VirginiaHB5692026 Regular SessionHouseWALLET

Public works contracts; prevailing wage rate, definitions, civil penalty.

Sponsored By: Michael B. Feggans (Democratic)

Signed by Governor

Summary

Prevailing wage rate for public works contracts; localities. Requires each state agency or locality, when procuring services or letting contracts for public works paid for in whole or in part by state or local funds, or when overseeing or administering such contracts for public works, to ensure that its bid specifications or other public contracts applicable to the public works require bidders, offerors, contractors, and subcontractors to pay wages, salaries, benefits, and other remuneration to any mechanic, laborer, or worker employed, retained, or otherwise hired to perform services in connection with the public contract for public works at a rate no less than the prevailing wage rate. The bill also amends the definition of "public works" to include work performed at certain institutions of higher education and to exclude work performed at a non-governmental property or facility used to provide broadband or other telecommunications services. Under the bill, a contractor or subcontractor may be liable to the Commissioner of Labor and Industry for liquidated damages for violating the prevailing wage requirements in the bill. Under the bill, any interested party shall have standing to challenge bid specifications, project agreements, or other public contracts for public works that violate the provisions of the bill. The bill requires institutions of higher education to expressly agree to comply with the public works contract requirements. Under the bill, the Commissioner shall determine the prevailing wage based on a survey of wages and benefits paid in each area, as defined in the bill, conducted every two years. The bill includes factors for the Commissioner to consider in determining a prevailing wage rate. The bill directs the Commissioner to adopt emergency regulations to implement the provisions of the bill. This bill is identical to SB 518.

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 2 benefits, 1 costs, 2 mixed.

Local surveys set public project wages

Virginia's Labor Commissioner sets prevailing wages—the required pay floor—using local wage and benefit surveys every three years. Rates cover building, residential, heavy, and highway construction in each planning district. Rates cannot fall below federal Davis-Bacon rates, and the method uses the federal wage definition dated January 20, 2026. The Commissioner considers project records, union agreements, and information from contractors, labor groups, and public agencies. Required regulations must take effect by July 1, 2027; contracts entered into or amended before their effective date are preserved.

Wage floor for large college projects

Certain public colleges with state management agreements must require prevailing wages on qualifying public works contracts. This applies to contracts worth at least $5 million and initiated after July 1, 2027. Projects must use state general funds or state general fund debt, partly or fully. Workers on those projects must receive at least the applicable prevailing wage.

Back pay rights and contractor penalties

Underpaid covered workers are owed all unpaid wages plus 8% yearly interest, starting when wages were due. Offending contractors and subcontractors cannot bid on public contracts until full repayment; willful violations are Class 1 misdemeanors. Interested parties can challenge unlawful contract terms, seek a court order, and recover reasonable legal fees and costs after winning. The Commissioner can require additional records, inspect workplaces at reasonable times, question employers and workers privately, and seek court-ordered entry. Employers must notify the Commissioner to seek trade-secret protection; confidentiality orders limit disclosure and are enforceable through civil contempt.

Public project workers gain wage protections

State agencies must require prevailing wages on public works contracts above $250,000 funded partly or fully with state money. Local governments can require the same on contracts above $250,000 funded partly or fully with local money, by adopting an ordinance. Wage requirements must appear in bid specifications and project agreements. Public works includes transportation infrastructure, but excludes broadband or telecommunications work on nongovernmental property, despite grants or partial government ownership. Specified housing-finance contracts through Virginia's housing agencies using non-state funds are also exempt.

Contractors face wage reporting requirements

Covered contractors must certify under oath each trade's wages and benefits when awarded a contract, including subcontractor pay and outside benefit plans. Contractors and subcontractors must post each trade's wage rate and change dates, then certify compliance within 10 days. Employers must keep pay, hours, and job records for at least six years and provide certified records within 10 days of a request. Covered employers cannot hire subcontractors unless they are registered in Virginia's statewide electronic procurement system. A work group must study a certified payroll portal, including reporting schedules, formats, and payroll software links, and report by July 1, 2027.

