Get ready to pay more for Washington state workers' compensation insurance in 2022 [The Olympian (Olympia, Wash.)]

Dec. 2—Employers and workers will have to pay about 3.1% more for workers' compensation insurance for hours worked in 2022, the state Department of Labor and Industries announced Tuesday.

The insurance allows employees who are injured on the job to receive partial wage replacement and approved medical benefits. L&I attributed the rate increase — the first in five years — to wage inflation and the rising cost of living adjustments for pensions.

"A modest hike is needed because of the rising costs to provide workers' compensation coverage," L&I Director Joel Sacks said in a news release. "We're using our contingency reserve to limit the increase for employers and workers next year, keeping premiums, on average, lower than they were in 2017."

The department says it built up its contingency reserve by managing rate increases and keeping program costs down.

The 3.1% increase is an average rather than an across-the-board increase. Under this proposal, the average rate per $100 of payroll in 2022 will be $1.53, a 1.4% increase compared to 2021, per the release.

"Individual employers may see their rates go up or down, depending on their recent claims history and changes in the frequency and cost of claims in their industry risk classes," the release says.

Washington workers pay about 27% of the premium on average, making it the only state where workers pay a significant portion of the premium, according to L&I.

COVID-19-related workers compensation claims were not factored when calculating 2022 rates, per L&I. The department says it has offered deferred payments and payment plans for employers during the pandemic.

L&I sets the workers' compensation rate for the following year every fall. In doing so, the department says it weighs several factors: expected workers' compensation payouts, the size of the contingency reserve, wage inflation and other financial indicators.

The last time the hourly rate increased was in 2017 when it rose by 0.7%, according to L&I data. The rate decreased from 2018-2020 and there was no change in 2021.

The department's workers' compensation insurance covers 2.6 million workers and 187,000 employers across the state.

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