Proposed 2026 workers comp rate increase would help pay for rising cost of coverage

The Washington State Department of Labor & Industries (L&I) has proposed a 4. 9% increase in workers’ compensation insurance rates for 2026, which would raise costs by an average of $1. 37 per week for full-time employees. This increase aims to address the rising costs of benefits for injured workers and is less than the projected amount needed to cover claim costs for the year. To mitigate the impact of this increase, L&I plans to utilize its contingency reserve, which helps stabilize premiums and prevent a potential rate hike of nearly 13%.

Public hearings are scheduled for October 28 and 29, with an additional virtual hearing on October 30, allowing for public input before the final decision. The agency anticipates adopting the new rates on November 26, with implementation set for January 1, 2026. Approximately 2. 8 million workers and 201,000 employers in Washington are affected by this proposed change. L&I emphasizes its commitment to balancing the need for adequate benefits with the financial burden on employers and employees.

The proposed rates are based on hours worked rather than payroll, requiring adjustments when medical costs and wages rise.