Washington Administrative Code

(1) Occasionally one of my Washington employees will do some work for me in another state. Do I need to buy workers' compensation insurance in the state where they are working?In some cases, we can provide workers' compensation insurance coverage for your Washington based employe…

How much will I pay for workers' compensation insurance? What you pay for workers' compensation insurance will vary by:•The nature of the business you are conducting,•The specific classifications applicable to your business,•The unit of exposure applicable to your industry, and•Y…

Washington law (RCW 51.16.035) requires us to classify occupations or industries by their level of hazard, in accordance with recognized principles of workers' compensation insurance which encourage safety and facilitate premium collection. The classification system and plan in W…

(1) How are classifications assigned to my business?We begin by assigning a basic classification to your business based on the nature of your business. To determine the nature of your business, we need to understand your combined business operation(s), the products you produce an…

(1) What is the classification approach for construction contractors?We classify contractors by phase of construction. Phase of construction refers to the type of construction work or the parts of a construction contract we classify and rate separately. This means contractors per…

(1) What is the classification approach for farming?We classify farming and agricultural operations by the type of crop or livestock raised. Farmers and ranchers often have several basic classifications assigned to their account covering various types of crops or livestock.Note:I…

When are operations included in a basic classification and when are they excluded?There are operations, such as pickup and delivery work, which are common to many businesses. When types of work are normal and expected for an industry, support the overall operations of a business,…

How do you determine what classification(s) to assign to a business if the type of business is not specifically noted in the classification plan?Because technologies and processes continually evolve, sometimes new types of businesses are not yet specifically identified in our cla…

(1) Can I have more than one basic classification assigned to my account?Yes, sometimes we will give you more than one basic classification because:• The basic classification that describes your business specifies certain duties that must be reported separately.• You have employe…

(1) What are exception classifications?Exception classifications describe employees who are not exposed to the normal hazards associated with a basic classification. Exception classifications may also have special reporting rules concerning a division of worker hours.There are th…

What if the only classification that describes my business is a standard exception classification? How do you assign classifications to my business?When this happens we will assign the standard exception classification that best fits your business. Any work performed by employees…

(1) What is a "unit of exposure"?A unit of exposure is the measure which is used to help determine the premium you will pay. For most businesses the unit of exposure is the hours worked by their employees. Because not all employees are compensated based on the hours they work, we…

How do I report exception classification employees on my quarterly report? If the language of the basic classification assigned to your business does not include those occupations, operations or employments which we have defined by exception classifications and treatments, you ma…

How often will I need to report and pay premiums? Most employers will report and pay premiums once every three months. We refer to these three-month periods as quarters. For example, the months of January, February, and March represent the first quarter of a calendar year. In som…

How do you determine what rate to charge me? You are charged premiums using base rates for each of your risk classifications. These premiums include rates for each of the four different premiums you are required to pay: Accident fund premiums, medical aid fund premiums, stay-at-w…

If I change the type of business I operate, or add a new operation, should I call you? Yes, we rely on you to update us about changes in your business operations. We provide a place on your quarterly premium reports to let us know about any changes you have made. If you need help…

If I have more than one business, can I report them on the same account? The way the businesses are organized will make a difference. Each separate "ownership type" must be classified and reported separately from any other much the same way you must keep each business' financial …

(1) To whom does this rule apply? This rule applies to any temporary staffing business providing temporary employees to a client customer.(2) Who pays the workers' compensation insurance premium for temporary staffing employees? RCW 51.16.060 requires the temporary staffing servi…

What are my responsibilities when I close my business, or when I no longer have employees? You must notify us in writing when you close your business or when you no longer have employees. You may send a letter, email, or request to have your account closed when you file your fina…

(1) What insurance principles does the department of labor and industries use when a new classification is developed?Those principles are broken down into four major components as follows:••••AdministrationEquityHomogeneitySafetyA detailed explanation of these principles can be f…

RCW 51.16.200 requires a taxpayer to make a return and pay the tax due to the department of labor and industries within ten days of quitting business, selling out, exchanging, or otherwise disposing of the employer's business or stock of goods. If this tax is not paid by the empl…

An audit of the employer's books, records and payrolls performed pursuant to the authority contained in RCW 51.48.040 may include but will not be limited to:(1) An audit to determine whether an employer engaged in a business or trade has employment subject to the industrial insur…

Washington law (RCW 51.48.030) requires every employer to make, keep, and preserve records which are adequate to facilitate the determination of premiums due to the state for workers' compensation insurance for their covered workers. In the administration of Title 51 RCW, the dep…

(1) Professional and semiprofessional athletic teams. Athletes assigned and under contract to a Washington-domiciled sports team are mandatorily covered by Washington industrial insurance. Athletes assigned to a Washington-domiciled sports team but under contract with a parent te…

(1) Any employer who has failed to secure payment of compensation for their workers covered under this title will be liable, subject to RCW 51.48.010. Beginning July 1, 2023, as authorized by RCW 51.48.095, this penalty will be adjusted for inflation every three years based on th…

(1) Nonmandatory coverage. The following individuals are excluded from mandatory coverage, but may elect coverage as authorized under RCW 51.32.030:(a) For-hire vehicle operators as defined under chapter 46.72 RCW who own the for-hire vehicle or lease it from others;(b) Limousine…

(1) Eligibility. Effective January 1, 1991, and thereafter each employer who has reported experience during the "experience period" shall have his/her base rates multiplied by an "experience factor" calculated in accordance with the rules of this manual. The development of the "e…

The basis of the experience modification shall be a comparison of the actual losses charged to an employer during the experience period with the expected losses for an average employer reporting the same exposures in each classification. The comparison shall contain actuarial ref…

