WA L-I Considering Workers Comp Rate Increase For 2026

Washington State Labor and Industries announced Tuesday (September 16th) they are proposing a rate increase for 2026.

   L-I says increase is needed to keep pace with rising coverage costs

As medical costs rise in WA, and the legislature has continued to pass laws that make it much harder on medical providers (from hospitals to caregivers) that is one of seveal factors leaking over into workers compensation cases.

L-I's Director, Joel Sacks, released a statement that read in part:

“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."

L-I says rising benefit costs for injured workers are behind the request. Officials say the 4.9 percent increase would amount to an increase of $1.37 weekly for the average worker.  Businesses pay about 75 percent, workers 25 percent of those costs.

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Officials say this increase is not enough to fully fund demand and benefit costs, but will be enough to allow them to fill out the rest of the need using what's called the workers compensation contingency reserve.

   Workers Comp rates have risen 3 years in a row

Discounting the COVID-era, WA workers saw the rates drop 2.5 percent in 2018 and 5 percent in 2019 before the pandemic.  Since then, 2022-2025, combined, the rates have risen a total of 14.3 percent.

Some of that is inflation, but much of it stems from the economic conditions in WA, and from a recent series of laws that have hit the medical and insurance industry hard financially. It is also affected by the number of claims filed, and paid out.

There will be three public comment sessions in October, the 28th, 29th, and 30th. For more information on how you can voice your opinion on these proposed hikes, click here.