KY SB117

Prohibits subcontractors from misclassifying employees as independent contractors on capital projects, establishing a presumption that workers are employees with six factors to determine classification status

Requires mandatory E-Verify enrollment for all employees on capital projects, with contractors submitting case numbers before work begins; non-compliance results in 12-month ban from public agency projects

Imposes civil penalties up to $250 per misclassified worker for first violations, up to $3,000 per worker for subsequent violations within five years, and double penalties for willful violations; intentional violations constitute a Class A misdemeanor

Mandates posting of worker rights notices at construction sites and maintenance of certified payroll records, with payroll provided to Education and Labor Cabinet within seven working days upon request

Creates inter-agency information sharing between Department of Revenue, Department of Workers' Claims, Office of Unemployment Insurance, and Department of Workplace Standards for misclassification violations, effective January 1, 2027