Arizona requires all businesses to have workers comp for employees, with only a few exceptions.
Workers compensation insurance typically pays a portion of lost income and medical bills for an employee who gets injured while working. Work-related injuries that can be covered by workers comp range from foot joint pain to broken bones to breathing problems.
Arizona workers compensation law defines who must be covered, those exempt from coverage and the limits of workers comp payments. Below are many of the specifics contained in the workers comp law in Arizona. The Industrial Commission of Arizona also has a FAQ with helpful information for employers.
Arizona workers comp laws
Can any employees opt out of Arizona workers compensation with a waiver?
Yes - for corporate officers and sole proprietors.
Is self-insurance for workers comp allowed in Arizona?
Yes, for individual employers, groups of employers and political subdivisions. Political subdivisions in Arizona are typically the state or a city, county, special district, school district or public agency.
By self-insuring, a business assumes responsibility for paying their own workers comp claims. A self-insured company typically hires a claims service company to handle claims administration and other services.
Are there exclusions for:
Small employers? No.
Agricultural employers? No.
Domestic employers? Yes.
Independent contractors? Yes.
Casual employees? Yes.
Volunteers? No.
Professional athletes? No.
Arizona workers comp medical benefits
Is there a Arizona workers comp fee schedule?
Yes.
Fee schedules define payments for surgery, radiology, hospital services, chiropractic care, ambulance service, prescription drugs and other medical services for an injured worker.
Are there limits on medical treatment?
None.
Who makes the initial choice of treating physician?
The employee has the choice unless they are employed by a self-insured employer with contracted medical care. Employee must see company doctor one time if required by non-self-insured employer.
Disability payments for workers compensation insurance in Arizona
Generally, workers compensation pays an employee a portion of their income when they can't work due to a work-related injury. State laws define certain limits on the disability payment amount and length, based on both permanent and temporary disability.
How are temporary total disability (TTD) payments calculated?
66 2/3% of the worker's average monthly wage plus an additional $25 per month if they have dependents.
Weekly minimum: N/A
Weekly maximum: $679.51
Maximum length of TDD benefits: For the duration of the temporary disability.
How are permanent total disability (PTD) payments calculated?
66 ⅔% of the employee's average monthly wage.
Weekly minimum: None
Weekly maximum: $679.51
Are there cost of living increases for PTD payments? No.
Maximum length of PTD benefits: No.
How are permanent partial disability (PPD) payments calculated?
Based on the employee's established average monthly wage.
Weekly minimum: None.
Weekly maximum: $766.60 for scheduled injuries; for unscheduled injuries, N/A
Fatality benefits under Arizona workers compensation law
Maximum burial benefit: $5,000 (dependent can receive an $800 death benefit if the death occurs while collecting benefits).
Dependency benefits, weekly minimum / maximum: None / $679.51
When do children's dependency benefits end? At age 18, or upon emancipation, if earlier.
Other injuries covered by Arizona workers comp insurance
Mental stress with no physical injury? Yes.
Cumulative trauma (such as injuries caused by repeated exposure or repetitive motion)? Yes.
Occupational hearing loss? Yes.
Disfigurement? Yes.
Source: Workers Compensation Research Institute, May 2016 report