Workers' comp. adjustments

AN ACT Relating to capping the rate of increase for future 1
workers' compensation cost-of-living adjustments; amending RCW 2
51.32.072 and 51.32.075; and creating a new 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) Long-term stability of the state's workers' compensation 6
program is of paramount importance for employees, employers, and 7
consumers. Stability facilitates employers' ability to accurately 8
plan for the future and provides all Washingtonians confidence in 9
program health; 10
(b) Between 2012 and 2019, average annual premium rate changes 11
ranged from a 4.9 percent decrease to an increase of 2.7 percent. The 12
"break even" rate regularly indicated that the program could operate 13
below the proposed annual rate. The proposed rate often exceeded what 14
was necessary to cover the cost of claims; 15
(c) Since 2020, premium rates have cumulatively increased by 17.6 16
percent. With the upcoming 4.9 percent proposed rate change that 17
increase will now be over 22 percent. Meanwhile, the "break even" 18
rate for each of the last five years has exceeded the proposed annual 19
rate. In short, the proposed rate has been lower than necessary to 20
cover the cost of claims; 21
S-3498.3
SENATE BILL 5927
State of Washington 69th Legislature 2026 Regular Session
By Senators Schoesler and J. Wilson
Prefiled 12/22/25. Read first time 01/12/26. Referred to Committee
on Labor & Commerce.
p. 1 SB 5927
(d) The state's average monthly wage, the metric used as the 1
basis for cost-of-living adjustments for time loss and pensions, 2
remains a volatile metric. In the mid-2010s one could expect an 3
annual change ranging from two percent to four percent. Since 2019, 4
the annual change in average monthly wage has varied greatly, seeing 5
increases of two percent, 5.5 percent, 7.5 percent, and even 10.1 6
percent; and 7
(e) An available option to address stability is to place a cap on 8
cost-of-living adjustments for certain workers' compensation 9
benefits. 10
(2) Therefore, it is the intent of the legislature to promote 11
program stability through the implementation of a three percent cost-12
of-living adjustment cap solely for pension calculations.13
Sec. 2. RCW 51.32.072 and 2011 1st sp.s. c 37 s 201 are each 14
amended to read as follows: 15
(1) Notwithstanding any other provision of law, every surviving 16
spouse and every permanently totally disabled worker or temporarily 17
totally disabled worker, if such worker was unmarried at the time of 18
the worker's injury or was then married but the marriage was later 19
terminated by judicial action, receiving a pension or compensation 20
for temporary total disability under this title pursuant to 21
compensation schedules in effect prior to July 1, 1971, shall after 22
July 1, 1975, through June 30, 2011, be paid ((fifty)) 50 percent of 23
the average monthly wage in the state as computed under RCW 51.08.018 24
per month and an amount equal to five percent of such average monthly 25
wage per month to such totally disabled worker if married at the time 26
of the worker's injury and the marriage was not later terminated by 27
judicial action, and an additional two percent of such average 28
monthly wage for each child of such totally disabled worker at the 29
time of injury in the legal custody of such totally disabled worker 30
or such surviving spouse up to a maximum of five such children. The 31
monthly payments such surviving spouse or totally disabled worker are 32
receiving pursuant to compensation schedules in effect prior to July 33
1, 1971 shall be deducted from the monthly payments above specified.34
Where such a surviving spouse has remarried, or where any such 35
child of such worker, whether living or deceased, is not in the legal 36
custody of such worker or such surviving spouse there shall be paid 37
for the benefit of and on account of each such child a sum equal to 38
two percent of such average monthly wage up to a maximum of five such 39
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children in addition to any payments theretofore paid under 1
compensation schedules in effect prior to July 1, 1971 , for the 2
benefit of and on account of each such child. In the case of any 3
child or children of a deceased worker not leaving a surviving spouse 4
or where the surviving spouse has later died, there shall be paid for 5
the benefit of and on account of each such child a sum equal to two 6
percent of such average monthly wage up to a maximum of five such 7
children in addition to any payments theretofore paid under such 8
schedules for the benefit of and on account of each such child.9
If the character of the injury or occupational disease is such as 10
to render the worker so physically helpless as to require the hiring 11
of the services of an attendant, the department shall make monthly 12
payments to such attendant for such services as long as such 13
requirement continues but such payments shall not obtain or be 14
operative while the worker is receiving care under or pursuant to the 15
provisions of this title except for care granted at the discretion of 16
the supervisor pursuant to RCW 51.36.010: PROVIDED, That such 17
payments shall not be considered compensation nor shall they be 18
