Virginia's Prevailing Wage: Narrower Scope, Evolving Footprint
Virginia's prevailing wage law (Va. Code § 2.2-4321.3) is comparatively new and comparatively narrow. It was enacted in 2020 and took effect May 1, 2021, covering state agency public works contracts over $250,000 — a much smaller state-funded public-works footprint than DE, PA, NJ, or MD. Where VA prevailing wage differs most from its neighbors: it doesn't automatically reach locality-funded projects. A county, city, or town only has prevailing wage if it has adopted a local opt-in ordinance. That opt-in map is growing — Portsmouth, Fairfax County, and Richmond are on it, and more localities are actively considering — so the picture in 2025 isn't the picture in 2021. This essay walks scope, thresholds, DOLI administration, the opt-in pattern, and Davis-Bacon interaction.
What § 2.2-4321.3 actually covers
The statute applies to:
- State agency public works contracts. Construction, alteration, repair, or maintenance of public facilities or immovable property, paid in whole or part with state funds.
- Threshold: contracts over $250,000. Projects at or below $250,000 are exempt.
- Scope of workers covered. Mechanics, laborers, and workers performing services in connection with the contract.
- Locality projects only by opt-in. State law permits — but does not require — counties, cities, and towns to adopt ordinances extending prevailing wage to their own public works contracts above $250,000.
This is structurally different from most neighbors. NJ, PA, MD, and DE all apply their state prevailing wage laws to some layer of local-government public works by default. VA's default is the opposite — local projects are exempt unless the locality opts in.
Who sets the rates
The VA Department of Labor and Industry (DOLI) Commissioner determines prevailing wage rates based on the US Secretary of Labor's Davis-Bacon Act determinations (40 U.S.C. § 3141 et seq.). Rates are locality-specific. DOLI issues wage determinations to contracting agencies for specific covered projects; contractors see them through the procurement package rather than via a published statewide rate book.
Primary source: doli.virginia.gov/prevailing-wage-law.
This alignment with Davis-Bacon rates is deliberate and worth internalizing:
- VA prevailing wage rate on a given classification in a given county typically matches (or closely tracks) the Davis-Bacon rate for the same classification in the same county.
- This is different from NJ, where NJDOL conducts its own surveys that often produce rates higher than DBA. See our NJ PW vs Davis-Bacon essay.
- It's different from PA, where PA DLI runs its own methodology.
- DE uses its own per-project rate request model (see our DE Per-Project Rate essay).
The localities that have opted in
Locality opt-in is an ordinance passed by the governing body extending prevailing wage to local public works contracts. Confirmed opt-ins include:
- Portsmouth — early adopter; applies to city public works over $250,000.
- Fairfax County — Ordinance 04-22-2; applies to county construction/maintenance contracts over $250,000.
- Richmond — Ordinance 2024-186 adopted October 15, 2024; effective July 1, 2025. Applies to city construction over $250,000, with express exemption for federally-funded Davis-Bacon projects to avoid double-stacking.
- Other localities — active consideration in several jurisdictions; the map changes. Contractors working VA locality public works should verify opt-in status for each locality at bid time.
There's no consolidated primary-source statewide list. DOLI may publish guidance; individual locality codes are the authoritative source for confirming opt-in status.
How VA prevailing wage interacts with Davis-Bacon on federally-funded work
The interaction pattern:
- Pure state-funded, over $250K, state agency contract. VA prevailing wage applies. No Davis-Bacon.
- Pure federal-funded VA project (federal contract or federally-assisted construction). Davis-Bacon applies. VA state prevailing wage doesn't, because the state funding trigger isn't met.
- Mixed federal + VA state funds. Davis-Bacon applies by virtue of federal funding. VA prevailing wage also applies if the state-funds portion is above $250,000 and the contract is with a state agency or opted-in locality. In practice: rates are typically aligned (since VA rates track DBA), but filings run separately.
- Locality opt-in project with federal funding. Depends on the locality ordinance — Richmond's ordinance expressly exempts federal DBA projects to avoid duplication; other localities' ordinances may read differently.
The practical effect: in most VA cases, rate compliance is effectively one rate level (because VA tracks DBA) but reporting obligations may double when both regimes apply.
Administration and certification
Under the VA law, contractors awarded covered contracts certify under oath to the DOLI Commissioner the pay scales being used for each craft/trade on the project. Bid specifications and contracts must incorporate prevailing wage compliance requirements. DOLI oversees enforcement, including:
- Investigation of violations (complaint-driven and audit-driven).
- Assessment of back-pay restitution for underpaid workers.
- Debarment for serious or repeated violations.
- Coordination with the Department of General Services (DGS) on contract-level compliance reporting.
Report violations through DOLI: doli.virginia.gov.
What's different about doing VA prevailing wage work
- Threshold is $250,000, not $2,000. Sub-threshold state projects aren't covered. Contractors should confirm contract value vs the threshold; projects near the threshold warrant careful scoping.
- Locality-by-locality check. Don't assume a county or city public works project carries prevailing wage. Check the locality ordinance.
- Rates align with Davis-Bacon. Don't over-estimate rate exposure vs NJ/PA/MD; the premium from state PW in VA is typically small or zero vs federal DBA for the same work.
- DOLI issues rate determinations per covered project. Not a universal rate book; bid packets are the path to the rate.
- Certified payroll expectations. VA requires record-keeping but doesn't run a Wage Hub-analog digital portal. Certified payroll typically submitted to the contracting agency with copies retained.
Cross-state comparison
- Delaware. Per-project rate requests through DE DOL. Scope narrower than MD/NJ/PA in procedural reach. See our DE Rate Request essay.
- Pennsylvania. PA Prevailing Wage Act with PA DLI surveys. Broader scope than VA; applies to local-government public works by default.
- New Jersey. Broad NJPWA with digital Wage Hub filing. Includes some maintenance/services. See our NJ Wage Hub essay.
- Maryland. State-level pre-bid contractor registration with the Prevailing Wage Unit adds a gate beyond rate compliance. See our MD Pre-Bid Registration essay.
- Virginia. Narrowest scope by default ($250K state projects) with locality opt-in expanding the footprint.
For the full Mid-Atlantic view, see Mid-Atlantic Prevailing Wage Compared.
What to do with this
If you're bidding a VA state agency public works project: confirm contract value vs $250K threshold. If over, VA prevailing wage applies. Rates align with DBA for the locality.
If you're bidding a VA locality public works project: confirm whether the locality has opted in. Richmond, Fairfax County, Portsmouth — yes. Many others — not yet. Ordinance-specific.
If you're on a federally-funded VA project: Davis-Bacon applies regardless of VA state law. Follow DBA requirements.
If you're on mixed federal + VA state funding: both regimes apply; rates align in practice, but file both sides.
For the full VA prevailing wage framework, see our Virginia Prevailing Wage Navigator.
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