The Washington Department of Labor & Industries announced that the 2018 employer workers' compensation premiums are decreased overall; however, the supplemental pension rate is increased.

As we previously reported, an average decrease of 2.5% goes into effect for 2018 (down from a 0.7% increase for 2017, a 2.0% increase for 2016 and a 1.8% increase for 2015). The decrease is an average; individual employers may see smaller or larger decreases or an increase depending on an employer's industry and claims history. Out of the state's 324 risk classes, 243 will have lower base rates for 2018.

According to the Department's news release, the 2018 decrease will save employers an average of about $34 a year per employee. The decrease results in Washington employers, as a group, paying $67 million less in premiums.? Employees, who pay on average 25% of the premium, will also pay less for their share.

According to Department Director Joel Sacks, "We've made several improvements that are helping injured workers heal, return to work sooner and avoid long-term disability. We've also used small rate increases in recent years to make the workers' compensation system healthier and to build our contingency reserve. As a result, we're able to cut premiums in 2018."

Washington is the only state where workers contribute a substantial portion of the premium charge.

Supplemental pension rate will increase

Note, however, that the supplemental pension rate (a premium for the fund that pays cost-of-living increases for pensions) is increasing 7.3% to 10.3 cents per hours. For many of the lower-rated risk classes, the supplemental pension rate is a significant portion of the rate and will cause an overall increase to the class rate even though other parts of the rate are decreasing. Employers may deduct from workers' wages up to half the supplemental pension premium rate.

The Department offers employers a Claim-Free Discount that can lower their average base rate by 10% or more.?

The new rates go into effect on January 1, 2018. More information about 2018 workers' compensation rates is available on the Department's website. See also the Q&As about the 2018 rates link here.

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