By Rebekah Morris for AZBEX
Just four weeks after it was passed, Phoenix City Council repealed a prevailing wage ordinance aimed at construction projects procured by the City. Council members then directed staff with a 7-2 vote to investigate the issue further and return with a new ordinance that was less likely to be challenged in court.
Prevailing wage ordinances at a city level would be in direct violation of state statute. In fact, ARS 34-321, section B states: “Agencies and political subdivisions of this state shall not by regulation, ordinance or in any other manner require public works contracts to contain a provision requiring the wages paid by the contractor or any subcontractor to be not less than the prevailing rate of wages for work of a similar nature in the state or political subdivision where the project is located.”
The violation of state statute, combined with notices from both the Chamber of Commerce and the Goldwater Institute indicating that they would pursue a legal challenge to the ordinance appeared to sway council members.
The ordinance was brought forward at the last possible moment without allowing time for proper public and industry input.
Phoenix is not the only city to consider a prevailing wage ordinance. Tempe is also looking at drafting and adopting a similar regulation that is planned to come before the council before the end of the year and take effect in 2024 on city-led construction projects valued at $250K or higher. (Source)