The Washington State Department of Labor and Industries announced that the average cost of workers compensation insurance will increase in 2026. Beginning January 1, employers and workers will see an average rise of about $1.37 per week for each full-time position. Employers cover most of the premium while workers contribute the remaining portion.
According to the department, the adjustment reflects the growing cost of providing wage replacement and medical care benefits for injured workers. The agency noted that it aims to keep rates steady and predictable and will again use its contingency reserve to help offset the full cost of projected claims.
The change represents an overall average increase across all industries. Individual rates will vary depending on industry type and recent claims history. Washington’s system is structured differently from many other states because premiums are based on hours worked rather than payroll percentages. When wages rise, contributions do not automatically increase, so rate adjustments are sometimes needed to maintain coverage levels.
The department also highlighted its ongoing programs to help employers reduce injuries and manage claims, which support long-term cost control. Additional information is available on the agency’s workers’ compensation webpage.
