The Arizona Chapter of the Associated General Contractors (AZAGC), the Arizona Builders Alliance (ABA), and the Associated Minority Contractors of Arizona (AMCA) secured a significant legal victory against the City of Phoenix and the City of Tucson regarding prevailing wage ordinances. Represented by the Goldwater Institute, the court ruled in favor of the construction organizations, striking down the ordinances as they violated state law prohibiting prevailing wage requirements.
David Martin, President of AZAGC, expressed satisfaction with the decision, highlighting that it supports free market principles and alleviates unnecessary burdens on contractors. He urged Phoenix and Tucson to respect the ruling and avoid further legal expenses for taxpayers.
This decision marks a united stance by the Arizona construction industry, which calls for the cities to cease legal challenges and redirect taxpayer money to beneficial community initiatives. The court’s ruling invalidated both cities’ ordinances requiring contractors to pay workers not less than the prevailing wage for large public works projects, emphasizing that such requirements are preempted by state law.
Court Decision
The Superior Court of Arizona, Maricopa County, reviewed motions from both parties and determined that the state’s prevailing wage statute, A.R.S. § 34-321(B), preempts the cities’ ordinances. The court found no conflict between the minimum wage act and the prevailing wage prohibition, ruling that the former did not repeal the latter. Thus, the ordinances in Phoenix and Tucson cannot stand as they violate the existing state law.
The ruling reflects a careful analysis of statutory interpretation, emphasizing that policy decisions regarding wage laws should be left to the legislative and executive branches, not the judiciary. The decision ensures that Arizona’s prohibition on municipal prevailing wage requirements remains intact, supporting a consistent legal framework for contractors operating across the state.
The court’s decision is a significant milestone for Arizona’s construction industry, ensuring that contractors are not subject to varying wage requirements imposed by local ordinances. This ruling aligns with the industry’s advocacy for a free market and reduced regulatory burdens.
For further details, the complete court decision can be accessed here.