In the event that an employer has no compensable accidents during the experience period and the experience modification calculated in accordance with WAC 296-17-855 is greater than the experience modification shown in Table IV, WAC 296-17-890 then such modification shall be reduc…

No employer's experience modification factor shall increase or decrease by more than twenty-five percent during any one year, as calculated according to WAC 296-17-855. However, if an employer's experience modification factor is calculated to be below 1.00 without this twenty-fiv…

(1) Except as provided in subsections (3) through (13) of this section, the actual losses for claims with a date of injury during the experience period will be evaluated on the "valuation date." Losses on claims occurring outside the experience period will not be included. The ac…

WAC 296-17-87301 through 296-17-87306 shall be used to determine the assignment of past loss experience associated with a change in business ownership for experience rating purposes. It is the intent of these rules that every firm (business) shall be responsible for its past expe…

The definitions in this section shall apply throughout WAC 296-17-873 through 296-17-87306.(1) "Entity" means an individual, partnership, corporation, limited liability company, professional limited liability company, unincorporated association, or fiduciary operation (e.g. trust…

When a majority change in the ownership of a firm (business) is accompanied by a change in the business activity of the firm (business) and this change is sufficient to result in a reclassification of the basic classification assigned to the firm (business), then the past experie…

When an entity acquires the past experience of an existing firm (business) or portion thereof, the following treatment shall apply until the next date for the general calculation of all employers' experience factors. The purpose of this subsection is to produce the same premium l…

Separate entities shall be combined for experience rating purposes when the same person or persons and/or a single corporation owns a majority interest in each of the entities.Note:If two or more different combinations are possible in accordance with the provisions of this sectio…

Primary Losses for Selected Claim ValuesEffective January 1, 2026TOTAL LOSS AFTERDEDUCTIONPRIMARY LOSS 5,000 5,000 10,000 10,000 15,000 15,000 28,180 28,180 31,349 30,000 41,732 35,000 55,522 40,000 74,729 45,000 103,324 50,000 398,730**63,705 **Maximum claim value[Statutory Auth…

PRIMARY AND EXCESS CREDIBILITY VALUESEffective January 1, 2026Maximum Claim Value = $398,730Average Death Value = $398,730Expected LossesPrimary CredibilityExcess Credibility0-6,15012% 7% 6,151-6,56613% 7% 6,567-6,98514% 7% 6,986-7,40915% 7% 7,410-7,84016% 7% 7,841-8,27517% 7% 8,…

Expected Loss Rates and Primary Ratiosby Risk Classification and Fiscal YearExpected Loss Rates in Dollars Per Worker HourEffective January 1, 2026Class202220232024Primary Ratio1010.58390.55750.49460.4261030.81170.78400.71890.4321040.62620.59510.52050.4151050.71630.68420.60430.49…

Maximum Experience ModificationsFor Firms with No Compensable Accidents:Effective January 1, 2026Expected Loss RangeMaximum Experience Modification1-5,571 0.905,572-6,802 0.896,803-7,502 0.887,503-8,202 0.878,203-8,902 0.868,903-9,602 0.859,603-10,302 0.8410,303-11,002 0.8311,003…

Industrial insurance accident fund, stay at work and medical aid fund base rates by class of industry shall be as set forth below.Base Rates EffectiveJanuary 1, 2026ClassAccident FundStay at WorkMedical Aid Fund1011.32080.01960.49561031.61310.02360.84891041.54140.02300.46511051.4…

The base rates as set forth below are for classifications whose premium rates are based on units other than hours worked.Base Rates EffectiveJanuary 1, 2026ClassAccident FundStay at WorkMedical Aid FundSupplemental Pension Fund5400.02690.00040.01160.00155410.01300.00020.00480.001…

Horse racing industry industrial insurance accident fund, stay at work fund, medical aid fund, supplemental pension fund and composite rate by class.Base Rates EffectiveJanuary 1, 2026ClassAccident FundStay at WorkMedical Aid FundSupplemental Pension FundComposite Rate661874.00*1…

Base Rates EffectiveJanuary 1, 2026ClassAccident FundStay at Work FundMedical Aid FundSupplemental Pension Fund48140.13770.00190.13760.191248150.39270.00560.33710.191248160.38990.00550.35640.1912[Statutory Authority: RCW 51.16.035, 51.32.073, 51.18.010, and 51.04.020(1). WSR 25-2…

(1) A premium discount is a reduction of premium, of a specified amount or percentage, which is earned by meeting certain requirements or conditions not required of all employers.(2) The department may offer a specified group of employers a premium discount plan to encourage part…

Effective October 1, 2023.Risk ClassificationHazard Group1019103910481054106710791089112820192029210921282149217721973015302930393069307730834036502750485079508950995107511751285137514751685179518951985217540854195509551960186029603960476063607660877019803590181002710035100461005…

Periodically, the department shall determine the total liability existing against the accident fund. If, after such determination, the department finds the accident fund, aside from the reserves deemed actuarially necessary according to recognized insurance principles, contains a…

Dividends, if any, will be declared approximately fifteen months after the conclusion of the coverage period with credit or payment made within sixty days of the calculation. No dividend checks will be written for less than ten dollars.Adjustments to the dividend calculation due …

The amount of 95.6 mils ($0.0956) shall be retained by each employer from the earnings of each worker for each hour or fraction thereof the worker is employed. The amount of money so retained from the employee shall be matched in an equal amount by each employer, except as otherw…

If you elect to insure qualifying student volunteers and/or unpaid students as defined in chapter 51.12 RCW, as now or hereafter amended, you must give the department written notice on a form prescribed by the department.All entities with coverage for qualifying student volunteer…