Kentucky Prevailing Wage

Kentucky repealed its state prevailing wage law in 2017, part of that year's repeal wave alongside Iowa and Wisconsin.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.