---
title: "Kentucky Paid Family and Sick Leave 2026 | KRS 337.015"
description: "Kentucky: no state PFL, no paid sick leave. Federal FMLA at 50+ employees only. KRS 337.015 treats accrued vacation as wages on termination. Teamed EOR guide."
canonical: https://www.teamed.global/country-hiring-guides/united-states/kentucky/paid-family-and-sick-leave
---

United States · Kentucky · Leave child

Served by Teamed partner network: SUNA Solutions (primary US partner)

# Does *Kentucky require paid family or sick leave* in 2026?

No state mandate. Federal FMLA at 50+ employees is the only floor. KRS 337.015 makes vacation accrual a wage liability on termination.

Last reviewed 30 May 2026 · Kentucky, United States guide

![Street view of buildings and cars in Kentucky under a cloudy sky.](/images/country-guides/ky-paid-leave.webp)

Photo: [Cristina Anne Costello](https://unsplash.com/@lightupphotos?utm_source=teamed&utm_medium=referral) via Unsplash · Kentucky

Answer.cite this

Kentucky mandates **no state paid family leave and no paid sick leave** as of 30 May 2026. The only statutory leave floor is **federal FMLA under 29 U.S.C. § 2601**: 12 weeks unpaid, job-protected, at employers with **50 or more employees within a 75-mile radius**, after 12 months of tenure and 1,250 hours worked. The Kentucky-specific risk most employers overlook is **[KRS 337.015](https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=3485)**, which classifies accrued but unpaid vacation as earned wages. A “use it or lose it” policy without an explicit lump-sum-on-termination exclusion can trigger a wage claim at separation. Teamed administers Kentucky leave through real HR and legal experts at **from $599 per employee per month, Zero FX**, with statutory costs passed through at cost on every invoice.

![A sleeping newborn's feet wrapped in a soft white blanket.](/images/country-guides/ar-paid-leave-polaroid.webp)

Out of office

## Does Kentucky require paid family leave?

Kentucky has no state paid family leave law. No Kentucky PFL statute exists; no payroll deduction fund is established; no benefit claim portal operates in Kentucky.

Kentucky joins the majority of US states that have left paid family leave to voluntary employer policy. [California](/country-hiring-guides/united-states/california/paid-family-and-sick-leave), [Connecticut](/country-hiring-guides/united-states/connecticut/paid-family-and-sick-leave), [Colorado](/country-hiring-guides/united-states/colorado/paid-family-and-sick-leave), [Delaware](/country-hiring-guides/united-states/delaware/paid-family-and-sick-leave), Massachusetts, New Jersey, New York, Oregon, Rhode Island, Washington, and Washington DC all operate funded PFL programmes. Kentucky does not.

There is no Kentucky PFL withholding line on a payslip. Employers who hire in Kentucky face the same choice they face in any no-mandate state: what parental leave does the offer letter say, and how does it compare to remote-first competitors who benchmark against California or New York?

A Louisville-based software team competing with fully remote roles doesn’t get to cite the absence of a state mandate as a competitive anchor. The offer letter carries the full weight of the retention conversation.

### States with paid family leave (Kentucky is not on the list)

| State / jurisdiction | Programme name | Max weeks of paid leave |
| --- | --- | --- |
| California | Paid Family Leave (PFL) | Up to 8 weeks |
| Connecticut | CT Paid Leave | Up to 12 weeks |
| Massachusetts | MA Paid Family and Medical Leave (PFML) | Up to 12 weeks family, 20 weeks medical |
| New Jersey | NJ Family Leave Insurance (FLI) | Up to 12 weeks |
| New York | NY Paid Family Leave | Up to 12 weeks |
| Oregon | Paid Leave Oregon | Up to 12 weeks |
| Rhode Island | Temporary Caregiver Insurance (TCI) | Up to 6 weeks |
| Washington | WA Paid Family and Medical Leave | Up to 12 weeks family, 12 weeks medical |
| Washington DC | DC Paid Family Leave | Up to 12 weeks |
| **Kentucky** | **None** | **0** |

What Kentucky does have: the policy you put in the handbook. Most competitive employers in Kentucky’s knowledge economy offer **8 to 12 weeks of paid parental leave** for primary caregivers and **2 to 4 weeks for secondary caregivers**. That’s not a compliance floor; it’s a market floor.

