The proposed average increase in workers’ compensation premiums in 2015 has been slashed in half, the Department of Labor & Industries announced recently.
The final increase will be 0.8 percent, instead of the 1.8 percent increase that the agency proposed in September.
The decrease was caused by an improved outlook for the state workers’ compensation system and public input. It means workers and employers will keep about $20 million in their pocketbooks instead of paying that money into the workers’ compensation system. The 2015 increase will cost an additional half a cent for each hour worked.
The 2015 premium hike, which goes into effect Jan. 1, will help pay wage and disability benefits and medical costs for treatment of injuries and illnesses. The agency also plans to continue to build reserves.
Wage inflation is used as a benchmark to help to determine workers’ compensation rates. Washington’s most recent wage inflation number is 2 percent.
For more information, go to www.Lni.wa.gov/Rates.