An Act to amend and reenact §§ 2.2-4321.3, 23.1-1009, and 40.1-6 of the Code of Virginia, relating to prevailing wage rate for public works contracts; definitions; civil penalty; work group; report.
SB518 expands Virginia’s prevailing wage framework for public works contracts. It requires state agencies to include prevailing wage provisions in public works contracts paid for in whole or in part with state funds, and it authorizes localities to adopt ordinances doing the same for locally funded public works. The bill also extends prevailing wage requirements to certain covered public institutions of higher education for construction contracts initiated after July 1, 2027, when the contract value is at least $5 million and the project is funded with state general funds or state general fund debt.
The bill defines key terms such as “public works,” “covered institution,” “locality,” and “prevailing wage rate,” and directs the Commissioner of Labor and Industry to determine wage rates using surveys, federal Davis-Bacon benchmarks, and other specified data. It also exempts certain housing development contracts administered by DHCD or the Virginia Housing Development Authority, and excludes public works contracts of $250,000 or less. In addition to wage-setting rules, the bill adds compliance, recordkeeping, posting, certification, and subcontractor-registration requirements, and it creates enforcement tools including restitution, interest, disqualification from bidding, civil relief, attorney fees, and misdemeanor liability for willful violations.
SB518 amends §§ 2.2-4321.3, 23.1-1009, and 40.1-6 of the Code of Virginia to broaden and clarify the state’s prevailing wage laws for public construction. It imposes new obligations on state agencies and certain covered institutions, authorizes but does not require local prevailing wage ordinances, and expands the Commissioner of Labor and Industry’s duties to set wage rates and enforce compliance. The act also requires implementing regulations by July 1, 2027, and directs the Commissioner to convene a work group and report on a certified payroll reporting portal and database. Existing public works contracts entered into or amended before the effective date of the implementing regulations are not altered.
The bill appears to have been politically divisive but ultimately successful. Voting history shows repeated narrow margins in committee and on the floor, including a close Senate passage and a close House concurrence on the Governor’s recommendation. The final enactment indicates enough support to pass both chambers and survive conference and gubernatorial review, but the vote totals suggest substantial opposition remained throughout the process.
The main points of contention likely centered on the cost and administrative burden of prevailing wage mandates versus labor protections and wage standards for public construction workers. Opponents appear to have objected to extending prevailing wage requirements to state-funded projects, covered institutions, and potentially locality-adopted ordinances, as well as to the compliance, recordkeeping, and enforcement provisions. Supporters likely emphasized wage fairness, standardized pay on public projects, and stronger oversight. The close votes in both chambers suggest disagreement over the scope of coverage, the $5 million threshold for covered institutions, and the exemption for smaller contracts and certain housing projects.