Governor Jay Inslee recently signed two bills impacting Washington workers’ compensation time-loss payments and stay-at-work reimbursements:
HB 1927: Allows injured workers who are unable to work for 7 days or more (instead of the current standard of 14 days or more) to receive time loss payments for the first 3 days of work missed due to their injury. The impact of this bill will ultimately increase the cost of time loss payments for employers, since many more injured workers will qualify for time-loss payments for the first 3 workdays missed after an injury. The effective date for this bill is July 1, 2025.
HB 2127: Increases financial incentives, such as stay-at-work reimbursements, to encourage employers to return injured workers to light-duty job positions. The length of time stay-at-work reimbursements are available under this bill will be 120 workdays (up from 66 workdays), and reimbursable wages will be $25,000 (up from $10,000). Various categories of eligible reimbursements will also increase: tuition, books, fees, and materials required for training or instruction will be $2,000 (up from $1,000); clothing will be $1,000 (up from $400); tools and equipment will be $5,000 (up from $2,500); and the workplace accommodation allowance will be $10,000 (up from $5,000). The effective date for this bill is January 1, 2025.
Tips: The importance of early return-to-work and kept-on-salary programs becomes even more relevant with the passage of these two bills. First, returning injured workers to a light duty position will not only help reduce the total number of time-loss days (if you can get them back to work within 7 days of the injury), but also increase the financial reimbursement incentives you may be eligible to receive through the stay-at-work program. Second, with the quick turnaround needed to avoid time loss payments for the first 3 days of a worker’s injury, you should develop written light duty job descriptions that can be deployed without delay. Your assigned Vigilant Washington workers’ comp claims manager can point you in the right direction; contact us for help building your light duty program.
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