Workers' Comp Settlements in Arizona

An accepted claim can be settled in whole or in part, including through a full and final settlement that ends the worker's right to future benefits and to reopen the claim. A full and final settlement is allowed only after the temporary disability period has ended, and it cannot resolve permanent total disability issues. Every settlement must be in writing, signed by both sides, and approved by the Industrial Commission: an administrative law judge approves it if the worker has a lawyer and the legal requirements are met; an unrepresented worker must appear before the judge, who questions the worker about the rights being given up. The section does not apply to denied claims. Payment is due within 15 days after the approving award becomes final.

Arizona does not set a fixed maximum number of weeks for temporary benefits. Temporary total disability is paid during the period of disability, and temporary partial disability is paid during the period of partial disability. Permanent total disability is paid for the rest of the injured worker's life. Unscheduled permanent partial disability is paid during the disability and stops when the disability ends or the worker dies.

In Arizona the Industrial Commission sets a reasonable attorney's fee on application before the case is finally resolved, paid from the claimant's award directly to the attorney. The fee may be no more than 25% up to ten years from the date of the award (in cases involving solely loss of earning capacity, 25% up to five years from the final award), and no more than 25% of any installment may be withheld for the fee. The claimant or attorney may ask for review of whether the fee is reasonable.