Sponsors & Cosponsors

Sponsor

  • Michael B. Feggans

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 386 • No: 286

Senate vote • 4/22/2026

Senate concurred in Governor's recommendation

Yes: 21 • No: 18

House vote • 4/22/2026

House concurred in Governor's recommendation

Yes: 63 • No: 36

House vote • 3/14/2026

Conference report agreed to by House

Yes: 62 • No: 35

Senate vote • 3/13/2026

Conference report agreed to by Senate

Yes: 21 • No: 17

Senate vote • 3/12/2026

Senate insisted on substitute Block Vote

Yes: 40 • No: 0

House vote • 3/11/2026

Senate substitute rejected by House

Yes: 0 • No: 98

Senate vote • 3/10/2026

Finance and Appropriations Substitute agreed to

Yes: 0 • No: 0

Senate vote • 3/10/2026

Passed Senate with substitute

Yes: 21 • No: 19

Senate vote • 3/10/2026

Commerce and Labor Amendments rejected

Yes: 0 • No: 0

Senate vote • 3/9/2026

Constitutional reading dispensed Block Vote (on 2nd reading)

Yes: 40 • No: 0

Senate vote • 3/9/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote • 3/6/2026

Reported from Finance and Appropriations with substitute

Yes: 10 • No: 4

Senate vote • 3/2/2026

Reported from Commerce and Labor with amendments and rereferred to Finance and Appropriations

Yes: 8 • No: 6

House vote • 2/17/2026

Read third time and passed House

Yes: 62 • No: 35

House vote • 2/13/2026

Reported from Appropriations with substitute

Yes: 15 • No: 7

House vote • 2/13/2026

Subcommittee recommends reporting with substitute

Yes: 5 • No: 2

House vote • 2/12/2026

Subcommittee recommends reporting with substitute and referring to Appropriations

Yes: 5 • No: 2

House vote • 2/12/2026

Reported from Labor and Commerce with substitute and referred to Appropriations

Yes: 13 • No: 7

Actions Timeline

  1. Senate concurred in Governor's recommendation (21-Y 18-N 0-A)

    4/22/2026Senate
  2. House concurred in Governor's recommendation (63-Y 36-N 0-A)

    4/22/2026House
  3. Acts of Assembly Chapter text (CHAP1060)

    4/22/2026Governor
  4. Reenrolled bill text (HB569ER2)

    4/22/2026House
  5. Reenrolled

    4/22/2026House
  6. Approved by Governor-Chapter 1060 (effective 7/1/2026)

    4/22/2026Governor
  7. Signed by President

    4/22/2026Senate
  8. Signed by Speaker

    4/22/2026House
  9. Governor's recommendation adopted

    4/22/2026Governor
  10. Governor's recommendation received by House

    4/13/2026Governor
  11. Fiscal Impact Statement from Department of Planning and Budget (HB569)

    4/2/2026House
  12. Governor's Action Deadline 11:59 p.m., April 13, 2026

    3/31/2026Governor
  13. Enrolled Bill communicated to Governor on March 31, 2026

    3/31/2026House
  14. Signed by Speaker

    3/31/2026House
  15. Bill text as passed House and Senate (HB569ER)

    3/30/2026House
  16. Enrolled

    3/30/2026House
  17. Signed by President

    3/30/2026Senate
  18. Fiscal Impact Statement from Department of Planning and Budget (HB569)

    3/23/2026House
  19. Conference report agreed to by House (62-Y 35-N 0-A)

    3/14/2026House
  20. Conference report agreed to by Senate (21-Y 17-N 0-A)

    3/13/2026Senate
  21. Conference Report released

    3/13/2026
  22. House Conferees: Feggans, McQuinn, Bloxom

    3/12/2026House
  23. Conferees appointed by House

    3/12/2026House
  24. House acceded to request

    3/12/2026House
  25. Senate insisted on substitute Block Vote (40-Y 0-N 0-A)

    3/12/2026Senate

Bill Text

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