Restaurant Workers' Comp in Arizona
What Arizona requires of restaurants and bars for workers' compensation — when it kicks in, who's exempt, and what it costs.
Reviewed by J. Robert Smith, Licensed Insurance Agent (NPN 10378680). Last updated .
Yes. Arizona requires workers' compensation for every employer with one or more employees, including part-time and seasonal restaurant staff, with no minimum-headcount exemption. Sole proprietors, partners, and LLC members can exclude themselves. Notably, an employee may reject coverage in writing before any injury. Uninsured employers must reimburse the state's Special Fund plus penalties.
- Required?
- Yes
- Kicks in at
- One or more employees (1+). Every public and private employer that employs one or more workers, full- or part-time (including seasonal), must secure coverage under A.R.S. 23-961.
- Restaurant rate
- NCCI 9082 (full-service) ~$0.60–$0.85 per $100 of payroll; 9083 (fast food) similar or slightly lower. Arizona is among the lowest-cost workers' comp states, so restaurant rates run well below the ~$1.06 national 9082 average. Approximate, industry tier.
- Market
- Competitive private market; the former State Compensation Fund was privatized and now operates as CopperPoint Insurance, writing competitively rather than as a monopoly, while the ICA's Special Fund covers claims against illegally uninsured employers.
Is workers’ comp required for a restaurant in Arizona?
Arizona requires workers' compensation once you reach One or more employees (1+). Every public and private employer that employs one or more workers, full- or part-time (including seasonal), must secure coverage under A.R.S. 23-961.. Sole proprietors, partners, and LLC members are not counted as employees and may elect their own coverage voluntarily; corporate officers can be excluded. A person whose employment is both casual and not in the usual course of the employer's business is exempt, as are domestic servants (whose employers may opt in).
What restaurant workers’ comp costs in Arizona
The restaurant class-code rate in Arizona is NCCI 9082 (full-service) ~$0.60–$0.85 per $100 of payroll; 9083 (fast food) similar or slightly lower. Arizona is among the lowest-cost workers' comp states, so restaurant rates run well below the ~$1.06 national 9082 average. Approximate, industry tier.. Your premium is that rate applied per $100 of payroll and adjusted by your experience modifier, so it scales with how many people you employ and your claims history. Competitive private market; the former State Compensation Fund was privatized and now operates as CopperPoint Insurance, writing competitively rather than as a monopoly, while the ICA's Special Fund covers claims against illegally uninsured employers.
What owners in Arizona miss
- Arizona uniquely lets an employee reject workers' compensation coverage: the rejection must be in writing, signed and dated by the employee before any injury occurs, and cannot be coerced by the employer, who must post notice and supply rejection forms.
- If an uninsured employer's worker is injured, the ICA Special Fund Division pays the benefits and then bills the employer for full reimbursement plus an added 10% (or $1,000, whichever is greater).
- Failure to carry required coverage exposes an employer to civil penalties of $1,000, $5,000, or $10,000 depending on the violation, assessed by the Industrial Commission of Arizona.
- Self-insurance requires proof of financial ability and a minimum deposit of $100,000 for workers' compensation liabilities under A.R.S. 23-961.
Sources
- Arizona State Legislature: A.R.S. 23-961 — Methods of securing compensation by employers; civil penaltyprimaryretrieved 2026-07-27
- Industrial Commission of Arizona: Workers' Compensation Information for the Employer (Handbook)primaryretrieved 2026-07-27
- Arizona State Legislature: A.R.S. 23-902 — Employers subject to chapter; definitionsprimaryretrieved 2026-07-27
Cost examples are illustrative national figures gathered from public filings and industry surveys. They are not quotes. Your actual premium depends on your state, carrier, revenue, payroll, location, and coverage selections. Restaurant Insurance Authority is an insurance marketing and referral service, not an insurer or licensed agency. We connect business owners with licensed independent commercial-lines agents who specialize in food and beverage. Questions? Call (855) 480-1410.
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