Bill > HB1059

This bill modifies the rules governing industrial insurance self-insured employers and third-party administrators by expanding and clarifying their duties of good faith and fair dealing with workers. The bill removes specific references to municipal employers and private sector firefighter employers, making the provisions more broadly applicable. It outlines grounds for withdrawing certification of a self-insurer, including repeated failures to comply with regulations, intentionally discouraging injury reporting, or violating the duty of good faith and fair dealing three times within a three-year period. The legislation requires that self-insured employers and third-party administrators treat workers fairly, prohibits coercing workers to accept less compensation than due, and empowers the department to investigate alleged violations and impose penalties ranging from one to 52 times the average weekly wage depending on the violation's severity. Importantly, the bill applies to all claims regardless of injury date and will take effect on January 1, 2026, giving employers and administrators time to adjust to the new requirements. The changes aim to strengthen worker protections and ensure more equitable treatment in industrial insurance claims processing.

Labor and Employment

https://app.leg.wa.gov/billsummary?BillNumber=1059&Year=2025&Initiative=false