Workers' Compensation Laws in Arizona
If an Arizona employer regularly hires workers in its customary business then the employer is required to carry Workers' Compensation Insurance regardless of the number of workers and whether those workers are considered part-time, full-time, minors, aliens, or family members. In Arizona, an employer that does not carry Workers' Compensation Insurance is guilty of a Class 6 felony.
AZ Workers' Comp: Key Details
- Sole proprietors in AZ can purchase Workers' Comp for themselves.
- Sole proprietors can opt out of Workers' Compensation coverage if they don't have employees.
- Workers' Compensation Insurance is not required for independent contractors, casual and infrequent workers, or domestic servants who work in your home.
- An uninsured employer may be assessed a civil penalty of $1,000 for failure to obtain Workers' Compensation Insurance, whether or not an employee files a Workers' Compensation claim. Within a five-year period of the initial penalty…
- A second penalty for failure to carry WC is $5,000.
- A third penalty is $10,000.
- Workers' Compensation must be purchased through a commercial provider. Self-insurance (upon approval) is also permitted.
Check out the Arizona Workers’ Compensation FAQ [PDF] or visit Arizona's main Workers' Compensation page for more information.