VirginiaSB5182026 Regular SessionSenateWALLET

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

Sponsored By: Aaron R. Rouse (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 incorporates SB 370 and is identical to HB 569.

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 2 benefits, 1 costs, 3 mixed.

Prevailing wages on state and university projects

State-funded public works must include a clause that workers are paid at least the local prevailing wage. Starting July 1, 2027, public colleges and universities must require prevailing wages on new projects worth $5,000,000 or more that use state general funds or state-backed debt. These institutions must formally agree to follow these public works rules in their contracts.

Stronger enforcement and worker remedies

If a contractor pays less than the prevailing wage, they owe all unpaid wages plus 8% yearly interest from when pay was due. They are barred from bidding on public contracts until they fully repay, and willful violations are a Class 1 misdemeanor. Any interested party can sue to stop noncompliant contracts, and winners can recover reasonable attorney fees and costs. Fines and penalties collected go to the state’s general fund.

Some projects are not covered

Public works contracts of $250,000 or less are exempt from prevailing wage rules. Certain housing finance contracts by Housing and Community Development or Virginia Housing for low- or moderate-income developments are exempt, and Virginia Housing contracts paid fully with non-state funds are also exempt. Work on private property used to provide broadband or telecom service is not treated as public works under this law.

Localities can require prevailing wages

Any locality may pass an ordinance to require prevailing wages on its own publicly funded projects. The rule must be written into the bid and the contract. It only applies in places that choose to adopt it.

New posting and payroll rules

On covered jobs, contractors must post the prevailing wage rates at the site and tell the Commissioner within 10 days. After award, they must certify under oath the pay scale for each craft, list fringe benefits, and identify any third-party funds. Employers must keep payroll and hours records for at least six years and provide them within 10 days when asked. Contractors may only hire subcontractors registered in the state’s procurement system.

How Virginia sets prevailing wages

The Commissioner uses federal Davis-Bacon rates, a wage survey every three years, and the federal definition from January 20, 2026 to set local rates by construction type. Agencies can request the correct rate 10–20 days before bids are advertised. The Commissioner must issue implementing rules by July 1, 2027. A work group is studying a certified payroll portal and must report by July 1, 2027.

Sponsors & Cosponsors

Sponsor

  • Aaron R. Rouse

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 394 • No: 224

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: 64 • No: 34

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: 18

Senate vote 3/12/2026

Senate acceded to request Block Vote

Yes: 40 • No: 0

Senate vote 3/11/2026

House substitute rejected by Senate

Yes: 0 • No: 40

House vote 3/10/2026

Passed House with substitute

Yes: 63 • No: 35

House vote 3/4/2026

Reported from Appropriations

Yes: 14 • No: 7

House vote 3/3/2026

Reported from Labor and Commerce with substitute and referred to Appropriations

Yes: 15 • No: 7

Senate vote 2/16/2026

Read third time and passed Senate

Yes: 20 • No: 19

Senate vote 2/13/2026

Committee substitute agreed to (Voice Vote)

Yes: 0 • No: 0

Senate vote 2/13/2026

Committee substitute rejected (Voice Vote)

Yes: 0 • No: 0

Senate vote 2/12/2026

Constitutional reading dispensed Block Vote (on 1st reading)

Yes: 40 • No: 0

Senate vote 2/12/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote 2/11/2026

Reported from Finance and Appropriations with substitute

Yes: 10 • No: 5

Senate vote 2/2/2026

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

Yes: 9 • No: 6

Senate vote 1/21/2026

Rereferred from General Laws and Technology to Commerce and Labor

Yes: 15 • No: 0

Actions Timeline

  1. House concurred in Governor's recommendation (64-Y 34-N 0-A)

    4/22/2026House
  2. Senate concurred in Governor's recommendation (21-Y 18-N 0-A)

    4/22/2026Senate
  3. Acts of Assembly Chapter text (CHAP1014)

    4/22/2026Governor
  4. Reenrolled bill text (SB518ER2)

    4/22/2026Senate
  5. Reenrolled

    4/22/2026Senate
  6. Approved by Governor-Chapter 1014 (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. Substitute bill reprinted 26110431D

    4/16/2026Senate
  11. Governor's recommendation received by Senate

    4/13/2026Governor
  12. Fiscal Impact Statement from Department of Planning and Budget (SB518)

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

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

    3/31/2026Senate
  15. Signed by Speaker

    3/31/2026House
  16. Bill text as passed Senate and House (SB518ER)

    3/30/2026Senate
  17. Enrolled

    3/30/2026Senate
  18. Signed by President

    3/30/2026Senate
  19. Fiscal Impact Statement from Department of Planning and Budget (SB518)

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

    3/14/2026House
  21. Conference report agreed to by Senate (21-Y 18-N 0-A)

    3/13/2026Senate
  22. Conference Report released

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

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

    3/12/2026House
  25. Senate acceded to request Block Vote (40-Y 0-N 0-A)

    3/12/2026Senate

Bill Text

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