4.9% Workers’ Comp Rate Increase Proposed in Washington

The Washington State Department of Labor & Industries is proposing a 4.9% increase in the average hourly rate employers and workers pay for workers’ compensation insurance in 2027. The proposed increase would raise the cost of coverage by an average of $1.44 a week per full-time employee. Employers in Washington pay roughly 75% of the premium, and workers pay about 25%. Related: Washington Labor & Industries Opens Inspections at State’s Other Kraft Paper Mills According to L&I, the proposed increase would help pay for the rising cost of providing wage replacement and medical care benefits when a worker is injured on the job or develops a work-related illness. L&I is not proposing passing along the full projected cost increases on to the businesses and workers, but it would use funds from the workers’ comp contingency reserve to cover the difference between what the rate increase will bring in and what projected costs will be. L&I uses the state wage inflation average as a benchmark to help determine workers’ comp premiums. The agency also considers other factors including medical costs, wage replacement costs, and other financial indicators. Washington bases workers’ comp premiums on hours worked. When wages go up, employer and worker contributions remain the same. However, when wages and medical costs climb in the state, L&I raises rates to keep up. Related: Washington Farm Labor Contractor Fined $700,000 for Breaking Worker Protection Laws Public hearings on the proposed increase are scheduled for Oct. 27, 28 and 29. People can also provide written comments to Jo Anne Attwood, administrative regulations analyst, P.O. Box 41448, Olympia, WA 98504-4148; or email JoAnne.Attwood@Lni.wa.gov. All comments must be received by 5 p.m. on Oct. 29. Final rates are expected to be adopted on Nov. 30 and go into effect Jan. 1, 2027. Topics Trends Workers' Compensation Pricing Trends Washington Was this article valuable? Thank you! Please tell us what we can do to improve this article. Thank you! % of people found this article valuable. Please tell us what you liked about it. Here are more articles you may enjoy.