Prevailing wage in Arizona

Who and what this applies to

Arizona’s statutory restriction on public-work prevailing-wage clauses and separate labor reporting on FHWA-funded Arizona Department of Transportation construction contracts.

Thresholds and scope

The statutory definition concerns a contract with the state or a political subdivision involving laborers, workmen or mechanics constructing, altering or repairing public buildings or improvements.

The rules

• A.R.S. section 34-321(B) prohibits state agencies and political subdivisions from requiring public-work contracts to contain a clause mandating payment of at least the local prevailing wage. The definition of public-works contract appears in subsection (E)(5). Source
• This state-law restriction does not dispense with applicable federal contract requirements. ADOT requires contractors and subcontractors of all tiers on FHWA-funded ADOT construction to use its LCPTracker system for certified payroll reporting and Davis-Bacon/prevailing-wage compliance. Source

Primary sources

• A.R.S. §34-321(B) and (E)(5)
• ADOT: DBE Labor and Compliance Reporting

Sources reviewed 2026-09-30. This guide covers the projects and rules stated above.

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