AZ HB2334

Changes the Industrial Commission's jurisdiction over unfair claim processing and bad faith from "exclusive" to "primary" regarding workers' compensation claims administration.

Establishes a 60-day filing deadline for complaints of unfair claim processing or bad faith, with dismissal with prejudice for late filings.

Creates tiered benefit penalties ranging from $1,000 to $10,000 depending on claim type and severity, with additional penalties up to $10,000 for aggravated medical conditions caused by delayed treatment.

Allows employees to file a civil action for compensatory damages (but not punitive damages) within 60 days after a final commission order, but only for injuries separate from the workers' compensation injury resulting from willful misconduct.

Increases civil penalties for employers with a history of repeated violations from $1,000 to $5,000 per violation, with procedures for motion to dismiss and payment timelines established for benefit penalties.