Does Washington require workers’ compensation insurance?
Yes. Washington requires workers' compensation from the first worker: RCW 51.12.010 covers all employments in the state, and RCW 51.12.020 lists the only exclusions. Coverage comes only from the Department of Labor & Industries (L&I) state fund or certified self-insurance, because Washington does not allow private workers' comp, and premiums are charged per hour worked rather than per $100 of payroll. Sole proprietors, partners, and qualifying LLC members and corporate officers are exempt unless they elect coverage.
Updated . Written by Andre Beukers, principal at Redoubt, a commercial insurance agency in Salt Lake City, not a government office.
How many employees before Washington requires workers' comp?
One. Washington's Industrial Insurance Act is written to embrace all employments within the state's jurisdiction, so there is no head-count floor: one full-time or part-time worker brings the business in. RCW 51.12.020 lists the only exclusions, and they are narrow: some household and private-home work, a child under 18 on the parents' family farm, and a few named trades such as newspaper carriers and booth renters.
Source: RCW 51.12.010, checked .
Which owners, officers, and family members are exempt in Washington?
Sole proprietors and partners are excluded automatically (RCW 51.12.020(5)). A corporate officer is exempt if they are a bona fide officer and shareholder who exercises substantial control in daily management; a public company's officers must also be directors and do no manual labor. A non-public corporation may exempt up to eight such officers regardless of manual labor, or any number if all the exempted officers are related by blood or marriage within the third degree.
LLC members follow the management structure. Per L&I, members of a member-managed LLC are generally excluded; in a manager-managed LLC, up to eight member-managers with substantial control are, or all of them if related within the third degree.
Source: RCW 51.12.020, checked .
What happens to a Washington employer with no workers' comp?
An uninsured employer can owe a penalty of up to the greater of $1,000 or double the premiums incurred before it secured coverage, and if a worker is hurt while the business is uninsured, a further penalty of 50% to 100% of that claim's cost (RCW 51.48.010). L&I also bills the unpaid premium itself, with penalties and interest, for any worker who should have been reported.
Operating without coverage is also a crime. Under RCW 51.48.103, doing business without a certificate of coverage is a gross misdemeanor for the employer and any officer who permits it, and a class C felony after L&I revokes the certificate. RCW 51.48.020 makes knowingly underreporting hours to evade premium a class C felony.
Source: RCW 51.48.010, checked .
Who enforces workers' comp in Washington?
The Washington State Department of Labor & Industries is both the insurer and the enforcer. An employer opens its account through its state business license application, and an L&I account manager classifies the business and sends the certificate of coverage. L&I's employer line is 360-902-4817.
Source: L&I, How to Get a Workers' Compensation Account, checked .
Where do Washington employers buy coverage?
Only from L&I, unless the employer qualifies as a self-insurer. Washington is a monopolistic state: RCW 51.14.010 gives an employer two ways to secure coverage, insuring with the state fund or qualifying as a self-insurer, and L&I says private workers' compensation is not allowed. There is no private carrier to shop.
Reporting is quarterly: RCW 51.16.060 requires each state-fund employer to report hours and payroll by risk class, and pay premium, by the last day of January, April, July, and October.
Source: L&I, Do I Need a Workers' Comp Account?, checked .
Who sets the class codes and rates in Washington?
L&I does its own rating, not NCCI. RCW 51.16.035 directs L&I to classify every occupation by hazard and fix its base rates, and it runs more than 300 risk classifications. Each class carries hourly base rates; L&I adjusts them by the business's experience factor, which gives a premium rate per hour worked, not per $100 of payroll.
Workers pay part of the premium. RCW 51.16.140 requires a state-fund employer to deduct from each worker's pay half of the medical aid amount for their risk class, and makes any other premium deduction from wages a gross misdemeanor.
Source: L&I, Calculating Premium Rates, checked .
Is there an exemption or waiver form in Washington?
No. Owners have no waiver to file; the exclusions apply automatically. The form runs the other way: an exempt owner, partner, qualifying corporate officer, or LLC member who wants to be covered files L&I's Application for Elective Coverage (F213-042-000). The business needs an L&I account in good standing first.
Source: L&I, Owner and Officer Coverage, checked .
Working around a Washington L&I account
L&I writes every Washington state-fund workers' comp account, so the account itself is opened through the state business license. Redoubt can help with what sits around it: whether staff working in other states need a policy there, and the general liability certificate a general contractor asks for next to your L&I certificate of coverage.
This is general insurance information, not legal advice or a coverage determination. Statutes, agency instructions, policy forms, and the facts of the business control.
Workers’ comp requirements in every state
Each state page gives the employee threshold, the owner and officer exemptions, the penalty for going without, the rating bureau, the market, the enforcing agency, and the exemption filing, each with its statute or agency source.
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The hub, and the Washington pages that go deeper
Washington workers’ comp FAQ
Can I buy Washington workers' comp from a private insurance company?+
No. L&I says Washington does not allow private workers' compensation coverage. An employer insures with the L&I state fund or, if it qualifies, becomes a certified self-insured employer under RCW 51.14.010.
Do I need Washington workers' comp for one part-time employee?+
Yes. RCW 51.12.010 covers all employments, with no minimum head count. A part-time worker's premium follows the hours you report for them.
I'm a sole proprietor with no employees. Do I need an L&I account?+
No. Sole proprietors and partners are excluded under RCW 51.12.020, and there is no waiver to file. If you want coverage for yourself, you can open an account and file L&I's Application for Elective Coverage (F213-042-000). Once you hire, an account is required.
Does paying a subcontractor on a 1099 mean I don't cover them?+
No. L&I says a 1099 has no bearing on Washington coverage. The worker must pass every part of L&I's independent contractor test, seven parts for construction, or their hours go on your quarterly report.