The Department of Labor and Industries announced a 3.1 percent increase in average workers’ compensation premiums for 2022. The decision mirrors L&I’s proposed increase that was announced in September. According to L&I Director Joel Sacks, “It’s the first rate increase in five years, and is needed due to the rising costs to provide workers compensation coverage.” Sacks also cited that the L&I is limiting increases to workers and employers by using a portion of the contingency reserve fund.

The actual change for any individual employer may vary due to their industry and their recent claims history. Employers and workers pay into the workers’ compensation system to cover the cost of providing wage and disability benefits for workers injured on the job and medical treatment for job-related injuries and illnesses. Every year, L&I examines workers’ compensation benefits, inflationary factors, wage inflation and other factors and proposes changes to premium rates in September. After public comment and hearings, L&I makes a final determination on rates for the following year in November or December.