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.
Virginia is one of the newest prevailing wage states, having enacted its law in 2020 with an effective date of May 1, 2021, so contractors who have worked the state for years should not assume the old no-law environment still applies. Administered by the Department of Labor and Industry, the Virginia Prevailing Wage Act reaches public works contracts of $250,000 or more on state agency projects with any state funding. For local government projects, coverage applies at the same $250,000 threshold only where the locality has opted in by adopting a prevailing wage ordinance, so your first step on a local bid is to confirm whether that jurisdiction has adopted one.
Virginia bases its prevailing wage rates on federal Davis-Bacon determinations, which is helpful because the rate framework will be familiar to anyone who has bid federal work. Price each trade classification to the applicable Davis-Bacon-based rate, and build certified payroll into your overhead, since covered projects require it along with accurate classification and recordkeeping. Treat the $250,000 figure as a hard line: a project just above it carries the full compliance burden, and you should not structure a bid assuming you can stay below coverage on a clearly larger scope.
The enforcement mechanics directly affect cash flow and eligibility. Contractors who pay less than prevailing wage are liable for the difference plus 8% annual interest, and violators are disqualified from bidding on public contracts until every affected worker is fully paid. That bidding disqualification is a serious competitive risk, because a single unresolved underpayment can lock you out of future Virginia public work. Confirm state funding or local opt-in, pull the correct Davis-Bacon-based rates, and keep clean payroll records to protect both your margin and your access to the market.
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.
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.
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.