The Department of Labor & Industries (L&I) updated its rules website
Rules filed November 30, 2021
Division: Insurance Services (Employer Services)
Topic: Adoption (CR-103) – Industrial Insurance Premium Rates for 2022
Brief Description: The purpose of this rulemaking is to establish premium rates and experience rating parameters for calendar year 2022. Washington law requires Labor & Industries (L&I) to adjust rates to ensure solvency of the accident, medical aid, and supplemental pension funds. Law also provides that premium rates vary by industry and degree of hazard. L&I adopted a 3.1% overall average premium rate change to workers’ compensation insurance premium rates beginning January 1, 2022, and adjusting each industry risk classification rate to align with expected losses.
This adoption is an attempt to minimize the economic burden on Washington employers who continue to deal with uncertainties associated with the pandemic and the global economy by adopting an overall average rate increase of 3.1% to ensure adequate premiums to cover expected losses for 2022 claims. This increase is far below the indicated break-even rate. This average rate increase is required to address a projected shortfall in the supplemental pension fund (a “pay as you go” fund) that pays for cost of living adjustments for all pensions. L&I is able to hold rates down for this upcoming year as a result of an ongoing effort to gradually increase the system’s contingency reserve (surplus).
This adoption also amends the experience rating and retrospective rating rules (WAC 296-17-870 Evaluation of actual losses and WAC 296-17B-530 Determining case incurred losses) to explain that all accepted claim losses resulting from a public health emergency will not be included in the determination of an employer’s experience modification factor or in an employer’s retrospective rating adjustment calculation. An employer will not lose their claim free discount as a result of an allowed public health emergency injury claim.
In addition, this adoption repeals WAC 296-17-89509 Classification 2103 Fulfillment centers rate and adds that classification rate into the base rate rule WAC 296-17-895 Base rates.
Lastly, this adoption is also notice that the Director intends to transfer the amount of the accident and medical-aid funds combined that exceed 10% of funded liabilities as required by RCW 51.44.023.
Effective date: January 1, 2022
CR-103 Adoption
Adoption Language
Concise Explanatory Statement (CES)
More information about 2022 workers’ compensation rates is available at www.Lni.wa.gov/rates.
Division: Field Services and Public Safety (Elevator Program)
Topic: Proposal (CR-102) - Elevator Fee Increase (FY22)
Brief Description: The purpose of this rulemaking is to propose a 5.79% fee increase for inspections of conveyances and other Elevator Program public safety activities in chapter 296-96 WAC, Safety regulations and fees for all elevators, dumbwaiters, escalators and other conveyances. This is the Office of Financial Management’s maximum allowable fiscal growth factor rate for fiscal year 2022. The current fee levels are not enough to cover current program expenses. A fee increase is needed to ensure the program’s revenues match expenditures; otherwise, service levels may need to be reduced.
Public hearing date: January 5, 2022 (Audio/visual hearing only)
Written comments due: January 5, 2022
Intended adoption date: February 15, 2022
CR-102 Proposal
Proposal Language
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