Workers' Comp Retro Program

L&I workers’ comp rates

Every local jurisdiction pays insurance premiums for workers’ comp to Labor & Industries (L&I). Premiums are determined by rates based on the type of employee work performed, and then multiplied by the jurisdiction’s experience factor. A jurisdiction’s experience factor can go up or down based on claim history and costs.

2025 L&I rates announced

Labor & Industries (L&I) released their workers’ compensation premium rates for 2025. L&I rates have increases an average of 3.8%. This average value masks a marked increase in rates for some city-related work groups. Rates for law enforcement, firefighters, public works, and parks have all increased, with law enforcement and firefighters seeing double-digit increases.

For employers that do not elect to cover their employees' portion of premiums, the increases below will be shared by employer and employees.

Base rates by worker type

How are L&I rates determined?

L&I rates are calculated by taking a five-year history of claim costs for each worker type and projecting the amount of premiums to be collected in the following year.

Several factors driving the rate increases in 2025 include setting rates below actuarially indicated levels in 2024, rising claims care costs, and the significant cost of presumptive PTSD claims. L&I is again proposing using contingency reserves to dampen rate increased this year; per their actuarial studies their break-even rate increase for 2025 is 5.5%. For law enforcement and firefighter risk classes, the department capped the rate increase at 15%. The indicated rate increases for these two risk classes are two to four tines the proposed increases.

If you have questions about your rates, contact your AWC Retro staff. More information is available on the L&I website.

Individual experience factors and rates

Experience Rate Calculation sheets containing your proposed rates for 2025 will be released by the end of the month. Retro staff will provide those directly to your AWC Retro contact once L&I makes them available. Your experience factor (EF) has a direct and significant impact on the premium rates you pay. While L&I accounts for workers and costs state-wide when calculating base rates, your experience factor calculation considers only the workers in your organization and any injuries that occurred over a three-year period.

What does the EF mean to you?

If your EF is above 1.00, you are paying that percentage above 1.00 as a multiplier to the L&I rate recently issued. For example, if your EF is 1.20, you will add 20% to the L&I rate. Many AWC Retro Program members have an EF below 1.00 and therefore, their composite rates are decreasing in 2023. An AWC Retro member who has an EF of 0.70 would see a discount on their base rates by 30%!

Get informed and get proactive

We encourage you to review your current proposed rates. Understanding what is behind the numbers is key to making informed decisions to improve outcomes. To learn more about how claims costs impact your rates, how organizational decisions impact claims costs, or for information on how to reduce your EF in the future, contact AWC AWC Retro staff.