Washington’s Department of Labor & Industries has proposed a 4.9% increase in the average hourly workers’ compensation rate for 2027, about $1.44 a week or $75 a year per full-time employee. Public hearings run October 27-29, comments close October 29, and final rates are expected November 30.
The short answer
L&I proposes a 4.9% average increase in 2027 workers’ comp rates, roughly $75 per full-time employee per year before retro refunds. Your own change depends on your risk class and claims history. Comments are due by 5 p.m. October 29, and final rates are expected November 30.
What happened
L&I is “proposing a 4.9 percent rise in the average hourly rate employers and workers pay for workers’ compensation insurance in 2027,” according to its rate notice page. Insurance Journal reported that public hearings are scheduled for October 27, 28 and 29, that all comments must be received by 5 p.m. October 29, and that final rates are expected to be adopted November 30, effective January 1, 2027.
L&I says the proposed increase is less than it expects to need to cover 2027 claim costs, and it plans to use the workers’ compensation contingency reserve to cover the difference, as it did for 2026 (Business Insurance).
| Item | Detail |
|---|---|
| Average rate change | +4.9% (proposed) |
| Average cost per full-time employee | About $1.44/week, about $75/year before retro refunds |
| Risk classes with higher base rates | 311 of 326 |
| Public hearings | October 27, 28, 29 |
| Comment deadline | 5 p.m., October 29 |
| Expected adoption / effective | November 30 / January 1, 2027 |
Sources: L&I rate notice; Insurance Journal, September 23, 2026.
Why it matters
The 4.9% is a statewide average. L&I says “individual employers may see their rates go up or down,” and that 311 of 326 risk classes will have higher base rates. Washington is also unusual in that workers pay part of the premium: L&I says they pay about 24% on average (25% counting retro refunds), and that Washington is the only state where workers pay a significant portion.
What this means for small business owners
- Find your risk class and last year’s rate. Pull the classification codes on your L&I account and estimate 2027 premiums by hours, since Washington premiums are based on hours worked rather than payroll.
- Budget the employee share correctly. The worker portion is deducted from pay. Confirm your payroll system updates it on January 1 so you do not under-withhold.
- Include it in your 2027 labor cost. Pair this with the 2027 minimum wage and overtime threshold to see the full wage-plus-insurance picture.
- Comment if it affects you. Comments go to Jo Anne Attwood, administrative regulations analyst, at JoAnne.Attwood@Lni.wa.gov, per Insurance Journal. Hearing times and locations should be confirmed on L&I’s site.
- Review your claims. Experience affects your own rate, so open claims are worth a conversation with your L&I representative or broker.
Frequently asked questions
How much will Washington workers’ comp go up in 2027?
L&I proposes a 4.9% average increase, about $1.44 a week or $75 a year per full-time employee, before retro refunds.
Is the 2027 rate final?
No. It is a proposal. Insurance Journal reports final rates are expected November 30.
Employers pay most of it. L&I says workers pay about 24% on average, depending on classification and claims history.
When do comments close?
5 p.m. on October 29, 2026, with hearings October 27-29.
Will my rate rise exactly 4.9%?
Not necessarily. Individual rates depend on risk class and claims, and may go up or down.
“Individual employers may see their rates go up or down.” L&I rate notice
The bottom line
Budget for roughly 5% more in 2027, then replace it with your real number after November 30. The comment window closes in eight days.
Last updated: October 21, 2026. Sources: Insurance Journal, Business Insurance, L&I.
