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Panel moves to extend prevailing-wage rules to underground utility projects valued $250,000 or more
Summary
The subcommittee reported HB 2,743 with a substitute by a 5–2 vote. The bill would direct the Virginia Department of Labor and Industry to set prevailing wages for underground utility projects worth $250,000 or more and require contractors to post rates and benefits at job sites.
Delegate Marcus Chin presented House Bill 2,743 to the House Labor and Commerce Subcommittee on Feb. 12, 2025, saying the bill would expand prevailing-wage requirements to underground utility projects performed by contractors and subcontractors of public service companies when the project exceeds $250,000.
The bill directs the Virginia Department of Labor and Industry to establish prevailing wages and to add underground utility occupations to the list of trades for which prevailing wages must be determined. It would require contractors and subcontractors to post prevailing-wage rates and job-related benefits prominently at construction sites so workers can see pay standards.
Chin framed underground utility work as critical infrastructure—supplying water, sewer, gas and electricity—and said low wages and inadequate safety standards have contributed to a projected shortage of 64,000 laborers in Virginia (citing the Associated General Contractors of America). He referenced other states that already cover underground utility workers and noted that construction workers in prevailing-wage states earn roughly 22% more on average, according to proponents’ testimony.
Proponents included Jason Parker of the Virginia State Building Construction Trades Council, Brandon Dillard (Lowna), Charles Skelly (International Brotherhood of Electrical Workers Local 666), and others who said the bill would improve safety, training and pay. The Virginia Oil and Gas Association, Columbia Gas in Virginia, Washington Gas and Aqua Virginia spoke in opposition or said they had outstanding concerns about compliance costs, scope (including highly trained gas workers) and implementation timelines for smaller contractors.
The sponsor offered a substitute to clarify contractor and subcontractor recordkeeping and posting responsibilities and to refine language on which crafts would be covered. Committee members moved the substitute and the subcommittee voted 5–2 to report HB 2,743 with the substitute and refer it to Appropriations.
The substitute narrows implementation details and assigns posting and recordkeeping duties to prime and subcontractors; proponents said the change addressed stakeholder concerns about liability and clarity. Opponents warned of potential unintended consequences for small contractors and for specialized trades where prevailing wages for highway construction might not reflect typical earnings.
Action: The subcommittee reported HB 2,743 (substitute) and referred the measure to Appropriations by a 5–2 vote.
