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VA HB569

VA HB569
Public works contracts; prevailing wage rate, definitions, civil penalty.

summary

Introduced
01/13/2026
In Committee
03/06/2026
Crossed Over
03/10/2026
Passed
Dead

Introduced Session

Potential new amendment
2026 Regular Regular Session

Bill Summary

Prevailing wage rate for public works contracts; localities. Requires each state agency, 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. 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. The bill also requires public institutions of higher education, when procuring services or construction contracts after July 1, 2027, to ensure that bid specifications include payment at no less than the prevailing wage rate for projects with a value of at least $5 million. 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 include in certain memoranda of understanding an express agreement to comply with 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.

AI Summary

This bill mandates that state agencies and localities, when undertaking public works projects funded by state or local money, must ensure that contractors and subcontractors pay their mechanics, laborers, and workers a wage rate no less than the "prevailing wage rate." The prevailing wage rate is defined as the rate generally paid for similar work in the specific locality, determined by the Commissioner of Labor and Industry (the Commissioner) through surveys conducted every two years. For public institutions of higher education, this requirement applies to construction contracts valued at $5 million or more starting July 1, 2027. The bill also introduces a civil penalty of $500 per day per worker for contractors who pay less than the prevailing wage, and up to $1,000 for subsequent violations, in addition to potential disqualification from future public contracts. Furthermore, any interested party, including labor organizations, can challenge contracts that violate these provisions and may be awarded attorney fees if successful. Public institutions of higher education must also include an agreement to comply with these public works contract requirements in their memoranda of understanding. The Commissioner is directed to adopt emergency regulations to implement these changes, with specific factors outlined for determining prevailing wage rates, including consistency with federal definitions and consideration of various data sources.

Committee Categories

Budget and Finance, Business and Industry

Sponsors (20)

Last Action

Senate substitute rejected by House (0-Y 98-N 0-A) (on 03/11/2026)

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