Portsmouth and Beyond: Understanding Virginia's Prevailing Wage Law

Last Updated: April 2026

If you're working on publicly funded construction in Virginia, the Portsmouth Virginia prevailing wage ordinance is one of the clearest examples of how compliance obligations now extend to the local level, not just state contracts. Virginia's prevailing wage landscape has changed significantly since 2021, when the law was established, and contractors operating anywhere in the Commonwealth need to understand both the statewide framework and the growing number of localities adopting their own ordinances.

This guide covers who is covered, what thresholds trigger compliance, how wage rates are set, what your recordkeeping obligations look like, and what's at stake if you get it wrong.

Not working in Virginia? Check out our state-by-state guide to prevailing wage and certified payroll reporting to find the requirements where you operate.

 

Table of Contents

Virginia Prevailing Wage Law: The Basics of Va. Code § 2.2-4321.3

Virginia's prevailing wage law, formally codified as Va. Code § 2.2-4321.3 and sometimes called the "Little Davis-Bacon Act," became effective May 1, 2021. It applies to public works contracts over $250,000 paid for in whole or in part by state funds, and covers all mechanics, laborers, and workers performing services in connection with a qualifying public works contract. The Virginia Department of Labor and Industry (DOLI) administers and enforces the law. Contracts at or below $250,000 are exempt from prevailing wage requirements entirely.

 

 

What Counts as "Public Works" in Virginia?

Virginia defines public works broadly: 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, including transportation infrastructure projects. Both prime contractors and subcontractors at all tiers are covered, and compliance obligations run through the entire contractor chain. Understanding the contractor-subcontractor compliance relationship is an important foundation before taking on any Virginia public works project.

 

 

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Virginia vs. Federal Davis-Bacon: Understanding the Difference

Virginia's prevailing wage law applies to state-funded or qualifying locality-funded projects, while the federal Davis-Bacon Act applies to federally funded or federally assisted projects. Both can apply to the same project when funding is mixed, and in those cases, contractors must pay the higher of the two applicable rates.

VDOT projects are a notable exception. VDOT contracts subject to the Davis-Bacon Act are governed by federal wage determinations issued annually by the U.S. Department of Labor, not by DOLI. Contractors should always confirm which framework governs their specific VDOT work before assuming state or federal rates apply. For a deeper look at how certified payroll reporting works on Davis-Bacon projects, see our guide.

 

 

How Virginia Prevailing Wage Rates Are Determined

Prevailing wage rates in Virginia are locality-specific, reflecting wages and fringe benefits paid to workers in the same trade or occupation in the area where the public work is located. The DOLI Commissioner sets rates based on applicable Davis-Bacon Act determinations made by the U.S. Secretary of Labor. A formal wage determination issued for a project specifies both the wage rate and fringe benefit rate for each applicable worker classification, and only an official wage determination from DOLI, sent directly to the contracting agency, can be used for official compliance purposes. For guidance on how to read a wage determination, see our breakdown.

Working with DOLI: Requesting Virginia Prevailing Wage Rates

One of the most common compliance missteps contractors make in Virginia is failing to engage DOLI at the right time in the project cycle. Contractors should contact DOLI no fewer than 10 and no more than 20 days before bids are advertised to confirm the correct prevailing wage rates for the project. This is the official window for requesting a project-specific wage determination, and working outside of it can create complications that delay bids or result in using incorrect rates.

Once a contract is awarded, the contractor must certify under oath to the DOLI Commissioner the pay scale for each craft or trade to be used on the project, including total hourly amounts covering wages and all applicable fringe benefits. A copy of this certification must be submitted to the contracting agency within five days of the award.

For projects where a required classification is not included in the general wage determination, contractors should contact DOLI directly to request a new classification and associated rate. Do not assume a similar trade's rate applies without formal guidance, as using an incorrect classification can expose the contractor to back-wage liability.

 

 

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The Portsmouth Virginia Prevailing Wage Ordinance and Virginia's Growing Local Ordinance Landscape

While Virginia's statewide law mandates prevailing wages on state-funded projects, localities have the option under § 2.2-4321.3(C) to adopt their own ordinances extending the requirement to locally funded public works contracts. Portsmouth, Virginia is among the localities that has exercised this option, and the Portsmouth Virginia prevailing wage ordinance has drawn significant contractor attention given the volume of public works activity in the region.

Portsmouth's ordinance applies to city-funded public works contracts of $250,000 or more, mirroring the state threshold. Portsmouth is not alone. Fairfax County adopted its ordinance effective July 1, 2022, covering county construction contracts including maintenance work at the same $250,000 threshold. Richmond City Council passed its prevailing wage ordinance in late 2024, with the requirement taking effect July 1, 2025, signaling that local adoption is actively accelerating across the Commonwealth.

Contractors bidding on locally funded projects in Virginia cannot assume prevailing wage does not apply. They must verify whether the locality has adopted an ordinance before submitting a bid, as the consequences of getting this wrong are the same under local ordinances as they are under the statewide law.