## Does Kentucky require paid sick leave?

Kentucky has no state paid sick leave law. No Kentucky city or county has a municipal paid sick leave ordinance, either.

Around 20 states and several dozen cities now mandate paid sick leave accrual. Kentucky is not one of them. Louisville, Lexington, and every other Kentucky municipality follow the state-law default: nothing. There is no Kentucky equivalent of the Earned Sick Time Act or a city-level PSL ordinance.

Paid sick leave at a Kentucky employer is entirely what the policy document says it is. Common benchmarks:

| Leave type | Median Kentucky practice | Competitive offer (knowledge workers) | Source / benchmark |
| --- | --- | --- | --- |
| Paid sick leave | 5 days / year accrued | 7 to 10 days / year, often bundled into PTO | SHRM 2025 Employee Benefits Survey |
| Paid parental leave (birth / adoption) | 6 weeks at mid-market | 8 to 12 weeks paid (16+ at top employers) | SHRM 2025; Mercer US data |
| Paid bereavement | 3 days / year | 3 to 5 days / year | SHRM 2025 |
| Paid vacation | 10 days / year after 1 year | 15+ days / year with day-one accrual | US Bureau of Labor Statistics ECEC March 2026 |
| Short-term disability insurance | Optional employer-paid or voluntary | Employer-paid, ~60% wage replacement | SHRM 2025; Mercer |

The gap between "median Kentucky practice" and "competitive offer" is the retention conversation. Kentucky’s 3.5% flat income tax (down from 4.0% in 2025 under HB 1) makes net-pay comparison to higher-tax states a genuine talking point. See how the numbers stack up in our [Kentucky state income tax and UI guide](/country-hiring-guides/united-states/kentucky/state-income-tax-and-unemployment-insurance). The leave package is the other half of the story.

## Does Kentucky require paid vacation payout on termination?

Kentucky Revised Statutes [KRS 337.015](https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=3485) classifies accrued but unused vacation as earned wages. That makes it a wage liability on termination.

KRS

337.015

Kentucky wage law: vacation accrual

**Accrued vacation is wages under Kentucky law.** If an employer’s written policy does not explicitly exclude a lump-sum payout on termination, the full accrued balance may be owed as wages at separation. “Use it or lose it” alone does not satisfy the statute. The exclusion must be explicit and in writing.

This is the Kentucky-specific angle most no-mandate state summaries skip. In [Alabama](/country-hiring-guides/united-states/alabama/paid-family-and-sick-leave), [Arkansas](/country-hiring-guides/united-states/arkansas/paid-family-and-sick-leave), or Kansas, a "use it or lose it" vacation policy is typically self-enforcing at termination because no state statute classifies vacation as wages. In Kentucky, KRS 337.015 puts vacation accrual in the same category as unpaid salary. An employer who forgives the accrual at termination without a written policy exclusion risks a wage claim under the Kentucky Labor Cabinet.

### What this means for your Kentucky vacation policy

Three policy designs that are legally defensible in Kentucky:

1. **Pay out accrued vacation on separation** (all termination types). Clean, unambiguous, common at US multinationals.
2. **"Use it or lose it" + explicit written exclusion of lump-sum payout on termination.** The exclusion must be in the written policy the employee acknowledges. "Use it or lose it" in a handbook with no mention of the termination payout question leaves the question open.
3. **No accrual model** (e.g. unlimited PTO with no formal accrual). If there is no accrual balance, there is no wage claim. Requires careful drafting to avoid de-facto accrual arguments.

One policy design that is not defensible: an accrual schedule that builds a balance, a "use it or lose it" forfeiture rule, and silence on what happens to any unused balance at termination. That’s the gap KRS 337.015 fills in favour of the employee.

Teamed’s Kentucky payroll administration includes real HR and legal experts who review leave policy language during onboarding for this exact point. Your offer letter and handbook wording matter here in a way they don’t in most no-mandate states.

