The Arizona workers compensation act — formally the Arizona Arizona Workers’ Compensation Act (codified as “Workers’ Compensation,” A.R.S. Title 23, Chapter 6). Article 18, Section 8 of the Arizona Constitution requires the Legislature to have such a law., found at Arizona Revised Statutes Title 23, Chapter 6 (A.R.S. §23-901 et seq.) — is the statute behind every workers’ comp claim, benefit and employer mandate in the state.
This plain-English guide to the Arizona workers compensation act gives the section numbers next to the rules people actually need: who must be covered, the deadlines, the waiting period, the pay rate, the exclusive-remedy bargain, the ban on retaliation and the penalties. Verified against the official code as of October 2026.
Arizona at a Glance
| Official name | Arizona Workers’ Compensation Act (codified as “Workers’ Compensation,” A.R.S. Title 23, Chapter 6). Article 18, Section 8 of the Arizona Constitution requires the Legislature to have such a law. |
| Where it lives | Arizona Revised Statutes Title 23, Chapter 6 (A.R.S. §23-901 et seq.) |
| First enacted | 1912. The Compulsory Compensation Law was approved June 8, 1912, after the Employers’ Liability Law of May 24, 1912. The current system and the Industrial Commission come from the 1925 Workmen’s Compensation Act. |
| Reporting deadline | A.R.S. §23-908. The injured employee “shall forthwith report the accident and the injury” to the employer. No fixed number of days is set. Arizona courts generally read “forthwith” as within a reasonable time after the worker knows of the injury. Once the employer has notice, it has 10 days to file its report of injury. |
| Filing deadline | A.R.S. §23-1061(A). The claim must be filed in writing with the Industrial Commission within 1 year after the injury occurred or the right to compensation accrued. The year starts when the injury becomes manifest, or when the worker knows or reasonably should know of a compensable injury. The deadline is tolled while the worker is legally incompetent. It is suspended while the carrier or self-insured employer holds written notice of the injury and has not forwarded it to the Commission. A late filing is not a bar if the carrier or employer has started paying benefits. |
| Exclusive remedy | A.R.S. §23-1022(A). Workers’ compensation is the exclusive remedy against the employer, co-employees, and the employer’s carrier. The main exception is employer “wilful misconduct,” defined as an act done knowingly and purposely with the direct object of injuring another. The act must be the personal act of the employer, a partner, or an elected corporate officer. Reckless or grossly negligent conduct does not qualify. A second exception is a valid prior employee rejection of coverage under §23-906. |
| Recent amendments | (1) SB 1551 (2025), effective September 26, 2025. It raised the TTD dependent allowance under §23-1045 from 25 to 100 per month for claims filed on or after that date. It also requires the Industrial Commission to revise and publish its medical and prescription fee schedule online (Laws 2025, Ch. 73). (2) SB 1677 (Laws 2024, Ch. 203), effective September 14, 2024. For firefighters and peace officers with an accepted PTSD claim, coverage may include one course of MDMA-assisted therapy when an IME finds it reasonable and necessary. (3) HB 2204 (Laws 2024, Ch. 139), effective September 14, 2024, dealing with workers’ compensation rate deviations. The September 14, 2024 date is the general effective date for that session; I did not confirm it on each bill’s own page. |
In This Arizona Guide:
What the Arizona Workers Compensation Act Is
An workers’ compensation act is an no-fault deal written into state law: the employer pays for work injuries without the worker proving fault, and the worker gives up most lawsuits against the employer in return. The Arizona workers compensation act dates to 1912. The Compulsory Compensation Law was approved June 8, 1912, after the Employers’ Liability Law of May 24, 1912.
The current system and the Industrial Commission come from the 1925 Workmen’s Compensation Act.. It lives at Arizona Revised Statutes Title 23, Chapter 6 (A.R.S. §23-901 et seq.), and the official text is linked in the sources. (1) Under A.R.S. §23-906, an employee may reject the workers’ compensation system in writing before any injury and keep the right to sue the employer instead. Few states allow this.
(2) Benefits are figured on an average monthly wage, not a weekly wage (§23-1041). (3) Benefits for uninsured-employer claims come from the ICA Special Fund under §23-907(B). (4) The system rests on a constitutional mandate, Ariz. Const. Art. 18, §8. Benefit maximums change every year, so confirm current figures with the Industrial Commission of Arizona and a licensed attorney.
Who the Arizona Workers Compensation Act Covers
A.R.S. §23-902(A). It covers the state, counties, cities, towns, school districts, and every person who employs any workers “regularly employed” in the same business, which means one or more regular employees. A.R.S. §23-961 sets out the ways an employer can secure coverage. A.R.S. §23-902. Domestic servants are excluded, but their employers may opt in. Independent contractors are excluded under §23-902(C).
