Washington L&I Workers' Comp Rates for 2027: What Changes
The Washington State Department of Labor & Industries has proposed a 4.9 percent average increase in the hourly workers' compensation premium rate for 2027. It is a proposal, not a final number. L&I held public hearings on October 27, 28 and 29, 2026, plans to adopt final rates on November 30, 2026, and the adopted rates would take effect January 1, 2027. [1] Your own rate depends on the risk classifications L&I has assigned to your business and on your experience factor, so the statewide average is the starting point for reading your December notice, not the number you will pay.
Key points
- The 4.9 percent figure is L&I's proposed average change in the hourly rate for 2027. L&I plans to adopt final rates on November 30, 2026, to take effect January 1, 2027. [1]
- An average is spread across more than 300 risk classifications. L&I says individual employers can see rates go up or down depending on their class and their recent claims history. [2]
- L&I says the proposal would raise less than it expects 2027 claims to cost, and that it will cover the difference from its contingency reserve, as it has in past years. [1] [2]
- Your December rate notice shows the pieces that produce your actual hourly rate: classifications, base rates and your experience factor. [5]
- The levers an employer controls are the classification check, claims management, safety, and return-to-work programs. None of them promises a lower rate.
What L&I has proposed for 2027
On September 22, 2026, L&I announced a proposed 4.9 percent increase in the average hourly rate that employers and workers pay for workers' compensation coverage in 2027. [1] L&I's director said the cost of providing coverage keeps rising as wages and medical costs increase, and that the agency has worked to keep rates steady and predictable. [1]
Two details in the announcement matter for budgeting. First, L&I says the proposed increase is less than what it expects to need to cover 2027 claim costs, and that it plans to use the workers' compensation contingency reserve to cover the gap, as it has done in past years. [2] Second, L&I uses the state's wage inflation as a benchmark when it sets rates. [1]
For context, L&I adopted a 3.8 percent average increase for 2025 and a 4.9 percent average increase for 2026. [3] [4] Both were described by L&I as averages that individual industries could land above or below. [3] [4]
The timeline from proposal to your notice
The rate process runs on a fixed calendar. [1]
- September 22, 2026: L&I publishes the proposal.
- October 27 to 29, 2026: public hearings, one in person in Tumwater and two online, with written comments accepted until 5 p.m. on October 29.
- November 30, 2026: L&I plans to adopt final rates.
- December 2026: L&I sends each state-fund employer its annual rate notice for coverage that begins in January. [5]
- January 1, 2027: the adopted rates take effect.
The final adopted average can differ from the proposal, and the per-class base rates can move within it. Treat anything you read before November 30 as provisional.
Why "average" is not your rate
Washington charges workers' compensation premium as an amount per hour worked, not as a percentage of payroll. [2] The hourly rate for your business is built from three things: the risk classification or classifications L&I has assigned, the base rates for each of those classes, and your experience factor. [5] L&I's formula multiplies your experience factor by the sum of the Accident Fund, Medical Aid Fund and Stay at Work base rates for a class, then adds the Supplemental Pension Fund base rate. [5]
The 4.9 percent is an average across all of those classes. L&I says that under the proposal, 311 of the state's 326 risk classes would have higher base rates in 2027, which also means some would not. [2] L&I also says an employer with no claims can still see an increase if the base rate for its class is going up, and that an employer's rate can go down in a year the average goes up. [2]
An average, in other words, is a number almost nobody pays. Our explainer on how workers' compensation premiums are calculated covers the general mechanics; the Washington-specific pieces are on your notice.
How to read your own notice
When the December notice arrives, three parts of it tell you what 2027 will cost per hour. The risk classification lines show which classes L&I has assigned and the base rates for each. The experience factor shows the multiplier L&I calculated from your prior three years of reported hours and claims; a business with no hours in that period is not yet experience rated and pays the base rates without an adjustment. [5] [6] The resulting hourly rate per class includes the portion that is withheld from employees' pay. [2] [5]
Compare each part with last year's notice, not just the total. A higher total can come from a base-rate change you cannot influence, an experience factor change you partly can, or a classification change you should question. We walk through each part of the notice in our guide to reading your L&I rate notice, published alongside this article.
What an employer can do
None of the following promises a lower rate. Each one addresses a piece of the formula.
- Check the classifications. L&I assigns classes based on the nature of your business, and each class carries its own base rates. [7] If the description on the notice does not match the work your people do, ask L&I before the year starts. L&I's own guidance on managing rates begins with checking the risk classes on the December notice. [8]
- Manage open claims. The experience factor is recalculated every year from three years of hours and claims. [6] L&I's online account tools show claim information as it is filed, and protests or appeals of claim decisions have deadlines set in the order. [8]
- Invest in safety. L&I's advice is to build a strong safety program to avoid accidents and lower future rates, and it offers free, confidential consultations through its safety and health division. [8]
- Use Stay at Work and return-to-work options. L&I's Stay at Work program can reimburse eligible employers for part of the cost of bringing an injured worker back on light duty, and L&I says offering light-duty work can reduce time-loss benefits, which affect your rates. [8] Our guide to reducing workers' compensation costs covers the return-to-work side in more detail.
- Ask about the Claim-Free Discount and retrospective rating. L&I describes both on its rate-management page; whether either applies depends on your claims record. [8]
The state fund does not cover employer's liability. That is stop-gap coverage, bought separately and often added to general liability as an endorsement, and our page on workers' comp insurance in Washington explains where it fits. If you want a second set of eyes on the notice when it arrives, our service center is the place to send it.
Sources
[1] Washington State Department of Labor & Industries, "Proposed 2027 workers' comp rate increase helps state keep up with rising costs" (news release 26-15, September 22, 2026). Accessed October 28, 2026.
[2] Washington State Department of Labor & Industries, Proposed 2027 workers' compensation rates (rates notice page). Accessed October 28, 2026.
[3] Washington State Department of Labor & Industries, "Washington workers' comp insurance average premium will rise about 4.9% in 2026" (news release 25-32, November 26, 2025). Accessed October 28, 2026.
[4] Washington State Department of Labor & Industries, "Washington workers' compensation premium rate going up slightly in 2025" (news release 24-30, November 26, 2024). Accessed October 28, 2026.
[5] Washington State Department of Labor & Industries, Calculating premium rates. Accessed October 28, 2026.
[6] Washington State Department of Labor & Industries, Experience rating. Accessed October 28, 2026.
[7] Washington State Department of Labor & Industries, Risk classes for workers' compensation. Accessed October 28, 2026.
[8] Washington State Department of Labor & Industries, Reducing rates. Accessed October 28, 2026.
Coverage examples are illustrative. Policy wording, exclusions, limits, underwriting and applicable law determine coverage. This article is general information, not legal advice or a coverage determination.
Frequently asked questions
- Not yet. L&I proposed it on September 22, 2026, held hearings October 27 to 29, and plans to adopt final rates on November 30, 2026, effective January 1, 2027. [1] The adopted figure can differ from the proposal, and your December notice is the document that states your actual 2027 rates.
- Probably not by exactly that. L&I says the figure is an average across all risk classes, and that individual employers may see rates go up or down depending on their classification and recent claims history. [2]
- Part of the hourly rate is withheld from workers' pay. L&I says employers pay the whole Accident Fund portion, and that workers and employers each pay half of the Medical Aid, Stay at Work and Supplemental Pension portions. [2] When the base rates change, the employee withholding on your notice changes too, so payroll needs the new figure from the first pay period of January.