## What does federal FMLA give Kentucky employees?

Federal FMLA gives qualifying Kentucky employees up to **12 weeks of unpaid, job-protected leave** per 12-month period under [29 U.S.C. § 2601](https://www.dol.gov/agencies/whd/fmla). See how this compares in states with funded programmes in our [California paid family and sick leave guide](/country-hiring-guides/united-states/california/paid-family-and-sick-leave) and our [Connecticut paid family and sick leave guide](/country-hiring-guides/united-states/connecticut/paid-family-and-sick-leave). Group health continues at the employer’s normal contribution share.

FMLA applies only to employers with **50 or more employees within a 75-mile radius**. The employee needs **12 months of tenure and 1,250 hours worked** in the preceding 12 months. Below 50 employees, FMLA does not apply. Kentucky has no state mini-FMLA statute that fills the gap.

The 50-employee threshold counts all US employees, not just Kentucky ones. A company with 35 Kentucky employees and 20 employees in Ohio crosses the threshold even though neither state’s headcount reaches it alone.

| Element | Federal FMLA rule | Statute |
| --- | --- | --- |
| Employer threshold | 50+ employees within 75 miles, 20+ weeks in current or prior year | [29 U.S.C. § 2611(4); 29 CFR § 825.105](https://www.dol.gov/agencies/whd/fmla/regulations) |
| Employee eligibility | 12 months tenure, 1,250 hours in preceding 12 months | [29 U.S.C. § 2611(2); 29 CFR § 825.110](https://www.dol.gov/agencies/whd/fmla/regulations) |
| Standard leave entitlement | 12 weeks unpaid, job-protected, per 12-month period | 29 U.S.C. § 2612(a)(1) |
| Military caregiver leave | 26 weeks in single 12-month period | 29 U.S.C. § 2612(a)(3) |
| Health coverage during leave | Continued at employer’s normal premium share | 29 U.S.C. § 2614(c) |
| Reinstatement right | Same or equivalent position on return | 29 U.S.C. § 2614(a) |
| Substitution of paid leave | Employee may substitute accrued PTO; employer may require it | 29 CFR § 825.207 |

Below 50 employees, the voluntary policy is the only document that matters. FMLA does not bridge the gap in Kentucky, and there is no state PFL fund to fall back on.

## What protections apply for pregnancy in Kentucky?

Federal PWFA, PDA, and ADA apply to all Kentucky employers at the relevant thresholds. The [Kentucky Civil Rights Act (KRS Chapter 344)](https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=38707) adds state-level pregnancy discrimination protection.

The Pregnant Workers Fairness Act took effect **27 June 2023**. It applies to any employer with **15 or more employees** and requires reasonable accommodation for pregnancy, childbirth, and related conditions. Kentucky’s Civil Rights Act (KRS Chapter 344) separately prohibits discrimination based on pregnancy for employers with eight or more employees in Kentucky, a lower threshold than federal law in some provisions.

| Federal law | Employer threshold | Core protection | Statute |
| --- | --- | --- | --- |
| Pregnant Workers Fairness Act (PWFA) | 15+ employees | Reasonable accommodation for pregnancy, childbirth, and related conditions | [42 U.S.C. § 2000gg](https://www.eeoc.gov/pwfa); effective 27 June 2023 |
| Pregnancy Discrimination Act (PDA) | 15+ employees | Pregnancy treated as any other temporary disability for benefits and leave parity | [42 U.S.C. § 2000e(k)](https://www.eeoc.gov/laws/statutes/pregnancy.cfm) |
| Americans with Disabilities Act (ADA) | 15+ employees | Reasonable accommodation for pregnancy-related disabilities | 42 U.S.C. § 12112 |
| PUMP Act (lactation) | All employers (small-employer exemption available) | Break time and private space for nursing employees, up to 1 year postpartum | 29 U.S.C. § 218d |
| Kentucky Civil Rights Act | 8+ employees in Kentucky | State-level pregnancy and sex discrimination protection | KRS Chapter 344 |

The gap between 15 and 50 employees is where accommodation obligations exist (PWFA, PDA, KRS 344) but FMLA job-protected leave does not. That’s the window where a voluntary parental-leave policy is not just competitive but operationally necessary to avoid an accommodation-and-retaliation claim during a pregnancy-related period.

