Experience factor

Each year, the Department of Labor & Industries calculates your Experience Factor (EF) based on the costs of claims that occurred within a three-year period. These costs are then compared to the expected amount of claim costs that L&I calculated would occur at your organization. For every hour worked, you are charged a rate to pay in workers’ compensation premiums. Additionally, for every hour worked, L&I captures a claim cost in the background using the expected loss rate. The expected loss rate is specific to the type of work performed and is higher for firefighters than it is for an office employee. The lower your claim costs and injury types in relation to the expected claim costs, the better your grade.

When reviewing your grade card, pay special attention to claims listed as “MED ONLY”. These claims will not be charged to your EF for costs up to $2,820. It is like getting accident forgiveness on your car insurance. However, when the first dollar of time loss is paid to your employee, you receive 100% of the costs.

For more help or information on loss prevention and getting your injured employees back to work, contact any Retro staff member at retro@awcnet.org.