Kentucky Government Contractors laws & compensation compliance analysis

Kentucky Government Contractors: What you need to know

The Kentucky Equal Employment Opportunity Act prohibits employment discrimination on the basis of race, color, religion, sex, age (40 years and over), disability, veteran status, or national originby an employer that contracts or subcontracts with the state or with any unit of local government (KY Rev. Stat. Sec. 45.550 et seq.). The Act also requires contractors and subcontractors to take affirmative action in their recruitment, selection, and other employment practices. Also, the Act requires the employer to state in advertisements that all applicants will receive consideration without regard to race, color, religion, sex, age, or national origin. The employer must also post notices stating this practice of nondiscrimination. Failure to comply with these criteria is considered a material breach of contract.
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Exemption. A contractor or subcontractor is exempt as to any affirmative action or reporting requirements of the Act if:
• The contract or subcontract is valued at less than $250,000, and that amount is not a subterfuge to avoid complying;
• The contractor or subcontractor employs fewer than eight workers during the course of the contract;
• The contractor or subcontractor employs only family members or relatives; or
• The contractor or subcontractor employs persons having a direct ownership interest in the business, and that interest is not a subterfuge to avoid complying.
The Small and Minority Business Branch of the Cabinet for Economic Development acts as an advocacy agency for small-, minority- and women-owned businesses. For more details, visit their website at

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