Workers' comp. settlements

AN ACT Relating to expanding eligibility for voluntary workers' 1
compensation settlements; amending RCW 51.04.063; and creating a new 2
section. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
NEW SECTION. Sec. 1. (1) The legislature finds that:5
(a) The utilization of voluntary claims settlements in the 6
state's workers' compensation program is a valuable option to 7
expediently ensure the worker is properly compensated. This is 8
especially important for claims that may not involve total permanent 9
disability thus amounting to a pension award; 10
(b) The average age of workers who enter into a settlement 11
agreement with a self-insured employer is 40 years old, 10 years 12
below the currently imposed 50 years of age threshold for those 13
utilizing the state fund; and 14
(c) Forty-four states allow workers over the age of 18 to enter 15
settlements for workers' compensation claims. 16
(2) Therefore, it is the intent of the legislature to extend the 17
ability to enter into voluntary settlements for workers' compensation 18
claims. 19
H-2633.1
HOUSE BILL 2189
State of Washington 69th Legislature 2026 Regular Session
By Representatives Schmidt, Dufault, McEntire, Jacobsen, Ybarra,
Barnard, and Graham
Prefiled 12/23/25. Read first time 01/12/26. Referred to Committee
on Labor & Workplace Standards.
p. 1 HB 2189
Sec. 2. RCW 51.04.063 and 2021 c 89 s 3 are each amended to read 1
as follows: 2
(1) Notwithstanding RCW 51.04.060 or any other provision of this 3
title, an injured worker ((who is at least fifty years of age )) may 4
choose from the following: (a) To continue to receive all benefits 5
for which they are eligible under this title, (b) to participate in 6
vocational training if eligible, or (c) to initiate and agree to a 7
resolution of their claim with a claim resolution settlement.8
(2)(a) As provided in this section, the parties to an allowed 9
claim may initiate and agree to resolve a claim with a claim 10
resolution settlement for all benefits other than medical. Parties as 11
defined in (b) of this subsection may only initiate claim resolution 12
settlements if at least one hundred eighty days have passed since the 13
claim was received by the department or self-insurer and the order 14
allowing the claim is final and binding , unless the agreement is to 15
resolve a closed or disputed claim . All requirements of this title 16
regarding entitlement to and payment of benefits will apply during 17
this period. All claim resolution settlement agreements must be 18
approved by the board of industrial insurance appeals.19
(b) For purposes of this section, "parties" means:20
(i) For a state fund claim, the worker, the employer, and the 21
department. The employer will not be a party if the costs of the 22
claim or claims are no longer included in the calculation of the 23
employer's experience factor used to determine premiums, if they 24
cannot be located, are no longer in business, or they fail to respond 25
or decline to participate after timely notice of the claim resolution 26
settlement process provided by the board and the department.27
(ii) For a self-insured claim, the worker and the employer.28
(c) The claim resolution settlement agreements shall:29
(i) Bind the parties with regard to all aspects of a claim except 30
medical benefits unless revoked by one of the parties as provided in 31
subsection (6) of this section; 32
(ii) At the option of the parties, either be paid out in a single 33
lump sum or be paid on a structured basis. If the parties opt to have 34
the settlement paid based on a structured basis, the agreement shall 35
provide a periodic payment schedule to the worker equal to at least 36
twenty-five percent but not more than one hundred fifty percent of 37
the average monthly wage in the state pursuant to RCW 51.08.018, 38
except for the initial payment which may be up to six times the 39
average monthly wage in the state pursuant to RCW 51.08.018;40
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(iii) Not set aside or reverse an allowance order , unless the 1
agreement is to resolve a closed or disputed claim;2
(iv) Not subject any employer who is not a signatory to the 3
agreement to any responsibility or burden under any claim; and4
(v) Not subject any funds covered under this title to any 5
responsibility or burden without prior approval from the director or 6
designee. 7
(d) For state fund claims, the department shall negotiate the 8
claim resolution settlement agreement with the worker or their 9
representative and with the employer or employers and their 10
representative or representatives. 11
(e) For self-insured claims, the self-insured employer shall 12
negotiate the agreement with the worker or his or her representative. 13
Workers of self-insured employers who are unrepresented may request 14
that the office of the ombuds for self-insured injured workers 15
provide assistance or be present during negotiations.16
(f) Terms of the agreement may include the parties' agreement 17
that the claim shall remain open for future necessary medical or 18
surgical treatment related to the injury where there is a reasonable 19
expectation such treatment is necessary. The parties may also agree 20
that specific future treatment shall be provided without the 21
application required in RCW 51.32.160. 22
(g) Any claim resolution settlement agreement entered into under 23
this section must be in writing and signed by the parties or their 24
representatives and must clearly state that the parties understand 25
and agree to the terms of the agreement. 26
(h) If a worker is not represented by an attorney at the time of 27
signing a claim resolution settlement agreement, the parties must 28
forward a copy of the signed agreement to the board with a request 29
for a conference with an industrial appeals judge. The industrial 30
appeals judge must schedule a conference with all parties within 31
fourteen days for the purpose of (i) reviewing the terms of the 32
proposed settlement agreement by the parties; and (ii) ensuring the 33
worker has an understanding of the benefits generally available under 34
