Understanding Arizona's Workers' Compensation Statute

Key Differences in Arizona's Workers' Compensation Law

Arizona law requires most employers to provide medical treatment, wage replacement, and disability benefits to employees injured on the job, but it differs from many states in its definition of "employee," the 75% wage‑loss replacement rate, and the exclusive‑choice medical provider system.

Who Must Carry Coverage

All private‑sector employers with one or more employees, as well as public agencies, must obtain workers' compensation insurance unless they qualify for a statutory exemption, such as a sole proprietor with no employees.

Benefits Provided Under the Statute

Benefits are categorized into four main types:

• Medical care – unlimited, provided by an authorized provider.
• Temporary total disability – 75% of the employee's average weekly wage, capped at the state maximum.
• Permanent partial or total disability – a schedule of compensation based on body part loss.
• Death benefits – a lump‑sum payment to designated beneficiaries.

Claims Process and Timelines

Injured workers must report the injury to their employer within 30 days. The employer then files a First Report of Injury (FROI) with the Arizona Industrial Commission (AIC). The worker has 90 days to request medical treatment and must file a claim for benefits within one year of injury, unless a statute of limitations is tolled.

Employer Obligations and Penalties

Employers must maintain continuous coverage, post the workers' compensation poster, and promptly pay medical bills and benefits. Failure to comply can result in fines up to $5,000 per day, criminal charges, and loss of the right to contest claims.

Comparative Overview