At a Glance
Quick Answer
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 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.
Context
Prevailing Wage & Bidding in Virginia
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.
Details
Coverage Details
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 fundingLocality 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.
Reference
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
Enforcement
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.
Updates
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.
Resources
Related Tools & Templates
Turn wage rules into bid-ready alerts
Use ConstructionBids.ai to track matching public projects, save bid searches, and move wage-sensitive scopes into your estimating workflow.
FAQ
Questions Contractors Ask
Does Virginia have a prevailing wage law?
Yes. Virginia has an active state prevailing wage law: Virginia Prevailing Wage Act (Code of Virginia Section 40.1-28.9 et seq.). 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.
Does Davis-Bacon apply in Virginia?
Yes. The federal Davis-Bacon Act applies to all federally funded construction projects over $2,000 in Virginia, regardless of state law. Contractors must pay the prevailing wage rate determined by the DOL for the project location.
Is certified payroll required in Virginia?
Yes. Virginia requires certified payroll on state prevailing wage projects. Additionally, certified payroll is always required on federal Davis-Bacon projects using form WH-347.
What are the penalties for prevailing wage violations in Virginia?
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.
What is the threshold for Virginia prevailing wage?
Virginia's Prevailing Wage Act covers public works contracts of $250,000 or more. State agency projects are covered with any state funding, while local government projects are covered at that threshold only where the locality has adopted a prevailing wage ordinance. Confirm local opt-in before bidding municipal work.
How are Virginia prevailing wage rates set?
Virginia bases its prevailing wage rates on federal Davis-Bacon determinations. This makes the rate framework familiar to contractors with federal experience. Price each trade classification to the applicable Davis-Bacon-based rate found in the bid documents, and plan for certified payroll, which is required on covered projects.
What penalties apply for underpaying prevailing wage in Virginia?
Contractors who pay less than prevailing wage owe the difference plus 8% annual interest, and they are disqualified from bidding on public contracts until all affected workers are fully paid. A single unresolved underpayment can lock you out of future Virginia public work, making compliance a competitive necessity.