Effective July 1, 2026, all penalties for workers’ compensation violations will go up by an inflation-adjusted amount of 12.11 percent, resulting in base fine amounts rising from $580 to $650 and from $1,161 to $1,301 depending on the violation.
In 2020, Washington’s legislature passed SHB 2409, which raised penalty amounts and created automatic increases every three years based on the Consumer Price Index for urban wage earners and clerical workers in the Seattle area. This second automatic increase results in these fines for the following violations:
- Failing to open a workers’ compensation account: the greater of $1,301 or two times the premiums owed for four quarters before obtaining coverage.
- Self-insurer’s delay or refusal to pay benefits: the greater of $1,301 or 25 percent of the amount due or each underpayment.
- Violating a stop-work order: $1,301 for each day not in compliance.
- Failing to keep required records: the greater of $650 or two times the quarterly premium.
- Failing to allow the Washington Department of Labor and Industries (L&I) to inspect records: $650.
- Failing to comply with workers’ compensation rules: $1,301.
- Willfully obtaining or attempting to obtain erroneous payment or benefits: the greater of $1,301 or three times the amount of the excess benefit or payments.
Tips: Penalties for violations of Washington’s workers’ compensation requirements can add up quickly. If you’re a member, reach out to your Vigilant claims manager, safety professional, or Vigilant Law Group employment attorney if you have any concerns about your compliance and we’ll work to get you the help you need.
Not partnering with us yet? Every workplace is different, which is why we offer four distinct workers’ comp programs to fit your unique needs. Connect with us today to find your right path and gain a dedicated partner focused on your compliance, your savings, and—most importantly—your employees’ safety.
