The Department of Labor & Industries (L&I) proposes increasing the average workers’ compensation rate by 3.8%. Under the proposal, rates would increase for 283 of 326 risk classes next year.

According to L&I, “The proposed increase is slightly less than what L&I expects to pay out for 2025 claims, so the agency will make up the difference from the workers’ compensation contingency reserve.” The break-even average rate increase would be 5.5%. As we’ve written, this policy of proposing below break-even rates hides the true costs of the workers’ compensation system. Washington consistently has the nation’s highest workers’ compensation benefit costs.