National Alliance for Fair Contracting

Kentucky

1. When is the prevailing wage rate used?
2. What is the definition of a public works or related projects?
3. Are there project monetary thresholds?
4. Are any types of projects specifically exempted?
5. What is included in the calculation of wage rates?
6. Who calculates the prevailing wage rates?
7. Enforcement: what are the penalties for violations? Criminal or fines?
8. Can contractors be debarred?
9. Are there posting requirements?
10. Does the agency retain any fines for enforcement (i.e. an enforcement fund)?
11. Record Maintenance?
12. Are there any provisions which discuss apprentices?

When is the prevailing wage rate used?
Where a prevailing rate of wages has been determined and prescribed, the contractexecuted between a public authority and the successful bidder or contractor shall contain a provision requiring the successful bidder and all of his subcontractors to pay not less than the rate of wages so established. The successful bidder or contractor and all subcontractors shall strictly comply with these provisions of the contract. All contractors and subcontractors required by KRS 337.505 to 337.550 and by contracts with any public authority to pay not less than the prevailing rate of wages, shall pay such wages in legal tender without any deductions. (Kentucky Department of Labor)

What is the definition of a public works or related projects?
Includes all buildings, roads, streets, alleys, sewers, ditches, sewage disposal plants, waterworks, and all other structures or work, including "adult correctional facilities", as defined in KRS 197.500, constructed under contract with any public authority. (Kentucky Department of Labor)

Are there project monetary thresholds?
Prevailing wage requirements include construction, reconstruction, improvement, enlargement, alteration, or repair of any public works project by contract fairly estimated to cost more than two hundred fifty thousand dollars ($250,000). (Kentucky Department of Labor)

Are any types of projects specifically exempted?
Projects whose value is less than $250,000 are exempt from Kentucky Prevailing Wage Laws. (Kentucky Department of Labor)

What is included in the calculation of wage rates?
A) Base rate: The basic hourly rate paid or being paid subsequent to the labor commissioner's most recent wage determination to the majority of laborers, workmen, and mechanics employed in each classification of construction upon reasonably comparable construction in the locality where the work is to be performed.

B) Fringe rate: An additional amount per hour equal to the hourly rate of contribution irrevocably made or to be made by an employer on behalf of employees within each classification of construction to a trustee or to a third person pursuant to an enforceable commitment to carry out a financially responsible plan or program, which was communicated in writing to the employees affected, for the following fringe benefits.

medical or hospital care
pensions on retirement
death compensation for injuries or illness resulting from occupational activity
life insurance
defraying costs of apprenticeship or other similar programs
cash; the employer may pay an additional amount per hour to the employee in cash or partly in cash and partly by contributions. Fringe does not include costs associated with programs or taxes required by federal state or local law such as workers' compensation or unemployment insurance tax. Accidental, disability or sickness insurance may be considered a fringe if paid under the conditions as stated in bold letters above. Fringe does not include costs associated with vacation and holiday unless paid as stipulated above in bold lettering or if paid in the form of cash as indicated in stated in (f). (Kentucky Department of Labor)

Who calculates the prevailing wage rates?
A) The Executive Director determines the prevailing wage rates in the locality in which the work is being performed. (Kentucky Department of Labor)

B) The Executive Director is the director of the Office of Workplace Standards under the direction and supervision of the Commissioner of the Department of Labor. (Kentucky Department of Labor)

Enforcement: what are the penalties for violations? Criminal or fines?
The following civil penalties shall be imposed for violations of the provisions of this chapter:

