Arizona Workers' Compensation: What you need to know

Virtually all employees must be covered by workers' compensation insurance, including public employees. Employees covered by workers' compensation are defined as every person "in the service of any employer" who is legally or illegally permitted to work for hire except for a person whose employment is both casual and not in the usual course of the trade, business, or occupation of the employer (AZ Rev. Stat. Sec. 23-901). The only exceptions are the following types of workers:

  • Casual employees not working in the usual course of the employer's business
  • Domestic servants
  • Employees of motion picture companies temporarily in the state for 8 months or less, provided that such employees are covered by workers' compensation insurance or its equivalent under the laws of their home state
  • Real estate salespersons whose compensation consists of commissions
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Contractors and subcontractors are considered employees for purposes of workers' compensation if the work is done within the employer's trade or business, and the employer retains supervision and control over the specific tasks being done (AZ Rev. Stat. Sec. 23-902).

Employee waivers. An individual employee may reject coverage by submitting a written waiver in duplicate to the employer, who must forward one copy to the insurer. A worker who rejects coverage has the right to sue the employer if the employer's negligence causes injury. However, a waiver must be filed before an injury is sustained in order to preserve the worker's right to sue for that injury (AZ Rev. Stat. Sec. 23-901 et seq.).

Independent contractors. Workers’ compensation is not required for workers who are independent contractors, because independent contractors are not employees. A person engaged in ...

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Who Is Covered?
What Is Covered?
Insurance Coverage
Preexisting Conditions/ Second Injuries
Multiple Employers
Claims, Appeals, and Reports
Violations and Penalties
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Arizona Workers' Compensation Resources

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