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Self-Insurance
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Penalty increases for violations of workers' compensation laws go into effect on July 1, 2023
In 2020, the Legislature enacted a law increasing the statutory penalties for violations of workers’ compensation laws and providing for periodic adjustments for inflation. Prior to the 2020 law, most of the penalty amounts had not increased since the 1980s. Under RCW 51.48.095, penalties with set dollar amounts are to be adjusted for inflation every three years. The department provided early notification in December, and is sending this reminder that the first change takes effect on July 1, 2023.
The adjustment is 16.15%. Updated penalty information can also be found on the L&I website.
The law provides for increasing penalties by comparing the annual changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) in the Seattle, Washington area over the three-year period prior to the adjustment. The federal Bureau of Labor Statistics (BLS) compiles the CPI-W data. This first adjustment is based on the change in the annual CPI-W in the Seattle area in 2020, 2021, and 2022.
The information below lists all the penalties that have an inflationary adjustment, along with the current penalty amount and the adjustment based on the CPI-W change from 2020 through 2022.
Violation
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Description
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Current Penalty Amount
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Adjusted Penalties Effective July 1, 2023
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Additional information
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Failure to register (RCW 51.48.010)
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This penalty applies to businesses that do not open a workers’ compensation account prior to operating with covered workers.
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The greater of:
• $1,000; or
• 2 times the premiums owed for 4 quarters before obtaining coverage.
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• $1,161; or
• 2 times the premiums owed for 4 quarters before obtaining coverage.
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For more information on the requirement to open a workers’ compensation account, see rules under chapter WAC 296-17 and information on L&I website.
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Self-Insurer delaying or refusing to pay benefits (RCW 51.48.017)
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This penalty applies to a self-insurer’s delay or refusal to pay benefits.
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The greater of:
• $1,000; or
• 25% of the amount due or each underpayment.
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$1,161
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Stop work order
(RCW 51.48.022)
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This penalty applies to businesses that violate a stop work order issued by L&I for failure to obtain workers’ compensation coverage.
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$1,000 for each day not in compliance
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$1,161
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Failure to keep records
(RCW 51.48.030)
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This penalty applies to businesses that fail to keep the required records for their covered workers.
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The greater of:
• $500; or
• 2 times the quarterly premium.
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$580
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For more information on required records, see WAC 296-17-35201 and information on the L&I website.
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Refusal to allow inspection of records (RCW 51.48.040)
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This penalty applies to businesses that don’t allow L&I to inspect their books and records or refuse to submit their books and records for inspection.
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$500
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$580
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Physician or Advanced Registered Nurse Practitioner (ARNP) requirements to file accident reports and assist injured workers
(RCW 51.48.060)
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This penalty is for physicians or ARNPs who are the first provider to diagnose a worker for an occupational injury or illness and fail to timely file an accident report with L&I or who fail or refuse to render all necessary assistance to the injured worker.
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$500
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$580
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Provider resources and information can be found on the L&I website.
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Compliance with Title 51 RCW and L&I rules (RCW 51.48.080)
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This penalty applies to a person or business that fails to comply with workers’ compensation requirements under Title 51 RCW or L&I rules.
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$1,000
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$1,161
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Willfully obtaining erroneous payments
(RCW 51.48.250)
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This penalty applies to any person, business, or other entity who willfully obtains or attempts to obtain erroneous payment or benefits.
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The greater of:
• $1,000; or
• 3 times the amount of the excess benefit or payments.
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$1,161
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