Any firm, individual, partnership, or corporation that violates KRS 337.020 shall be assessed a civil penalty of not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000) for each offense. Each failure to pay an employee the wages when due him under KRS 337.020 shall constitute a separate offense.
Any employer who violates KRS 337.055 shall make full payment to the employee by reason of the violation.
Any employer who violates KRS 337.060 shall be liable to the affected employee for the amount withheld, plus interest at the rate of ten percent (10%) per annum.
Any employer who violates any provision of KRS 337.275 to 337.325, KRS 337.345, and KRS 337.385 to 337.405, or willfully hinders or delays the executive director or his authorized representative in the performance of his duties under KRS 337.295, or fails to keep and preserve any records as required under KRS 337.320 and 337.325, or falsifies any record, or refuses to make any record or transcription thereof accessible to the executive director or his authorized representative shall be assessed a civil penalty of not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000). A civil penalty of not less than one thousand dollars ($1,000) shall be assessed for any subsequent violation of KRS 337.285(4) to (9) and each day the employer violates KRS 337.285(4) to (9) shall constitute a separate offense and penalty.
Any employer who discharges or in any other manner discriminates against any employee because the employee has made any complaint to his employer, to the executive director, or to his authorized representative that he has not been paid wages in accordance with KRS 337.275 and 337.285 or regulations issued thereunder, or because the employee has caused to be instituted or is about to cause to be instituted any proceeding under or related to KRS 337.385, or because the employee has testified or is about to testify in any such proceeding, shall be deemed in violation of KRS 337.275 to 337.325, KRS 337.345, and KRS 337.385 to 337.405 and shall be assessed a civil penalty of not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000).
Any contractor or subcontractor who violates any wage or work hours provision in any contract under KRS 337.505 to 337.550 shall be assessed a civil penalty of not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000) for each offense, and the contractor or subcontractor shall make full restitution to all employees to whom he is legally indebted by reason of said violation. The prime contractor shall be jointly and severally liable with a subcontractor for wages due an employee of the subcontractor. For a flagrant or repeated violation the offending contractor or subcontractor shall be barred from bidding on, or working on, any and all public works contracts, either in his name or in the name of any other company, firm, or other entity in which he might be interested for a period of two (2) years from the date of the last offense. Each day of violation shall constitute a separate
offense, and the violation as affects each individual worker shall constitute a separate offense.
Any contractor or subcontractor who violates any wage or work hours provision in any contract under KRS 337.505 to 337.550 shall be assessed a civil penalty of not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000) for each offense, and the contractor or subcontractor shall make full restitution to all employees to whom he is legally indebted by reason of said violation. The prime contractor shall be jointly and severally liable with a subcontractor for wages due an employee of the subcontractor. For a flagrant or repeated violation the offending contractor or subcontractor shall be barred from bidding on, or working on, any and all public works contracts, either in his name or in the name of any other company, firm, or other entity in which he might be interested for a period of two (2) years from the date of the last offense. Each day of violation shall constitute a separate
offense, and the violation as affects each individual worker shall constitute a separate offense.
A person shall be assessed a civil penalty of not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000) when that person discharges or in any other manner discriminates against an employee because the employee has:
- Made any complaint to his employer, the executive director, or any other person; or
- Instituted, or caused to be instituted, any proceeding under or related to KRS 337.420 to 337.433; or
- Testified, or is about to testify, in any such proceedings. (337.990 Penalties.)

Can contractors be debarred?
Any contractor or subcontractor who violates any wage or work hours provision in any contract under KRS 337.505 to 337.550 shall be assessed a civil penalty of not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000) for each offense, and the contractor or subcontractor shall make full restitution to all employees to whom he is legally indebted by reason of said violation. The prime contractor shall be jointly and severally liable with a subcontractor for wages due an employee of the subcontractor. For a flagrant or repeated violation the offending contractor or subcontractor shall be barred from bidding on, or working on, any and all public works contracts, either in his name or in the name of any other company, firm, or other entity in which he might be interested for a period of two (2) years from the date of the last offense. Each day of violation shall constitute a separate offense, and the violation as affects each individual worker shall constitute a separate offense. (337.990 Penalties.)

Are there posting requirements?
Each contractor and subcontractor subject to the provisions of KRS 337.505 to 337.550 shall post and keep posted in a conspicuous place at the site of the construction work, a copy of the applicable prevailing wage rates for each and every classification involved in the construction of the public works. (Kentucky Department of Labor)

Does the agency retain any fines for enforcement (i.e. an enforcement fund)?
While there is an office to aid in enforcement of the prevailing wage laws of Kentucky, there is no provision stating that fines from violations are used by that office. (337.550)

Record Maintenance?
All contractors and subcontractors affected by the terms of KRS 337.505 to 337.550 shall keep full and accurate payroll records covering all disbursements of wages to their employees to whom they are required to pay not less than the prevailing rate of wages. The record keeping requirement is:

Hours worked each day by each employee
Hours worked in each classification of work by each employee
Amount paid each employee for his work in each classification.They shall be open to the inspection and transcript of the commissioner or his authorized representative at any reasonable time, and shall be in compliance with all regulations issued by the commissioner. These payroll records shall not be destroyed or removed from this state for one (1) year following the completion of the improvement in connection with which they are made. This record keeping requirement is in addition to the requirement as provided by KRS 337.320 and 803 KAR 1:066. (Kentucky Department of Labor)

Are there any provisions which discuss apprentices?
A) Apprentices would fall under the category of "employee," but that is the only way apprentices could be mentioned in relation to the Kentucky Prevailing Wage Law. (Kentucky Department of Labor)

B) "Employee" is any person employed by or suffered or permitted to work for an employer. (Kentucky Department of Labor)

References
Kentucky Department of Labor
* This web-site breaks down the actual law pertaining to prevailing wage rates in Kentucky

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