ASSOCIATED v. CITY OF PHOENIX

CourtCourt of Appeals of Arizona
DecidedFebruary 27, 2026
Docket1 CA-CV 24-0658
StatusPublished
AuthorMichael S. Catlett

This text of ASSOCIATED v. CITY OF PHOENIX (ASSOCIATED v. CITY OF PHOENIX) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ASSOCIATED v. CITY OF PHOENIX, (Ark. Ct. App. 2026).

Opinion

IN THE ARIZONA COURT OF APPEALS DIVISION ONE

ASSOCIATED MINORITY CONTRACTORS OF ARIZONA, et al., Plaintiffs/Appellees,

v.

CITY OF PHOENIX, et al., Defendants/Appellants.

No. 1 CA-CV 24-0658 FILED 02-27-2026

Appeal from the Superior Court in Maricopa County No. CV2024-001435 The Honorable Bradley H. Astrowsky, Judge

AFFIRMED

COUNSEL

Perkins Coie LLP, Phoenix By Jean-Jacques Cabou, Alexis E. Danneman, Karl J. Worsham, Jordan M. Buckwald Counsel for Defendants/Appellants

Robert G. Schaffer PLC, Scottsdale By Robert G. Schaffer Co-Counsel for Plaintiffs/Appellees

Goldwater Institute, Phoenix By Jonathan Matthew Riches Co-Counsel for Plaintiffs/Appellees Frazier Law, PLLC, Scottsdale By John Thorpe Co-Counsel for Plaintiffs/Appellees

Tempe City Attorney’s Office, Tempe By Eric C. Anderson, Clarence E. Matherson, Jr. Counsel for Amicus Curiae City of Tempe

Arizona Attorney General’s Office, Phoenix By Joshua D. Bendor, Hayleigh S. Crawford, Joshua Katz Counsel for Amicus Curiae State of Arizona

Snell & Wilmer LLP, Phoenix By Brett William Johnson, Tracy Olson, Ian R. Joyce Counsel for Amicus Curiae AZLTA, et al.

OPINION

Presiding Judge Michael S. Catlett delivered the opinion of the Court, in which Judge Daniel J. Kiley and Vice Chief Judge David D. Weinzweig joined. Presiding Judge Catlett also filed a special concurring opinion.

C A T L E T T, Judge:

¶1 We resolve how two voter-approved, statewide ballot measures interact. The first, enacted in 1984 by legislative referral, prohibits “political subdivisions” from making contractors or subcontractors pay at least “the prevailing rate of wages[.]” S.C.R. 1001, 36th Leg., 2d Reg. Sess. (Ariz. 1984); A.R.S. § 34-321(B) (1984). The second, enacted in 2006 by initiative, allows a “county, city, or town” to “regulate minimum wages . . . within its geographic boundaries[.]” Ariz. Sec’y of State, 2006 Publicity Pamphlet, 101 (2006), https://apps.azsos.gov/election/2006/info/ PubPamphlet/english/Guide.pdf; A.R.S. § 23-364(I) (2007). We decide whether the 2006 law repealed the 1984 law, such that cities may again mandate that contractors pay prevailing wages. Our answer is no.

2 ASSOCIATED, et al. v. CITY OF PHOENIX, et al. Opinion of the Court STATUTORY BACKGROUND

I.

¶2 Prevailing wages appeared early in statehood. In 1913, Arizona’s Civil Code set an eight-hour workday for “all laborers, workmen, mechanics or other persons” the State or its political subdivisions employed. Ariz. Civ. Code, § 3103 (1913). These employees could not receive “less than the current rate of per diem wages in the locality where the work is performed[.]” Ariz. Civ. Code, § 3103. But the Code also treated certain private workers as government employees: “laborers, workmen, mechanics, and other persons doing manual or mechanical labor employed by contractors or sub-contractors” of the State or its political subdivisions. Ariz. Civ. Code, § 3103. These workers, too, had to receive at least the current rate of daily wages in the locality, called a “prevailing wage.”

¶3 During the Great Depression, the federal government adopted a prevailing wage law. To this day, the federal Davis-Bacon Act requires that laborers receive minimum hourly rates under certain federal contracts exceeding $2,000. 40 U.S.C. § 3142(a). That Act requires federal contractors to pay “minimum wages” the Secretary of Labor “determines to be prevailing for the corresponding classes of laborers and mechanics employed on projects” like “the contract work in the civil subdivision of the State” where work is performed. 40 U.S.C. § 3142(b).

¶4 After the Davis-Bacon Act, states adopted “Little Davis-Bacon Acts.” Arizona was no exception. In 1933, our legislature passed House Bill 37, codified at A.R.S. § 34-322, providing this:

Every contract in excess of one thousand dollars in amount, to which the state of Arizona, or any political subdivision thereof, is a party, which requires or involves the employment of laborers or mechanics in the construction, alternation or repair of any public buildings, or other improvements of the state of Arizona or any political subdivision thereof, shall contain a provision to the effect that the rate of wages for all laborers and mechanics employed by the contractor or any subcontractor on such public buildings or improvements, shall be not less than the prevailing rate of wages for work of a similar nature in the county, city, town, village, or other civic division of the state in which the public building or improvement is located[.]

3 ASSOCIATED, et al. v. CITY OF PHOENIX, et al. Opinion of the Court See State v. Jaastad, 43 Ariz. 458, 460–61 (1934) (quoting ch. 71, session laws of 1933); see also Indus. Comm’n v. C&D Pipeline, Inc., 125 Ariz. 64, 65 (App. 1979) (calling the “Arizona Public Works Act, A.R.S. § 34-321, et seq.” the “Little Davis-Bacon Act”). In 1979, we declared Arizona’s Little Davis- Bacon Act unconstitutional for delegating too much legislative power to labor unions. See C&D Pipeline, Inc., 125 Ariz. at 67.

¶5 Still, Arizona’s Little Davis-Bacon Act lingered. But in 1984, the people buried it. The legislature referred Prop. 300; it passed in a statewide vote. See S.C.R. 1001, 36th Leg., 2d Reg. Sess. Prop. 300 declared that “the rates of wages paid under public works contracts . . . is of statewide concern.” S.C.R. 1001, § 3; A.R.S. § 34-321(A) (1984). It repealed § 34-322 and amended § 34-321. After that, no public works contract could mandate that workers receive at least “the prevailing rate of wages[.]” S.C.R. 1001, §§ 2–3; A.R.S. § 34-321(B) (1984). We call § 34-321(B) “the Prevailing Wage Prohibition.”

II.

¶6 Arizona long deferred to federal law for its minimum wage. In 1938, Congress passed the Fair Labor Standards Act (“FLSA”), establishing a federal minimum wage at 25 cents an hour. 29 U.S.C. § 206(a)(1) (1938). At first, FLSA’s coverage was narrow, applying only to employees engaged in interstate commerce or producing goods for commerce. 29 U.S.C. § 202(a) (1938). But later, Congress extended FLSA to most American workers.

¶7 For decades, Arizona did not adopt its own minimum wage, so only FLSA applied. In 1997, the Arizona Legislature passed A.R.S. § 23- 362. Through that statute, “[t]he legislature declare[d] that the establishment of a uniform minimum wage is a matter of statewide concern.” A.R.S. § 23-362(A) (1997).

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ASSOCIATED v. CITY OF PHOENIX, Counsel Stack Legal Research, https://law.counselstack.com/opinion/associated-v-city-of-phoenix-arizctapp-2026.