The Senate Labor Committee recently held a hearing on HB 1788, a bill that standardizes temporary total disability (TTD) payments for injured workers based on the number of dependents, regardless of marital status. WR and other business groups testified in opposition, urging lawmakers to focus on addressing the root causes of rising long-term disability (LTD) rates rather than implementing another short-term fix.
The data speaks for Itself:
- Washington’s workers’ compensation system allocates 73% of its funds to disability payments—the highest percentage in the nation. By comparison, the national median is 47%, while California and Oregon stand at 49% and 50%, respectively.
- In 2011, the Legislature set a goal to reduce LTD by creating the Stay at Work reimbursement program when LTD rates stood at 16.1%. While the rate improved to 13% in 2019, it has now reversed back to 16% as of December 2024—erasing a decade of progress.
- Pension costs per claim have surged 70% from 2015 to 2022, with the latest total permanent disability claim costing an average of $1.4 million.
WR urges the Legislature to amend HB 1788 to require L&I’s Workers’ Compensation Advisory Committee—which includes both labor and business representatives—to investigate the systemic drivers of rising LTD rates before imposing additional costs. Expanding benefits without addressing the root causes will only exacerbate the issue. Policymakers should focus on preventing workers from entering LTD in the first place through sustainable, long-term solutions.
