Businesses back bill requiring L&I to publish actuarial indicated rates; agency says it can comply

At a Jan. 28 hearing the Labor and Workplace Standards Committee heard support for House Bill 2,188, which would require the Department of Labor and Industries to publish the actuarial indicated premium rate for each workers' compensation risk classification and explain any departmental limit on increases.

Business groups — including the Washington Hospitality Association, Association of Washington Business and the Building Industry Association of Washington — told the committee the bill would enhance transparency about rate-setting and help stakeholders identify cost drivers. Witnesses said Washington has seen rising workers' compensation costs (testimony cited roughly a 22% increase since 2020) and that in recent years the department used reserves to smooth premium increases.

Tammy Felon (Department of Labor and Industries) said L&I already prepares the data for internal and advisory committees and publishes an eight-column table for 300-plus risk classes; the department can add the requested information and post it publicly. Felon explained that in cases where the department caps increases (for example, when costs result from legislative or department actions beyond employer control), the cost is spread across other classes and that L&I can present those redistributions on its website.

Committee members asked whether a bill is needed if L&I could post the data at staff request; agency staff said they could publish the requested columns but legislative direction would standardize and require submission to the legislature and the workers' compensation advisory committee.

The hearing closed after follow-up questions about fiscal notes and posting logistics.