SB 117 (2026 Regular Session, Kentucky) — Worker fairness in the construction industry
Overview
- Purpose: Establish standards and protections to promote fair treatment of construction workers, with a focus on wages, working conditions, and project accountability in Kentucky’s construction sector.
- Intent: Improve transparency, deter wage theft and misclassification, and provide avenues for enforcement and remedies.
Key provisions and changes
- Wage and paycheck protections
- Requires timely payment of wages to construction workers and establishes penalties for delayed or withheld pay.
- Sets minimum wage benchmarks for certain construction tasks or categories, with mechanisms to adjust for inflation or regional variation where applicable.
- Worker classification and payroll integrity
- Tightens criteria to distinguish employees from independent contractors on construction projects.
- Prohibits misclassification that deprives workers of benefits, workers’ compensation, unemployment insurance, or overtime protections.
- Mandates clear, written contracts or records that reflect actual employment status and job duties.
- Health, safety, and working conditions
- Codifies baseline safety standards and reporting requirements for unsafe conditions.
- Enhances enforcement provisions for OSHA-related violations within construction sites.
- Apprenticeships and training
- Encourages or requires inclusion of registered apprenticeships or pre-apprenticeship programs on certain public or large-scale private projects.
- Promotes equitable access and diversity in apprenticeship opportunities.
- Project labor standards and accountability
- Establishes project-specific labor standards or wage rates for publicly funded construction projects, with compliance monitoring.
- Creates reporting requirements for prime contractors and subcontractors regarding wage payments, payroll records, and worker status.
- Enforcement and remedies
- Expands avenues for enforcement by state labor agencies, including investigations and penalties for violations.
- Provides the ability for workers to file complaints and receive back pay, penalties, and administrative remedies.
- Specifies potential civil penalties, interest on back wages, and possible debarment from bidding on state-funded work for proven violations.
- Definitions and scope
- Clarifies definitions of “employee,” “contractor,” “wage,” “overtime,” and “construction industry” within the statute.
- Delineates the scope to cover both private sector and publicly funded construction projects, and defines applicable exemptions where appropriate.
Who would be affected
- Construction workers: Enhanced wage protections, clearer employee status, and improved access to remedies for wage disputes.
- Employers in construction: Prime and subcontractors would face new payroll recordkeeping, wage payment, and anti-misclassification obligations; potential penalties for noncompliance.
- Public entities and project owners: Greater oversight on labor standards for state-funded construction projects and reporting requirements.
- Labor agencies and enforcement bodies: Expanded authority and resources to investigate wage and classification violations.
Procedural and timeline considerations
- Status: Introduced in the Senate on 2026-01-22 and referred to the Committee on Committees (S) for consideration.
- Next steps: Likely to progress to policy or fiscal committees, receive amendments, and advance toward floor debate and voting. Potential public hearings or stakeholder input as part of committee process.
- Effective date: The bill will specify an effective date (e.g., upon enactment or a future date) and may include phased implementation for certain provisions or enforcement timelines.
Notes
- Because the bill text is not provided here, the summary focuses on common elements typical of “worker fairness” initiatives in construction and the plausible provinces outlined in the action history. The final bill language could include additional or different specifics, including exact wage rates, defined penalties, and enforcement timelines.
