Decertified Self-Insured Employers & Municipalities Rulemaking

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washington state department of labor and industries - claims and insurance

Self-Insurance

The Department of Labor & Industries (L&I) updated its rulemaking website

Rules filed April 14-15, 2026


 

Division: Insurance Services – Self-Insurance Program

Topic: Proposal (CR-102) – Requirements of Decertified Self-Insured Employer Groups and Municipalities (HB 1275 Implementation)

Brief Description: The purpose of this rulemaking is to implement House Bill 1275 (HB 1275), Chapter 57, Laws of 2025, under Chapter 296-15 WAC, Workers' compensation self-insurance rules and regulations. HB 1275 ensures decertified self-insurers remain liable for their self-insured claims and reimburse the Department of Labor & Industries (L&I) for all payments made. HB 1275 also directs L&I to adopt rules regarding continuing obligations of decertified self-insured employers and methods of how the self-insured employer shall meet financial obligations.

In 2023, the legislature passed Substitute House Bill 1521, establishing a duty of good faith and fair dealing for certain self-insured employers, which included municipal and group employers. If a municipal or group self-insured employer accrues three violations within a three-year period, the law says they shall be decertified. Since municipal and group self-insurers are not required to provide surety nor pay into the insolvency trust fund, this presented a funding issue if this situation ever occurred. To cover this gap, L&I proposed legislation in 2025, which passed as HB 1275, creating RCW 51.14.500, and establishing the direction and authority for L&I to adopt these rules.

Public hearing date: May 27, 2026 (virtual/telephonic)
Written comments due by: May 31, 2026, 5:00 p.m.
Intended adoption date: June 23, 2026

Additional information about this rulemaking:
CR-102 Proposal
Proposal Language
Preliminary Cost Benefit Analysis (CBA)