The Washington Department of Labor & Industries is proposing an average decrease in employer workers' compensation insurance premiums of 0.8% for 2020, marking the third consecutive year of decreases.

In 2018, the average workers' compensation premium rate dropped by 2.5% and the 2019 rate dropped by another 5%, the largest decline in more than 10 years.

According to the Department's news release, the proposed 2020 decrease would save employers an average of approximately $15 each year per employee. The proposed decrease would result in Washington employers, as a group, paying $21 million less in premiums.

Washington is the only state where workers contribute a substantial portion of the premium cost. Under this rate proposal, workers would pay on average approximately 26% of the premium, up slightly from 25% for 2015 - 2019.

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, 185 would have lower base rates in 2020.

Supplemental pension rate to rise

The supplemental pension rate (a premium for the fund that pays cost-of-living increases for pensions) is increasing 9.4% to 12.3 cents per hour, up from 11.2 cents for 2019. 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.

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