centralized platform. It automates requests, approvals, and reporting while ensuring compliance with company policies and improving team transparency.