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AZ Legislative Update - Workers' Compensation (Updated 2.5.2025)

  • Writer: Christopher S. Norton, Esq.
    Christopher S. Norton, Esq.
  • Jan 26
  • 2 min read

Updated: Feb 5



Bill No.

Title

Summary/Key Provisions

Status

workers' compensation; disability; definitions

Modifies requirement for fee schedule publishing; Raise dependent allowance to total montly benefit of $100 (up from $25); Adds TPA as "Interested Party" (this change is likely to force ICA to serve TPA in addition to carrier)

Pending

workers' compensation; service; definition

Modifies the definition of serve or service to include transmitting by electronic transmission in a manner reasonably calculated to achieve effective service unless the receiving party opts out by providing written notice to the other party.

Pending

workers' compensation; assigned risk plan

Employers who are refused coverage by two or more insurers will be placed in the assigned risk plan unless they:

  • Fail to meet health and safety or audit requirements.

  • Deny insurers access to records for audit or inspection.

  • Have outstanding premiums not in dispute.

  • Fail to comply with application procedures or make material misrepresentations.

Pending

worker's compensation; death benefits; remarriage

Modifies death benefits payable to a spouse for life even after remarriage

Pending

worker's compensation; burial benefits

Increases burial benefit to $10,000

Pending

workers' compensation; pharmacy benefits; pharmacy management networks

Pharmacy Management Network: Employers can establish a pharmacy management network to provide medications to injured employees.

  1. Notification Requirements: Employers must notify employees about the network and how to use it both when the network is established and at the time of injury.

  2. Out-of-Network Prescriptions: These can be reimbursed at the fee schedule amount until the pharmacy management network notifies the out-of-network provider.

  3. Network Participation: Any licensed pharmacy or provider in good standing can join the network if they agree to the contract terms.

  4. Registration and Fees: Pharmacy management networks must register with the Commission and pay a registration fee.

  5. Dispute and Audit Processes: Networks must provide a process for disputing reimbursements and conduct audits according to specific provisions.

Pending

Working conditions; temperatures; employers; definitions


  1. Heat-Related Illnesses:

    • Employers must develop a written program to mitigate heat-related illnesses when temperatures exceed 80°F.

    • Provide free drinking water and encourage frequent hydration.

    • Require and encourage preventative cool-down rests.

    • Monitor temperatures and implement a workplace heat stress plan.

  2. Cold-Related Illnesses:

    • Employers must develop a written program to mitigate cold-related illnesses when temperatures are 60°F or below.

    • Provide warm liquids and warm areas for breaks.

    • Require and encourage preventative warm-up rests.

  3. Employee Acclimatization:

    • Gradual exposure to hot environments for new and returning employees.

    • Implement high heat procedures during heat waves.

  4. Training and Education:

    • Employers must provide free, effective training programs on heat and cold stress prevention.

    • Training must be administered at the time of hire and annually for current employees.

  5. Emergency Response:

    • Employers must have clear emergency response procedures for heat-related and cold-related illnesses.

    • Provide necessary personal protective equipment at no cost to employees.

Definitions and Compliance:

  • Detailed definitions of terms like “heat-related illness,” “cold-related illness,” “personal protective equipment,” and more.

  • Employers must maintain records of temperature-related illnesses and fatalities and make reports available upon request.



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