Contractors who do work that is a “part or process” of the employer’s business and are under its supervision or control count as that employer’s employees (§23-902(B)).
Deadlines in the Arizona Workers Compensation Act
Waiting period: A.R.S. §23-1062(A). The waiting period is 7 days, and compensation is not paid for the first 7 days after the injury. If the disability continues one week beyond those 7 days (about 14 days in total), compensation is paid back to the date of injury. Medical benefits have no waiting period.. Wage-loss rate: A.R.S. §23-1045. Temporary total disability pays 66 2/3 percent of the average monthly wage.
The maximum average monthly wage is time-varying and set under A.R.S. §23-1041, so confirm the current-year cap with the Industrial Commission. §23-1045 also adds a dependent allowance of 100 per month, which is a flat total, not an amount per dependent..
Arizona Workers Compensation Act: Key Sections at a Glance
The sections of the Arizona workers compensation act that decide most cases, each with its citation:
| Coverage mandate | A.R.S. §23-902(A). It covers the state, counties, cities, towns, school districts, and every person who employs any workers “regularly employed” in the same business, which means one or more regular employees. A.R.S. §23-961 sets out the ways an employer can secure coverage. |
| Exemptions | A.R.S. §23-902. Domestic servants are excluded, but their employers may opt in. Independent contractors are excluded under §23-902(C). Contractors who do work that is a “part or process” of the employer’s business and are under its supervision or control count as that employer’s employees (§23-902(B)). |
| Report an injury | A.R.S. §23-908. The injured employee “shall forthwith report the accident and the injury” to the employer. No fixed number of days is set. Arizona courts generally read “forthwith” as within a reasonable time after the worker knows of the injury. Once the employer has notice, it has 10 days to file its report of injury. |
| File a claim | A.R.S. §23-1061(A). The claim must be filed in writing with the Industrial Commission within 1 year after the injury occurred or the right to compensation accrued. The year starts when the injury becomes manifest, or when the worker knows or reasonably should know of a compensable injury. The deadline is tolled while the worker is legally incompetent. It is suspended while the carrier or self-insured employer holds written notice of the injury and has not forwarded it to the Commission. A late filing is not a bar if the carrier or employer has started paying benefits. |
| Waiting period | A.R.S. §23-1062(A). The waiting period is 7 days, and compensation is not paid for the first 7 days after the injury. If the disability continues one week beyond those 7 days (about 14 days in total), compensation is paid back to the date of injury. Medical benefits have no waiting period. |
| Wage-loss rate | A.R.S. §23-1045. Temporary total disability pays 66 2/3 percent of the average monthly wage. The maximum average monthly wage is time-varying and set under A.R.S. §23-1041, so confirm the current-year cap with the Industrial Commission. §23-1045 also adds a dependent allowance of 100 per month, which is a flat total, not an amount per dependent. |
| Exclusive remedy | A.R.S. §23-1022(A). Workers’ compensation is the exclusive remedy against the employer, co-employees, and the employer’s carrier. The main exception is employer “wilful misconduct,” defined as an act done knowingly and purposely with the direct object of injuring another. The act must be the personal act of the employer, a partner, or an elected corporate officer. Reckless or grossly negligent conduct does not qualify. A second exception is a valid prior employee rejection of coverage under §23-906. |
| Retaliation | A.R.S. §23-1501(A)(3)(c)(iii), the Arizona Employment Protection Act. An employer may not fire a worker for exercising rights under the workers’ compensation statutes in Title 23, Chapter 6. The remedy is a civil wrongful-termination lawsuit for damages. The worker generally must show the claim was a substantial factor in the firing. Many claimants face a 1-year filing limit (A.R.S. §12-541), so confirm with a licensed attorney. |
| Uninsured employer penalty | A.R.S. §23-907 and §23-932. Under §23-907, an injured worker of an uninsured employer may sue that employer, which loses its usual defenses, or may claim benefits through the Special Fund. The employer must repay the Special Fund plus a penalty of 10 percent or 1000, whichever is greater, plus interest. Failing to carry coverage is a class 6 felony under §23-932. |
| Who hears disputes | A.R.S. §23-941. An Administrative Law Judge of the Industrial Commission of Arizona’s ALJ Division hears disputed claims. Parties get at least 20 days’ notice of a hearing, or 10 days for suspension-of-benefits hearings, and are entitled to one change of judge as a matter of right. ALJ awards can be reviewed under §23-943, and then appealed to the Arizona Court of Appeals under §23-951. |
The Exclusive-Remedy Bargain in the Arizona Workers Compensation Act
A.R.S. §23-1022(A). Workers’ compensation is the exclusive remedy against the employer, co-employees, and the employer’s carrier. The main exception is employer “wilful misconduct,” defined as an act done knowingly and purposely with the direct object of injuring another. The act must be the personal act of the employer, a partner, or an elected corporate officer. Reckless or grossly negligent conduct does not qualify.
