L&I proposes 3.8 % increase in 2025 workers’-comp rates – The Washington State Department of Labor and Industries announced a proposal for a 3.8% average increase in workers’-compensation rates for 2025. The increase for construction averages 3% with some risk classes decreasing and some rates increasing. Unlike other states, Washington’s rates are calculated on hours worked as opposed to wages paid; so there is no built in rate increase as wages rise and timeloss rates increase. L&I advises this structure is so that employers are not penalized with significantly higher insurance charges based on the wages they pay. The proposed rate increase is being offset by investment earnings in the contingency reserve or the increase would be higher.
Click here for the proposed rates by risk class.
Click here to view rates in Excel.
The base rates are modified by each employer’s individual experience within the L&I experience period which for 2025 is impacted by hours and claims occurring between 7/1/20-6/30/23. AGC Retro participants will be receiving their individual 2025 proposed experience-modification rates (EMRs) with an offering for individualized online training for each company. If you are not in Retro and would like EMR training, please contact AGCW’s Workers-Comp Retro director, Lauren Gubbe.
Good news regarding the Stay at Work premium increase Effective January 1, 2025, the reimbursement for up to half of workers’ base wages for up to 66 light-duty workdays at $10,000 per claim increases to $25,000 a claim for up to 120 light-duty workdays within a 24-month period. Additionally, light-duty reimbursement for tuition, books, fees and materials increases to $2,000, clothing to $1,000, and tools and equipment necessary for light duty to $5,000 per claim. And there’s more: job-modification reimbursements increase from $5,000 to $10,000 per claim and preferred-worker reimbursements for accommodating injured workers with permanent restrictions in a permanent modified job for one year on a continuous basis will increase from $10,000 to $25,000. The new rates also include a new benefit to aid workers in returning to gainful employment, entitled Basic Skills Development. This new benefit is not in lieu of employer light duty; but can be utilized within light-duty accommodation as well as vocational retraining for English as Second Language, basic computer literacy, general education development or high-school equivalency training, tutoring for approved basic skills with consideration for ‘other skills that prepare a worker for gainful employment.’ AGCW worked on this legislation and thanks bill sponsor Representative Suzanne Schmidt and L&I’s Tammy Fellin.
Finally, with the new L&I rates, there is always an L&I deduction for medical aid-only claims. For, 2025 if your workers-comp claim cost is at or under $3,930, it will not affect your company’s experience-modification rate and all medical aid-only claims will be reduced by this amount, such that a medical aid-only claim value of $23,930 would be $20,000.
As always, AGC of Washington continues to advocate for fair and reasonable timeloss rates, no age limits on settlements, a clear definition of what constitutes an occupational disease, and for cost-of-living increases on timeloss and pension claims to be changed from the state’s average wage to a more accurate and predictable inflation measure, such as the CPI (consumer price index).