Washington - A Monopolistic State

Washington was one of the first in 1911 to implement workers compensation law. In Washington's industrial insurance system, state government, through the Department of Labor and Industries (DL&I), acts as both insurer and administrator of the workers' compensation system.

Department of Labor and Industries monitors and oversees the actions and decisions of its own insurance operation, called the "state fund." The Washington Legislature, in 1949, created an independent, administrative mechanism for appealing a departmental decision. The Board of Industrial Insurance Appeals hears appeals of any Department of Labor and Industries decisions and settles claim disputes.

The Washington Legislature granted individual employers the right to self-insure for workers compensation claims in 1971. It also established the Department of Labor and Industries responsibility for monitoring the self-insurance activities of these employers and to assure their compliance with state workers' compensation laws and regulations. During this legislative session injured workers benefits were increased and injured workers compensation was indexed to inflation. It is reported that on-the-job injuries and the number of injured worker claims has declined since 1990.

As a monopolistic state, Washington employers purchase workers compensation coverage directly through the L & I. Find more information on Washington's workers compensation system on the Washington Work Comp Rules and Laws page.