Policy Agenda

Occupational licensing is a hidden driver of higher costs and reduced opportunity in Kentucky. While licensing is intended to protect public safety, many requirements go far beyond what is necessary and instead serve as barriers to entry that limit competition and raise prices for consumers. These burdens make it harder for individuals to enter trades, start businesses, or move into Kentucky and continue working.

In many cases, the requirements imposed by the state are excessive and not clearly tied to safety outcomes. For example, becoming a barber in Kentucky requires 1,500 hours of training, a threshold that far exceeds what is needed to perform basic services. These types of requirements reduce the number of available workers and increase costs for consumers, while limiting upward mobility for individuals seeking to enter the workforce.

Kentucky should modernize its licensing system by requiring that all occupational regulations meet a standard of necessity and use the least restrictive means available. The state should expand recognition of out-of-state licenses so workers can relocate without unnecessary delay and implement regular reviews of licensing requirements to ensure they remain justified. Reducing unnecessary barriers will increase workforce participation, expand competition, and lower costs while preserving important public safety protections.