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Panel advances bill to debar contractors for repeat wage theft, tighten worker classification

Subcommittee on Procurement and Open Government of the House General Laws Committee · January 27, 2026

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Summary

House Bill 10‑46, reported with a substitute and referred to Appropriations by a 6–3 vote, would require contractors on public works to show compliance with wage laws and allow public bodies to remove repeat wage‑theft offenders; it also addresses worker classification and removes an apprenticeship element from the original sponsor draft.

Delegate Carr presented a substitute for HB 10‑46, saying the bill implements two main recommendations from the labor law and capital construction work group: (1) require contractors and subcontractors on public works projects to have a history of complying with wage laws, and (2) provide a mechanism to remove bad actors by requiring proper worker classification and creating a debarment process for repeat wage‑theft offenders.

The sponsor said the work group was created after allegations of wage theft on Commonwealth public work projects and that the proposal would align Virginia with other states that maintain debarment lists for contractors found to steal wages. "This legislation would ensure that contractors that steal wages from our workers on more than one occasion are not rewarded with new public work contracts," the sponsor said.

Labor witnesses (Midland and Pipe Trades, IBW Local 666) urged passage, citing widespread wage theft on job sites. Industry groups including the Associated General Contractors and Associated Builders and Contractors told the subcommittee the substitute removed many original concerns but said restricting use of independent contractors and creating the proposed process could impose compliance burdens and reduce competition, potentially driving up costs.

After public testimony and questions, the subcommittee voted to report the substitute and refer HB 10‑46 to Appropriations on a 6–3 vote. The referral signals further review of fiscal impacts and implementation details.