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Report Says Kentucky's Prevailing Wage Law Increases Costs

A new report says Kentucky's prevailing wage law increases labor costs by as much as 51 percent for some public projects.

The Legislative Research Commission said a study of 12 public school projects increased labor costs by about $600,000. A study of 17 state government projects found the prevailing wage law increased labor costs by 6.7 percent.

Democrats said the report was flawed because it did not look at whether the prevailing wage law increased the total cost of construction projects. They argued paying workers higher wages lowers overall construction costs by increasing productivity.

A panel of state lawmakers decided not to adopt the report after a two-hour meeting that featured some heated exchanges. Republicans have generally favored repealing the prevailing wage law while Democrats usually support it.