Arizona Guide

Arizona Workers' Compensation for Bars and Restaurants

Hot lines, wet floors, sharp knives, and heavy lifts are part of every shift. Here is what Arizona law requires of your bar or restaurant, what happens when someone gets hurt, and how to keep your premium in check.

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  • 12 Minute Read
  • Updated October 2026
  • A.R.S. 23-902, 23-906, 23-907, 23-1061
Arizona Employer Ticket Ticket No. 23-902 Fire
  • 1x Cover every regular worker, full or part timeA.R.S. 23-902
  • 1x Post the notice in English and SpanishA.R.S. 23-906
  • 1x Report injuries to your carrier and the ICA within 10 daysA.R.S. 23-1061
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Required for every Arizona employer

Quick Answer

Arizona requires every employer that regularly hires workers to carry workers' compensation, no matter how many workers it has or whether they are part time. You must post the required notice in English and Spanish, give an injured worker your carrier's information right away, and report the injury to your carrier and the Industrial Commission of Arizona within 10 days. Going without coverage invites lawsuits, penalties, and a shutdown order.

In This Guide

  1. Who must carry it
  2. Insured vs. uninsured
  3. Posting and rejection
  4. What it pays
  5. When someone gets hurt
  6. Kitchen injuries
  7. Violence and mental injury
  8. How premium is set
  9. Your safety program
  10. Coverage and who needs it

Who must carry workers' comp in Arizona

Arizona makes workers' compensation mandatory. If your business regularly hires workers, you must carry it regardless of how many you have, and whether they are full time, part time, minors, or family members. Seasonal staff count too, because “regularly employed” includes work for only part of the year in your usual business. This is the exposure a workers' compensation policy is built to answer.

  • Covered

    Your whole crew

    Servers, bartenders, cooks, dishwashers, hosts, and managers. LLC members and corporate officers can count as employees too.

  • Often covered

    Workers you control

    A contractor whose work you supervise or control, doing work that is a regular part of your business, can be treated as your employee.

  • Not required

    True independent contractors

    A written agreement showing you do not control the work creates a rebuttable presumption of independent contractor status.

Two ways to comply

Buy a policy from a carrier authorized to write workers' compensation in Arizona, or get approval from the Industrial Commission of Arizona (ICA) to self-insure. Nothing else counts: a program sold as a substitute for workers' compensation does not satisfy the law.

A.R.S. 23-961

Insured vs. uninsured: what is at stake

With coverage

  • Workers' compensation is the employee's exclusive remedy, so they generally cannot sue you for the injury.
  • The one exception is willful misconduct, meaning an act done knowingly and purposely with the direct object of injuring another.
  • Your carrier handles medical bills and wage benefits.

Without coverage

  • The employee can sue you, and you lose the defenses of assumption of risk and contributory negligence.
  • Proof of the injury is evidence of your negligence. The burden shifts to you to prove otherwise.
  • The state's Special Fund can pay the claim, then bill your business plus a penalty of 10% or $1,000, whichever is greater, with interest. That debt can become a lien for 8 years.
  • The ICA can ask a court to order your business to stop operating until you get covered.
First penalty for being uninsured
$1,000
Second time within 5 years
$5,000
Third time within 5 years
$10,000

Failing to carry required coverage is also a Class 6 felony under A.R.S. 23-932, according to the ICA.

Post the notice: Arizona's rejection rule

Arizona gives employees a choice many owners do not know about. An employee can reject workers' compensation and keep the right to sue, but only with a signed, dated written notice given to you before an injury. A.R.S. 23-906 puts three duties on you:

  1. 1

    Post the notice

    Keep it posted in a conspicuous place, in English and Spanish, where every employee can read it.

  2. 2

    Keep blank forms

    Rejection forms must be available where your employees are hired.

  3. 3

    File within 5 days

    If an employee hands you a rejection, file it with your carrier within 5 days.

If the notice is not up

Employees are normally presumed to accept workers' compensation. If you fail to post the notice or keep the forms available, that presumption breaks down and employees keep their right to sue. A missing poster can undo the protection you pay for.

What workers' comp pays

Prompt medical, surgical, and hospital care, medicine, and supplies reasonably required for the injury.
Medical
Of the worker's average monthly wage during temporary total disability, plus $100 a month with dependents.
66 2/3%
Travel to medical care is reimbursed when it is more than 25 miles from home.
25+ miles

When wage benefits start

  1. Days 1 to 7

    No wage benefits. Medical care starts right away.

  2. Day 8

    Wage benefits begin if the worker is still unable to work.

  3. Past day 14

    Benefits are paid back to the date of injury.

  4. By day 21

    First payment is due after the ICA notifies the carrier of the claim, then at least every two weeks.

Wage benefits are capped. The ICA sets a maximum average monthly wage each year, and for 2025 injuries it was $5,906.55. See the current figure on the ICA wage maximum page.

When an employee gets hurt

The first hours after an injury shape the whole claim. Follow this order every time, and name one manager to receive incident reports and call them in.

Injury clock

  1. Immediately

    Get the worker care. Give them your carrier's name and address, your policy number, and the policy expiration date.

  2. Same shift

    Investigate. View the scene, take photos, talk to witnesses without leading them, save camera footage, and write it all down.

  3. Within 10 days

    Send the Employer's Report of Industrial Injury to your carrier and the ICA.

  4. If a worker dies

    Call the ICA Claims Division immediately.

  5. Up to 1 year

    The worker has one year from the injury to file a claim, so keep your records.

Have this ready when you report a claim

  • Your policy number and agency name
  • The employee's name, current address, and phone number
  • The type of injury, and whether they can work
  • Time, date, place, and a detailed description of what happened
  • Payroll information if they will miss work

Arizona's reporting rule does not treat one-time first aid by nonmedical staff, such as a bandage for a minor cut or burn, as medical treatment. Log it anyway.

