At a Glance
Quick Answer
Kentucky does not have a state prevailing wage law. Federal Davis-Bacon Act still applies to federally funded construction projects over $2,000.
Kentucky repealed its state prevailing wage law in 2017. Only federally funded construction projects are subject to Davis-Bacon prevailing wage requirements.
Context
Prevailing Wage & Bidding in Kentucky
Kentucky repealed its state prevailing wage law in 2017, part of that year's repeal wave alongside Iowa and Wisconsin. Before repeal, some local governments had required prevailing wages on their projects, but that authority no longer exists. For contractors bidding state, county, school, or municipal work in Kentucky today, there is no state wage schedule to follow, so you price labor at your own market rates. That flexibility supports competitive bidding while placing full accountability for accurate labor estimating on your team.
The federal Davis-Bacon Act is the exception that still governs. It applies to any construction project receiving federal funds and exceeding $2,000, requiring payment of the U.S. Department of Labor wage determination for the relevant county and trade classifications plus weekly certified payroll submitted to the contracting agency. Many Kentucky projects, especially federal-aid highways, transit, and federally assisted housing, carry federal dollars even when a local agency manages the work, so funding source drives your wage obligations more than who owns the project.
When estimating, identify the funding source early. If federal money is in play, apply Davis-Bacon wage and fringe rates and budget the administrative time for certified payroll within your labor line. For purely state, local, or private Kentucky work, price competitively to your market. The most common pitfall is assuming the 2017 repeal removed all wage rules, then bidding a federally assisted job at open-market rates and absorbing back-wage liability and compliance costs that should have been in the original bid.
Details
Coverage Details
State Status
- Law
- Repealed in 2017
- Agency
- N/A — State law repealed
- Certified Payroll
- Not required at state level
Federal Davis-Bacon Coverage
The federal Davis-Bacon Act applies to all federally funded or federally assisted construction contracts over $2,000 in Kentucky. This includes projects funded by federal agencies, FHWA highway projects, HUD housing, and projects receiving federal grants.
Reference
Key Facts
State prevailing wage law repealed in 2017
Federal Davis-Bacon Act still applies to federally funded projects over $2,000
Kentucky was part of the 2017 wave of prevailing wage repeals alongside Iowa and Wisconsin
Some local governments had previously required prevailing wages before the repeal
Enforcement
Penalties
Federal Davis-Bacon penalties apply to federally funded projects only.
Resources
Related Tools & Templates
Turn wage rules into bid-ready alerts
Use ConstructionBids.ai to track matching public projects, save bid searches, and move wage-sensitive scopes into your estimating workflow.
FAQ
Questions Contractors Ask
Does Kentucky have a prevailing wage law?
No. Kentucky does not have a state prevailing wage law. Kentucky repealed its state prevailing wage law in 2017. Only federally funded construction projects are subject to Davis-Bacon prevailing wage requirements.
Does Davis-Bacon apply in Kentucky?
Yes. The federal Davis-Bacon Act applies to all federally funded construction projects over $2,000 in Kentucky, regardless of state law. Contractors must pay the prevailing wage rate determined by the DOL for the project location.
Is certified payroll required in Kentucky?
Kentucky does not have a state-level certified payroll requirement. However, certified payroll (WH-347) is still required on any federal Davis-Bacon project in the state.
What are the penalties for prevailing wage violations in Kentucky?
Federal Davis-Bacon penalties apply to federally funded projects only.
When did Kentucky repeal its prevailing wage law?
Kentucky repealed its state prevailing wage law in 2017, alongside Iowa and Wisconsin in that year's repeal wave. The repeal also ended local governments' prior authority to require prevailing wages, leaving only the federal Davis-Bacon Act in effect on federally funded projects.
Can Kentucky cities still require prevailing wages on local jobs?
No. Although some Kentucky local governments required prevailing wages before 2017, the repeal eliminated that authority. Local and state public projects are now bid at market labor rates unless the project receives federal funding that triggers Davis-Bacon requirements.
What labor compliance applies to federally funded Kentucky work?
Federally funded Kentucky projects exceeding $2,000 fall under Davis-Bacon. Contractors must pay the U.S. Department of Labor wage determination for the county and trade, include required fringe benefits, and submit weekly certified payroll to the contracting agency, despite the state-level repeal.