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Independent Contractors. All workers in Washington are entitled to workers' compensation unless they fit strict exemption definitions. Make sure you understand your business' requirements for covering workers, including independent contractors.
L&I manages all claims and pays benefits out of an insurance pool called the Washington State Fund. The fund is financed by premiums paid by employers and employees, not by general revenue taxes.
Illegal activities: Employee injuries due to illegal activities at the worksite are not covered by an organization's workers' compensation insurance policy. Policy violations: Workers' comp does not cover employees who are injured while violating company policies, procedures and protocols.
Only a few worker categories are sometimes exempt, such as agricultural workers and real estate agents. This exemption can also apply to certain types of business owners ? sole proprietors, independent contractors, and members of limited liability companies (LLCs).
The Department of Labor & Industries (L&I) is a diverse state agency dedicated to the safety, health, and security of Washington's 3.3 million workers.
Workers' Compensation Insurance in Washington State Workers' compensation insurance, also known as workman's comp or workers' comp, gives your employees benefits that can help them recover from a work-related injury or illness. Washington workers' compensation coverage is only available through the state fund.
Only actual hours worked are used when determining the WC calculation. Vacation, sick, holiday pay and so on, should not be counted, even if it's paid leave. The formula for WC calculations is: rate x hours worked. 80 hours are worked during the pay period.
If the proposed rate increase is adopted, the average rate per $100 of payroll in 2023 will be $1.42, about what it was in 2020. Workers will continue to pay on average about a quarter of the premium, a similar percentage to that paid in 2022.
Workers' Comp Exemptions in Washington. Business owners, partners, members and officers are generally excluded from workers' comp coverage in Washington. The state has limits on the number of owners that can be excluded and the level of control required in order to be considered an owner.