Prevailing Wage and Davis-Bacon Compliance in Virginia
eMars provides certified payroll and compliance solutions tailored primarily for federal projects and select state jurisdictions. While many agencies accept the standard WH-347 form, some states will require their own form. For questions about supported jurisdictions, please contact our team directly.
Components of Wage Determinations
Both federal and state wage determinations in Virginia include:
- Basic Hourly Rate: The minimum wage paid directly to workers in a specific job classification.
- Fringe Benefits: Health insurance, retirement, and other benefits paid on top of the basic rate.
- Total Hourly Rate: The sum of the basic hourly rate and fringe benefits.
Contractors can satisfy the fringe benefit obligation by providing bona fide benefits or by paying the equivalent value as additional cash wages on top of the basic rate. Total compensation must equal at least the basic rate plus the fringe rate for every hour worked.
Compliance for Contractors and Subcontractors
Contractors and subcontractors working on public works projects in Virginia must:
Determine Applicable Wage Rates
Determine Applicable Wage Rates
For federal projects: Use the U.S. Department of Labor's Wage Determinations Online (WDOL) portal via SAM.gov.
For state projects: Refer to the Virginia Department of Labor and Industry.
Submit Certified Payroll Reports
Submit Certified Payroll Reports
For federal projects: File weekly Form WH-347 with the contracting agency on federally funded projects. The DOL released a revised WH-347 effective January 6, 2025.
For state projects: State and locality projects do not currently require centralized DOLI payroll submission, but DOLI is building a certified payroll collection system funded in the 2026 General Assembly budget for fiscal year 2027.
Post Wage Rates and Certify Posting
Post Wage Rates and Certify Posting
Display the general prevailing wage rate for each craft and classification at the work site. Within ten days of posting, certify compliance to DOLI.
Handle Fringe Benefits
Handle Fringe Benefits
Maintain Accurate Records
Maintain Accurate Records
Preserve wages, hours, daily and weekly classification schedules, and supporting documents for at least six years under § 2.2-4321.3(H), and produce them to DOLI within ten days of a request.
Penalties for Non-Compliance
Failure to comply with prevailing wage laws in Virginia can result in:
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Back Pay: Contractors must pay any shortfall to affected workers, plus interest at an annual rate of 8 percent accruing from the date wages were due.
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Disqualification from Public Bidding: Contractors and subcontractors are disqualified from bidding on public contracts with any public body until full restitution of unpaid wages and interest is made.
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Class 1 Misdemeanor: Willful violations are charged as a Class 1 misdemeanor in Virginia, carrying up to 12 months of confinement and a fine of up to $2,500.
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Davis-Bacon Penalties: When federal funds are involved, federal enforcement layers on top with back wages, withholding and cross-withholding, three-year debarment, CWHSSA liquidated damages of $33 per worker per day for overtime violations (2025 figure, adjusted annually), and prime liability for subcontractor wages under the 2023 final rule.
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Debarment: Repeated or egregious violations can result in being barred from future public contracts.
Unique Aspects of Virginia's Prevailing Wage System
- Dual System: Virginia maintains its own prevailing wage law alongside federal Davis-Bacon requirements
- Recently Enacted: Virginia's prevailing wage framework took effect in 2021, marking a recent shift in state policy.
- General Wage Determinations: DOLI uses one statewide general wage determination drawn from federal Davis-Bacon rates rather than issuing project-specific determinations. Contractors can request that DOLI add missing classifications.
- Six-Year Recordkeeping: Virginia requires at least six years of payroll record retention under § 2.2-4321.3(H), double the federal Davis-Bacon period and one of the longest in the country.
- Upcoming Certified Payroll System: The 2026 General Assembly funded a DOLI certified payroll collection system in fiscal year 2027, which will move Virginia toward centralized state payroll submission.
Relevant Resources
- Davis-Bacon Wage Determinations on SAM.gov
- Certified Payroll Form: DOL Form WH-347 (Revised January 2025)
- Virginia Department of Labor and Industry: Prevailing Wage Law
- Payment of Prevailing Wage on Public Works Contracts: Code of Virginia § 2.2-4321.3
- Updating the Davis-Bacon and Related Acts Regulations - DOL Final Rule
For the most accurate and current information on prevailing wage requirements, consult the U.S. Department of Labor or your state's official labor website.
Virginia Prevailing Wage FAQs
Who does Virginia's Prevailing Wage Law apply to?
Virginia's prevailing wage law applies to state agency public works contracts of more than $250,000 paid for in whole or in part by state funds, and to locality public works contracts of more than $250,000 in any locality that has adopted a prevailing wage ordinance. Contracts of $250,000 or less are exempt. Federal Davis-Bacon applies separately to federally funded or assisted construction contracts of $2,000 or more.
What are Virginia’s “General Wage Determinations”?
General wage determinations are the statewide prevailing wage rates published by DOLI for common job classifications. Rather than issuing customized rates for each project, the Commissioner of Labor and Industry sets a single rate schedule drawn from Davis-Bacon determinations issued by the U.S. Secretary of Labor under § 2.2-4321.3 of the Code of Virginia.
What if a job classification isn’t listed in the general wage determinations?
When a required trade or occupation is not in the general determination, contractors can contact DOLI to request that a new classification and associated rate be added before bidding. The Department of Labor and Industry can update the general determination with new classifications as needed.
How are fringe benefits handled under prevailing wage laws in Virginia?
Virginia's fringe benefit framework follows the federal Davis-Bacon model. Contractors can provide bona fide benefit plans such as health insurance, retirement contributions, or paid leave, or pay the equivalent value as additional cash wages on top of the basic hourly rate. Total compensation must equal at least the basic rate plus the fringe rate listed on the applicable wage determination, whether issued by SAM.gov for federal projects or by DOLI for state and locality-ordinance projects.