VA SB518

Requires state agencies and covered public institutions of higher education to pay prevailing wage rates on public works contracts over $250,000, with covered institutions subject to these requirements for contracts of $5 million or more initiated after July 1, 2027

Establishes that prevailing wage rates must be determined by the Commissioner of Labor and Industry through surveys conducted every two years, using methodology consistent with federal Davis-Bacon Act standards as of January 20, 2026

Imposes civil penalties of $500 per worker per day for paying below prevailing wage rates, plus liability for unpaid wages with 8% annual interest, and disqualification from public contracts until full restitution is made

Requires contractors to submit certified payroll records within 10 days of wage payment and post prevailing wage rates at work sites, with penalties up to $500 for first violations and $1,000 for subsequent violations of filing requirements

Exempts low-income and moderate-income housing projects funded through the Department of Housing and Community Development or Virginia Housing Development Authority, as well as non-governmental broadband and telecommunications facilities