Workers' Comp Rates — Class 9014

Workers' Comp for Janitorial in Arizona (2026)

Arizona uses a monthly-wage basis for benefits (not weekly) and the ICA sets a new maximum average monthly wage each January — janitorial employers must track the annual reset and the NCCI's own separate Arizona rate filings, which differ from neighboring NCCI states.

Competitive marketStatute: A.R.S. §23-901 et seq. (Arizona Workers' Compensation Act); benefit calculation at A.R.S. §23-1041; employer insurance requirement at A.R.S. §23-961Effective: Current; 2026 rates (NCCI Arizona filing effective 1/1/2026, -6.7% voluntary market decrease)Last reviewed: Q2 2026
State
Arizona
Governing Statute
A.R.S. §23-901 et seq. (Arizona Workers' Compensation Act); benefit calculation at A.R.S. §23-1041; employer insurance requirement at A.R.S. §23-961
NCCI Class Code 9014 — Janitorial Services by Contractors, No Window Cleaning Above Ground Level & Drivers
Enforcement Agency
Industrial Commission of Arizona (ICA) — Claims Division; 800 W Washington St, Phoenix AZ 85007
Civil Penalty
Failure to insure: Class 6 felony (A.R.S. §23-932); civil penalties: $1,000 first violation, $5,000 second violation within 5 years, $10,000 third within 5 years; ICA may seek injunction to cease business operations; Special Fund pays injured worker and recoups from employer + 10% penalty or $1,000 whichever greater

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

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This page is informational only. It does not constitute legal advice, tax advice, or a professional compliance determination. Laws vary by state and locality, change over time, and apply differently depending on your specific facts and circumstances. Before taking any action with legal or business consequences, consult a licensed attorney or CPA qualified in your jurisdiction.