Prevailing Wage Law
Prevailing Wage Law
- The contracting public body is a unit of State Government or an instrumentality of the State, and there is any State funding for the project; or
- The contracting public body is a locality that has adopted an ordinance requiring the payment of the prevailing wage for public works paid for in whole or in part by funds of the locality.
Public works means the operation, erection, construction, alteration, improvement, maintenance, or repair of any public facility or immovable property owned, used, or leased by a state agency or locality.
What You Need to Know
Most Important Information
Prevailing Wage Determinations
A wage determination issued for a project specifies the wage and fringe benefit rates for each classification of worker, determined to be prevailing in that locality for that type of construction or other work covered under the statute. Wage Determinations are based on the applicable prevailing wage rate determinations made by the U.S. Secretary of Labor under the provisions of the Davis-Bacon Act, 40 U.S.C. § 276 et seq. as amended.
Prevailing Wage Underpayment
Anyone paying less than the prevailing wage rate is liable to the individual for all wages and benefits plus interest at an annual rate of 8%. The contractor or subcontractor will also be disqualified from bidding on public works projects until full restitution has been made to the individual.
Virginia Prevailing Wage Rates
Under § 2.2-4321.3 the prevailing wage for public works is to be set by the Commissioner of Labor and Industry. Only an official Wage Determination from DOLI, sent to a contracting agency conducting a public works project can be used for official purposes. If a wage determination is needed, please contact the respective contracting agency.
Forms & Related Information
Below are the forms necessary for any correspondence regarding prevailing wage rates. Please submit all specific requests with the required form to prevailingwage@doli.virginia.gov.
- Appeal for Wage Determination Clarification
- Request for Additional Wage Classification
- DOLI Pay Scale Certification for Public Works Projects
- Prevailing Wage Posting Compliance Form
Contracting Agencies List
Contractor Responsibilities
Employee Rights & Benefits
PREVAILING WAGE EMPLOYEE RIGHTS
This is a summary of prevailing wage rights. For further information please refer to Virginia Code 2-2-4321.3 or contact (804) 371-2327.
General Information:
Virginia’s prevailing wage law covers all mechanics, laborers and workers on all state public works projects, financed in whole or in part by public funds when the total overall project cost is more than $250,000. It also applies where a local government has passed an ordinance applying the prevailing wage law to their public works projects.
Employee Rights:
- Employees are entitled to receive the prevailing rate of wages and benefits for the classification of work being performed. Fringe benefits are paid at straight time rate for all hours including overtime.
- Employees who believe they have not been paid the prevailing wage for their classification may file a claim with the Department of Labor and Industry Labor & Employment Law Division by using the Claim for Unpaid Wages Form.
Note: Employees should be sure to check box 15 to indicate this is a state or local project
- Employees may also take the employer to court on their own. They may sue the employer to recover unpaid wages or wages due because of an incorrect labor classification. The court shall award the wages owed plus prejudgment interest (eight percent accruing from the date the wages were due).
If you need a lawyer to handle the case for you may call the Virginia Lawyer Referral Service at 1-800-552-7977 or 804-775-0808.
- Employees are protected from retaliatory action for making a complaint against their employers for Prevailing Wage violations.
- Employees may file a complaint with Department of Labor and Industry by downloading the form and instructions found in the Claim for Retaliation Form.
- Employees may file a civil action under § 40.1-27.3.
PREVAILING WAGE CONTRACTING AGENCY INFORMATION
This is a summary of prevailing wage contracting agencies’ requirements. For further information please refer to Virginia Code 2-2-4321.3 or contact (804) 786-6613.
General Information:
- The Prevailing Wage law applies to contracts for public works paid for in whole or in part by state funds, valued at $250,000 or more if either of the following criteria are met:
- The contracting public body is a unit of State Government or an instrumentality of the State, and there is any State funding for the project; or
- The contracting public body is a locality that has adopted an ordinance requiring the payment of the prevailing wage for public works paid for in whole or in part by funds of the locality.
Public works means the operation, erection, construction, alteration, improvement, maintenance, or repair of any public facility or immovable property owned, used, or leased by a state agency or locality.
Requirements:
- Ensure that its bid specifications or other public contracts applicable to the public works require bidders, offerors, contractors, and subcontractors to pay wages, salaries, benefits, and other remuneration to any mechanic, laborer, or worker employed, retained, or otherwise hired to perform services in connection with the public contract for public works at the prevailing wage rate.
- Ensure that its public works contracts contain a provision requiring that the wages, salaries, benefits, and other remuneration to any individual performing the work of any mechanic, laborer, or worker on the work contracted to be done under the public contract shall be at a rate at least equal to the prevailing wage rate.
- May contact the Commissioner of Labor and Industry, at least 10 but not more than 20 days prior to the date bids for such a public contract for public works will be advertised or solicited, to ascertain the proper prevailing wage rate for work to be performed under the public contract.
- Upon request from the project contractor, contact the Department of Labor and Industry to request conformances for classifications not included on the general wage determination, along with the reason for the additional classification, the proposed rate, and any supporting documentation.
- Contracting agencies, both state and local, should check the DGS site prior to accepting a contractors bid to ensure they the bidder has not been disqualified for a violation of the prevailing wage law.
Disqualified Contractors:
Contractors disqualified from bidding on public contracts under § 2.2-4321.3.D are listed on the Department of General Services Website at the following address:
https://logi.cgieva.com/External/rdPage.aspx?rdReport=Public.Reports.Report9020_Data
When at the site, click the radio button “eVA status” in the upper left corner of the page, then select enjoined from the drop down menu and then click on search to pull up the list of contractors enjoined for violations under the prevailing wage law.
