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Courts
Goldwater Institute sues Phoenix over new prevailing wage for construction workers
Arizona Department of Transportation crews set a final bridge girder for Loop 202 South Mountain Freeway in Phoenix on June 20, 2019. Construction projects in the Valley that use federal funding already pay a prevailing wage, per the Davis-Bacon Act of 1931. (Arizona Department of Transportation via AP)
The Goldwater Institute is suing the city of Phoenix over its new prevailing wage for construction workers contracted with the city.
The new city ordinance sets a required pay rate, often including benefits, for construction and trade workers based on their position and qualifications. This has been practice for federally funded projects for nearly a century, including construction projects in Phoenix that are in part federally funded, based on the Davis-Bacon Act of 1931.
The change has evoked the lawsuit from Goldwater over a stance the move violates state law. A 1984 Arizona law restricts governments inside the state from enacting a prevailing wage. However, last year Attorney General Kris Mayes released an opinion that she believes a 2006 law allowing municipalities to enact their own minimum wages eclipses the 1984 law. Mayes opined that a prevailing wage is a type of minimum wage.
The six council members who voted to approve the prevailing wage trusted the AG’s interpretation.
In a news release Wednesday, Goldwater said it is suing on behalf of the Associated Minority Contractors of Arizona, the Arizona Builders Alliance and the Arizona Chapter of the Associated General Contractors of America.
“Phoenix’s illegal ‘prevailing wage’ mandate will make life more difficult for countless small businesses that are already struggling to stay afloat,’” stated Ricardo Carlo, President of the Associated Minority Contractors of Arizona in Goldwater’s release.“‘Prevailing wage’ laws drive qualified contractors out of the market and are detrimental to businesses, employees, taxpayers, and residents—disproportionately harming minorities. It’s simple: the government should never restrict who can compete for taxpayer-funded construction projects.”
The conservative think tank also claimed the mandate violates the Arizona Constitution’s guarantee of due process of law, because it gives the city engineer virtually unlimited power to investigate and punish businesses for alleged infractions.
“When the government imposes restrictive ‘prevailing wage’ mandates—as the federal government does, and as several other cities and states across the country have tried to do—everybody loses,” stated Goldwater Institute Staff Attorney John Thorpe, lead attorney on the case. “Taxpayers have to pay more and wait longer for projects to get done; employees have a harder time finding work; and businesses, especially small businesses, suffer from higher costs and fewer opportunities.”
Goldwater did not mention AG Mayes’ opinion in its news release.
Read more about Goldwater’s announcement of its lawsuit here.
Mark Carlisle Associate Editor | Daily Independent
Mark is passionate about accurately informing his readers to what is happening in their community. He also loves reading and writing about sports.
Mark has worked for Independent Newsmedia for five years. He married his high school sweetheart, adopted a boxer mix, and awaits his first child.
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