WAGE AND HOUR DEMAND LETTER
Commonwealth of Kentucky
Kentucky Wages and Hours Act / Fair Labor Standards Act Claims
[ATTORNEY/FIRM LETTERHEAD]
[Firm Name]
[Address Line 1]
[City, Kentucky ZIP]
Tel: [Phone Number]
Fax: [Fax Number]
[Attorney Email]
[Kentucky Bar Number]
VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND VIA EMAIL TO: [recipient_email]
[Date]
[Employer Contact Name]
[Title]
[Company Legal Name]
[Company Address]
[City, State ZIP]
Copy to:
[Company General Counsel, if known]
[Registered Agent, if different]
Re: Wage and Hour Violations - [Client Full Name]
[and All Similarly Situated Employees - if collective/class action contemplated]
Demand for Unpaid Wages Under Kentucky and Federal Law
CONFIDENTIAL SETTLEMENT COMMUNICATION PURSUANT TO FRE 408 AND KRE 408
Dear [Mr./Ms./Mx. Last Name]:
This firm has been retained by [Client Full Name] ("our client") to pursue claims for unpaid wages against [Company Legal Name] ("[Company Short Name]" or "the Company") arising from violations of the Kentucky Wages and Hours Act, KRS Chapter 337, and the Fair Labor Standards Act ("FLSA"), 29 U.S.C. Section 201 et seq.
Please direct all further communications regarding this matter to our office.
I. KENTUCKY-SPECIFIC LEGAL FRAMEWORK
A. Applicable Wage and Hour Law
Kentucky has a comprehensive wage and hour statute that largely mirrors the FLSA but includes some unique provisions, such as the seventh consecutive day overtime rule. Kentucky has a 5-year statute of limitations, making it more favorable than federal law in many cases.
Key Legal Framework:
| Category | Kentucky Requirement | Citation |
|---|---|---|
| Minimum Wage | $7.25/hour | KRS 337.275 |
| Overtime | 1.5x regular rate after 40 hours/week | KRS 337.285 |
| Seventh Day OT | 1.5x for all hours on 7th consecutive day | KRS 337.050 |
| Tipped Minimum | $2.13/hour (with tip credit) | KRS 337.275(2) |
| Payment Frequency | At least semi-monthly | KRS 337.020 |
B. Statute of Limitations
| Claim Type | Limitations Period | Citation |
|---|---|---|
| Kentucky Wage Claims | 5 years | KRS 413.120(2) |
| FLSA (standard) | 2 years | 29 U.S.C. Section 255(a) |
| FLSA (willful) | 3 years | 29 U.S.C. Section 255(a) |
C. Kentucky Wage Payment Requirements
Wage Payment Timing:
- KRS 337.020: Wages must be paid at least semi-monthly on regular paydays
- KRS 337.055: Final wages due on next regular payday or within 14 days of separation, whichever is later
- KRS 337.070: Employers must provide wage statements
Payroll Deductions:
- KRS 337.060: Deductions permitted only with written authorization
- 803 KAR 1:065: Cannot deduct for cash shortages, breakage, or loss unless proven willful or intentional
- Deductions cannot reduce wages below minimum wage
D. Enforcement Mechanisms
Administrative:
- Kentucky Labor Cabinet, Division of Wages and Hours
- File complaint: 500 Mero Street, 3rd Floor, Frankfort, KY 40601
- Phone: (502) 564-3070
- Administrative investigation available
Private Right of Action:
- KRS 337.385: Private action for unpaid wages
- Liquidated damages and attorney's fees available
- FLSA: 29 U.S.C. Section 216(b) provides private right of action
E. Kentucky Penalty Provisions
| Remedy | Standard | Citation |
|---|---|---|
| Back Wages | Full unpaid amount | KRS 337.385 |
| Liquidated Damages | Up to wages owed (double damages total) | KRS 337.385(1) |
| Attorney's Fees | Reasonable fees for prevailing plaintiff | KRS 337.385(1) |
| Court Costs | Recoverable | KRS 337.385(1) |
F. Tip Credit Rules (Kentucky)
Kentucky follows federal tip credit rules:
| Requirement | Standard |
|---|---|
| Cash wage minimum | $2.13/hour |
| Tip credit maximum | $5.12/hour |
| Total must equal | $7.25/hour minimum |
| Notice required | Yes |
| Tip pooling | Valid only among customarily tipped employees |
II. INTRODUCTION AND SUMMARY OF CLAIMS
Our client was employed by [Company Short Name] as a [Job Title] from [Start Date] to [End Date / Present], working at [Work Location(s)] in Kentucky. During this employment, [Company Short Name] violated Kentucky and federal wage laws by:
[ ] Failing to pay the minimum wage of $7.25 per hour
[ ] Failing to pay overtime compensation at 1.5 times the regular rate for hours worked over 40 per week
[ ] Failing to pay seventh consecutive day overtime at 1.5 times the regular rate
[ ] Misclassifying our client as exempt from overtime when [he/she/they] should have been classified as non-exempt
[ ] Misclassifying our client as an independent contractor when [he/she/they] was an employee entitled to wage protections
[ ] Failing to pay for all hours worked, including:
[ ] Off-the-clock work before/after shifts
[ ] Uncompensated meal periods during which work was performed
[ ] Time spent on required pre-shift or post-shift activities
[ ] Travel time that should have been compensated
[ ] Training time
[ ] On-call time
[ ] Failing to pay wages semi-monthly as required by KRS 337.020
[ ] Failing to pay final wages timely upon separation
[ ] Making unlawful deductions from wages
[ ] Unlawful tip pooling or tip credit violations
These violations entitle our client to liquidated damages under Kentucky law.
