Washington state law requires periodic inflation adjustments to certain workers’ compensation penalties. A statute adopted in 2020 increased penalty amounts and established automatic updates every three years using inflation data. Many of these penalties had not changed since the 1980s.
The first inflation adjustment took effect July 1, 2023. The next adjustment is scheduled for July 1, 2026. The Department of Labor and Industries anticipates a 12 percent increase based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers in the Seattle area. For example, a penalty currently set at $1,161 would increase to approximately $1,300.
The adjustment applies to several areas of compliance under Title 51 RCW. These include failure to register for workers’ compensation coverage before operating with covered workers, violating a stop work order, failing to keep or allow inspection of required records, delaying or refusing benefit payments by self-insurers, noncompliance with workers’ compensation rules, and willfully obtaining erroneous payments. Certain penalties affecting medical providers for reporting and assisting injured workers are also included.
L&I is required to calculate the anticipated adjustment and solicit stakeholder comments in advance. While comments may be submitted, the agency does not have discretion to alter the inflation-based adjustment. Final penalty amounts will be announced and posted by L&I in June 2026.
