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 2026.

L&I says the increase would help pay for the rising cost of providing benefits when a worker is injured on the job, and that the proposed increase is less than what the agency projects it will need to cover 2026 claim costs. The agency plans to use the workers’ comp contingency reserve to cover the difference.

If adopted, the increase would raise the cost of coverage by an average of $1.37 a week per full-time employee.

Employers and workers typically pay into Washington’s workers’ comp system to cover wage and disability benefits and medical costs for work-related injuries and illnesses. Employers pay 75% of the premium, and workers pay 25%.

Washington bases workers’ comp premiums on hours worked. When wages go up, employer and worker contributions stay the same, and when wages and medical costs climb in Washington, L&I sometimes raises rates to keep up.