Peninsula Daily News news services
OLYMPIA — Workers’ compensation premiums are going up an average 12 percent next year under a proposal Monday from the state Department of Labor and Industries.
Average premiums would increase 6.5 cents per hour worked.
The new rates take effect Jan. 1 under an emergency rule that is effective for 120 days.
On Jan. 4, the agency plans to hold public hearings in Spokane and Tacoma before adopting final rates.
Individual employers could see their rate go up or down, depending on their claims history and claim trends in their industry.
Building construction and trades will see a 16 percent increase.
Restaurants will see a 6 percent hike.
L&I had delayed announcing its 2011 proposed rate increase because of Initiative 1082.
It would have opened the state workers’ compensation system to private insurers and shifted some costs from employees to employers. Voters rejected I-1082 in last week’s elections.
L&I raised average rates 3.2 percent in 2008, 3.1 percent in 2009 and 7.6 percent this year.
Next year’s proposed rate increase was expected to be in the double digits.
Among the reasons: steep declines in premiums collected and investment income, as well as higher medical costs and injured workers staying on benefits longer due to the lack of available jobs.
L&I Director Judy Schurke said rates would have been even higher — that the agency was able to hold the rate down through cost-cutting measures.
