Workers on large public university projects will earn the local going wage

Contractors on many Virginia public construction jobs must pay at least the “prevailing wage.” That’s the pay and benefits typical for each trade in the area where the work is done. Since May 2021, state agencies have generally had to require it on covered projects. This law extends the rule to public universities that manage their own construction under agreements with the state. For contracts they initiate after July 1, 2027, any public works contract worth $5 million or more and paid for at least partly with state general funds or state general-fund debt must carry the prevailing wage. Public works contracts of $250,000 or less remain exempt.

The law also directs the Commissioner of Labor and Industry to set rates using Virginia-area wage surveys conducted every three years. Implementing regulations must be effective by July 1, 2027, and the Virginia rate can never be lower than the federal Davis-Bacon rate. Workers do not need to apply because the pay requirement must be written into the contract.

Del. Michael Feggans carried HB 569 in the House, and Sen. Aaron Rouse carried the identical SB 518. As introduced, the bills would have required localities to carry the prevailing wage on their covered public works too. Lawmakers kept local participation optional. Gov. Abigail Spanberger proposed a substitute, the General Assembly accepted it, and the law was approved on April 22, 2026.