Public hearings set for October on proposed workers’ comp insurance increase
The Washington state Department of Labor & Industries wants to raise the rate hourly employers and workers pay for workers’ compensation insurance in 2026. The public is invited to voice their opinions on the matter at public hearings in October.
According to a Sept. 16 news release from L&I, the department is proposing a 4.9% increase in the average hourly rate. The increase would help pay for the rising cost of providing benefits when a worker is injured on the job.
The proposed increase is less than what L&I projects it will need to cover 2026 claim costs. The agency plans to use the workers’ compensation contingency reserve to cover the difference.
L&I workers’ compensation insurance covers about 2.8 million workers and about 201,000 employers in Washington, according to the release.
If adopted, the increase would raise the average cost of coverage by about $1.37 a week per full-time employee. Employers pay about 75% of the premium, and workers pay the remaining 25%.
L&I Director Joel Sacks said in the release L&I tries to balance keeping up with the rising costs of providing wage replacement and medical care benefits to injured workers and keeping rates steady and predictable.
Keeping a healthy reserve allows L&I to cover some of the costs instead of passing higher premium increases on to employers and workers, according to the release. Without the reserve, rates could go up nearly 13% to cover expected 2026 claims costs.
The agency offers programs and assistance to help employers reduce costs and to help injured workers heal and return to work more quickly. The agency also provides financial incentives to employers who reduce workplace injuries and lower associated claim losses.
According to the release, in many states, rates are charged as a percentage of payroll. When wages go up, those states automatically collect more in premiums without raising rates. Washington bases workers’ compensation premiums on hours worked. When wages go up, the employer and worker contributions stay the same. That’s why when wages and medical costs climb in Washington, L&I sometimes has to raise rates to keep up.
The public has opportunities to provide input on the proposal before L&I makes a final decision. Public hearings are scheduled for Oct. 28 and Oct. 29, and a virtual public hearing will be held Oct. 30.
The first public hearing will be at 10 a.m. Oct. 28 at L&I Headquarters, Rooms S117, S118 and S119 at 7273 Linderson Way SW in Tumwater.
The second public hearing will be at 9 a.m. Oct. 29 in the CenterPlace Event Center meeting room at 2426 Discover Place in Spokane Valley.
The virtual public hearing will take place at 10 a.m. Oct 30. More information can be found on L&I’s website.
This story was originally published September 17, 2025 at 2:08 PM.
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