The Washington State Department of Labor & Industries (L&I) is proposing a 4.9 percent rise in the average hourly rate employers and workers pay for workers’ compensation insurance in 2026.
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. As it has done in past years, the agency plans to use the workers’ compensation contingency reserve to cover the difference.
If adopted, the increase would raise the cost of coverage by about $1.37 a week per full-time employee, on average. Employers pay about 75 percent of the premium, and workers pay about 25 percent.
“We’re always trying to balance keeping up with the rising costs of providing wage replacement and medical care benefits to injured workers, while keeping rates steady and predictable,” said Joel Sacks, L&I director.
By maintaining a healthy contingency reserve through consistent, careful management of the premiums paid by workers and employers, L&I can cover some of the costs instead of passing higher premium increases on to employers and workers.
Without the reserve, rates could go up nearly 13 percent to cover expected 2026 claims costs.
L&I 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.
How Washington’s rate system differs from other states
Employers and workers typically pay into Washington state’s workers’ compensation system to cover wage and disability benefits and medical costs for work-related injuries and illnesses.
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. So, 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.
Public hearings planned
People in Washington have opportunities to provide input before L&I makes a final decision on workers’ compensation rates. Public hearings are scheduled for Oct. 28 and 29, and a virtual-only public hearing is scheduled for Oct. 30.
10 a.m. Oct. 28
L&I Headquarters, Rooms S117, S118, S119
7273 Linderson Way SW
Tumwater, WA
9 a.m. Oct. 29
CenterPlace Event Center, Meeting Room
2426 Discover Pl
Spokane Valley, WA
10 a.m. Oct. 30 (virtual only)
Join electronically:
https://lni-wa-gov.zoom.us/j/4283482697?omn=85288279946
Meeting ID: 428 348 2697
Join by phone (audio only):
253-215-8782 US (Tacoma)
Meeting ID: 428 348 2697
People can also provide written comments. Send them to: Jo Anne Attwood, administrative regulations analyst, P.O. Box 41448, Olympia, WA 98504-4148; or email [email protected]. All comments must be received by 5 p.m. on Oct. 30.
Final rates will be adopted on Nov. 26 and go into effect Jan. 1, 2026.
More information about the proposal is available at www.Lni.wa.gov/2026Rates.