23 October 2018 Washington employer workers' compensation rates could decrease in 2019 The Washington Department of Labor & Industries is proposing an average decrease in employer workers' compensation insurance premiums of 5% for 2019, the largest drop since 2007. According to the Department's news release, the proposed 2019 decrease would save employers an average of about $58 a year per employee. Employees would pay about $6 less a year for their share of the cost. The proposed decrease would result in Washington employers and workers, as a group, paying $136 million less in premiums. Rate increases in recent years and the improved economy have helped build reserves, allowing for the proposed rate decrease. A 2.5% decrease for 2018 was the first decline in workers' compensation rates since 2007. Washington is the only state where workers contribute a substantial portion of the premium charge. Under this rate proposal, workers would continue to pay on average about 25% of the premium, similar to 2015- 2018. Individual employers may see their rates go up or down, depending on their recent claims history and changes in the frequency and cost of claims in their industry. The Department has published a proposed rate table online. Businesses are classified by risk classes, based on hazards in the industry. According to information posted to the Department's website, out of the state's 324 risk classes, 273 would have lower base rates in 2019. Note, however, that the supplemental pension rate (a premium for the fund that pays cost-of-living increases for pensions) is increasing 8.7% to 11.2 cents per hour, up from 10.3 cents for 2018. 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 of the supplemental pension premium rate. The Department offers employers a Claim-Free Discount that can lower their average base rate by 10% or more. See the Department's FAQs for more about the proposed 2019 rates.
Document ID: 2018-2116 | |||||||||
