Proposed 3.8% Increase in Workers' Comp Rates for 2025

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The Washington Department of Labor & Industries announced on Tuesday it is proposing a 3.8 percent increase in the average hourly rate employers and workers pay for workers’ compensation insurance in 2025.

“The proposed increase reflects the fact that the costs of replacing injured workers’ wages and covering their medical care have increased,” L&I Director Joel Sacks said. “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.”

The proposed increase is less than what L&I expects to pay out for 2025 claims, according to the department, and it expects to make up the difference by dipping into the state's workers’ compensation contingency reserve.

Should the proposal be adopted, the average cost of insurance for each full-time employee would increase about a dollar a week, L&I reports. Final rates will be adopted on Nov. 26 and take effect Jan. 1, 2025, according to the department.

The Washington Economic Revenue Forecast Council projects the average wage of Washington state workers to increase by 3.8 percent in 2025, according to L&I.

Public hearings are scheduled for Oct. 28 and 29 to take input on the rate proposal before a final decision is made, L&I reports.

An Oct. 28 hearing will be held at 10 a.m. online and onsite at L&I headquarters in Tumwater, the department reports. The Oct. 29 in-person-only hearing is at 10 a.m. in Spokane at CenterPlace Event Center, Meeting Room 2426 Discover Pl, according to L&I.