If you work in certain industries in Phoenix, such as construction, you might have heard the term “prevailing wage.” This term refers to a minimum wage rate set for specific types of work on public projects. However, not every worker is covered by these rules.
Whether your employer must pay you a prevailing wage depends on various factors, including the type of job in question and whether federal law applies. Here’s what you should know about your rights and how these laws work.
What Are “Prevailing Wages”?
A prevailing wage is the standard hourly rate of pay for workers in a specific trade within a given area. It includes both base pay and certain benefits, such as health insurance, vacation, and retirement contributions.
These wage rates are usually determined by government surveys of similar workers in the same geographic area. The idea is to ensure that employees working on public construction projects earn fair pay that reflects local market standards.
When Do Prevailing Wage Laws Apply in Phoenix?
Arizona does not have its own state prevailing wage law. The state legislature repealed the Arizona “Little Davis-Bacon Act” in 1984, meaning state and local government projects in Phoenix generally do not require employers to pay a prevailing wage.
However, federal prevailing wage laws may still apply. The most important of these is the Davis-Bacon Act (DBA). Federal prevailing wage requirements apply consistently nationwide, but only to qualifying federally funded construction projects. Under this law, contractors and subcontractors working on federally funded (or federally assisted) construction projects must pay their workers at least the locally prevailing wages and benefits.
This includes projects such as:
- Federal building construction and renovation
- Highway or bridge projects receiving federal funds
- Certain housing developments and public works projects backed by federal agencies
If your job involves one of these types of projects, your employer must comply with the Davis-Bacon Act, regardless of Arizona’s lack of a state-level requirement.
How to Know if Your Job Qualifies
To determine whether your employer must pay a prevailing wage, ask yourself the following questions:
- Who funds the project? If the project receives federal funding or assistance, it likely falls under the Davis-Bacon Act.
- What kind of work are you doing? The law typically covers construction and repair work, not general maintenance and clerical tasks.
- What is the contract amount? The Davis-Bacon Act applies to contracts valued at over $2,000.
- Are you employed by a contractor or subcontractor? Both are responsible for paying prevailing wages on qualifying projects.
Your wage rate is determined by the U.S. Department of Labor’s Wage and Hour Division (WHD), which maintains wage determinations for each county and job type. For example, an electrician in Maricopa County may have a different prevailing wage rate than a plumber or roofer in the same area.
What Happens if Your Employer Fails to Pay You Properly?
If your employer is required to pay a prevailing wage but fails to do so, you have legal options. Workers can file a complaint with the Department of Labor’s Wage and Hour Division, which can investigate and order back pay for unpaid wages and benefits. An experienced wage and hour disputes lawyer can help you take this type of action.
Additionally, employers who willfully violate the Davis-Bacon Act can face penalties, including suspension from federal contracts for up to three years.
Keep in mind that if your project isn’t federally funded, the prevailing wage law likely won’t apply. However, you’re still entitled to at least Arizona’s minimum wage, which as of 2026 is $15.15 per hour by default.
Contact a Phoenix Employment Lawyer at Houk Employment Attorneys to Schedule an Initial Consultation
Prevailing wage laws can be complicated to navigate in Phoenix, Arizona. If you suspect your employer isn’t paying you fairly and isn’t complying with federal wage laws, it’s important to speak with a qualified employment lawyer.
Houk Employment Attorneys can help you determine whether your job qualifies and guide you through the process of recovering your unpaid wages from there. Set up a consultation with our Phoenix employment attorneys today to get started with your case.
Our employment law firm is conveniently located near you, with an office in Phoenix, AZ.
Houk Employment Attorneys
631 N 1st Ave Suite 101, Phoenix, AZ 85003
(480) 569-2377
