Just days before prevailing wage ordinances go into effect for city construction projects in Phoenix and Tucson, an Arizona judge ruled in favor of contractor groups that challenged the laws, finding that the ordinances violate the state law
Maricopa County Superior Court Judge Bradley Astrowsky granted summary judgment June 24 in favor of the Associated Minority Contractors Arizona chapter of the Associated General Contractors Arizona and the Arizona Builders Alliance. Contractor groups filed a lawsuit against both cities and some officials in January after their respective city councils voted in favor of local prevailing wage laws.
The ordinances, which would take effect July 1, would have required contractors and subcontractors to pay prevailing wages to workers for city construction projects valued at $4 million or more in Phoenix and $2 million or more in Tucson.
At the time, Aaron Butler, president of the Arizona Building Trades, praised the move as “a positive example for all of Arizona” to ensure fair wages for workers. “In a time of high inflation, it is essential that cities and counties put workers first,” he added in a statement at the time.
However, Arizona has a state law that prohibits cities from enacting an ordinance that would require prevailing wages on public works contracts. Attorneys for the cities argued that the state’s Minimum Wage Act, which emerged as a ballot initiative, effectively repealed the state’s ban on local prevailing wage requirements. But the judge found that the Minimum Wage Act does not mention the prevailing wage and wrote that it “did not implicitly repeal the prevailing wage prohibition.”
The decision “upholds the principles of a free market and removes unnecessary burdens on contractors,” David Martin, president of the Arizona AGC chapter, said in a statement.
Dan Wilson, a Phoenix spokesman, said the city will determine its next steps. Phoenix Vice Mayor Debra Stark says she hopes the council will scale back the effort at this point, though they could consider requiring a living wage when they issue RFPs or try to encourage state lawmakers to change the law. Other Phoenix council members did not immediately respond to inquiries.
“If there’s a law on the books, right or wrong, we have to follow it,” Stark says.
Tucson Mayor Regina Romero said in a statement that she was “disappointed” by the ruling, and City Attorney Mike Rankin said officials would review possible appeal options.
“Prevailing wages have been a tool to uplift our communities, improve our local economy and protect workers from being underpaid and taken advantage of,” Romero said. “The City of Tucson will continue to find ways to create a better quality of life for workers and their families, as we have done in the past.”
Phoenix officials also passed a prevailing wage ordinance last year but repealed it the following month amid questions about its legality, though the state attorney general’s office issued an opinion supporting the local authority.
