Businesses, self-insured employers and other participants in Washington State’s workers’ compensation system will face higher financial penalties for violations beginning July 1, 2026, following an inflation-based adjustment required under state law. The revised penalties represent a 12.11% increase over current amounts and mark the second scheduled update since lawmakers approved the legislation in 2020.
The 2020 law introduced a framework requiring statutory penalties to be reviewed and adjusted every three years using changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Seattle metropolitan area. Before that legislation was enacted, most penalty amounts had remained largely unchanged since the 1980s. The first inflation adjustment took effect in July 2023, with the latest revision now becoming effective this year.
Under the updated schedule, penalties covering a wide range of workers’ compensation violations will increase. The minimum fine for businesses that fail to establish a required workers’ compensation account before employing covered workers will rise from $1,161 to $1,301, while the alternative calculation based on unpaid premiums remains in place. Daily penalties for violating stop-work orders will also increase to $1,301 per day.
Several other statutory penalties are also being revised. Fines related to inadequate recordkeeping, refusing inspections of business records, and certain reporting failures by physicians or advanced registered nurse practitioners will increase from $580 to $650. Penalties for noncompliance with workers’ compensation requirements under Washington law will rise to $1,301, and sanctions for knowingly obtaining improper workers’ compensation benefits or payments will likewise increase, while retaining the multiplier based on the value of the excess payment.
The Washington State Department of Labor & Industries said the updated penalty schedule is intended to maintain the effectiveness of enforcement by ensuring statutory fines keep pace with inflation. Additional guidance and detailed compliance information are available through the department for employers, self-insured organizations and healthcare providers affected by the revised requirements.
Source: Washington State Department of Labor & Industries.