What Teamed charges for Kentucky

from $599 / employee / month starting rate · Zero FX

You pay **from $599 per employee per month**, flat. In dollars, pounds, or any currency at **Zero FX mark-up**. Statutory costs (Kentucky UI at 2.7% new-employer rate, federal FICA, FUTA) pass through at cost, itemised on every invoice. No spread, no setup fee, no offboarding fee.

Teamed administers your Kentucky leave policy through real HR and legal experts on our one platform. That includes FMLA eligibility tracking when your US headcount approaches 50, vacation-accrual balances under [KRS 337.015](https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=3485), and PWFA accommodation log maintenance. EOR is the right model until it no longer fits. When your Kentucky headcount crosses the graduation point, you hear from us before the entity paperwork lands.

## What about jury duty and military leave in Kentucky?

Federal USERRA protects civilian jobs for service members returning from military leave. Kentucky requires employers with six or more employees to keep a Kentucky employee’s job open for jury duty under [KRS 29A.160](https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=3401).

Neither USERRA nor KRS 29A.160 is a paid-leave mandate. USERRA requires reinstatement and benefit continuation; it does not require wage-replacement during active duty. KRS 29A.160 requires the employer to hold the job open; it does not require the employer to pay the difference between jury per-diem and normal wages (though many employers do as a matter of policy).

| Protection | Who it covers | What you owe | Statute |
| --- | --- | --- | --- |
| USERRA military leave | All employers, all employees on active duty | Job protection, benefit continuation, reinstatement rights. No pay mandate. | [38 U.S.C. § 4301 et seq.](https://www.dol.gov/agencies/vets/programs/userra) |
| Kentucky jury duty leave (KRS 29A.160) | Employers with 6+ employees in Kentucky | Job protection during jury service. No state pay mandate; employer may offset court per-diem. | [KRS 29A.160](https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=3401) |
| PUMP Act (lactation breaks) | All employers (small-employer exemption available) | Reasonable break time and private space for nursing up to 1 year postpartum | 29 U.S.C. § 218d |

Kentucky also has no state voting-leave mandate beyond federal anti-interference provisions. Voting leave, if offered, is voluntary employer policy in Kentucky.

Teamed Legal Operations

The KRS 337.015 vacation-payout issue catches multi-state employers most often. They roll out a single "use it or lose it" policy across all US states and assume it’s uniform. Kentucky treats that accrued balance as unpaid wages, and the Labour Cabinet will tell them so on the termination claim. The fix is one paragraph in the handbook. The miss is a payroll audit.

A note from Tom Price-Daniel

Kentucky has no paid leave mandate. The trap is KRS 337.015: accrued vacation is wages on termination.  
'Use it or lose it' without an explicit written exclusion isn't self-enforcing here. FMLA only fires at 50 employees; Kentucky has no state equivalent below that.  
The liability is in the handbook clause.

Tom Price-Daniel · Co-founder, Teamed

## Related Kentucky and US guides

- [Kentucky state tax & UI](../state-income-tax-and-unemployment-insurance/)sibling
- [Kentucky overview](/country-hiring-guides/united-states/kentucky)state parent
- [United States overview](/country-hiring-guides/united-states)US parent
- [Employer of Record overview](/employer-of-record)cluster 2a
- [Kentucky termination law & at-will exceptions](/country-hiring-guides/united-states/kentucky/termination-law-and-at-will-exceptions)sibling
- [Kentucky wages & overtime](/country-hiring-guides/united-states/kentucky/wage-overtime-and-meal-break-law)sibling
- [Kentucky worker classification](/country-hiring-guides/united-states/kentucky/worker-classification-state-test)sibling
- [Alabama paid family & sick leave](/country-hiring-guides/united-states/alabama/paid-family-and-sick-leave)cross-state
- [Teamed pricing: Zero FX Fixed](/pricing)commercial
- [EOR vs Entity Crossover Calculator](https://www.teamed.global/tools/crossover-calculator)tool
- [Talk to an expert](https://www.teamed.global/contact)CTA

A note on this page.

This is a guide, not legal, tax or accounting advice. Rules change and vary by jurisdiction. Verify current requirements with the relevant authorities, or speak to a qualified professional, before relying on any specific framework.