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Arizona Workers' Compensation Requirements

Required from your 1st employee

✓ Verified 2026-09-08 Source: AZ Industrial Commission (ICA) ↗ See something wrong? Tell us →

At a glance

1st

employee threshold (general)

—

construction threshold (same as general)

Private market

buy from any carrier

AZ Industrial Commission (ICA)

official source (verified 2026-09-08)

The details

One or more employees (full or part-time) triggers coverage; casual employment exceptions.

If a claim happens: benefit amounts in Arizona

$6,131/mo max monthly wage-replacement benefit (66 2/3% of preinjury wage)

Waiting period: 7 days · Duration: TTD until medically stationary; no fixed statutory week cap

AZ pays MONTHLY: 2026 TTD max $6,131/month (with dependents; 66-2/3% of AMW without, 75% with dependents — max AMW is capped annually by AICA). Weekly-equivalent ≈ $1,415 Medical: No dollar cap — reasonable and necessary care for the injury. Death: Survivors 66-2/3% of AMW (75% with dependents); burial $10,000+ (see ICA). Rate cycle: adjusts 01/01 each year. All states' benefit rates →

FAQ

Do I need workers' compensation in Arizona?

Yes — Arizona requires coverage as soon as you hire your first employee (full-time or part-time).

What about construction businesses in Arizona?

Construction businesses follow the same 1 threshold. See details below for industry nuances.

What if I don't carry required coverage in Arizona?

Penalties vary by state and can include per-employee per-day fines, stop-work orders, and personal liability for injury claims. Check the official source below for Arizona's current enforcement posture.

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Official source: AZ Industrial Commission (ICA) · Verified 2026-09-08 (official) · Compare all states · Construction rules · Farm rules