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VA SB518

VA SB518
Public works contracts; prevailing wage rate for work performed, penalty.


summary

Introduced
01/13/2026
In Committee
03/04/2026
Crossed Over
02/13/2026
Passed
Dead

Introduced Session

2026 Regular Regular Session

Bill 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. 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 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 contracting for public works projects funded by state or local money, must ensure that contractors and subcontractors pay their mechanics, laborers, and workers at least the prevailing wage rate, which is defined as the rate generally paid for similar work in the area. The Commissioner of Labor and Industry will determine this prevailing wage rate through surveys conducted every two years, considering factors like construction type and federal wage laws, and this rate will never be lower than what's set by the federal Davis-Bacon Act. Contractors violating these prevailing wage requirements can face penalties, including liquidated damages of $500 per day per worker paid below the prevailing wage, and may be disqualified from future public contracts. Additionally, institutions of higher education must now explicitly agree to comply with these public works contract requirements in their memoranda of understanding, and any interested party can challenge contracts that violate these provisions. The bill also raises the threshold for when these prevailing wage requirements apply to public contracts from $250,000 to $500,000, with some exceptions for certain housing and telecommunications projects.

Committee Categories

Budget and Finance, Business and Industry, Justice

Sponsors (3)

Last Action

Read second time (on 03/06/2026)

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