Opinion ID: 2539485
Heading Depth: 3
Heading Rank: 1

Heading: Establishing Prevailing Wages

Text: For every locality in the Commonwealth, the Cabinet must set the prevailing wage rate for each classification of construction workers  from bricklayers to electricians to plumbers. [3] KRS 337.520(1). The prevailing wage for each type of construction worker in a locality includes two components: (1) the basic hourly rate paid to that type of worker; and (2) an hourly figure based on the fringe benefits  such as medical care, life insurance, and retirement benefits  provided by local employers to that type of worker. KRS 337.505. In setting the prevailing wage rates for each locality, the Cabinet must consider the wage rates paid on previous public works projects in the locality, the wage rates paid on comparable, private projects in the locality, and collective bargaining agreements relating to the locality. KRS 337.520(3). Whenever a government entity, known as a public authority, [4] wishes to construct a public works [5] project, it must contact the Cabinet and obtain the prevailing wage rates for each type of worker needed to complete the job. KRS 337.510(1). After the Cabinet provides it with a prevailing wage schedule, the public authority must incorporate the schedule into its bid documents and project specifications so that contractors bidding on the project are aware of the wage rates and may properly estimate their labor costs. See KRS 337.510(1). Once the contract is awarded, the prevailing wage schedule must also be incorporated into the construction contract itself. KRS 337.510(1). Additionally, the contract is required to contain a stipulation that the contractor and all of its subcontractors will pay no less than the prevailing wage. KRS 337.530(1).