Washington L&I adopts 4.9% average workers' comp premium increase for 2026
The state-fund agency will draw on its contingency reserve to hold the hike below projected 2026 claim costs, with the new hourly rates taking effect January 1.
By the Work Comp Brief automated newsroomGrounded in lni.wa.gov
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The Washington State Department of Labor & Industries (L&I) has adopted an average 4.9% increase in workers' compensation premiums for 2026, the agency announced on November 26, 2025. The new rates take effect January 1, 2026.
L&I reported that the change works out to about $1.37 more per week, on average, for each full-time position — a cost shared between employers and workers. Under Washington's system, employers pay roughly 75% of the premium and workers pay roughly 25%. The agency also noted that, unlike most states, Washington bases premiums on hours worked rather than as a percentage of payroll.
According to L&I, the adopted increase is less than what the agency expects it will need to cover 2026 claim costs. As in prior years, L&I said it will draw on the workers' compensation contingency reserve to cover the difference between the premium collected and projected claim payments. The 4.9% figure is a statewide average; the agency said individual employers may see their own rates rise or fall depending on their recent claims history and on shifts in the frequency and cost of claims within their industry risk classification.
In a statement attributed to L&I Director Joel Sacks, the agency said that "while rates are increasing to keep up with the rising cost of providing wage replacement and medical care benefits, we worked — this year and every year — to keep rates steady, predictable, and as low as possible." The agency framed the rising cost of wage-replacement and medical-care benefits as the driver behind the increase.
Washington operates an exclusive state-fund workers' compensation system through L&I rather than a competitive private market, so the adopted rate applies to the bulk of insured employers in the state and is set through the agency's rulemaking rather than through a private rating bureau's filing.
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