Bill > SB5927

This bill addresses the stabilization of Washington state's workers' compensation program by implementing a three percent cap on cost-of-living adjustments (COLAs) for certain workers' compensation benefits. The legislation is motivated by concerns about the volatility of premium rates and average monthly wage changes, which have seen significant fluctuations in recent years. Specifically, the bill amends existing laws to limit future cost-of-living adjustments for pension calculations to a maximum of three percent beginning July 1, 2026. The legislature argues that this cap will provide long-term stability for both employers and employees by creating more predictable and manageable premium rates. The bill notes that between 2012 and 2019, premium rate changes were relatively modest, but since 2020, rates have increased by over 22 percent. By introducing this cap, the state aims to promote more consistent and sustainable workers' compensation benefits while giving employers greater ability to plan for future expenses. The change applies to adjustments for permanently totally disabled workers, surviving spouses, and other workers receiving compensation under the state's workers' compensation system.

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https://app.leg.wa.gov/billsummary?BillNumber=5927&Year=2025&Initiative=false