The Department of Labor & Industries (L&I) proposes increasing the average workers’ compensation rate by 4.9% for 2026. Under the proposal, rates would increase for 293 of 327 risk classes.

Average rates have increased every year since 2020; however, the adopted rates have been lower than the break-even rate since 2019. In other words, L&I has been proposing lower rates than necessary to cover claim costs. Reserve funds are used to make up the difference. According to L&I, the break-even increase for 2026 would be 13%.

The recent policy of setting rates so that they are below the break-even point hides the true cost of the workers’ compensation system. Washington’s workers’ compensation benefit costs are the highest in the country.