L&I proposes changes in hospitality industry rates

L&I proposes changes in hospitality industry rates https://wahospitality.org/wp-content/uploads/2019/10/shutterstock_739423216-1.jpg

The Department of Labor & Industries has announced an overall 0.8 percent decrease in the average price of workers’ compensation insurance premiums across the state beginning in 2020. This is the third year in a row for an overall rate decrease. If adopted, individual employers may see smaller or larger drops depending on that employer’s industry and claims history.

For hospitality businesses, the proposed rates call for a two percent rate increase for restaurants and taverns. This category has enjoyed a rate decrease in 2018 and 2019. Catering services have a two percent rate decrease. Motels and hotels have a proposed four percent rate decrease.  See the data comparison table below for details per risk class.

Workers’ compensation insurance examines the risk of a worker getting hurt and how severe their injury might be. The higher the risk of the job, there is a higher likelihood of a worker being injured. The workers’ comp rate changes are dependent on several factors, including an industry’s risk classification, calculations to anticipate the current and future needs of claims, and the experience factors of individual employers within the risk classification.

Overall, L&I reports that because of safer work environments and its ability to return injured workers to the job, the proposed decrease would mean Washington employers, as a group, will pay a total of $21 million less in insurance premiums.

Members of the public have opportunities to comment on the 2020 proposed rates during three public hearings:

Comments in writing may be directed to Jo Anne Attwood, administrative regulations analyst, P.O. Box 41448, Olympia, WA 98504-4148.

All comments must be received by 5 p.m. Nov. 5, 2019.

More information about the proposal is available at www.Lni.wa.gov/Rates

Final rates will be adopted by early December and go into effect Jan. 1, 2020.