Washington employers will enjoy a 5% reduction in workers’ compensation costs next year, the Department of Labor Industries announced.

Joel Sacks

L&I said the rate decrease will be the largest since 2007 if approved after public hearings. The reduction saves employers an average of $58 per worker, for a total annual savings of $136 million.

Employees will pay about $6 less a year for their share of costs. (Both workers and employers pay into Washington’s monopoly system.)

L&I Director Joel Sacks said in a press releases that decreases in work-related injuries, along with L&I initiatives to improve outcomes for injured workers and reduce costs, are contributing to the proposed decrease. 

“We’ve seen a big drop in injuries at work in our state since 2012. And that’s great news because preventing injuries and making workplaces safe is our number one goal,” said Sacks. “Along with that, we’re doing a better job helping injured workers heal and return to work.”

L&I said its opioid prescription guidelines resulted in a 90% reduction in the number of workers receiving opioids at six to 12 weeks after injury. The agency has also been providing vocational support and assistance earlier in injury claims, which has helped reduce long-term disability. 

The department said the programs and “other improvements” have resulted in a more than $2 billion reduction in projected long-term costs.

L&I has scheduled three public hearings to take comments on the proposed rate reduction:

• Tumwater, Oct. 30, 9 a.m., Dept. of Labor & Industries headquarters.
• Tukwila, Oct. 30, 1 p.m., Dept. of Labor & Industries office.
• Spokane Valley, Oct. 31, 9 a.m., Spokane CenterPlace.

More information is here.