The Washington Department of Labor & Industries will increase workers’ compensation penalties to $1,301, (from $1,161) effective July 1, 2026, primarily impacting self-insurers and entities that fail to meet benefit or compliance violations.

This applies to violations such as:

• Failure to register a workers’ comp account prior to operating with covered workers
• Delayed or denied required benefits by self-insurers
• Violation of stop work orders
• Non-compliance with L&I rules, including the Medical Aid Rules and Fee Schedules
• Willfully obtaining erroneous payments

The increase is a 12.11% inflation adjustment required under a 2020 state law, which updates penalties every three years. The next adjustment is expected in 2029.