Washington collects worker’s comp premiums based on hours worked. The U.S. Bureau of Labor Statistics (BLS), which produces the only report that compares rates on the number of hours worked, found that Washington and the other western states have been consistently higher in their national average for premium rates. This strongly questions L&I’s assertion that Washington is a low cost state for worker’s comp.

Recently, L&I director Paul Trause announced a planned workers&Mac226; comp rate increase of 3.7 percent in 2005. This proposal will be the subject of hearings across the state. This increase comes on the heels of an average 9.8 percent increase in 2004 and a 29 percent average rate hike in 2003.