A second exception is a valid prior employee rejection of coverage under §23-906.
Retaliation and Penalties Under the Arizona Workers Compensation Act
A.R.S. §23-1501(A)(3)(c)(iii), the Arizona Employment Protection Act. An employer may not fire a worker for exercising rights under the workers’ compensation statutes in Title 23, Chapter 6. The remedy is a civil wrongful-termination lawsuit for damages. The worker generally must show the claim was a substantial factor in the firing. Many claimants face a 1-year filing limit (A.R.S. §12-541), so confirm with a licensed attorney. A.R.S. §23-907 and §23-932.
Under §23-907, an injured worker of an uninsured employer may sue that employer, which loses its usual defenses, or may claim benefits through the Special Fund. The employer must repay the Special Fund plus a penalty of 10 percent or 1000, whichever is greater, plus interest. Failing to carry coverage is a class 6 felony under §23-932. A.R.S. §23-941.
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An Administrative Law Judge of the Industrial Commission of Arizona’s ALJ Division hears disputed claims. Parties get at least 20 days’ notice of a hearing, or 10 days for suspension-of-benefits hearings, and are entitled to one change of judge as a matter of right. ALJ awards can be reviewed under §23-943, and then appealed to the Arizona Court of Appeals under §23-951.
Recent Amendments to the Arizona Workers Compensation Act
(1) SB 1551 (2025), effective September 26, 2025. It raised the TTD dependent allowance under §23-1045 from 25 to 100 per month for claims filed on or after that date. It also requires the Industrial Commission to revise and publish its medical and prescription fee schedule online (Laws 2025, Ch. 73). (2) SB 1677 (Laws 2024, Ch. 203), effective September 14, 2024.
For firefighters and peace officers with an accepted PTSD claim, coverage may include one course of MDMA-assisted therapy when an IME finds it reasonable and necessary. (3) HB 2204 (Laws 2024, Ch. 139), effective September 14, 2024, dealing with workers’ compensation rate deviations. The September 14, 2024 date is the general effective date for that session; I did not confirm it on each bill’s own page.
How to Read the Arizona Workers Compensation Act
Statute pages are written for lawyers, so read the Arizona workers compensation act in this order: the definitions section (who is an employee), the coverage section, then the specific section for your question, using the citations above. The official code is the source; the summaries on legal-information sites are not.
If a section of the Arizona workers compensation act seems to conflict with what an insurer told you, the section wins — and the state agency’s information line can confirm it for free.
Applying the act: the Arizona claim guide turns these sections into steps and dates, and the Arizona requirements guide covers the employer side.
Frequently Asked Questions
Where is the Arizona workers compensation act in the code?
Arizona Revised Statutes Title 23, Chapter 6 (A.R.S. §23-901 et seq.). The sources below link to the official text.
How long do I have to report a work injury under the Arizona act?
A.R.S. §23-908. The injured employee “shall forthwith report the accident and the injury” to the employer. No fixed number of days is set. Arizona courts generally read “forthwith” as within a reasonable time after the worker knows of the injury. Once the employer has notice, it has 10 days to file its report of injury.. Report in writing as soon as possible either way.
Can I sue my employer instead of using the Arizona workers compensation act?
Usually not — the exclusive-remedy section bars most lawsuits against a covered employer. Claims against third parties, and against an uninsured employer, are the common exceptions.
Official Arizona Sources & Resources
- Arizona Industrial Commission of Arizona (ICA): https://www.azica.gov/
- Arizona Workers’ Comp Statute: https://www.azleg.gov/ars/23/00901.htm
- U.S. Department of Labor — Workers’ Comp: dol.gov
- Insurance Information Institute: iii.org
This Arizona workers compensation act guide was last verified against official Arizona sources in October 2026. Rules change — confirm the current figure with the state agency or a licensed attorney.
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Disclaimer: This guide is informational only and is not legal, medical, or financial advice. Workers Comp Explained is an independent educational resource, not a law firm or insurer. Workers’ comp benefits, settlement values, deadlines, and requirements vary by state and by the specific facts of your injury and change over time, and any settlement figures here are illustrative only.
Confirm your rights and any deadline with your state’s workers’ compensation board and a licensed attorney before you act.