III. FACTUAL BACKGROUND
A. Employment Relationship
| Category | Details |
|---|---|
| Employee Name | [Client Full Name] |
| Job Title(s) | [Title(s)] |
| Dates of Employment | [Start Date] to [End Date / Present] |
| Work Location(s) | [Address(es) in Kentucky] |
| Primary Duties | [Describe job duties] |
| Rate of Pay | $[Amount] per [hour/week/year] |
| Classification | [Exempt / Non-Exempt / Independent Contractor] |
| Pay Frequency | [Weekly / Bi-weekly / Semi-monthly / Monthly] |
| Supervisor(s) | [Name(s) and Title(s)] |
B. Hours Worked
Our client regularly worked the following schedule:
Typical Weekly Schedule:
| Day | Scheduled Hours | Actual Hours Worked | Unpaid Time |
|---|---|---|---|
| Monday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Tuesday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Wednesday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Thursday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Friday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Saturday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Sunday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Weekly Total | [X hours] | [X hours] | [X hours] |
Average overtime hours per week not compensated at 1.5x rate: [X hours]
C. Specific Wage Violations
[Detail specific violations as applicable - off-the-clock work, misclassification, tip violations, seventh day overtime, etc.]
IV. LEGAL ANALYSIS
A. Coverage Under Kentucky Law
Kentucky Wages and Hours Act Coverage:
KRS Chapter 337 applies to employers with one or more employees. [Company Short Name] is a covered employer.
B. Minimum Wage Violation (KRS 337.275)
Kentucky law requires covered employers to pay employees at least $7.25 per hour. By [describe violation], [Company Short Name] failed to pay our client the required minimum wage.
C. Overtime Violations
40-Hour Overtime (KRS 337.285):
Kentucky law requires employers to pay non-exempt employees overtime at a rate of 1.5 times the regular rate for all hours worked over 40 in a workweek.
Seventh Consecutive Day Overtime (KRS 337.050):
Kentucky law also requires overtime pay for all hours worked on the seventh consecutive day of a workweek, regardless of total hours worked.
Our client worked an average of [X hours] per week. [Company Short Name] failed to pay overtime compensation for an average of [X overtime hours] per week.
D. Wage Payment Violations (KRS 337.020, 337.055)
[Company Short Name] violated Kentucky's wage payment requirements by:
- [Failing to pay wages semi-monthly]
- [Failing to pay final wages on next regular payday or within 14 days]
- [Making unauthorized deductions]
E. Liquidated Damages
Under KRS 337.385(1), our client is entitled to liquidated damages up to the amount of unpaid wages, effectively doubling the recovery.
