Read this quick and convenient guide for everything employers and employees need to know about workers comp in Arizona.
What are the laws for workers’ comp in Arizona?
When it comes to workers comp in Arizona, there are a few key laws to understand:
Under Arizona law, it is mandatory for all employers to obtain workers’ compensation insurance in the event an employee becomes injured or ill on the job.
Workers’ compensation in Arizona is a “no fault” system: this means an injured employee is entitled to receive benefits for an industrial injury, no matter who caused the job-related accident.
What is covered by workers' comp in Arizona?
Workers who are injured or become ill while on the job are entitled to receive medical benefits and missed wages no matter who causes the job-related accident. This means that even if the employee was at fault or partially at fault in causing the industrial injury, he or she will, in most instances, be entitled to benefits under the workers’ compensation system.
If an illness or injury is job-related, then the injured worker, also known as a claimant or applicant, receives medical benefits and may receive temporary compensation, if eligibility requirements are met. In some cases, a claimant may also receive permanent compensation benefits, job retraining and supportive medical care.
There are some exceptions, however. For example, an employee is not entitled to workers’ compensation benefits for injuries that are determined to be intentionally self-inflicted. Learn more about what is covered by workers' comp in Arizona.
Is workers comp required in Arizona?
If you employ one or more workers, you are required by law to carry workers’ compensation insurance. You must provide workers’ comp for full-time and part-time workers.
Certain employees are exempt, including independent contractors, domestic employees who work in private homes and casual employees whose work is not part of the normal operation of your business.
According to Arizona workers’ comp law, an employer that fails to obtain the required workers’ compensation insurance is subject to an action by the ICA for an injunction that will require the employer to cease the operation of business until the employer complies with the requirement to maintain workers’ compensation insurance for its employees.
What does workers comp insurance cost in Arizona?
Arizona uses the National Council on Compensation Insurance (NCCI) system to establish codes for various occupations in order to determine costs to employers. Each individual employee would be classified under the code, which is based on how hazardous their specific job is.
An employers’ premium is based on the class codes of each of your employees. Employers pay premiums to an insurance company, which then pays out workers' compensation claims. Employees aren’t required to pay anything toward this coverage.
Other factors that affect the cost of the insurance are an employer’s annual total payroll and their claims history.
Physically demanding work usually results in higher premium rates, as does having a history of workplace accidents.
A workers’ compensation rate is represented as the cost per $100 in payroll. For example, a rate of $1.68 means that a business with $100,000 in payroll would pay $1,680 annually in workers compensation premiums.
Workers' comp rates are unique because they tend to decrease over time, particularly as overall workplace safety improves.
The National Council on Compensation Insurance was founded in 1923 with the goal of fostering a healthy workers compensation system. It gathers data, analyzes industry trends and provides objective insurance rate and loss cost recommendations. When combined with a comprehensive set of tools and services, NCCI is the source employers can trust for workers compensation information.
How can I get workers' comp for my business in Arizona?
Workers’ compensation insurance can be obtained from an insurance company licensed to issue workers’ compensation insurance in the State of Arizona. For a listing of these companies, employers can contact the Arizona Department of Insurance at (800) 325-2548 or www.azinsurance.gov. Employers who meet certain requirements can also apply to the ICA for permission to be self-insured for workers’ compensation.
Here at Arizona Workers Comp we compare insurance companies so you are guaranteed to get coverage custom designed for you, at the best possible rate. Get a quote for your business now at (623) 401-4205.
What is the workers’ compensation fee schedule in Arizona?
When an employee suffers a work-related injury or illness, they go to a healthcare provider for treatment.
In some states there is a fee schedule that lists what the healthcare provider gets paid for each service. However, Arizona does not have a workers’ compensation fee schedule that establishes specific payment rates for workers’ compensation claims. Instead, the Arizona rules provide that claims are to be paid based on the hospital’s usual and customary charges.
How to file a workers’ compensation claim in Arizona
In Arizona, it is the injured worker’s responsibility to file a claim within one year of the date of injury. The injured worker also needs to notify the employer as soon as possible that he or she has been involved in a work-related injury or has become ill.
A claim is made either by filling out and signing a Worker's and Physician's Report of Injury at the doctor’s office or by obtaining a Worker's Report of Injury from the Industrial Commission of Arizona, and filing either report with the ICA. Both of these reports are considered to be a claim form.
The employer is required to file an Employer’s Report of Injury. However, this is not a claim. It is only a report of the injury.
When either claim form is received by the ICA, the employer’s workers’ compensation insurance carrier is notified of the claim. The carrier has 21 days to accept or deny the claim.
If the insurance carrier accepts the claim, it is responsible for payment of compensation and the payment of medical bills in accordance with the Arizona Fee Schedule.
If the insurance carrier denies the claim, the injured worker must file a Request for Hearing within 90 days from the date of the denial notice.
The Industrial Commission of Arizona administers and enforces state laws relating to the protection of life, health, safety and welfare of Arizona's employees, including workers' compensation. Learn more about how to file a workers' comp claim in Arizona.
How is workers’ comp paid in Arizona?
When a worker is injured or becomes ill on the job, he or she is entitled to lost-time benefits that total two-thirds of their monthly income as determined by their earnings the month before they became injured or sick on the job.
Arizona has a maximum monthly benefit of $4,521.92. This benefit is considered temporary and only lasts while a doctor is actively treating the worker.
Many employees who are injured or fall ill at work are able to obtain immediate treatment from a medical provider and recover fully.
However, if an employee suffers permanent injuries, workers' compensation will pay them permanent disability benefits.
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