WA Department of Labor & Industries

TUMWATER, WA - The Washington State Department of Labor & Industries (L&I) is proposing no increase in the average price employers pay for workers’ compensation insurance for 2021. If the proposal is adopted, this will be the first time in 20 years that workers’ compensation rates have dropped or stayed steady for four years in a row.

“Our 2021 rate proposal recognizes the toll the pandemic is taking on employers and workers in our state,” L&I Director Joel Sacks said. “Although our projected workers’ compensation costs are going up, we’re keeping premiums the same by taking advantage of the reserves we’ve built over the years by improving services and reducing disability.”

Employers and workers pay into the workers’ compensation system to help cover the cost of providing wage and disability benefits for injured workers, as well as medical treatment of injuries and illnesses.

On Tuesday, September 22, L&I will begin taking public comment on the rate proposal.

If the proposal is adopted, this will be the fourth year in a row with no increase in the average rate. While financial projections point to the need for a significant increase to cover all of the costs for injuries and illnesses that occur in 2021, the agency is proposing using funds from the workers’ compensations contingency reserve to keep the rate from climbing.

Employers would pay the same on average under 2021 proposal

With the proposed overall rate change of zero percent, the average premium per employee is not expected to change overall. However, there will be changes by class and employer.

Workers will pay on average about a quarter of the premium, a similar percentage to that paid in 2020.