subject to any limitation upon total compensation payments.19
No part of such additional payments shall be payable from the 20
accident fund. 21
The director shall pay monthly from the supplemental pension fund 22
such an amount as will, when added to the compensation theretofore 23
paid under compensation schedules in effect prior to July 1, 1971, 24
equal the amounts hereinabove specified. 25
In cases where money has been or shall be advanced to any such 26
person from the pension reserve, the additional amount to be paid 27
under this section shall be reduced by the amount of monthly pension 28
which was or is predicated upon such advanced portion of the pension 29
reserve. 30
(2) In addition to the adjustment under subsection (1) of this 31
section, further adjustments shall be made beginning July 1, 2012, 32
and on each July 1st thereafter ((. The )) through June 30, 2026; the 33
adjustment shall be the percentage change in the average monthly wage 34
in the state under RCW 51.08.018 for the preceding calendar year, 35
rounded to the nearest whole cent. Further adjustments made beginning 36
July 1, 2026, shall be the percentage change in the average monthly 37
wage in the state under RCW 51.08.018 for the preceding calendar 38
year, not to exceed three percent, rounded to the nearest whole cent.39
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(3) Compensation due for July 1, 2011, through June 30, 2012, 1
must be paid based on the average monthly wage in the state as 2
computed under RCW 51.08.018 on July 1, 2010. 3
Sec. 3. RCW 51.32.075 and 2011 1st sp.s. c 37 s 202 are each 4
amended to read as follows: 5
The compensation or death benefits payable pursuant to the 6
provisions of this chapter for temporary total disability, permanent 7
total disability, or death arising out of injuries or occupational 8
diseases shall be adjusted as follows: 9
(1) On July 1, 1982, there shall be an adjustment for those whose 10
right to compensation was established on or after July 1, 1971, and 11
before July 1, 1982. The adjustment shall be determined by 12
multiplying the amount of compensation to which they are entitled by 13
a fraction, the denominator of which shall be the average monthly 14
wage in the state under RCW 51.08.018 for the fiscal year in which 15
such person's right to compensation was established, and the 16
numerator of which shall be the average monthly wage in the state 17
under RCW 51.08.018 on July 1, 1982. 18
(2) In addition to the adjustment established by subsection (1) 19
of this section, there shall be another adjustment on July 1, 1983, 20
for those whose right to compensation was established on or after 21
July 1, 1971, and before July 1983, which shall be determined by 22
multiplying the amount of compensation to which they are entitled by 23
a fraction, the denominator of which shall be the average monthly 24
wage in the state under RCW 51.08.018 for the fiscal year in which 25
such person's right to compensation was established, and the 26
numerator of which shall be the average monthly wage in the state 27
under RCW 51.08.018 on July 1, 1983. 28
(3) In addition to the adjustments under subsections (1) and (2) 29
of this section, further adjustments shall be made beginning on July 30
1, 1984, and on each July 1st thereafter through July 1, 2010, for 31
those whose right to compensation was established on or after July 1, 32
1971. The adjustment shall be determined by multiplying the amount of 33
compensation to which they are entitled by a fraction, the 34
denominator of which shall be the average monthly wage in the state 35
under RCW 51.08.018 for the fiscal year in which such person's right 36
to compensation was established, and the numerator of which shall be 37
the average monthly wage in the state under RCW 51.08.018 on July 1st 38
of the year in which the adjustment is being made. The department or 39
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self-insurer shall adjust the resulting compensation rate to the 1
nearest whole cent, not to exceed the average monthly wage in the 2
state as computed under RCW 51.08.018. 3
(4) In addition to the adjustments under subsections (1), (2), 4
and (3) of this section, for those whose right to compensation was 5
established on or after July 1, 1971, further adjustments shall be 6
made beginning July 1, 2012, and on each July 1st thereafter ((for 7
those whose right to compensation was established on or after July 1, 8
1971. The )) through June 30, 2026, and the adjustment shall be the 9
percentage change in the average monthly wage in the state under RCW 10
51.08.018 for the preceding calendar year, rounded to the nearest 11
whole cent. Further adjustments made beginning July 1, 2026, shall be 12
the percentage change in the average monthly wage in the state under 13
RCW 51.08.018 for the preceding calendar year, not to exceed three 14
percent, rounded to the nearest whole cent.15
(5) For claims whose right to compensation was established on or 16
after July 1, 2011, no adjustment shall be made under ((this)) 17
subsection (4) of this section until the second July 1st following 18
the date of injury or occupational disease manifestation.19
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