Hiring New Employees in Kentucky: A Legal Guide for Employers

Create a job posting that complies with Kentucky employment laws. Avoid discriminatory language based on protected characteristics (race, color, religion, national origin, sex, pregnancy, age, disability). Kentucky follows federal anti-discrimination laws and does not have additional protected classes at the state level.

Create an application form that collects necessary information while complying with Kentucky laws. Avoid questions about age, race, religion, disability, or other protected characteristics. In Kentucky, employers may ask about criminal history, but it's best practice to delay this inquiry until after an initial screening or interview.

When interviewing candidates, ensure all questions are job-related and non-discriminatory. Document the selection process and reasons for hiring decisions to protect against potential discrimination claims.

Draft an offer letter that outlines the position, compensation, benefits, start date, and employment relationship (at-will status). Kentucky is an at-will employment state, meaning either party can terminate the employment relationship at any time without cause, unless specified otherwise in a contract.

If offering more than at-will employment, draft an employment contract that clearly outlines terms, duration, responsibilities, compensation, benefits, termination conditions, and any restrictive covenants. Not all employees need an employment contract in Kentucky, as at-will employment is the default.

If the employee will have access to confidential information, prepare an NDA that protects your business interests. In Kentucky, NDAs are generally enforceable if they're reasonable in scope and duration and protect legitimate business interests.

If necessary, draft a non-compete agreement. In Kentucky, non-compete agreements are enforceable if they're reasonable in geographic scope, time duration, and protect legitimate business interests. Courts may modify overly broad agreements to make them reasonable rather than invalidating them entirely.

Create a form that complies with the Fair Credit Reporting Act (FCRA) if you plan to conduct background checks. This requires clear disclosure and written authorization from the applicant. Kentucky follows federal guidelines on background checks.

Prepare to verify the employee's eligibility to work in the United States. Federal law requires all employers to verify employment eligibility regardless of the employee's citizenship or national origin.

Federal law requires employers to verify an employee's identity and employment authorization using Form I-9 within 3 business days of the start of employment. The employee must complete Section 1 on or before their first day, and you must complete Section 2 within 3 business days of the start date.

Have the new employee complete the federal W-4 form to determine federal income tax withholding. This is required for all new employees.

Kentucky requires employees to complete the K-4 form for state income tax withholding. This form determines how much state income tax to withhold from the employee's paycheck.

Kentucky law requires employers to report all newly hired or rehired employees to the Kentucky New Hire Reporting Center within 20 days of hire. This can be done online through the Kentucky Career Center website or by submitting the New Hire Reporting Form.

Kentucky law requires most employers to carry workers' compensation insurance. Add your new employee to your workers' compensation policy. In Kentucky, employers with one or more employees must provide workers' compensation coverage.

If this is your first employee, register with the Kentucky Office of Unemployment Insurance. All employers in Kentucky must pay unemployment insurance taxes if they have employees.

If offering direct deposit, prepare an authorization form. In Kentucky, employers cannot require employees to receive wages via direct deposit, but can offer it as an option with proper authorization.

If offering benefits such as health insurance, retirement plans, or other voluntary benefits, prepare the necessary enrollment forms. In Kentucky, employers are not required to provide these benefits but must comply with federal laws like ERISA and the ACA if they do.

Create a form to collect emergency contact information. While not specifically required by Kentucky law, this is a best practice for workplace safety and emergency preparedness.

Create or update your employee handbook to include company policies, procedures, and expectations. While not legally required in Kentucky, a handbook helps establish clear workplace policies and can provide legal protection. Include policies on anti-discrimination, harassment, leave, safety, and other workplace matters. Make sure policies comply with both Kentucky and federal laws.

Kentucky employers must display certain federal and state posters in a conspicuous location. These include federal posters (minimum wage, FMLA, OSHA, etc.) and Kentucky-specific posters (unemployment insurance, workers' compensation, child labor laws, etc.). These can be obtained from the Kentucky Labor Cabinet.

Provide orientation for the new employee, covering company policies, safety procedures, and job expectations. Have the employee sign acknowledgments of receipt for the employee handbook and other policy documents.

Ensure your payroll system is set up to properly withhold federal, state, and local taxes. Kentucky has state income tax and some localities have occupational license taxes or other local taxes. Make sure you're withholding the correct amounts based on the employee's W-4 and K-4 forms.

Ensure compliance with Kentucky wage and hour laws. Kentucky follows the federal minimum wage ($7.25/hour) and overtime requirements (time-and-a-half for hours worked over 40 in a workweek). Kentucky law requires employers to pay employees at least twice a month, with no more than 18 days between paydays.