The Department of Labor & Industries (L&I) has proposed increasing average workers’ compensation rates by 4.8% for 2023. This would be the largest increase since 2011, and the fifth-highest increase going back to 1999. Under this proposal, base rates would increase for 286 risk classes (out of 325).

According to L&I, wage inflation is a factor. Indeed, the state average wage increased by 10.1% in 2020 and by 7.5% in 2021. These were the largest state average wage increases ever. Workers’ compensation time-loss and pension benefits are tied to increases in the state average wage.

The rate proposal would have been larger but for L&I’s decision to “tap its contingency reserves to mitigate the proposed increase.” This was L&I’s policy in 2021 and 2022 as well.