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16-1156-ATL
Thursday, June 09, 2016

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Minimum Wage Workers in Kentucky – 2015

Of the nearly 1.1 million workers paid hourly rates in Kentucky in 2015, 15,000 earned exactly the prevailing federal minimum wage of $7.25 per hour, while 23,000 earned less, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Janet S. Rankin noted that the 38,000 workers earning the federal minimum wage or less made up 3.5 percent of all hourly paid workers in the state. Nationwide, those earning the federal minimum or less accounted for 3.3 percent of the hourly paid workforce. (See table 1. The Kentucky minimum wage is equal to the prevailing federal minimum wage.)

In 2006, 26,000 hourly paid workers earned the prevailing federal minimum wage or less in Kentucky, the lowest level since data were first available in 2000. The 26,000 workers in this category accounted for 2.2 percent of all hourly paid workers in the state. (See chart 1.) In 2007, the federal minimum wage began increasing after holding steady for nearly a decade. Two additional increases in the federal minimum wage followed, resulting in more Kentucky workers falling into this category, peaking at 91,000 in 2010. That number has declined in four of the past five years.

From 2014 to 2015, the portion of hourly paid workers in Kentucky who earned at or below the federal minimum wage declined from 4.9 to 3.5 percent. The percentage of workers earning exactly the minimum wage fell from 2.3 percent to 1.4 percent, while the percentage earning less than the federal minimum dropped from 2.6 percent to 2.1 percent in 2015.

Of the 38,000 workers earning the federal minimum wage or less in Kentucky in 2015, 27,000, or 71.1 percent, were women. (See table 2.) These women represented 4.7 percent of all women paid hourly rates in the state. Men accounted for 11,000, or 28.9 percent, of all Kentucky workers earning the prevailing minimum wage or less; they made up 2.1 percent of men who were paid hourly rates.

In 2015, the states with the highest percentages of hourly paid workers earning at or below the federal minimum wage were in the South: Alabama, Louisiana, Mississippi, and Virginia (all were about 6 percent). The states with the lowest percentages of hourly paid workers earning at or below the federal minimum wage were in the West: Alaska, California, Oregon, and Washington (all were about 1 percent). It should be noted that a number of states have established minimum wage rates that exceed the federal level. As of January 1, 2016, 29 states and the District of Columbia had laws establishing minimum wage standards that exceeded the federal level of $7.25 per hour. (See table 1 and chart 2.)


Technical Note

The estimates in this release were obtained from the Current Population Survey (CPS), which provides information on the labor force, employment, and unemployment. The survey is conducted monthly for the U.S. Bureau of Labor Statistics (BLS) by the U.S. Census Bureau using a scientifically selected national sample of about 60,000 eligible households in all 50 states and the District of Columbia. The survey also provides data on earnings, which are based on one-fourth of the CPS monthly sample and are limited to wage and salary workers. All self-employed workers, both incorporated and unincorporated, are excluded from these earnings estimates.

Statistics based on the CPS are subject to both sampling and nonsampling error. The differences among data for the states reflect, in part, variations in the occupation, industry, and age composition of each state’s labor force. In addition, sampling error for the state estimates is considerably larger than it is for the national data.

Minimum wage worker data, particularly levels, for each year are not strictly comparable with data for earlier years because of the introduction of revised population controls used in the CPS. For technical documentation and related information, including reliability of the CPS estimates, see www.bls.gov/cps/documentation.htm.

Some workers reported as earning at or below the prevailing federal minimum wage may not, in fact, be covered by federal or state minimum wage laws because of exclusions and exemptions in the statutes. The presence of workers with hourly earnings below the federal minimum wage does not necessarily indicate violations of the FLSA or state statutes in cases where such standards apply.

Estimates of the number of minimum wage workers in this release pertain only to workers who are paid hourly rates. Salaried workers and other workers who are not paid by the hour are excluded, even though some have earnings that, if converted to hourly rates, would be at or below the federal minimum wage. Consequently, the estimates presented in this release likely understate the actual number of workers with hourly earnings at or below the minimum wage.

The prevailing federal minimum wage was $2.90 in 1979, $3.10 in 1980, and $3.35 in 1981-89. The minimum wage rose to $3.80 in April 1990, $4.25 in April 1991, $4.75 in October 1996, and $5.15 in September 1997. On July 24, 2007, the federal minimum wage increased to $5.85 per hour; on July 24, 2008, to $6.55 per hour; and on July 24, 2009, to $7.25 per hour.

The principal definitions for the main concepts presented in this report are below.

