Arizona workers' comp for cleaning contractors in 2026, where the Industrial Commission caps benefits by the month

How workers' comp works for janitorial in Arizona

Arizona is a competitive private-market state administered by the Industrial Commission of Arizona (ICA). The state uses NCCI class codes and loss-cost methodology but files its own independent rate changes — Arizona's rates are not automatically tied to the broader NCCI average. CopperPoint Insurance (formerly SCF Arizona, the former state fund) remains a major market participant but is now fully privatized. All employers with at least one employee must carry coverage; there is no employee-count threshold exemption. Arizona's benefit calculation is unusual: it is based on the employee's average monthly wage, not a weekly wage — the ICA resets the maximum average monthly wage each January 1.

Class code and rate (2026)

• Code 9014 — Janitorial Services by Contractors, No Window Cleaning Above Ground Level & Drivers. NCCI filed a -6.7% decrease to voluntary market rates effective January 1, 2026. Indicative market base rate: approximately $2.05–$2.35/$100 payroll post-reduction (one of the lowest in this batch).
• Code 9170 — Janitorial with above-ground window cleaning. Separate payroll required; substantially higher rate.

Indemnity benefits (Arizona 2026)

• TTD = 66.67% of average monthly wage, capped at 66.67% of the ICA's statutory maximum monthly wage. For 2025: max monthly wage = $5,906.55 → max monthly TTD = $3,937.70 (~$909/week equivalent). The 2026 figure is announced annually by the ICA.
• Waiting period: 7 calendar days; first 7 days are not retroactively compensated unless disability lasts more than 14 days (A.R.S. §23-1062(C)).
• PPD scheduled injuries: 50% of average monthly wage for partial loss; 55% for amputation/total loss of use; 75% if worker cannot return to pre-injury duties.
• PTD (permanent total disability): 66.67% of average monthly wage for life (unscheduled).

Coverage thresholds and exemptions

• Mandatory from first employee — Arizona has no employee-count threshold (A.R.S. §23-961).
• Corporate officers may elect exclusion; domestic servants and certain agricultural workers are exempt.
• Independent contractor test: Arizona applies a multi-factor test under A.R.S. §23-902(D); janitors working under ICA-supervised cleaning contracts nearly always qualify as employees.

Failure-to-insure penalty

Willful failure to carry required workers' compensation is a Class 6 felony under A.R.S. §23-932, punishable by fines and up to one year in prison. The ICA also imposes civil penalties: $1,000 for a first violation, $5,000 for a second violation within five years, and $10,000 for a third within five years. The ICA's Special Fund pays injured workers of uninsured employers and then seeks full reimbursement from the employer plus a penalty equal to 10% of benefits paid or $1,000, whichever is greater. Business shutdown via injunction is also available.

Cost drivers specific to janitorial in Arizona

• Top injuries (BLS NAICS 561720): heat-related illness (significant given Arizona's climate), slips/falls, chemical exposure from cleaning solvents.
• Arizona's medical fee schedule controls treatment costs; relatively efficient claims resolution compared to coastal states.
• Bid-math note: at ~$2.20/$100, load WC at approximately 2.2% of gross wages in Arizona bids; the -6.7% rate reduction for 2026 creates a modest cost advantage vs. 2025.

Primary sources

• Industrial Commission of Arizona
• ICA — Maximum Average Monthly Wage History
• NCCI Arizona 2025 Advisory Forum Filing (eff. 1/1/2026)
• NCCI Class Code Lookup
• BLS NAICS 561720 Injury Data