The state Department of Labor & Industries (L&I) said Monday there will be no increase for the average workers’ compensation premium rate in 2021 “even though our projections for next year’s claims indicate rate increases are needed.”
L&I Director Joel Sacks said in a statement the agency has “the funds for existing claims and contingency reserves to help during tough times, like today.”
In recent years, the agency said, it has made small reductions but avoided larger cuts in rates, in order to build up reserves to the fund that pays workers’ compensation claims in the state for companies that don’t self-insure. Last year, there was a 0.8% decrease in the average amount employers paid for the coverage. L&I cut rates by 5% in 2019 and 2.5% in 2018, according to L&I.
While there won’t be an overall rate change for 2021, individual employers may see their rates go up or down, depending on their recent claims history and changes in the frequency and cost of claims in their industry risk classes, the agency said.