Request By:
Carol M. Palmore, General Counsel
Department of Labor
U.S. 127 Building, South
Frankfort, Kentucky 40601
Opinion
Opinion By: Steven L. Beshear, Attorney General; Martin Glazer, Assistant Attorney General
You seek our opinion as to what prevailing wage law is applicable where a project is advertised for bids before July 15, 1982, but awarded after July 15, 1982.
The issue is made more acute by the radical changes in the Prevailing Wage Law enacted by the 1982 General Assembly. For example, after July 15th (the effective date of those changes), many entities now covered will no longer be covered for prevailing wages. A project must exceed $250,000 in cost (amendment to KRS 337.010(3)(a) -- definition of "construction"). Further, "public works" (KRS 337.010(3)(e)) will now exclude buildings constructed as institutions of learning and those constructed by cities, counties, and urban county governments or school districts unless 50% of the financing is with state funds. For all intent and purpose, that will exclude most local governmental construction.
In any event, we believe that the answer to your inquiry is found in KRS 337.520(4), to wit:
"The wage rates to be used by the public authority in a contract for the construction of public works shall be the prevailing wage as of the date the public works project is advertised and offered for bid. . . ." (Emphasis added.)
Before July 15, 1982, there would be a rate applicable to many public authorities that would not be applicable after July 15, 1982, and the date of that applicable rate will be ascertained as of the date the project is advertised and offered for bid.
If a public authority who would not be covered after July 15, 1982, but was covered before that date wishes to avoid paying prevailing wages, such public authority should not advertise until after July 15, 1982.
So, the law in effect on the date of advertisement is the applicable law for that project and governmental entity.