L&I PROPOSES MODERATE INCREASE IN WORKERS’ COMP RATES FOR 2023

The Department of Labor & Industries (L&I) is proposing a 4.8% increase in the average price employers and workers pay for workers' compensation insurance next year. If adopted, the increase would mean employers and workers would jointly pay an additional $61 a year, on average, for each full-time employee within a business.

Employers and workers pay into the workers' compensation system to help cover the cost of providing wage and disability benefits for injured workers, as well as medical treatment of injuries and illnesses. General wage inflation and increasing medical costs all make it more expensive to provide this workplace safety net. As workers' wages go up, the cost of insuring them goes up as well, since much of the benefits directly paid to workers are tied to how much they are getting paid.

Under the current proposal, L&I will use contingency reserves to cover any gap between premiums and costs to keep rates steady and avoid a larger increase.