In Washington State, both your employer and you pay for workers' compensation. Employers cover about 75% of the premium, and workers pay the remaining 25% through payroll deductions. That shared cost makes Washington unusual. It is the only state where workers pay a significant share of their own workers' comp insurance, according to the Washington Department of Labor & Industries (L&I).
L&I runs the system as a state fund, and for 2026, it raised the average rate by 4.9%. That adds about $1.37 a week per full-time position, split between employer and worker. This guide breaks down who pays what, how L&I calculates the premium, the four funds your money supports, and what your contribution buys if you get hurt on the job. If a work injury turns into a lasting disability, your workers' comp can also change your estimated monthly SSDI benefit, so it pays to understand the full picture.
Key Takeaways
- Both sides pay: Washington employers cover roughly 75% of the workers' compensation premium, and workers pay about 25% through paycheck deductions.
- A monopolistic state: Washington is one of only four states where employers buy workers' comp from a state fund instead of a private insurer.
- 2026 rates rose 4.9%: The average 2026 rate is about $1.50 per $100 of payroll before retro refunds, adding roughly $1.37 per week per full-time worker.
- Four separate funds: Your premium splits across the Accident, Medical Aid, Supplemental Pension, and Stay at Work funds, each with its own payment split.
- Employers alone fund wages: Employers pay 100% of the Accident Fund, so workers never contribute to their own time-loss checks or disability awards.
- Hours, not wages: Washington charges premiums by hours worked, not payroll dollars, so a raise does not automatically raise your deduction.
- Medical care is fully covered: Approved treatment for a work injury is paid at 100%, with no out-of-pocket cost to the injured worker.
Why Washington Splits Workers' Comp Costs Between Employers and Workers
Washington splits the cost because it runs a state-owned insurance system, and state law lets employers deduct part of the premium from workers' paychecks. Most states make employers pay the full cost. Washington is the only state where workers routinely pay a meaningful portion of their own coverage.
Washington is one of four monopolistic states for workers' comp, along with North Dakota, Ohio, and Wyoming. In these four states, private insurers cannot sell workers' comp policies. Employers must buy coverage through the state fund or, if they qualify, self-insure. In the other 46 states, employers shop for coverage on the private market.
Premiums here are charged by the hour worked, not as a percentage of payroll. When wages go up in Washington, employer and worker contributions stay the same. L&I says this approach keeps employers from paying more simply because they pay higher wages. You can read the full breakdown on the L&I rates notice page.
On average, workers pay about 24% of the premium, or roughly 26% when retro refunds to employers are counted. Your exact share depends on your employer's risk classification and its recent claims history, so two workers in different industries can pay different amounts for the same paycheck size.
How Much Do Employers and Workers Pay in 2026?
For 2026, L&I set the average rate at about $1.50 per $100 of payroll before retro refunds, a 4.9% increase over 2025. Employers pay roughly 75% and workers about 25%. The increase adds about $1.37 a week, or close to $71 a year, per full-time employee, shared between both sides. That figure comes from L&I and was reported by Insurance Journal.
The increase covers the rising cost of medical care and wage-replacement benefits. L&I again drew on its contingency reserve to soften the blow. Without that reserve, the agencyThe capacity of individuals with disabilities to act independently and make their own choices. has said rates would have needed to rise nearly 13% to cover the expected 2026 claim costs.
Rate changes are not the same for every industry. The 2026 increase averaged 4.9% across all businesses, but construction saw an average increase of about 3%, with some risk classes going up and others going down. Your industry's injury history drives your class rate more than the statewide average does.
L&I Director Joel Sacks framed the yearly adjustment as an effort to keep rates "steady and predictable" while still covering claim costs. That balance is why the agency taps its reserve most years instead of passing the full increase to employers and workers.