V. DAMAGES CALCULATION
A. Kentucky Law Damages
Relevant Period: [Date - 5 years prior] to [End Date / Present]
Total Weeks in Period: [X weeks]
1. Unpaid Overtime
| Period | Avg. OT Hours/Week | Regular Rate | OT Rate (1.5x) | Unpaid OT/Week | Weeks | Total |
|---|---|---|---|---|---|---|
| [Period 1] | [X] | $[X.XX] | $[X.XX] | $[X.XX] | [X] | $[Amount] |
| Unpaid Overtime Subtotal | $[Amount] |
2. Seventh Day Overtime
| Period | Avg. 7th Day Hours | OT Rate (1.5x) | Unpaid 7th Day OT | Weeks | Total |
|---|---|---|---|---|---|
| [Period] | [X] | $[X.XX] | $[X.XX] | [X] | $[Amount] |
| Seventh Day OT Subtotal | $[Amount] |
3. Unpaid Minimum Wage
| Period | Hours Below MW | Shortfall/Hour | Weeks | Total |
|---|---|---|---|---|
| [Period] | [X] | $[X.XX] | [X] | $[Amount] |
| Minimum Wage Subtotal | $[Amount] |
4. Off-the-Clock Work
| Activity | Hours/Week | Rate | Weeks | Total |
|---|---|---|---|---|
| [Pre-shift work] | [X] | $[X.XX] | [X] | $[Amount] |
| Off-the-Clock Subtotal | $[Amount] |
B. Summary of Damages
| Category | Amount |
|---|---|
| Unpaid Wages | $[Amount] |
| Kentucky Liquidated Damages (equal to wages) | $[Amount] |
| Pre-Judgment Interest | $[Amount] |
| Attorney's Fees (estimated) | $[Amount] |
| Costs (estimated) | $[Amount] |
| TOTAL INDIVIDUAL DAMAGES | $[Amount] |
C. Class Action Exposure
| Category | Individual | Estimated Class Size | Total Exposure |
|---|---|---|---|
| Unpaid Wages | $[Amount] | [X employees] | $[Amount] |
| Liquidated Damages | $[Amount] | [X employees] | $[Amount] |
| Class Exposure | $[Amount] |
VI. SETTLEMENT DEMAND
Based on the foregoing, we demand that [Company Short Name] pay $[Settlement Demand Amount] to settle all claims of [Client Full Name].
This demand includes:
- Unpaid wages
- Liquidated damages under Kentucky law
- Pre-judgment interest
- Attorney's fees and costs incurred to date
This demand will remain open for twenty-one (21) days from the date of this letter, expiring on [Response Deadline Date].
VII. RESPONSE AND LITIGATION
If we do not receive a satisfactory response by the deadline, we will file suit in:
[ ] United States District Court for the Eastern District of Kentucky
[ ] United States District Court for the Western District of Kentucky
[ ] Kentucky Circuit Court, [County]
The Complaint will seek:
1. Unpaid minimum wages under KRS 337.275 and 29 U.S.C. Section 206
2. Unpaid overtime under KRS 337.285 and 29 U.S.C. Section 207
3. Seventh day overtime under KRS 337.050
4. Wage payment violations under KRS 337.020
5. Liquidated damages under KRS 337.385(1)
6. Attorney's fees and costs
7. Class certification under Kentucky Rules of Civil Procedure / FLSA collective action
VIII. DOCUMENT PRESERVATION
LITIGATION HOLD NOTICE
[Company Short Name] must immediately preserve all documents and ESI relevant to these claims, including:
[ ] Time and attendance records
[ ] Payroll records and pay stubs
[ ] Personnel files and job descriptions
[ ] Employee handbooks and policies
[ ] Scheduling records
[ ] Communications regarding pay practices
[ ] Training materials
[ ] Prior Kentucky Labor Cabinet investigations
[ ] Tip records (if applicable)
Spoliation of evidence will result in severe sanctions.
IX. CONFIDENTIALITY
This letter is a confidential settlement communication protected under Federal Rule of Evidence 408 and Kentucky Rule of Evidence 408.
We look forward to your prompt response.
Sincerely,
[Attorney Name]
[Title]
[Firm Name]
[Kentucky Bar No.]
Enclosures:
[ ] Authorization to Represent
[ ] Pay stubs / wage statements (sample)
[ ] Time records (if available)
cc: [Client Name] (via email)
KENTUCKY-SPECIFIC PRACTICE NOTES
[ ] Long Statute of Limitations: Kentucky has 5-year statute of limitations for wage claims - much longer than FLSA's 2-3 years
[ ] State Overtime Law: Kentucky has its own overtime statute (KRS 337.285) that mirrors FLSA
[ ] Seventh Day Overtime: KRS 337.050 requires OT pay for all hours on 7th consecutive day - unique provision
[ ] Liquidated Damages: KRS 337.385 provides liquidated damages equal to unpaid wages (double damages)
[ ] Active State Enforcement: Kentucky Labor Cabinet actively investigates wage claims
[ ] Federal Court Venue:
- Eastern District (Lexington, Covington, Frankfort, Pikeville, London, Ashland): Eastern Kentucky
- Western District (Louisville, Bowling Green, Owensboro, Paducah): Western Kentucky
[ ] State Courts: Kentucky Circuit Courts in each county
[ ] Kentucky Labor Cabinet Contact: Division of Wages and Hours
- Address: 500 Mero Street, 3rd Floor, Frankfort, KY 40601
- Phone: (502) 564-3070
- Website: labor.ky.gov
[ ] Religious Observance Exemption: KRS 337.050(4) provides exemption for employees whose religious beliefs require them to abstain from work on specific days