Kentucky
Kentucky: Updates to Tip Pools, Employee Licensing, and Unemployment Eligibility
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Quick Look
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Discussion
The Kentucky legislature recently passed several bills affecting employers and employees across a range of employment-related topics. Key details are summarized below.
Tipped Employees. As of April 10, 2026, HB 185 amends the definition of a “tipped employee” to require that the individual perform work that: (1) directly supports, or is itself, the service function for which a customer would tip, regardless of whether the employee personally performs that service; or (2) directly supports a service function that involves direct customer interaction or is performed in the direct line of sight of customers. Salaried employees, managers, and supervisors are prohibited from participating in tip pools.
Employee Licensing. As of April 10, 2026, HB 185 also requires public hiring authorities and occupational licensing bodies to establish a process by which individuals with a criminal conviction can obtain a determination of whether their conviction will disqualify them from a position of public employment or an occupational license, allowing individuals to obtain such a determination before investing time and resources in required training or specialized education. While the law applies to public employers and licensing authorities rather than private employers directly, private employers operating in licensed industries or partnering with state licensing bodies should be aware of this change and should monitor ongoing regulatory developments.
Unemployment Eligibility. As of April 13, 2026, SB 136 creates an exemption from the state’s work-search requirements for unemployment insurance claimants who have a bona fide return-to-work or recall-to-work prospect within one year of the filing date of their initial or reopened unemployment claim. The bill also establishes a formal definition of “bona fide return-to-work or recall-to-work prospect.” An employer intending to rehire such individuals must notify the affected workers and the Secretary of Education and Workforce Development.
Action Items
- Review tip pool policies and procedures for compliance with updated requirements.
- Review and update notification procedures for laid-off workers, if applicable.
- Have appropriate personnel trained on the requirements.
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2026 ManagEase