Workers' Compensation for Staffing Agencies in Phoenix, Arizona | https://workerscompensationinsurancequote.com/phoenix-arizona/
Workers' Compensation for Staffing Agencies in Phoenix, Arizona | https://workerscompensationinsurancequote.com/phoenix-arizona/
Blog Article
Introduction
Staffing agencies in Phoenix must follow Arizona’s workers' compensation laws. If you place employees in temporary or long-term roles, you are responsible for providing workers’ comp insurance. This article explains what it is, why it matters, and how to stay compliant.
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What Is Workers' Compensation?
Workers' compensation is insurance that pays for:
Work-related injuries
Medical treatment
https://workerscompensationinsurancequote.com/phoenix-arizona/
Lost wages
Disability benefits
It protects both your workers and your agency from financial risk.
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Is Workers’ Comp Required in Arizona?
Yes. In Arizona, all employers with one or more employees must carry workers’ compensation insurance — including staffing agencies.
Even if your employee is working at a client company’s location, your agency is responsible for providing coverage.
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Who Must Be Covered?
Temp workers
Full-time and part-time employees
Internal staff (admin, HR, recruiters)
???? Independent contractors (1099) are not covered, but misclassification can lead to fines.
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Cost Factors
The cost of workers’ comp depends on:
Type of work your staff performs
Total payroll
Claims history
Example Rates:
Job Role Estimated Rate per $100 Payroll
Office/Admin $0.50 – $1.20
Warehouse Workers $4.00 – $6.50
General Labor $6.50 – $9.50
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Why It’s Important for Staffing Agencies
Legally required by the state
Protects your agency from lawsuits
Maintains client trust and contracts
Helps with employee safety and retention
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How to Get Started
1. Contact a licensed Arizona workers’ comp provider
2. Accurately classify your employees
3. Keep payroll records updated
4. Train workers on safety before placements
5. File all injury reports promptly
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Conclusion
If you're operating a staffing agency in Phoenix, workers’ compensation is not optional — it’s required. Make sure your agency is fully covered to avoid legal issues, protect your staff, and run a safe, compliant business.