On September 16, the Department of Labor & Industries (L&I) released proposed workers’ compensation rates for 2026. The average rate will go up by 4.9%. For the third straight year, L&I is using reserves to buy down the rate to prevent a higher average rate hike. Once again, city first responders are seeing double-digit increases that required L&I to cap the increase. Final rates are expected to be adopted by November 26 and go into effect on January 1, 2026.

Several factors driving the rate increases in 2026 include wage inflation and the significant cost of presumptive PTSD claims. The 2026 average rate increase would have been nearly 13% had the department not used reserves to buy down the rate.

Some individual job classes important to cities will see higher rate increases than the average, especially for first responders. For the third year in a row, the rate increases for police and firefighters were capped at +15%. According to L&I, without the caps, the rate increases for first responders would have been two to four times higher in 2026.

Here is a look at the rate increases for some city job classes in the proposal:

The dramatic rate increases for first responders are once again largely driven by presumptive PTSD claims. According to L&I, in 2024 (the most recent data year) less than 3% of first responder claims were for PTSD, but those accounted for about 34% of claim costs. The average first responder PTSD claim costs around $828,000. AWC is continuing to work with L&I and the Legislature to find a way to ensure first responders get their mental health care needs met in a timely fashion, while also controlling skyrocketing claims costs.

Individual cities’ premiums are determined by rates based on the type of work performed and then multiplied by that city’s experience factor. A city’s experience factor can go up or down based on claim history and costs.

Members of AWC’s Retro Program can request their jurisdiction’s rate by contacting Retro staff.

Written comments on the proposed 2026 rates can be sent to JoAnne.Attwood@Lni.wa.gov by 5 pm on October 30. There will also be three public hearings on the proposed rates where cities can offer comments: