Kentucky's prevailing-wage policy: Plan B

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This analysis concludes suggesting while the best course to action for all concerned would be for Kentucky's General Assembly to repeal its prevailing wage law, it is possible to minimize costs and maintain needed protections for construction workers within the law by considering the following:

  • Kentucky's prevailing-wage laws are confusing and create unnecessary problems and costs
  • the General Assembly could minimize much of the law's cost to taxpayers by committing to a fair and accurate process of determining prevailing wages
  • the best way to determine prevailing-wages begins with a thorough survey of employers
  • the state should determine worker classifications by using categories and work responsibilities common throughout the construction industry
  • labor officials should find ways to keep sensitive wage information obtained from individual contractors confidential
  • legislature should establish specific rules for calculating a prevailing wage and establish proper oversight to ensure consistent application of those rules

Other points of interest:

  • adopting Tennessee's wage-survey approach could save Kentucky taxpayers around $100 million annually

See Also