The injuries behind restaurant claims

Kitchens and bars are busy, hot, and wet, and the 2024 numbers show it.

Injury and illness cases at U.S. food service and drinking places in 2024
178,200
Cases per 100 full-time workers, versus 2.3 for all private industry
2.4
Cases per 100 full-time workers at caterers and other special food services
3.1

Floors, heat, blades, and heavy loads are the everyday risks.

Slips, trips, and falls

  • Clean spills right away and keep wet floor signs up until the floor is dry.
  • Use grid-pattern rubber mats in the kitchen and degrease floors daily.
  • Require closed-toe, slip-resistant shoes.

Burns

  • Call out “Behind you” when carrying anything hot.
  • Use dry mitts or potholders, never wet towels.
  • Turn pot handles in and move urns and hot containers on carts.

Cuts

  • Keep knives sharp and use the right knife for the job.
  • Wear a mesh glove to clean slicer blades and keep guards in place.
  • Sweep broken glass with a broom and pan, and never scoop ice with a glass.

Lifting and strains

  • Test the load first and use carts and dollies.
  • Lift with the legs, keep it close, and pivot instead of twisting.
  • Use two-person lifts for kegs, cases, and full bus tubs.

Violence, robbery, and mental injury

Workplace violence injuries are generally covered by workers' compensation when they happen within the scope of employment. Your employee generally cannot sue you, but may be able to sue the outside party who caused the harm.

Mental injury has a higher bar

A mental injury is compensable only if unexpected, unusual, or extraordinary stress at work was a substantial contributing cause, or if it was caused by a physical injury on the job.

A.R.S. 23-1043.01(B)

The Arizona Supreme Court upheld that standard in Matthews v. Industrial Commission (2022). Whether an event meets it depends on the facts, so report every incident and let your carrier decide.

Lower the risk before it happens

  • Train staff not to resist during a robbery.
  • Keep cash on hand low with regular deposits and lock boxes.
  • Post the police number by every phone and tell staff to call at the first sign of trouble.
  • Train supervisors in conflict resolution.

Guest injuries from fights fall under assault and battery coverage. For the liquor side, read our Arizona dram shop guide.

How your premium is calculated

Premium follows a simple formula, and you can influence each part.

The premium formula

Payroll ÷ 100 Estimated payroll by job class Class Rate Rate per $100 for each job class Experience Mod Your claims history versus peers

Below 1.00

A credit. Fewer or smaller claims than similar businesses.

1.00

Average for your size and type of business.

Above 1.00

A debit. Your premium rises with your claims.

  • Make sure every role is in the right class code, since each class carries its own rate.
  • Report and manage claims early. Your losses feed your experience mod for years.
  • The premium is yours alone. Arizona employers cannot charge employees for any part of it.

NCCI's latest Arizona filing proposes a 0.2% decrease effective January 1, 2027.

See what your mod is costing you

Send us your payroll and loss runs and we will walk you through the numbers.

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Build a safety program

A written safety program shows carriers your kitchen is well run and keeps claims, and your mod, down. Build yours around these pieces:

  1. Written safety policy signed by management
  2. Safety coordinator
  3. Monthly safety committee
  4. New employee safety orientation
  5. Self-inspections
  6. Closing-time report
  7. Accident investigation report
  8. Claim reporting contact
  9. Return-to-work plan

Walk the line with your safety committee and fix what you find.

Find the root cause

Every accident traces back to an unsafe condition or act. Look for:

  • Poor housekeeping or layout
  • Missing guards or worn equipment
  • Gaps in training or supervision

Your coverage checklist

Employee risk rarely stays in one policy. Review these coverages together:

Explore coverage built for your type of business:

Find coverage in your market:

Sources

This guide is general information about Arizona law as of October 2026. It is not legal advice. Talk with an Arizona attorney about your specific situation, and with your agent about your coverage.

FAQ

Arizona workers' comp questions, answered

Straight answers to what Arizona bar and restaurant owners ask us most about covering their crews.

Do I need workers' comp if my restaurant only has part-time staff?
Yes. Arizona requires coverage for any employer that regularly hires workers, regardless of how many it has or whether they are full time, part time, minors, or family members.
What happens if my bar or restaurant does not carry workers' comp?
Injured employees can sue you without your usual defenses, the state can bill you for their claim plus a penalty, and the ICA can seek a court order to close your business.
How long do I have to report an employee injury in Arizona?
Give the worker your carrier's information immediately, then report the injury to your carrier and the ICA within 10 days on the Employer's Report of Industrial Injury. Report a death to the ICA immediately by phone.
Can an injured employee sue my restaurant?
Generally not, if you carry coverage and post the required notice. Exceptions include willful misconduct and employees who rejected coverage in writing before the injury.
Can I take workers' comp premiums out of employee paychecks?
No. Arizona employers cannot make employees pay any part of the premium or require them to waive their rights.
Do I need to cover bands, DJs, or event staff?
It depends on control. If you supervise or control their work and it is a regular part of your business, Arizona can treat them as your employees.
How much does workers' comp pay an injured employee?
Medical care is covered from the start. Wage benefits pay 66 2/3% of the worker's average monthly wage during temporary total disability, up to a maximum the ICA sets each year.
Is an employee hurt in a robbery or fight covered?
Generally yes, when it happens in the course of employment. Mental injuries require unexpected, unusual, or extraordinary work stress, or a related physical injury.

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Workers' comp built around how your kitchen actually runs

Tell us about your roles, payroll, and claims history. We will shop the carriers that fit and explain every line of the policy.

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