At a Glance
Quick Answer
Arizona does not have a state prevailing wage law. Federal Davis-Bacon Act still applies to federally funded construction projects over $2,000.
Arizona repealed its state prevailing wage law in 1984. Only federally funded construction projects are subject to Davis-Bacon prevailing wage requirements.
Context
Prevailing Wage & Bidding in Arizona
Arizona repealed its state prevailing wage law in 1984 and was one of the earliest states to do so. As a result, there is no state-mandated prevailing wage on state, county, or municipal construction, and estimators can price labor at competitive market rates on the bulk of public and private work bid in Arizona. There is no state certified-payroll requirement to staff or budget for, which keeps administrative overhead low on locally funded projects and is a meaningful competitive factor when you compare an Arizona bid to one in a prevailing-wage state.
Federal Davis-Bacon still governs any construction project in Arizona that receives federal funding above the $2,000 threshold. On those jobs you must pay the published federal prevailing wage and fringe rates for the applicable county and trade and submit weekly certified payroll to the contracting agency. This routinely applies to highway work funded through FHWA, military construction, HUD-assisted housing, and federally backed infrastructure. The wage determination incorporated into the solicitation is binding and must be reflected in your labor pricing.
The pitfall to watch in Arizona is treating every public job as rate-free. Federal assistance can flow into nominally local or state projects, and once it attaches, Davis-Bacon obligations follow. Before you finalize a bid, scan the solicitation for any federal-funding language and confirm whether a wage determination is included. Underpricing labor on a covered federal project invites back-wage claims, payment withholding, and possible debarment, so verify the funding source rather than assuming Arizona's repeal removes all wage obligations.
Details
Coverage Details
State Status
- Law
- Repealed in 1984
- Agency
- N/A — State law repealed
- Certified Payroll
- Not required at state level
Federal Davis-Bacon Coverage
The federal Davis-Bacon Act applies to all federally funded or federally assisted construction contracts over $2,000 in Arizona. This includes projects funded by federal agencies, FHWA highway projects, HUD housing, and projects receiving federal grants.
Reference
Key Facts
State prevailing wage law repealed in 1984
Federal Davis-Bacon Act still applies to federally funded projects over $2,000
Arizona was one of the early states to repeal its prevailing wage law
No legislative efforts to restore the state law have succeeded
Enforcement
Penalties
Federal Davis-Bacon penalties apply to federally funded projects only.
Resources
Related Tools & Templates
Turn wage rules into bid-ready alerts
Use ConstructionBids.ai to track matching public projects, save bid searches, and move wage-sensitive scopes into your estimating workflow.
FAQ
Questions Contractors Ask
Does Arizona have a prevailing wage law?
No. Arizona does not have a state prevailing wage law. Arizona repealed its state prevailing wage law in 1984. Only federally funded construction projects are subject to Davis-Bacon prevailing wage requirements.
Does Davis-Bacon apply in Arizona?
Yes. The federal Davis-Bacon Act applies to all federally funded construction projects over $2,000 in Arizona, regardless of state law. Contractors must pay the prevailing wage rate determined by the DOL for the project location.
Is certified payroll required in Arizona?
Arizona does not have a state-level certified payroll requirement. However, certified payroll (WH-347) is still required on any federal Davis-Bacon project in the state.
What are the penalties for prevailing wage violations in Arizona?
Federal Davis-Bacon penalties apply to federally funded projects only.
Does Arizona require prevailing wages on public construction?
No. Arizona repealed its state prevailing wage law in 1984, so state, county, and municipal projects carry no state wage floor. Contractors price labor at market rates. Prevailing wages apply only when federal funding triggers the Davis-Bacon Act on a given project.
When was Arizona's prevailing wage law repealed?
Arizona repealed its state prevailing wage statute in 1984, making it one of the earliest states to do so. No subsequent legislative effort to restore a state-level law has succeeded, so federal Davis-Bacon remains the only prevailing wage standard contractors encounter in the state.
Do I need certified payroll for Arizona public projects?
Only on federally funded jobs. Because Arizona has no state prevailing wage program, state and locally funded work carries no certified-payroll mandate. When federal money attaches above $2,000, Davis-Bacon requires weekly certified payroll submitted to the contracting agency, so budget that effort accordingly.