Wage and salary workers. Workers age 16 and older who receive wages, salaries, commissions, tips, payments in kind, or piece rates on their sole or principal job. This group includes employees in both the private and public sectors. All self-employed workers are excluded whether or not their businesses are incorporated.

Workers paid at or below the prevailing federal minimum wage pertain only to workers who are paid hourly rates. Salaried workers and other nonhourly paid workers are excluded.

Hourly earnings. Hourly earnings data are for wage and salary workers who are paid by the hour and refer to a person’s sole or principal job. Hourly earnings for hourly paid workers do not include overtime pay, commissions, or tips received.

Median hourly earnings. The median is the amount which divides a given earnings distribution into two equal groups, one having earnings above the median and the other having earnings below the median. The median is less sensitive to extreme wages than the mean; this makes it a better measure for highly skewed distributions.

Information in this release will be made available to sensory impaired individuals upon request. Voice phone: (202) 691-5200; Federal Relay Service: (800) 877-8339.

Table 1. Wage and salary workers paid hourly rates with earnings at or below the prevailing federal minimum wage, by state, 2015 annual averages
State Number of workers (in thousands) Percent distribution Percentage of workers paid hourly rates
Total paid hourly rates At or below minimum wage Total paid hourly rates At or below minimum wage At or below minimum wage
Total At minimum wage Below minimum wage Total At minimum wage Below minimum wage Total At minimum wage Below minimum wage

