Workers' compensation basics are covered in the national guide. Arizona's law is in A.R.S. Title 23, Chapter 6. Claims are administered by the Industrial Commission of Arizona, which has five members appointed by the governor for five-year terms (23-101). DIFI authorizes the insurers. Arizona has two unusual features: an employee may reject the law before an injury, and there is an exception to exclusive remedy for the employer's wilful misconduct.

Who is covered

• Employers of regularly employed workers are subject to the law, except employers of domestic servants, who may elect coverage (23-902(A)).
• Statutory employer. If a business keeps supervision or control over a contractor's work, and the work is part of its regular trade, the contractor's employees are treated as the business's employees (23-902(B)).
• A properly executed written independent contractor agreement with the required disclosure creates a rebuttable presumption of contractor status (23-902(D)).
• Employee rejection. An employee may keep the right to sue by rejecting the law in writing before any injury. Otherwise the employee is presumed to accept it (23-906). Employers post a notice of this right in English and Spanish.

Securing compensation

• Employers insure with an authorized carrier or prove the financial ability to self-insure, directly or through an approved pool (23-961). The market is competitive.
• The former State Compensation Fund, founded in 1925, is now CopperPoint, a mutual that competes with other carriers.
• An employer refused coverage by two or more insurers goes into the single assigned risk plan, whose administrator is under contract with the DIFI Director (23-1091).
• WC insurers may meet rate-filing requirements through a licensed rating organization. A member may file up to six uniform deviations (20-357, 20-359).

Exclusive remedy and noncompliance

• Compensation is the exclusive remedy, except when the employer's wilful misconduct, meaning an act done knowingly and purposely to injure, causes the injury (23-1022).
• A noncomplying employer that is sued loses the defenses of assumption of risk and contributory negligence, and proof of injury is prima facie evidence of negligence (23-907).
• The employee of a noncomplying employer may instead apply to the Commission and be paid from the special fund.
• The special fund is financed by an assessment of up to 1% of carriers' premiums (23-1065).

What is compensable

• Injuries by accident arising out of and in the course of employment are covered, unless purposely self-inflicted (23-1021).
• An occupational disease must meet six requirements. One is that it doesn't come from a hazard equally present outside work (23-901.01).

Benefits

Deadlines

• Employers and physicians report every known injury requiring medical treatment to the Commission and the carrier (23-908).
• An employee files a claim within one year after the injury becomes manifest (23-1061).

Common exam traps

• Claims go to the Industrial Commission. Insurers are regulated by DIFI.
• An employee can reject the law, but only in writing before an injury.
• Arizona benefits use the average monthly wage. TTD is 66 2/3%, plus a flat $100 a month for dependents.
• The waiting period is 7 days, paid back if disability lasts more than 14 days.
• The claim filing deadline is one year.