Washington Workers' Comp Rates Will Rise 4.9% in 2027
The state's proposed increase will add an average of $1.44 per week to the cost of coverage for full-time employees.
Updated on Sept. 28, 2026 in Employment
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The Washington State Department of Labor & Industries has proposed a 4.9% increase in workers' compensation insurance premiums for the 2027 calendar year. The adjustment, which covers rising medical and wage replacement costs, will take effect on January 1, 2027.
Why it matters
The premium adjustment reflects inflationary pressure on wage replacement and medical care benefits that employees rely on after injuries. This change will shift the baseline costs for businesses and workers when the new rates are adopted in late 2026.
The proposed 4.9% increase is designed to address rising benefit costs, with employers currently responsible for 75% of premiums and workers contributing 25%. This shift will result in an average added cost of $1.44 per week for every full-time employee.
The players
Washington State Department of Labor & Industries
The state agency responsible for managing the workers' compensation system and setting annual premium rates for Washington employers and employees.
The details
Workers' compensation premiums are driven by state-level wage inflation, medical service pricing, and wage replacement requirements. When these costs rise, the agency adjusts rates to ensure the contingency reserve remains funded. Because employers pay the majority share of 75% while workers pay 25%, the change affects both business operating budgets and individual payroll deductions.
Timeline
October 28, 2026: Virtual public hearing at 10 a.m.
October 29, 2026: Virtual public hearing at 2 p.m. and deadline for public comments.
November 30, 2026: Date for final adoption of the 2027 rates.
January 1, 2027: Effective date for the new workers' compensation rates.
Money Landscape
This proposed increase follows established agency protocols for maintaining the workers' compensation contingency reserve against inflationary benefit pressures. It sits within the typical annual adjustment cycle used to calibrate premiums against the actual costs of medical care and wage replacement.
Business owners should prepare for an increase in payroll-related expenses starting in January, while employees may see a slight adjustment in their 25% share of the premium contribution. You should consult with a tax or financial professional to determine how these changes specifically impact your business budget or personal take-home pay.
The takeaway
The proposed 4.9% rate hike targets rising benefit costs and will officially go into effect at the start of 2027. Households and business owners should monitor the final rate adoption on November 30, 2026, to finalize their 2027 budget planning.
Further reading
Learn more about local labor cost trends in the Washington Employment section.
Source note: This article includes information reported by Tri-Cities Area Journal of Business.
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