Washington proposes 3.8% comp rate increase for 2025

The Washington State Department of Labor & Industries announced Tuesday it’s proposing a 3.8% workers compensation insurance rate increase for 2025.

The department cited rising costs of injured worker care and higher indemnity payments for wage replacement as a reason for the proposed hike.

“This relatively modest change aligns with our efforts over the years to keep rates steady and predictable, maintain an appropriate reserve to pay claims, and continue to improve our system,” Joel Sacks, the department’s director, said in a statement.

The department said that the proposed increase is slightly less than it expects to pay out in 2025 claims, so it plans to pull from the workers compensation contingency reserve to make up the difference.

Unlike states that charge workers comp rates based on a percentage of payroll, Washington charges premiums based on hours worked, leading the state to raise rates to cover increases in wages and related costs.

Two public hearings will occur in late October prior to the proposed rate increase being finalized.