L&I offers assistance to help you reduce workers’ comp costs by focusing on workplace safety, understanding business requirements, and effectively managing your claims. In addition, you’ll be able to take advantage of L&I’s employer incentive programs.
Focus on safety
The best way to control premium costs is to prevent injuries from occurring in the first place. Build a strong safety program to avoid accidents and lower your future rates.
Establish a strong safety plan
Keep your workplace safe by getting your required Accident Prevention Program (APP), safety meetings, and safety committee into place.
Request a free DOSH consultation
L&I's Division of Occupational Safety and Health (DOSH) offers confidential advice and assistance to Washington businesses. Request a consultation for any of the following:
- Safety and Health: A safety and health consultant can assist with building your safety program, training, identifying and controlling hazards, and following applicable safety rules.
- Risk Management: A risk management consultant can show you how a claim affects your premiums.
- Ergonomic: Ergonomic specialists can help you find solutions to prevent sprain and strain injuries.
Know your requirements
Understanding your reporting and recordkeeping requirements can help you avoid unexpected premiums and penalties. Sign up for an
Check your risk classes
Watch
File your quarterly reports on time
Be prepared to file quarterly reports and pay your insurance premiums on time. You have a month after the quarter ends to file. Late filings are charged fees and penalties. If you need help paying your workers’ comp premiums, contact L&I’s Employer Assistance Program to arrange a payment plan.
Keep careful payroll records
Ensure your business is meeting recordkeeping requirements by keeping accurate payroll and time records on each employee for at least three years. If there are
- The
risk class description allows a division of hours and - You keep records on each employee for the hours worked in each risk class. If you don’t keep adequate records, all hours must be reported in the highest-rated risk class in which the employee worked.
NOTE: An employee's hours can’t be divided between
Understand responsibility for independent contractors
If you enter into a contract with an independent contractor, you may be required to provide coverage during the period of the contract. A1099 form has no bearing on Washington workers’ comp coverage. Not understanding requirements can leave your business vulnerable to unexpected premiums, penalties, and even lawsuits from independent contractors and their employees. For more information, refer to the Independent Contractor Guide or contact our Workers’ Compensation Coverage Determinations Unit at 360-902-6868.
Manage your claims
You can take steps to control claim costs and affect your future premiums. Sign up for a
Use My L&I to monitor your claims
Know your protest and appeal rights
When L&I allows or closes a worker’s claim, we will send you the decision (also called an “order”). It’s important to know that you have the right to protest or appeal a claim decision. If you disagree with a decision, you must send a written protest or appeal before the deadline specified in the order. Once the deadline has passed, L&I can’t change the decision.
Provide light-duty work
Your rates will be affected if L&I pays the injured worker benefits beyond medical care, such as wage replacement (time-loss), pensions, or disability payments. Whenever possible, offer injured workers a light-duty job to help keep claim costs down. If you would like assistance with identifying job tasks and developing light-duty job descriptions, even before an injury occurs, contact L&I’s Early Return to Work Consultation team.
Consider Kept On Salary
If light duty is not an option, another way to avoid time-loss is to pay the injured worker their full wages and benefits while they are off work. This is called Kept On Salary (KOS). When you use KOS, L&I doesn’t pay time-loss. However, if the claim results in a permanent partial disability (PPD) award, it will still affect your rates. To find out if KOS will benefit your business, contact your account manager or a risk management consultant near you.
Report fraud
Workers’ comp fraud can increase premiums and harm your workplace culture. Find out what to look for and how to report injured worker fraud if you suspect an employee has erroneously filed a claim.
Get L&I incentives
L&I offers financial incentive programs and premium discounts for employers to businesses when you focus on safety, effectively manage claims, and help injured workers return to work in an approved job.
Earn a Claim-Free Discount
You can qualify for a Claim-Free Discount when your business has no claims, or has claims with only medical expenses paid, during the 3-year period for experience rating. The discount is applied automatically and can range from 10% to 40% off the base rate for your industry.
Get reimbursed for light duty
L&I’s Stay at Work Program reimburses eligible employers 50% of the worker’s base wages and for expenses needed to perform the light-duty work. The key requirement is a light-duty job description approved by the attending provider. To learn the steps to reimbursement, sign up for a
Hire a preferred worker
If a worker is permanently restricted from their job due to a workplace injury, they may be certified as a “preferred worker.” L&I’s Preferred Worker Program provides incentives to businesses that hire a preferred worker for an approved job. To learn the steps to hiring a preferred worker, sign up for a
Consider Retrospective Rating
If you are committed to operating a safe workplace, preventing accidents, and managing claims effectively, you may be interested in L&I’s Retrospective Rating Program (Retro). In Retro you can earn a refund of a portion of your premiums by reducing workplace injuries and lowering claim costs.