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Growth in state average annual wage is the highest ever

In 2020, the state average annual wage was $76,741—an increase of 10.1% over 2019. According to the Employment Security Department (ESD), this is the largest annual percentage growth to the average wage ever. The higher than normal increase in reported average wages can be attributed to the fact that thousands of lower-paid workers lost their […]

To opt out of the long-term care program, private coverage will have to be purchased by Nov. 1

In 2019, the Legislature passed a payroll tax to fund a new long-term care (LTC) benefit. Under the legislation, the tax will begin on Jan. 1, 2022 and will initially be set at a rate of 0.58%. There is no cap on the wages subject to the tax. The lifetime maximum benefit is essentially $36,500 […]

Merging two closed state retirement funds could save the state hundreds of millions in 2021–23

The operating budget proposals from Senate and House Republicans would save around $700 million in 2021–23 by merging the assets and liabilities of the Teachers’ Retirement System (TRS) plan 1 with the Law Enforcement Officers’ and Firefighters’ System (LEOFF) plan 1. (Both plans are closed to new members.) According to the state’s most recent actuarial […]

New brief: Unemployment Insurance Taxes Will Be a Headwind for the State Economy

Unemployment insurance tax rates are adjusted annually and will be much higher this year due to the COVID-19 pandemic. The amount of unemployment insurance tax paid by Washington businesses is expected to increase dramatically, from $1.12 billion in 2020 to $2.11 billion in 2021 and then to $2.99 billion in 2022. This rising UI tax […]

Washington will use federal CARES Act funds to provide “pandemic relief payments” in response to the lapse in federal unemployment insurance benefits

Earlier this month, Gov. Inslee announced that Washington would use $54.6 million of the state’s share of the federal Coronavirus Relief Fund (CRF) for unemployment insurance benefits for people in the federal Pandemic Unemployment Assistance (PUA) program, if the federal government didn’t act to extend the program before it was set to expire on Dec. […]

Washington again has the nation’s highest workers’ compensation benefit costs

According to a new report from the National Academy of Social Insurance (NASI), workers’ compensation benefit costs per covered worker in Washington were $769.52 in 2018. That is the highest in the country; Alaska came in second with $739.49. Benefit costs per covered worker in Washington had been declining since 2010, but in 2018 they […]

Washington Supreme Court: Dairy worker exemption from state overtime law is unconstitutional

In a 5–4 opinion today, the state Supreme Court held that Washington’s overtime law applies to dairy workers. RCW 49.46.130 requires employers to pay overtime when an employee works more than 40 hours in a week. There are some exceptions, including for agricultural workers. Now, the Court has held that the agricultural exemption (RCW 49.46.130(2)(g)) […]

In 2021, Washington’s minimum wage will increase to $13.69 and new overtime thresholds will be binding

The Department of Labor & Industries (L&I) has announced that the state minimum wage next year will be $13.69. It is currently $13.50—the highest state minimum wage in the country. 2020 is the last step of the phase-in of I-1433, so 2021 is the first year in which the minimum wage is adjusted by inflation. […]

State and local taxes in Washington have increased over the past several years compared to other states

The U.S. Census Bureau has released state and local government finance data for 2018. In Washington, state and local taxes increased by 10.4 percent over 2017. This includes property taxes, sales and gross receipts taxes, and motor vehicle license taxes. (For other states, it also includes income taxes.) To compare Washington’s taxes to other states, […]

Workers’ compensation rates may hold steady next year

The Department of Labor & Industries (L&I) has proposed that there be no average increase in workers’ compensation rates in 2021. The average rate declined in 2018, 2019, and 2020. According to L&I, “While financial projections point to the need for a significant increase to cover all of the costs for injuries and illnesses that […]