this title and that a claim resolution settlement agreement may alter 35
the benefits payable on the claim or claims. The judge may schedule 36
the initial conference for a later date with the consent of the 37
parties. 38
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(i) Before approving the agreement, the industrial appeals judge 1
shall ensure the worker has an adequate understanding of the 2
agreement and its consequences to the worker. 3
(j) The industrial appeals judge may approve a claim resolution 4
settlement agreement only if the judge finds that the agreement is in 5
the best interest of the worker. When determining whether the 6
agreement is in the best interest of the worker, the industrial 7
appeals judge shall consider the following factors, taken as a whole, 8
with no individual factor being determinative: 9
(i) The nature and extent of the injuries and disabilities of the 10
worker; 11
(ii) The age and life expectancy of the injured worker;12
(iii) Other benefits the injured worker is receiving or is 13
entitled to receive and the effect a claim resolution settlement 14
agreement might have on those benefits; and 15
(iv) The marital or domestic partnership status of the injured 16
worker. 17
(k) Within seven days after the conference, the industrial 18
appeals judge shall issue an order allowing or rejecting the claim 19
resolution settlement agreement. There is no appeal from the 20
industrial appeals judge's decision. 21
(l) If the industrial appeals judge issues an order allowing the 22
claim resolution settlement agreement, the order must be submitted to 23
the board. 24
(3) Upon receiving the agreement, the board shall approve it 25
within thirty working days of receipt unless it finds that:26
(a) The parties have not entered into the agreement knowingly and 27
willingly; 28
(b) The agreement does not meet the requirements of a claim 29
resolution settlement agreement; 30
(c) The agreement is the result of a material misrepresentation 31
of law or fact; 32
(d) The agreement is the result of harassment or coercion; or33
(e) The agreement is unreasonable as a matter of law.34
(4) If a worker is represented by an attorney at the time of 35
signing a claim resolution settlement agreement, the parties shall 36
submit the agreement directly to the board without the conference 37
described in this section. 38
p. 4 HB 2189
(5) If the board approves the agreement, it shall provide notice 1
to all parties. The department shall place the agreement in the 2
applicable claim file or files. 3
(6) A party may revoke consent to the claim resolution settlement 4
agreement by providing written notice to the other parties and the 5
board within thirty days after the date the agreement is approved by 6
the board. 7
(7) To the extent the worker is entitled to any benefits while a 8
claim resolution settlement agreement is being negotiated or during 9
the revocation period of an agreement, the benefits must be paid 10
pursuant to the requirements of this title until the agreement 11
becomes final. 12
(8) A claim resolution settlement agreement that meets the 13
conditions in this section and that has become final and binding as 14
provided in this section is binding on all parties to the agreement 15
as to its terms and the injuries and occupational diseases to which 16
the agreement applies. A claim resolution settlement agreement that 17
has become final and binding is not subject to appeal.18
(9) All payments made to a worker pursuant to a final claim 19
resolution settlement agreement must be reported to the department as 20
claims costs pursuant to this title. If a self-insured employer 21
contracts with a third-party administrator for claim services and the 22
payment of benefits under this title, the third-party administrator 23
shall also disburse the claim resolution settlement payments pursuant 24
to the agreement. 25
(10) Claims closed pursuant to a claim resolution settlement 26
agreement can be reopened pursuant to RCW 51.32.160 for medical 27
treatment only. Further temporary total, temporary partial, permanent 28
partial, or permanent total benefits are not payable under the same 29
claim or claims for which a claim resolution settlement agreement has 30
been approved by the board and has become final. 31
(11) Parties aggrieved by the failure of any other party to 32
comply with the terms of a claim resolution settlement agreement have 33
one year from the date of failure to comply to petition to the board. 34
If the board determines that a party has failed to comply with an 35
agreement, it will order compliance and will impose a penalty payable 36
to the aggrieved party of up to twenty-five percent of the monetary 37
amount unpaid at the time the petition for noncompliance was filed. 38
The board will also decide on any disputes as to attorneys' fees for 39
services related to claim resolution settlement agreements.40
p. 5 HB 2189
(12) Parties and their representatives may not use settlement 1
offers or the claim resolution settlement agreement process to harass 2
or coerce any party. If the department determines that an employer 3
has engaged in a pattern of harassment or coercion, the employer may 4
be subject to penalty or corrective action, and may be removed from 5
the retrospective rating program or be decertified from self-6
insurance under RCW 51.14.030. 7
(13) All information related to individual claim resolution 8
settlement agreements submitted to the board of industrial insurance 9
appeals, other than final orders from the board of industrial 10
insurance appeals, is private and exempt from disclosure under 11
chapter 42.56 RCW. The board of industrial insurance appeals shall 12
provide to the department copies of all final claim resolution 13
settlement agreements. 14
(14) Information gathered during the claim resolution settlement 15
agreement process, including but not limited to forms filled out by 16
the parties and testimony during a claim resolution settlement 17
conference before the board of industrial insurance appeals, is a 18
statement made in the course of compromise negotiations and is 19
inadmissible in any future litigation. 20
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