Total, 16 years and older

78,232 2,561 870 1,691 100.0 100.0 100.0 100.0 3.3 1.1 2.2

Alabama

1,182 66 40 26 1.5 2.6 4.6 1.6 5.6 3.4 2.2

Alaska

209 3 1 2 0.3 0.1 0.1 0.1 1.2 0.4 0.8

Arizona

1,627 44 6 38 2.1 1.7 0.7 2.2 2.7 0.4 2.3

Arkansas

712 22 10 12 0.9 0.9 1.1 0.7 3.1 1.4 1.7

California

9,667 115 25 90 12.4 4.5 2.9 5.3 1.2 0.3 0.9

Colorado

1,242 22 3 19 1.6 0.9 0.3 1.1 1.8 0.2 1.5

Connecticut

904 27 3 23 1.2 1.0 0.4 1.4 2.9 0.4 2.6

Delaware

236 6 2 4 0.3 0.2 0.2 0.3 2.6 0.7 1.9

District of Columbia

112 3 1 2 0.1 0.1 0.1 0.1 3.0 0.8 2.2

Florida

4,238 160 13 147 5.4 6.2 1.5 8.7 3.8 0.3 3.5

Georgia

2,173 95 46 49 2.8 3.7 5.3 2.9 4.4 2.1 2.3

Hawaii

356 10 5 5 0.5 0.4 0.6 0.3 2.8 1.5 1.3

Idaho

458 21 15 6 0.6 0.8 1.7 0.4 4.6 3.2 1.4

Illinois

3,154 101 15 86 4.0 3.9 1.7 5.1 3.2 0.5 2.7

Indiana

1,779 69 32 37 2.3 2.7 3.7 2.2 3.9 1.8 2.1

Iowa

931 35 17 18 1.2 1.4 2.0 1.0 3.7 1.8 1.9

Kansas

794 33 16 17 1.0 1.3 1.8 1.0 4.1 2.0 2.1

Kentucky

1,090 38 15 23 1.4 1.5 1.7 1.4 3.5 1.4 2.1

Louisiana

1,094 70 38 32 1.4 2.8 4.4 1.9 6.4 3.5 2.9

Maine

359 10 2 8 0.5 0.4 0.2 0.5 2.7 0.5 2.2

Maryland

1,418 31 5 25 1.8 1.2 0.6 1.5 2.2 0.4 1.8

Massachusetts

1,651 48 9 39 2.1 1.9 1.1 2.3 2.9 0.6 2.3

Michigan

2,706 101 13 88 3.5 4.0 1.5 5.2 3.7 0.5 3.3

Minnesota

1,603 26 10 16 2.0 1.0 1.2 0.9 1.6 0.6 1.0

Mississippi

726 45 27 18 0.9 1.8 3.1 1.1 6.2 3.7 2.5

Missouri

1,583 57 13 44 2.0 2.2 1.5 2.6 3.6 0.8 2.8

Montana

294 6 2 4 0.4 0.2 0.2 0.2 2.0 0.7 1.3

Nebraska

558 13 4 9 0.7 0.5 0.5 0.5 2.3 0.7 1.6

Nevada

794 20 9 10 1.0 0.8 1.1 0.6 2.5 1.2 1.3

New Hampshire

389 16 5 11 0.5 0.6 0.5 0.7 4.1 1.2 2.9

New Jersey

1,803 50 8 42 2.3 2.0 0.9 2.5 2.8 0.4 2.3

New Mexico

511 16 3 13 0.7 0.6 0.3 0.8 3.1 0.5 2.5

New York

4,015 97 24 74 5.1 3.8 2.7 4.4 2.4 0.6 1.8

North Carolina

2,374 122 55 66 3.0 4.8 6.4 3.9 5.1 2.3 2.8

North Dakota

222 5 2 4 0.3 0.2 0.2 0.2 2.3 0.7 1.6

Ohio

3,219 93 16 77 4.1 3.6 1.8 4.6 2.9 0.5 2.4

Oklahoma

967 29 15 15 1.2 1.1 1.7 0.9 3.0 1.5 1.5

Oregon

1,015 7 3 5 1.3 0.3 0.3 0.3 0.7 0.3 0.5

Pennsylvania

3,524 150 54 96 4.5 5.9 6.2 5.7 4.3 1.5 2.7

Rhode Island

312 5 0 5 0.4 0.2 0.0 0.3 1.5 0.1 1.5

South Carolina

1,191 56 34 22 1.5 2.2 4.0 1.3 4.7 2.9 1.8

South Dakota

261 6 1 5 0.3 0.2 0.1 0.3 2.4 0.4 2.1

Tennessee

1,649 77 35 42 2.1 3.0 4.0 2.5 4.7 2.1 2.5

Texas

6,070 287 111 176 7.8 11.2 12.8 10.4 4.7 1.8 2.9

Utah

776 25 13 12 1.0 1.0 1.5 0.7 3.3 1.7 1.5

Vermont

175 3 0 3 0.2 0.1 0.0 0.2 1.9 0.2 1.6

Virginia

1,919 120 50 69 2.5 4.7 5.8 4.1 6.2 2.6 3.6

Washington

1,795 19 7 12 2.3 0.7 0.8 0.7 1.1 0.4 0.7

West Virginia

433 15 5 10 0.6 0.6 0.5 0.6 3.4 1.0 2.3

Wisconsin

1,781 61 30 31 2.3 2.4 3.5 1.8 3.4 1.7 1.7

Wyoming

179 6 3 4 0.2 0.2 0.3 0.2 3.5 1.4 2.1

Note: Data exclude all self-employed workers, whether or not their businesses are incorporated. These data are based on a sample and therefore are subject to sampling error; the degree of error may be quite large for less populous states. Unrounded data were used in all calculations.

 

Table 2. Employed wage and salary workers paid hourly rates with earnings at or below the prevailing federal minimum wage and median earnings of hourly paid workers in Kentucky, by gender, annual averages, 2005–2015
Kentucky Number of workers (in thousands) Percent of workers paid hourly rates Median earnings (in dollars)
Total paid hourly rates At or below minimum wage At or below minimum wage
Total At minimum wage Below minimum wage Total At minimum wage Below minimum wage

Men

 

2005

547 7 2 5 1.3 0.4 0.9 $12.04

2006

591 13 4 9 2.2 0.7 1.5 12.40

2007

584 15 5 10 2.6 0.9 1.7 12.75

2008

559 17 2 15 3.0 0.4 2.7 12.96

2009

522 25 6 19 4.8 1.1 3.6 12.62

2010

521 27 14 13 5.2 2.7 2.5 13.94

2011

508 21 12 9 4.1 2.4 1.8 12.85

2012

563 19 11 8 3.4 2.0 1.4 13.68

2013

559 16 10 6 2.9 1.8 1.1 13.50

2014

546 22 9 13 4.0 1.6 2.4 14.31

2015

514 11 5 6 2.1 1.0 1.2 15.08

Women

 

2005

573 28 8 20 4.9 1.4 3.5 10.08

2006

583 13 5 8 2.2 0.9 1.4 10.35

2007

568 20 4 16 3.5 0.7 2.8 10.19

2008

541 28 7 21 5.2 1.3 3.9 10.62

2009

549 52 26 26 9.5 4.7 4.7 10.84

2010

598 62 28 34 10.4 4.7 5.7 11.04

2011

568 42 18 24 7.4 3.2 4.2 11.58

2012

583 42 20 22 7.2 3.4 3.8 11.52

2013

591 34 23 11 5.8 3.9 1.9 11.96

2014

597 35 18 17 5.9 3.0 2.8 12.12

2015

576 27 10 17 4.7 1.7 3.0 12.58

Note: Data excludes all self-employed persons, whether or not their businesses are incorporated. Data for 2007–2009 reflect changes in the minimum wage that took place in those years.
 

 

Last Modified Date: Thursday, June 09, 2016