VirginiaHB5692026 Regular SessionHouseWALLET

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

Sponsored By: Michael B. Feggans (Democratic)

Became Law

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

8 provisions identified: 4 benefits, 1 costs, 3 mixed.

Stronger penalties and legal remedies

If a contractor underpays, they must pay all wages owed plus 8% yearly interest. They cannot bid on public work until they repay in full, and willful violations are a Class 1 misdemeanor. Bidders, contractors, subcontractors, and labor groups can ask a court to stop illegal contracts and recover attorney’s fees if they win. Fines collected go to the state’s general fund.

Wage rates follow federal levels

The Commissioner sets state prevailing wages using federal Davis-Bacon findings and a wage-and-benefit survey every three years. State rates cannot be lower than federal Davis-Bacon rates and use the federal definition in place on January 20, 2026. The Commissioner must issue implementing regulations effective by July 1, 2027.

Prevailing wages on many state projects

State agencies must require contractors to pay at least the prevailing wage on public works paid with any state funds. Starting July 1, 2027, covered institutions must require prevailing wages on contracts begun after that date worth $5,000,000 or more that use state general funds or state general fund debt. Public works contracts worth $250,000 or less are exempt. Covered institutions must agree to follow these public works rules.

Some projects excluded from wage rules

Housing projects that meet Department of Housing and Community Development or Virginia Housing Development Authority low- or moderate-income rules are exempt from prevailing wage. HDA contracts paid with non-state-appropriated funds are also exempt. Work at non-governmental broadband or telecom sites is not treated as public works, even if built with grants or partial public interests.

Localities can require prevailing wages

A city or county may pass an ordinance to require prevailing wages on public works paid with local funds. If adopted, each covered local contract must include the prevailing wage pay requirement.

Check wage rates before you bid

A contracting representative may ask the Labor Commissioner for the correct prevailing wage rate. Ask at least 10 but not more than 20 days before bids are advertised.

New payroll and posting rules for contractors

After award, contractors must certify under oath the pay scale for each trade, with wages, each benefit, and third-party benefit payees. Employers must keep pay and hours records for six years and give them to the Department within 10 days when asked. Contractors and subs must post the prevailing wage rates at the jobsite and certify posting within 10 days. Covered employers may not hire a subcontractor unless that sub is registered in the state procurement system.

Study for certified payroll portal

The Labor Commissioner convenes a work group to design a certified payroll reporting portal and database. The group recommends notice rules, reporting frequency, and formats, and reports to the Governor and General Assembly 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

Commerce and Labor Amendments rejected

Yes: 0 • No: 0

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 3/9/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote 3/9/2026

Constitutional reading dispensed Block Vote (on 2nd reading)

Yes: 40 • 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

Reported from Labor and Commerce with substitute and referred to Appropriations

Yes: 13 • No: 7

House vote 2/12/2026

Subcommittee recommends reporting with substitute and referring to Appropriations

Yes: 5 • No: 2

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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