A slew of trade and business organizations are sounding the alarm over the increasing costs of the state’s workers’ compensation program even as officials seek to minimize impacts on employers. 

The state Department of Labor & Industries recently announced that industrial insurance premiums would increase by 4.9% statewide, with an increase of 3% for the construction industry. However, those increases are not anticipated to cover the full cost of the program, requiring it to lean on reserves. 

In a letter to Joel Sacks, director of the state Department of Labor & Industries, 15 entities from the Association of Washington Business to the Washington Air Conditioning Contractors Association, said the agency needs to take steps now to keep the program solvent and fulfill its mission of getting workers back on the job. 

“A moderate increase is far better for Washington’s workers, employers and economy than one approaching the actuarially indicated level, and we recognize the department’s commitment to steady and predictable rates,” according to the letter. “Our concern is less with this year’s number than with a number of troubling trends hidden underneath it.” 

The organizations note that premium increases have not covered program costs for the past seven years, and growth in long-term disability claims and other policy choices are dragging down the program. They are encouraging L&I to better notify the Legislature of the true costs of providing workers’ compensation while helping workers get back on the job more quickly.