Virginia Law

A. For purposes of this section, "construction contract" means any public contract for construction initiated after July 1, 2027.

B. For any construction contract, a public body shall require the contractor and its subcontractors at any tier to demonstrate compliance with the following requirements:

1. Completion of specified safety training programs established by the U.S. Department of Labor's Occupational Safety and Health Administration; and

2. Demonstration of no more than one administrative determination, arbitral award, civil judgment, or settlement agreement of more than $25,000 in the past three years involving the contractor or subcontractor for violations of the National Labor Relations Act, 29 U.S.C. § 151 et seq.; the federal Fair Labor Standards Act, 29 U.S.C. § 201 et seq.; the federal Davis-Bacon Act, 40 U.S.C. § 3141, or Davis-Bacon Related Acts; the Virginia Minimum Wage Act (§ 40.1-28.8 et seq.); Article 2 (§ 40.1-29 et seq.) of Chapter 3 of Title 40.1; the provisions of § 2.2-4321.3; or the provisions of § 40.1-28.7:7.

C. If a construction contract with a state public body is valued at an amount greater than $5 million, no contractor, subcontractor, or party to such contract shall provide remuneration to more than one independent contractor for each contractor, subcontractor, or party to such contract for the performance of construction work on such contract unless the prime contractor receives written authorization from the state public body.

Such written authorization shall disclose that the state public body finds that:

1. The remunerating party demonstrated a good faith effort to directly hire employees to perform the work sought;

2. The remunerating party demonstrated that it was not feasible to directly hire employees to perform the work sought due to the work being of a specialized nature that cannot be performed by the remunerating party's own workforce, and it would require significant investment of time and resources on the part of the remunerating party to directly hire employees to perform the work sought; and

3. The remunerating party has provided adequate notice to all independent contractors pursuant to subsection F.

No state public body shall be liable for any determination made by such body in response to a request for authorization pursuant to this subsection. An authorization from a state public body pursuant to this subsection shall not be considered a defense by a contractor against any violation of law.

D. If a construction contract with a local public body is valued at an amount greater than $5 million, the prime contractor shall provide written notification to the local public body party to such contract:

1. Detailing information on any independent contractors hired by any contractor, subcontractor, or party to the construction contract. Such information shall include the independent contractor's trade and at least one point of contact;

2. Demonstrating compliance to the requirements of remunerating parties pursuant to subdivisions C1, C2, and C3.

E. Nothing in subsection C or D shall be construed as limiting a contractor's right to subcontract work to a bona fide firm that performs work on a construction contract with its own employees and that otherwise complies with the provisions of this section.

F. If a contractor, subcontractor, or any party on a construction contract provides remuneration to an independent contractor, such remunerating party shall provide a written notice to each such independent contractor that contains the following information:

1. Notification to the individual that he has been hired as an independent contractor;

2. A statement by the remunerating party that the independent contractor will perform work free from control of the remunerating party except as to the product and result;

3. Notification regarding the independent contractor's tax obligations, including the filing of self-employment income tax with the U.S. Internal Revenue Service;

4. Notification that the individual's classification as an independent contractor means that he is not eligible for protection under protective laws, including employment discrimination and anti-retaliation laws, occupational safety and health laws, living wage and prevailing wage laws, and wage and hour laws;

5. Notification that, if the independent contractor hires employees to perform work, the independent contractor or exempt person is responsible as an employer for all tax, unemployment insurance, workers' compensation insurance, and labor and employment law obligations on behalf of those employees;

6. Notification that the independent contractor is obligated to provide a written notice containing the information in this subsection to independent contractors or exempt persons with whom they contract;

7. Notification that the individual is required to provide copies of any licenses or registrations issued to the individual related to the work to be performed;

8. Instructions for filing a complaint with the Department of Labor and Industry if the individual is being misclassified; and

9. A detailed statement of the work to be performed by the independent contractor or exempt person or the appropriate provisions of the contract between the parties, which shall be attached to the notice.

G. The provisions of this section shall not apply to transportation-related construction projects.

2026, cc. 1002, 1088.