The Washington State Department of Labor & Industries announced a 4.9% increase in the average workers’ compensation premium rate for 2024.
The increase, which takes effect Jan. 1, 2024, means employers and workers will jointly pay, on average, an additional $65 a year in workers’ comp premiums for each full-time employee. Workers will pay about a quarter of the premium.
Every fall, L&I determines the proposed workers’ comp rates for the following year by looking at several factors, including the expected workers’ comp payouts, the size of the contingency reserve, wage inflation and other financial indicators.
This is the fourth straight year that L&I is using the workers’ comp reserve to lower the impact of needed hike. The 4.9% increase is an average for all industries. The rate for specific industries could be higher or lower depending on their recent claims experience.
Most states charge rates as a percentage of payroll. In Washington, employers are charged an hourly rate. When wages go up in Washington, it costs L&I more to provide workers’ comp benefits, mainly wage replacement and medical services. Among the ways the state covers the increase in the cost of providing coverage is to raise the hourly rates that employers and workers pay.
L&I workers’ comp insurance covers roughly 2.8 million workers and more than 203,000 employers in Washington.
Topics Trends Workers' Compensation Pricing Trends Washington
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