Arizona

  • Project Labor Agreements

    Adopted ABC model government neutrality bill.

  • Prevailing Wage

    No.

  • Right to Work

    Yes.

  • Public-Private Partnerships

    Statute authorizes the use of P3s on horizontal and vertical construction projects. Unsolicited bids are allowed.

  • Workforce Development Incentives

    Current labor supply satisfies 66.7% of peak labor demand.

    State offered $5,400,000 in grants and incentives for workforce preparation and development in 2019.

  • Career and Technical Education

    98% of CTE high school graduates are placed in colleges or careers.

    Arizona recognizes NCCER as an approved curriculum for CTE programs.

  • Job Growth Rate

    7.4%.

Monthly Unemployment Rate in Arizona

Please see ABC's state-by-state construction unemployment data here.

Industry Overview

Prompt Pay

Private: When a contractor completes and an owner approves and certifies all work under a construction contract, the owner shall make payment in full within seven days. 1.6% interest per month.
Public: 14 days after invoice approved. Final payment 60 days after acceptance. 1% interest per month.
Subs: Payment must be made to subs and from subs to lower tiers within 7 days, unless otherwise agreed.

Immigration/E-Verify Mandate

The law requires employers in Arizona to use the E-Verify system to verify the employment authorization of all new employees hired. Government contracts may not be awarded to businesses that do not use E-Verify.

Percentage of State GDP From Nonresidential Construction

4.8%.

Incidence Rate

3.1.

Occupational Safety & Health Oversight (State vs. Federal)

State plan covers private workplaces and state and local government workplaces.

Percentage of Union Membership in Private Construction

2.1%

Marijuana Legalization Status

Legalized for medicinal use.

Business Facts

Minimum Wage

$12

Percentage of Pensions Funded

62.2%

Effective Real-Estate Tax Rate

0.72%

Corporate Income Tax Rate(s)

4.9%

State and Local Public Construction Expenditures (in millions)

$4,166