Bill to extend good-faith duty to all self-insured employers and third-party administrators draws stark pro/con testimony

Summary

Senate Bill 54-63 would extend Washington's duty of good faith and fair dealing to all self-insured employers and their third-party administrators in workers' compensation claims; sponsor and injured-worker advocates described repeated denials and delayed care, while self-insured employers and business groups warned the bill's vague standards and

The Labor & Workplace Standards Committee on March 18 heard Senate Bill 54-63, which would extend a statutory duty of good faith and fair dealing to all self-insured employers and their third-party administrators (TPAs) for workers' compensation claims and retain the bill's penalties and decertification mechanisms.

Staff told the committee that self-insured employers either administer claims themselves or use TPAs and that an employer must meet requirements and maintain certification with the Department of Labor & Industries (L&I) to self-insure. The committee was briefed that effective July 1, 2024, Washington established the duty of good faith and fair dealing for certain self-insured municipal employers and some private-sector firefighter employers, and the bill before the committee would extend that duty to all self-insured employers and…

Bill to extend good-faith duty to all self-insured employers and third-party administrators draws stark pro/con testimony

Summary

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