Industry Resources
Prevailing Wage Compliance Guide for Arizona Contractors
Everything Arizona contractors need to know about prevailing wage laws, Davis-Bacon requirements, certified payroll, and how to stay compliant on public works projects.
Prevailing wage compliance is one of the most common sources of risk for Arizona contractors bidding on public works projects. With billions in new federal infrastructure dollars flowing into Arizona through the Infrastructure Investment and Jobs Act (IIJA), more contractors than ever are encountering Davis-Bacon requirements — sometimes for the first time. This guide will help you understand your obligations and avoid costly violations.
What Is the Davis-Bacon Act?
The Davis-Bacon Act (40 U.S.C. §§ 3141–3148) requires contractors and subcontractors on federal construction contracts exceeding $2,000 to pay workers at least the locally prevailing wages and fringe benefits for corresponding work on similar projects. The law applies to contractors and subcontractors — if you're a sub on a federally funded project, you are bound by Davis-Bacon even if your direct contract is not with the federal agency.
Arizona State Prevailing Wage Law
Arizona's prevailing wage statute (A.R.S. § 34-321) applies to state-funded public works construction contracts. Wage determinations are issued by the Arizona Department of Administration for projects within state jurisdiction. Key differences from Davis-Bacon include:
- →Dollar threshold varies from Davis-Bacon federal threshold
- →Rates are determined by state surveys, not U.S. DOL surveys
- →Applies to state agency contracts — cities and counties may have their own ordinances
- →Certified payroll requirements mirror Davis-Bacon format
Certified Payroll Requirements
Contractors on prevailing wage projects must submit weekly certified payroll reports (Form WH-347 for Davis-Bacon projects) to the contracting agency. These reports must include: employee name, address, and Social Security number; work classification; hours worked by day and week; wage rate paid; deductions; and net wages.
AZAGC members have access to certified payroll templates and guidance documents. Contact our resources team using the form below to download the compliance checklist.
How AZAGC Helps Members Stay Compliant
- ✓Certified payroll report templates (WH-347 compliant)
- ✓Wage determination lookup guides for Arizona counties
- ✓Access to labor attorneys specializing in prevailing wage
- ✓Legislative advocacy — AZAGC monitors prevailing wage law changes
- ✓Educational seminars on Davis-Bacon compliance best practices
Also see our advocacy page for AZAGC's position on prevailing wage legislation and our contractor licensing guide.
Get the Compliance Checklist
AZAGC members receive the full prevailing wage compliance toolkit — certified payroll templates, wage determination guides, and more.
Prevailing Wage — Common Questions
Member Benefits
Everything You Get as an AZAGC Member
- Access to exclusive member events and networking
- Legislative advocacy on your behalf in Phoenix & DC
- Workforce training and certification programs
- Industry research, news, and market intelligence
- Discounts on equipment, insurance, and services
Join AZAGC Today
We'll reach out within one business day to complete your membership.