Washington State increases Worker Compensation rates an average 3.1% for 2022

Sep 22, 2021

Washington State Labor and Industries (L&I) has published its 2022 rate schedule with an average increase of 3.1% on businesses in Washington.

The increase is in despite the state receiving record revenues, bringing in $2.6 billion more tax during the pandemic, and businesses struggling to keep their doors open under government mandated shutdowns.

The rate increases range from -18% (a tax cut) to a 29% increase. Notably, many low-risk service industries are seeing double digit increases, including student volunteers and Information Technology computing personnel.

Kris Johnson, president of the Association of Washington Business, issued the following statement regarding the state Department of Labor & Industries’ proposed 2022 workers’ compensation insurance tax rates:

“The proposed increase in workers’ compensation insurance rates by an average 3.1% is discouraging news for employers and employees who are struggling to survive during the pandemic. While it may be characterized as a small increase, we cannot forget this remains an immensely challenging time for many small businesses.”

The state should not be increasing taxes on small business during a pandemic, especially since the state tax income is at record levels. Since 2008, the state has seen record revenue growth of 39.4% and is the highest in the county.

State officials should be considering tax cuts, not tax increases during this fragile economic period.