KRS 337.275: Minimum wage.

(1) Except as may otherwise be provided by this chapter, every employer shall pay to

each of his employees wages at a rate of not less than five dollars and eighty -five

cents ($5.85) an hour beginning on June 26, 2007, not less than six dollars and fifty-

five cents ($6.55) an hour beginning July 1, 2008, and not less than seven dollars

and twenty -five cents ($7.25) an hour beginning July 1, 2009. If the federal

minimum hourly wage as prescribed by 29 U.S.C. sec. 206(a)(1) is increased in

excess of the minimum h ourly wage in effect under this subsection, the minimum

hourly wage under this subsection shall be increased to the same amount, effective

on the same date as the federal minimum hourly wage rate. If the state minimum

hourly wage is increased to the federa l minimum hourly wage, it shall include only

the federal minimum hourly rate prescribed in 29 U.S.C. sec. 206(a)(1) and shall not

include other wage rates or conditions, exclusions, or exceptions to the federal

minimum hourly wage rate. In addition, the in crease to the federal minimum hourly

wage rate does not extend or modify the scope or coverage of the minimum wage

rate required under this chapter.

(2) Notwithstanding the provisions of subsection (1) of this section, for any employee

engaged in an occupation in which he customarily and regularly receives more than

thirty dollars ($30) per month in tips from patrons or others, the employer may pay

as a minimum not less than the hourly wage rate required to be paid a tipped

employee under the federal minimu m hourly wage law as prescribed by 29 U.S.C.

sec. 203. The employer shall establish by his records that for each week where

credit is taken, when adding tips received to wages paid, not less than the minimum

rate prescribed in 29 U.S.C. sec. 203 was receiv ed by the employee. No employer

shall use all or part of any tips or gratuities received by employees toward the

payment of the statutory minimum hourly wage as required by 29 U.S.C. sec. 203.

Nothing, however, shall prevent employees from entering into an agreement to

divide tips or gratuities among themselves.