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Virginia Prevailing Wage

Virginia enacted its prevailing wage law in 2020, effective May 1, 2021. It applies to public works contracts of $250,000 or more with state agencies (any state funding) or localities that have adopted a prevailing wage ordinance. Prevailing wage rates are based on federal Davis-Bacon determinations.

Virginia has an active prevailing wage law (Virginia Prevailing Wage Act (Code of Virginia Section 40.1-28.9 et seq.)). Administered by Virginia Department of Labor and Industry (DOLI). Certified payroll is required. Federal Davis-Bacon applies to all federal projects.

State Law Details

Law
Virginia Prevailing Wage Act (Code of Virginia Section 40.1-28.9 et seq.)
Agency
Virginia Department of Labor and Industry (DOLI)
Thresholds
State agency contracts of $250,000 or more with any state funding
Locality contracts of $250,000 or more where the locality has adopted prevailing wage ordinance
Certified Payroll
Required

Federal Davis-Bacon Coverage

The federal Davis-Bacon Act applies to all federally funded or federally assisted construction contracts over $2,000 in Virginia. This includes projects funded by federal agencies, FHWA highway projects, HUD housing, and projects receiving federal grants.

  • Threshold: $2,000 for federal contracts
  • Certified payroll (WH-347) required weekly
  • Wage determinations via SAM.gov
Search Federal Wage Determinations

Key Facts

  • Enacted in 2020, effective May 1, 2021 — one of the newest prevailing wage laws
  • Threshold is $250,000 for qualifying public contracts
  • Localities must opt in by adopting a prevailing wage ordinance
  • Wage rates based on federal Davis-Bacon determinations
  • Violators face 8% annual interest on underpayments and debarment until workers are paid

Penalties

Contractors who pay less than prevailing wage are liable for the difference plus 8% annual interest. Violators are disqualified from bidding on public contracts until all workers are fully paid.

Recent Changes

Virginia enacted its prevailing wage law in 2020 with an effective date of May 1, 2021. This made Virginia one of the first states in decades to establish a new prevailing wage law rather than repeal one.

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