Federal Leave Laws

• The U.S. Department of Labor administers labor regulations for private employers through the Fair Labor Standards Act (FLSA). The FLSA does not regulate leave benefits or employment practices governing vacation time, sick pay, holidays and severance. The FLSA does not require employers to provide vacation leave to its employees nor does it require employers who provide vacation leave to pay their employees for their leave absences. The FLSA allows states to implement their own employment policies regarding vacation leave or paid vacation leave.
  
  

Other Time Not Worked

• There is no legal requirement in the Kentucky Wage and Hour Regulations that require employers to pay employees for time not worked except for Kentucky's labor law requiring employers to pay for a 10-minute rest break for every four hours worked. Employers are required to provide their employees with an unpaid lunch break for a "reasonable amount of time" as close to the middle of their shifts as possible.
  
  

Employer Policies

• Although the federal labor laws and Kentucky's labor laws do not require paid vacation time, employers may voluntarily provide their employees with a paid vacation policy. These agreements can be between the employer and employee or they can be regulated through collective bargaining agreements for employees who are represented through collective bargaining units or unions.
  
  

Final Paycheck

• According to the Kentucky Revised Statutes Section 337.055, Kentucky employers must provide all employees who are terminated or voluntarily leave their jobs with their final paychecks within 14 days or by the next paycheck period, whichever occurs later. Kentucky law allows employers to provide their own vacation policies and payout rules for unused and accrued vacation payouts upon termination of employment. Kentucky law does not require employers to pay employees for unused vacation time upon termination.
  
  

Considerations

• Since employment laws frequently change, you should not use this information as a substitute for legal advice. Seek advice through an attorney licensed to practice law in your jurisdiction.