PREVAILING WAGE CONTRACTOR RESPONSIBILITIES
This is a summary of prevailing wage contractors’ responsibilities. For further information please refer to Virginia Code 2-2-4321.3 or contact (804) 786-6613.
General Information:
Virginia’s prevailing wage law applies to all state public works projects financed in whole or in part by public funds when the total overall project cost is more than $250,000.
Responsibilities:
A.) Pay the prevailing rate of wages and benefits, for the classification of work being performed. Fringe benefits are paid at straight time rate for all hours including overtime.
B.) Contractors, upon award of a public works contract, must provide the Department of Labor and Industry the pay scale for each craft or trade employed on the project.
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- The pay scale must be certified under oath.
- Subcontractors must be required to follow the certified pay scale for each of their employees in each craft or trade.
- The pay scale may be on the form attached or its equivalent.
It may be sent to:
Virginia Department of Labor and Industry
Prevailing Wage
6606 West Broad Street
Richmond, VA 23230
(804) 786-6613
Fax: (804) 371-6524
prevailingwage@doli.virginia.gov
C.) Keep full and accurate payroll records available for inspection by any authorized representative of the Department of Labor and Industry.
Records should include but are not limited to:
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- Time cards, time sheets, daily work records, etc.
- Payroll ledger/journals and canceled checks/check register.
- Fringe benefit records must include program, address, account number, & canceled checks.
D.) Prevailing Wage Rate Schedule must be posted on the job site where it is accessible to all employees. Within ten days of such posting, a contractor or subcontractor must send to the Department of Labor and Industry a certification of its compliance with this requirement.
It may be sent to:
Virginia Department of Labor and Industry
Prevailing Wage
6606 West Broad Street
Richmond, VA 23230
(804) 786-6613
Fax: (804) 371-6524
prevailingwage@doli.virginia.gov
E.) Supply all subcontractors with the Prevailing Wage Rates and changes.
FAQs
Is “helper” a classification that gets a wage determination?
No, helper is not included in a General Wage Determination. If you think your project needs a “helper” wage determination you must prove the following conditions:
- The work duties are defined and distinct from listed classifications.
- The use of helpers is an established practice in the area.
- The helper is not employed as a trainee or apprentice.
Do I have to pay my apprentice or trainee the prevailing wage rate?
If the apprentice or trainee is registered in a bona fide apprenticeship program that is registered with the United States Department of Labor, Commonwealth of Virginia, or out-of-state agency, then the wages paid to such an individual will be specified by the apprenticeship or training agreement and is not subject to prevailing wage rates.
Does the Virginia Department of Labor and Industry do specific project wage determinations?
There are no specific project determinations made. All projects subject to Virginia’s Prevailing Wage Act come from the general wage determination. DOLI will add specific classifications to the general wage determination as needed.
Do I have to pay the prevailing wage rate for work done off-site?
Virginia uses the United States Department of Labor’s interpretation of where Davis-Bacon applies (29 CFR 5.2), which is:
- A site dedicated exclusively, or near so, to the performance of the contract.
- A site adjacent, or virtually adjacent to the site of work.
What if I need an additional classification in order to support my bid?
If you believe that you need additional wage determinations for one or more labor classifications, please submit the “Request for Additional Wage Classification” form, listed in the Forms and Related Information section above. In this form you will be able to list any additional classifications needed, the job descriptions, and a suggested wage rate, if you have one available. Include any relevant documents with your form and DOLI will respond to your request informing you of our decision along with an updated Wage Determination sheet for the area in question. Please note that this form must be sent to DOLI from the contracting agency, but the form should contain the contractor’s suggested wage rate.
What rates apply for a project that mixes multiple construction types on the same public work project? (Example: Heavy and highway construction both present on the same project.)
Using the guidance of AAM 130 and 131, Virginia follows the United States Department of Labor’s process for multiple wage determinations. First, at least one of two conditions must apply:
- At least 20% of the total project is a different type of construction.
- The different type of construction is at least $1,000,000.00 in cost.
If either (or both) of these apply to the project, the contracting agency will make the determination of which wage determinations are needed and what sections of the project each determination applies to.
What if I believe an error has occurred in the wage determination process?
If you believe an error has occurred, either in the listing of wage determinations or in the calculation of specific wages, please submit the “Appeal for Clarification of Wage Determination” form, listed in the Forms and Related Information section above. In this form you can list the reason for your appeal and can submit all relevant documents to help support your appeal. DOLI understands that any delays can disrupt the bid process, so all appeals are handled as quickly as possible.
What if a wage rate changes during the course of a public works project?
The wage determination that is given during the bid solicitation and related contract award establishes the rate that must be paid for the entire term of the contract. The contracting agency in charge of the project will have an accurate, up-to-date copy of the correct wage determination to share with potential contractors.
Note: Some laws and regulations may supersede these rates. For example, if a 2022 project had established rates under $12.00 per hour, Virginia’s minimum wage increase to $12.00 per hour in 2023 would overrule said rates.
What criteria does the Virginia Department of Labor and Industry use when calculating a prevailing wage rate?
DOLI relies primarily on the DBA General Wage Determinations for each area within Virginia. In the event of a missing classification, all relevant information is used to find a wage rate that bears a reasonable relationship to the other wage rates contained in the general wage determination.
Contact Us
Address
Virginia Department of Labor and Industry
Prevailing Wage
6606 West Broad Street
Richmond, VA 23230
Phone Number
Office: (804) 786-6613
Fax: (804) 371-6524
Email Address
General Questions:
prevailingwage@doli.virginia.gov