This information is intended to provide employers with a basic overview

There are often exceptions to general rules, unsettled areas of law, and

recent changes in the system. Therefore, it is strongly recommended that

you consult with an attorney for competent and comprehensive advice

based on your individual business or the facts of your particular legal

issue. Additionally, information regarding any aspect of other non-

employer/employee relationship or otherwise enforced by the ICA is not

Section 8 of the Arizona State Constitution, Chapter 6 of Title 23 of the

Arizona Revised Statutes (A.R.S. § 23-901 et seq., also sometimes

Procedure rules contained in the Arizona Administrative Code (A.A.C.

R20-5-101 et seq.). All parties to a workers’ compensation claim should

familiarize themselves with these provisions of law. You can obtain

copies free of charge at either Industrial Commission office. Copies may

also be available for the cost of copying at county law libraries and many

local libraries including the Maricopa County Superior Court Law

Library located at 101 West Jefferson Street, East Court Building, first

Under Arizona law, it is mandatory for employers to secure workers’

benefits for an industrial injury, no matter who caused the job-related

accident. 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.

WHAT IS A “NO FAULT” SYSTEM?

employee is entitled to receive medical and compensation benefits 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,

compensation system. There are some exceptions, however. For

for injuries that are “purposely self-inflicted.”

of Arizona. For a listing of these companies you may 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. Once an employer obtains insurance or authority to self-

compensation insurance advising their employees of the coverage and of

required to supply “rejection” forms for employees who chose to reject

their employer’s workers’ compensation coverage.

regardless of the number of workers they have, whether those workers

are part-time, full-time, minors, aliens, or family members. Workers’

compensation insurance is not required for an independent contractor, or

a worker whose employment is both casual and not in the usual business

for a domestic servant who works in your home.

INSURANCE IF I AM A SOLE PROPRIETOR?

Although a sole proprietor having no employees is not required to

proprietor may elect to secure coverage for himself/herself. However, if

there are any employees working for the sole proprietor, the sole

proprietor must maintain workers’ compensation insurance on them.

INSURANCE IF MY BUSINESS IS A LIMITED LIABILITY

COMPANY (L.L.C.)?

If an L.L.C. employs one or more employees, an L.L.C. is required to

may include members and managing members.

CAN AN EMPLOYEE ELECT NOT TO BE COVERED UNDER MY

WORKERS’ COMPENSATION INSURANCE?

carrier. In most instances, this rejection must be filed before the

employee suffers an industrial injury. An employee may also later

rescind that rejection in writing but must do so before the occurrence of

an industrial injury.

HOW DO I KNOW IF A WORKER IS AN INDEPENDENT

CONTRACTOR?

Generally, you do not have to provide workers’ compensation insurance

for an independent contractor. But, there are often disputes over whether

a worker is an employee or an independent contractor. To resolve these

disputes courts consider the “totality of facts” on a case-by-case basis.

Some of the factors a court might consider include: the duration of the

employment, the method of payment, the right to hire and fire, the extent

to which the employer may exercise control over the work, who supplies

workers’ compensation benefits.

WHAT DO I DO IF AN EMPLOYEE IS INJURED ON THE JOB?

Immediately upon notice of an industrial injury, an employer is required

to provide certain information to the injured worker who reports the

compensation insurance carrier, the policy number, and the date of

expiration of coverage. An employer is also required to notify their

not addressed here.

CAN I TELL MY EMPLOYEE WHICH DOCTOR TO SEE?

An employer can direct an injured employee to a physician of the

employer’s choice for a one-time evaluation. Following that visit, the

injured worker may return to that physician or pursue treatment with a

physician of his/her choice. There are exceptions to this rule for a self-

insured employer that has complied with the requirements of A.R.S. §

WHAT WILL HAPPEN IF I DO NOT HAVE INSURANCE AND MY

EMPLOYEE CLAIMS A WORK RELATED INJURY?

insurance, your employee can choose to file a civil suit against you or file

a workers’ compensation claim with the ICA. If the employee files a

civil lawsuit, proof of the injury is evidence of negligence on the

will be referred to the Special Fund Division/No Insurance Section. The

Special Fund will process the injured worker’s claim and pay medical

WORKERS’ COMPENSATION INSURANCE?

Subject to limited exceptions, an uninsured employer may be assessed a

civil penalty of $1,000 for failure to obtain workers’ compensation

claim. The penalty is increased to $5,000 for a second instance of being

uninsured within a five-year period and $10,000 for a third instance in a

five-year period.

workers’ compensation insurance for its employees.

WORKERS’ COMPENSATION INSURANCE?

guilty of a Class 6 felony. A.R.S. § 23-932.

CAN AN EMPLOYEE SUE ME IN CIVIL COURT IF HE/SHE IS

INJURED ON THE JOB?

In most instances, workers compensation is the exclusive remedy against

injury or if the employer fails to post the notice advising an employee of

right to pursue a civil lawsuit against the insured employer. Additionally,

WHAT IS THE DIFFERENCE BETWEEN A CIVIL LAWSUIT AND

A WORKERS’ COMPENSATION CLAIM?

compensation claim. For example, in a workers’ compensation claim, an

injured employee is entitled to lifetime medical and compensation

benefits but the compensation for lost wages is capped by law. If you are

sued in civil court, there is no cap on the amount of damages an injured

worker can claim. Under the workers’ compensation system, an injured

compensation claim. An attorney can advise you regarding the many

claim.

WORKERS’ COMPENSATION CLAIM IS VALID?

state your reasons on the Employer’s Report of Industrial Injury form.

You may also provide your insurance carrier with any information or

documentation you have to support your position. As a general rule, any

action or determination taken or made by the insurance carrier is binding

upon the employer, except if the employer provides written notice to the

carrier and the Commission within the applicable protest period that it

provide information or documentation regarding the validity of the claim

to the Special Fund Division/No Insurance Section. If you disagree with

You should consult an attorney to answer any question you have

Compensation Act. If you have workers’ compensation insurance, then

you should contact your insurance carrier to determine if they have

be required to hire an attorney if the employer is a corporation or limited

liability company. Corporations and limited liability companies may not

practice law in Arizona, nor be represented by an officer or agent who is

result of legislation implementing the constitutional provisions

divisions administer and enforce all applicable laws and regulations not

specifically delegated to others, relative to the protection of life, health,

safety, and welfare of employees within the State. The ICA does not

number is (602) 542-4411. Additional information and forms are

available on the online at www.azica.gov.

WHAT ARE SOME OF THE DIFFERENT DIVISIONS AT THE ICA?

Ombudsman

The Ombudsman is available to offer assistance to injured workers in

agencies when appropriate. The Ombudsman does not provide legal

advice.

Claims

The Claims Division regulates workers’ compensation insurance carriers

Legal Division

The Legal Division represents the ICA in all legal matters affecting the

quasi-judicial mandates and functions are carried out in accordance with

all applicable laws.

The Special Fund

The Special Fund is a “trust fund” legislatively created for the express

The ALJ Division resolves disputes in cases referred to it, including

workers’ compensation and occupational safety and health matters.

Occupational Safety and Health (ADOSH)

The Arizona Division of Occupational Safety and Health (ADOSH)

enforces state occupational safety and health regulations for both public

and private employers within the state. ADOSH also provides free

consultation services for both public and private employers upon request.