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HB 260

Public service companies; prevailing wage rate for underground infrastructure work.

2026 Regular Session Introduced by Shelly Simonds

Virginia bill requires public service companies to pay prevailing wages for underground infrastructure work, raising labor costs and potentially affecting utility rates and employment.

Assigned HAPP sub: Commerce Agriculture & Natural Resources
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Bill Summary · HB 260

Legislative bill overview

HB 260 requires public service companies in Virginia to pay prevailing wage rates when performing underground infrastructure work. The bill establishes wage standards for employees engaged in installing, maintaining, or repairing underground utilities such as water, sewer, gas, and electrical systems.

Why is this important

Prevailing wage requirements directly affect labor costs for utility companies and potentially influence consumer utility rates. The policy impacts worker compensation in a specialized sector while creating compliance requirements for public service providers operating in Virginia.

Potential points of contention

  • Cost impact on ratepayers: Higher prevailing wages increase company operational costs, which utilities may pass to consumers through rate increases
  • Competitive disadvantage: Private contractors not covered by prevailing wage requirements may underbid public service companies, affecting market dynamics
  • Scope definition: Determining which underground work qualifies and at what prevailing wage tier could create administrative complexity and disputes
  • Labor market effects: The wage floor may reduce hiring or shift work to non-covered categories, potentially affecting employment opportunities

Compiled from official sources — confirm details with the bill’s official record.

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