2026 workers comp rate increase proposed to help pay for rising cost of coverage

The Washington State Department of Labor & Industries (L&I) proposes a 4. 9% increase in workers’ compensation insurance rates for 2026 to meet rising claim costs. This adjustment would average an additional $1. 37 per week for full-time employees, with employers responsible for 75% of the premiums. L&I director Joel Sacks noted the importance of balancing the costs of benefits for injured workers with stable rates.

The agency plans to utilize its contingency reserve to offset the necessary funding, preventing a potential 13% rate hike without the reserve. Public hearings will take place on October 28 and 29, alongside a virtual hearing on October 30, allowing Washington residents to voice their opinions. Final rates will be adopted on November 26, going into effect on January 1, 2026. L&I also offers programs to assist employers in reducing costs and incentivizes safer workplaces. The current premium structure differs from many states, as Washington bases rates on hours worked rather than payroll percentages.