Workers Compensation Rate to increase by an average of 4.8%.

L&I proposes a rate increase in 2023.

Starting January 1, 2023 Washington Workers’ Compensation Rate to increase by an average of 4.8% after Washington’s Department of Labor & Industries annual fall review of its workers’ compensation rates. The department recently announced a proposed 4.8% rate increase.

The rate increase is effective as of January 1, 2023 to cover wage inflation and rising medical costs. The Department projects that employers and workers will jointly pay an additional $61/year for each full-time employee. Unlike other states, Washington’s workers’ compensation is charged based on the employee’s hours worked rather than percentage of payroll which requires Washington to manually adjust its workers’ compensation rate to increase with wage inflation.

Employers should note the 4.8% is an average calculation by L&I and an employer’s actual rate change may differ depending on the employer’s individual claim history as well as changes in the number and costs of claims within their industry. Proposed rate changes for all employer risk classes may be found here: 2023RatesBusTypeClassCode.pdf (wa.gov).

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