What the Portsmouth Virginia Prevailing Wage Ordinance 2024 Means for Contractors

For contractors operating under the Portsmouth ordinance, all compliance obligations mirror the statewide framework: certified pay scale submissions, wage posting at job sites, recordkeeping for a minimum of six years, and DOLI certification within 10 days of posting. Subcontractors must follow the same certified pay scale as the prime contractor for each applicable craft or trade. If your scope of work touches Portsmouth city-funded construction projects at or above the $250,000 threshold, prevailing wage compliance is mandatory, not optional.

Apprenticeship Requirements on Virginia Prevailing Wage Projects

Apprentices working on Virginia prevailing wage projects must be registered with apprenticeship programs approved by the U.S. Department of Labor's Bureau of Apprenticeship and Training. Working outside of a registered program, or misclassifying workers as apprentices to reduce labor costs, is a serious violation that carries the same penalties as prevailing wage underpayment.

Apprentices are paid a percentage of the applicable journeyman prevailing wage rate corresponding to their level of program completion, with specific percentages varying by trade classification. Contractors must maintain the apprentice-to-journeyman ratios required by the apprentice's registered program on the job site. Any apprentices exceeding the approved ratio must be reclassified and paid at the full journeyman prevailing wage rate for all hours worked.

It is also worth noting that fringe benefit amounts in Virginia prevailing wage determinations often include training fund contributions that support apprenticeship programs. Contractors can receive credit toward their fringe benefit obligations when making legitimate contributions to approved programs, which can be a meaningful cost offset when properly structured.

 

Virginia Contractor Compliance Obligations

Certification Requirements

Upon contract award, the contractor must certify under oath to the DOLI Commissioner the pay scale for each craft or trade, including total hourly amounts covering wages and all applicable fringe benefits. This certification must be provided within five days of contract award, with a copy submitted to the contracting agency. Subcontractors must follow the certified pay scale established by the prime contractor for each applicable trade.

Fringe Benefits

Fringe benefits are included in the prevailing wage determination and must be paid at the straight-time rate for all hours worked, including overtime. Contractors can satisfy fringe benefit obligations through cash wages or through legitimate benefit programs such as health insurance, pension plans, or approved training funds. Fringe benefit records, including program name, address, account number, and payment documentation, must be maintained as part of your compliance records.

 

Posting Requirements

Contractors must post the general prevailing wage rate for each craft and classification in prominent, easily accessible places at the work site and at any location where workers are paid. Postings must be made in English and in any other language primarily spoken by workers at the site. Within 10 days of posting, contractors must certify to DOLI that they are in compliance with this requirement.

Recordkeeping Requirements

Contractors must keep full and accurate payroll records available for DOLI inspection at all times. Required records include time cards, daily work records, payroll ledgers, canceled checks, and fringe benefit documentation. All records must be preserved for a minimum of six years from contract expiration or termination, which is notably longer than the federal Davis-Bacon three-year requirement. Records must be made available to DOLI within 10 days of any request.

 

Penalties for Non-Compliance with Virginia's Prevailing Wage Laws

Virginia takes prevailing wage enforcement seriously, and the consequences for non-compliance extend well beyond a back-pay obligation. Contractors who pay workers below the prevailing wage rate are liable for all unpaid wages plus interest at an annual rate of 8%, accruing from the date wages were due. Non-compliant contractors are also disqualified from bidding on any public contracts with any public body until full restitution is made, which can effectively shut a contractor out of the public market entirely.

Willful violations carry criminal exposure. A contractor found to have willfully violated the law is guilty of a Class 1 misdemeanor, carrying potential jail time of up to 12 months, a fine of up to $2,500, or both. Additionally, any interested party, including a competing bidder, subcontractor, or operator, has legal standing to challenge a bid, project agreement, or public contract that violates the prevailing wage statute. This means compliance gaps can be surfaced by competitors, not just regulators.

 

Best Practices for Virginia Prevailing Wage Compliance

Compliance with Virginia's prevailing wage law is not a one-time checkbox. It runs from bid award through project completion and extends into a multi-year records retention period. Both prime contractors and subcontractors bear direct compliance obligations, and the prime contractor is responsible for ensuring subcontractor compliance flows properly throughout the project. Staying compliant on Virginia public works projects requires attention well before work begins and consistent follow-through until the final record retention clock runs out.

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  • Before bidding, always verify whether the project meets the $250,000 threshold, whether state or local funding applies, and whether the locality has adopted a prevailing wage ordinance
  • Request official wage determinations from DOLI in the required 10-20 day pre-advertisement window; do not rely on published rates that may not reflect the project-specific determination
  • Build fringe benefit costs and administrative compliance costs into your bid; underestimating these is one of the most common reasons contractors lose money on public works projects
  • Establish clear contractual obligations with all subcontractors requiring prevailing wage compliance and collect their certified payroll reports on schedule
  • Maintain your six-year recordkeeping obligation from day one; do not wait until project close-out to organize documentation
  • Monitor locality-level ordinance activity in Virginia; the number of localities adopting prevailing wage requirements is growing, and what applies in Portsmouth today may apply in your next project's jurisdiction sooner than expected
  • Consider [certified payroll reporting software] to automate rate management, reduce manual data entry, and stay ahead of submission deadlines across multiple projects

 

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Managing Prevailing Wage Compliance on Virginia Public Works Project?

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