The Four Funds Your Washington Workers' Comp Premium Pays Into
Your total premium is made of four separate funds, and each one has a different payment split. Employers pay the entire Accident Fund. The other three funds are shared, with workers paying up to half. Here is how each fund breaks down.
| Fund | What It Pays For | Employer Share | Worker Share |
|---|---|---|---|
| Accident Fund | Wage replacement (time-loss) and disability and pension awards | 100% | 0% |
| Medical Aid Fund | Medical treatment and vocational services | 50% | 50% |
| Supplemental Pension Fund | Cost-of-living increases for long-term and pension recipients | 50% | 50% |
| Stay at Work Fund | Reimburses employers for light-duty work during recovery | 50% | 50% |
State law caps the worker's share. Your employer cannot require you to pay more than 50% of the Medical Aid, Supplemental Pension, and Stay at Work funds, and it can choose to absorb your share entirely. Because workers never pay into the Accident Fund, you never help fund your own wage-replacement checks or disability awards. Employers carry that cost alone.
How L&I Calculates Your Employer's Premium Rate
L&I sets each business's premium using three things: the risk class of the work, the base rates for that class, and the employer's own claims history. Riskier industries pay more, and a clean safety record lowers the bill.
In plain terms, the formula is: Total Premium Rate = (Experience Factor x (Accident Fund + Medical Aid + Stay at Work base rates)) + Supplemental Pension base rate. Four elements drive that number:
- Risk classification: L&I sorts every business into one of more than 300 classes based on the hazards of the work. A roofing crew and an accounting office sit in very different classes.
- Base rates: L&I sets these each year for every class. They represent the core cost of covering that type of work before any employer-specific adjustment.
- Experience factor (EMR): A multiplier near 1.0 based on three years of claims history. Below 1.0 earns a discount, above 1.0 adds a surcharge, which rewards workplace safetyThe policies and practices in place to ensure the physical and mental well-being of all employees, i....
- Supplemental Pension add-on: This portion is added after the experience factor is applied, so a single company's claims history does not change it.
What Your Workers' Comp Contribution Actually Buys
If you are hurt on the job in Washington, your premium dollars pay for medical care, partial wage replacement, and long-term disability support. Approved medical treatment for a covered injury is paid at 100%, with no out-of-pocket cost to you. These are the main benefits the system provides:
- Medical benefits: 100% of approved medical, hospital, and related care needed to treat and recover from the work injury.
- Time-loss compensation: Roughly 60% to 75% of your gross wages while you cannot work, up to a state maximum of $9,516 per month for injuries between July 2025 and June 2026 under RCW 51.32.060.
- Loss of earning power: Tops up your income if you return to work at reduced hours or lower pay because of the injury.
- Permanent partial disability (PPD): A lump-sum payment for lasting impairmentA loss or abnormality of a body structure or function, whether physical, mental, or sensory, often a... when you can still work in some capacity.
- Pension: Monthly payments if you are found permanently and totally disabled from all gainful work.
- Vocational services: Retraining or job modification to help you return to suitable employment.
- Survivor benefits: Financial support and burial expenses for dependents if a worker dies from a work-related injuryAn injury that occurs in the course of employment, potentially leading to temporary or permanent dis... or illness.
How to File a Washington Workers' Comp Claim
To start a Washington workers' comp claim, get medical care right away, tell your provider the injury is work-related, and file a Report of Accident (ROA) with L&I. You can file online through L&I's FileFast tool, by phone, or at your doctor's office. The process runs in three steps.
- Get medical care immediately. See a provider and clearly state that the injury happened at work. Your first visit is covered even if the claim is later denied.
- File a Report of Accident. Submit the ROA through FileFast, by phone, or at your doctor's office. Your attending physician sends the medical portion to L&I within five days, and your employer completes its part once notified.
- Wait for the L&I decision. L&I reviews the claim and supporting records, then issues an order to allow or deny it.
If L&I denies your claim, you have appeal rights. You can protest the decision directly to L&I or appeal to the Board of Industrial Insurance Appeals. Acting quickly matters because appeal deadlines are strict.
Who Is Covered and Who Is Exempt in Washington
Most Washington workers are covered from their first day on the job, but a few categories follow special rules. Coverage also protects employers, because an accepted claim generally prevents an injured worker from suing the employer over the injury.
- Agricultural workers: Generally covered under the same provisions as other employees.
- Domestic workers: Usually excluded unless they work more than 40 hours a week for a single employer, or the employer elects to provide coverage.
- Volunteers: Not automatically covered. Nonprofits and government bodies can buy "Medical Aid Only" coverage and pay 100% of that premium. It covers medical costs only, not wage replacement.
