2026 workers comp rate increase proposed to 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 to manage the growing costs of benefits for injured workers. This increase would result in an additional $1. 37 per week for full-time employees, with employers covering about 75% of the premium costs. Director Joel Sacks highlighted L&I’s commitment to maintaining a balance between rising costs and stable rates for employers and workers.

Without the workers' compensation contingency reserve, rates could potentially increase by nearly 13% to meet expected claims costs for 2026. Public hearings are scheduled for October 28 and 29, with a virtual session on October 30, allowing residents to voice their opinions. The final decision on the rates will be made on November 26, with the new rates taking effect on January 1, 2026. Washington’s unique rate system, which bases premiums on hours worked rather than payroll percentages, necessitates these adjustments when wages and medical costs rise. L&I also offers programs to help employers reduce costs and promote workplace safety.