Skilled union carpenters are the backbone of projects covered by project labor agreements.
Barred on public bids, open to private owners: project labor agreements in West Virginia
Project labor agreements in West Virginia cannot be required on public construction, but they remain legal for private owners and contractors who choose them. Since July 1, 2015, state law has barred governmental entities from writing a project labor agreement into bid specifications or conditioning construction grants, tax abatements or tax credits on one.
That makes West Virginia the one state in the Eastern Atlantic footprint where public owners have no PLA option on their own work. The law is short, and its limits matter as much as its prohibitions. Legislators, economic developers and private owners can compare West Virginia’s approach with the rules in neighboring states at whatisapla.com.
The Eastern Atlantic States Regional Council of Carpenters represents 42,000 union carpenters across West Virginia, Virginia, Maryland, Delaware, Pennsylvania, New Jersey and Washington, D.C. Its members build under PLAs throughout the region and bring the same apprenticeship-trained workforce to private projects in West Virginia.
What does West Virginia law say about project labor agreements?
The Fair and Open Competition in Governmental Construction Act, codified at West Virginia Code § 5-22-3, took effect July 1, 2015, after the Legislature passed Senate Bill 409. It applies to the state, its political subdivisions and their agencies, along with construction managers acting on their behalf. Those entities may not include in bid documents a requirement that contractors enter into or adhere to a PLA, a clause suggesting such a requirement or a term that rewards or punishes a bidder for signing or refusing to sign one. A catchall bars any other provision dealing with PLAs. The law also prohibits conditioning a grant, tax abatement or tax credit for construction on a PLA. The Legislature framed the act as a way to protect open competition and prevent discrimination based on labor affiliation.
Can private owners use PLAs in West Virginia?
Yes. The statute expressly says it does not prohibit a private owner, bidder, contractor or subcontractor from voluntarily entering into or complying with an agreement with one or more labor organizations, even on work funded in part by a public grant, tax abatement or tax credit. Public bodies may also award contracts and incentives to firms that are party to labor agreements, as long as the agreement was not a condition of the award and no bidder faced discrimination based on labor affiliation. The law leaves activity protected by the National Labor Relations Act untouched. A private developer building a plant, a data center or an energy facility in West Virginia can still choose a PLA for the reasons owners elsewhere do: a known labor cost, a no-strike guarantee and a steady supply of trained workers.
Are there exceptions for public projects in West Virginia?
One narrow exception exists. The head of a governmental entity may exempt a project, contract, grant, tax abatement or tax credit after public notice and a hearing, if special circumstances require it to avert an imminent threat to public health or safety. That finding cannot rest on a labor dispute over the use of non-union contractors or workers. Federal construction in West Virginia follows federal rules: Executive Order 14063 requires PLAs on federal projects of $35 million or more unless an exception applies.
What does the research say about PLAs and competition?
The research points away from the premise behind the 2015 law. A peer-reviewed study of 263 California community college bid openings found a PLA made no difference in the number of bidders, and a 2025 Illinois study of 773 public projects found PLA jobs drew 14% more bids. On cost, a research review from the Institute for Construction Employment Research found no statistically significant effect in the strongest studies, the core of the answer to do PLAs increase costs. Virginia offers a regional contrast: it barred PLA requirements in 2012, authorized them in 2020, and its counties now use them on major public works. The Wikipedia entry on project labor agreements traces the national history of these agreements to the dam projects of the 1930s.
READ MORE: Are PLAs good for competition? How open bidding works
Where do West Virginia contractors build under PLAs?
West Virginia firms and tradespeople still work under PLAs in three main settings. Private owners can adopt them on plants, energy facilities and other large builds where a missed schedule costs more than the labor. Federal agencies must use them on qualifying projects of $35 million or more inside the state. And contractors that cross state lines find PLA work in Virginia, Maryland, Pennsylvania and Washington, D.C., where public owners can require or must require the agreements. A West Virginia carpenter who completes a registered apprenticeship carries that credential to every one of those jobs. For lawmakers weighing the 2015 law, the neighboring states offer a working record of how public PLAs perform on schools, roads and water systems.
What West Virginia’s PLA law does and does not do:
- bars state and local government from requiring PLAs on public construction
- bars conditioning construction grants, tax abatements or tax credits on a PLA
- allows private owners and contractors to enter PLAs voluntarily
- permits a public health or safety exemption after notice and a hearing
- leaves federal projects under federal PLA rules
West Virginia lawmakers, economic developers and private owners can separate PLA myths from facts and weigh the benefits other states already count on.
READ MORE: Do PLAs Save Money? Yes, and Here Is Where the Savings Come From
Frequently Asked Questions
Are project labor agreements legal in West Virginia?
Yes, for private parties. State law bars governmental entities from requiring PLAs on public construction but allows private owners and contractors to use them voluntarily.
When did West Virginia ban PLA requirements?
The prohibition took effect July 1, 2015, under Senate Bill 409, the Fair and Open Competition in Governmental Construction Act.
Who is covered by the West Virginia law?
The state, its political subdivisions and their agencies, plus construction managers acting on their behalf.
Can a West Virginia county require a PLA?
No. Counties and municipalities are political subdivisions covered by the prohibition.
Can West Virginia tie economic development incentives to a PLA?
No. The law bars conditioning a construction grant, tax abatement or tax credit on a PLA.
Can a private developer in West Virginia use a PLA?
Yes. The statute states it does not prohibit private owners or contractors from voluntarily entering into agreements with labor organizations.
Is there any exception for public projects?
Yes, a narrow one. An entity head may grant an exemption after notice and a hearing to avert an imminent threat to public health or safety.
Do federal projects in West Virginia require PLAs?
Federal construction follows Executive Order 14063, which requires PLAs on projects of $35 million or more unless an exception applies.
Do PLAs reduce bidding competition?
No. Peer-reviewed research found PLAs did not change bidder counts, and a 2025 Illinois study found PLA projects drew 14% more bids.