- Independent contractors: Workers who pass L&I's independence test (a six-part test, or a seven-part test for construction) are not covered. If they fail the test, L&I can reclassify them as employees who require coverage.
Large, financially stable employers can also self-insure instead of paying into the State Fund. To qualify, a business generally must operate for at least three years, meet financial standards such as a liquidity ratio of at least 1.3 to 1 and a debt-to-net-worth ratio no higher than 4 to 1, and run a strong safety and claims-management program. The full criteria appear in L&I's Employers' Guide to Self-Insurance. Self-insured employers still answer to L&I and follow the same state rules.
Key Washington Workers' Comp Terms, Defined
A few terms come up again and again once you file a claim. Here is what they mean in plain language.
- L&I: The Washington State Department of Labor & Industries, the agency that runs the workers' comp system and pays claims.
- State Fund: The state-managed insurance pool that collects premiums and pays benefits for work injuries and illnesses.
- Experience factor (EMR): The multiplier based on your employer's three-year claims history that raises or lowers its premium.
- Time-loss compensation: Partial wage replacement paid while a work injury keeps you off the job.
- Retrospective rating (Retro): A refund program that returns premiums to employers with strong safety records, which is why the worker share edges higher when retro refunds are counted.
How Washington Workers' Comp Affects Your SSDI Benefits
If your workplace injury becomes a long-term disability, you may qualify for both Washington workers' comp and Social Security Disability Insurance (SSDI)A U.S. government program that provides financial assistance to individuals who are unable to work d.... You cannot collect the full amount of both at once, though. Federal law caps the combined total at 80% of your average pre-injury earnings.
This is the workers' comp offset. If your workers' comp and SSDI together exceed 80% of what you earned before the injury, Social Security reduces your SSDI until your workers' comp benefits end or drop. The rule is explained in the SSA's fact sheet on workers' compensation and SSDI. Because the two programs interact, it helps to understand how each one works before you file.
If you are weighing both, start by learning how your monthly SSDI benefit is calculated and the difference between SSDI and SSI. Workers' comp covers the job injury itself, while SSDI can support you if that injury keeps you out of work for a year or more.
The Bottom Line on Who Pays Washington Workers' Comp
In Washington, workers' compensation is a shared cost. Your employer pays the majority and every dollar of your wage-replacement fund, while you contribute about a quarter of the premium through small paycheck deductions. As of 2026, that split holds even after the 4.9% rate increase, and it still makes Washington the only state where workers pay a real share of their own coverage.
Knowing where your money goes and what it buys puts you in a stronger position if you ever have to file a claim. If a workplace injury has left you unable to return to work, learn how workers' comp interacts with disability benefitsFinancial assistance provided to individuals who are unable to work due to a disability, such as Soc... and estimate your potential SSDI payment so you know what to expect next.
Frequently Asked Questions
Do employees really pay for workers' comp in Washington?
Yes. Washington is the only state where workers routinely pay a meaningful share of the premium, about 24% on average, through payroll deductions. Your employer covers the rest and handles the reporting with L&I.
Can my employer make me pay part of my workers' comp?
Your employer can deduct up to 50% of the Medical Aid, Supplemental Pension, and Stay at Work funds from your pay. It cannot charge you anything for the Accident Fund. Some employers choose to pay the full premium themselves and deduct nothing.
How much is Washington workers' comp in 2026?
For 2026, the average rate is about $1.50 per $100 of payroll before retro refunds, a 4.9% increase over 2025. Your actual cost depends on your industry's risk class and your employer's claims history, so rates vary widely by job.
Is Washington a monopolistic workers' comp state?
Yes. Washington is one of four monopolistic states, along with North Dakota, Ohio, and Wyoming. Employers must buy coverage from the L&I State Fund or qualify to self-insure. Private workers' comp policies are not sold in the state.
Can I get workers' comp and SSDI at the same time in Washington?
Yes, but your combined benefits cannot exceed 80% of your average earnings before the injury. If they do, Social Security reduces your SSDI until your workers' comp benefits end or decrease.
Who pays for workers' comp if I volunteer?
Volunteers are not automatically covered. Nonprofits and government organizations can buy "Medical Aid Only" coverage for volunteers and pay 100% of that premium. It covers medical costs only, not wage replacement.
