OLYMPIA -- Washington will not increase workers' compensation insurance premiums next year.

The state Department of Labor & Industries had proposed a 2.5 percent increase in September.

The decision to hold overall rates flat in 2012 is due to public testimony about the effect of the recession and recent positive trends in claims duration, said Judy Schurke, the department's director, in a news release.

Based on the latest financial data, the department is projecting its reserves will be 5 percent of liabilities by the end of the year.

This is a higher percentage of liabilities held in reserve than the Workers' Compensation financial statement reflected in September but it is still low by industry standards.

While there will be no overall rate increase for the rates that take effect Jan. 1, 2012, 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 rate table online and will soon send all employers a rate notice.

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

Next year, their share will be about 24 percent.