HOUSE BILL REPORT
HB 1788
As Reported by House Committee On:
Labor & Workplace Standards
Appropriations
Title: An act relating to workers' compensation benefits.
Brief Description: Concerning workers' compensation benefits.
Sponsors: Representatives Richards, Bronoske, Berry, Wylie, Fosse, Taylor, Ormsby, Nance, Salahuddin, Pollet and Obras.
Brief History:
Committee Activity:
Labor & Workplace Standards: 2/12/25, 2/19/25 [DPS];
Appropriations: 2/24/25, 2/27/25 [DP2S(w/o sub LAWS)].
Brief Summary of Second Substitute Bill
  • Consolidates the worker's compensation calculation for workers who are permanently or temporarily totally disabled, and for workers' surviving spouses, and standardizes payments between married and unmarried workers.
HOUSE COMMITTEE ON LABOR & WORKPLACE STANDARDS
Majority Report: The substitute bill be substituted therefor and the substitute bill do pass.Signed by 6 members:Representatives Berry, Chair; Fosse, Vice Chair; Scott, Vice Chair; Bronoske, Obras and Ortiz-Self.
Minority Report: Do not pass.Signed by 3 members:Representatives Schmidt, Ranking Minority Member; Ybarra, Assistant Ranking Minority Member; McEntire.
Staff: Benjamin McCarthy (786-7116).
Background:

Under the Industrial Insurance Act (Worker's Compensation Act), a worker who is injured in the course of employment is entitled to certain benefits.

 

Worker's Compensation Payment for Total Disability.

A worker who is permanently or temporarily totally disabled—meaning incapacitated from performing any gainful occupation—or a worker's surviving spouse, is entitled to compensatory benefits based on the following percentages of the worker's monthly wages, from all employment, at the time of injury:

     

Worker's Status: Unmarried

Percentage of Worker's Wages

Worker's Status: Married

Percentage of Worker's Wages

Unmarried with no children

60 percent

Married with no children

65 percent

Unmarried with one child

62 percent

Married with one child

67 percent

Unmarried with two children

64 percent

Married with two children

69 percent

Unmarried with three children

66 percent

Married with three children

71 percent

Unmarried with four children

68 percent

Married with four children

73 percent

Unmarried with five or more children

70 percent

Married with five or more children

75 percent

 

Payments to a Person Who Has Legal Custody of an Injured Worker's Child.

If a worker, or a worker's surviving spouse, does not have legal custody of a child who is entitled to compensation under the Worker's Compensation Act, payments are made to the person who has legal custody of the child.  A child is entitled to compensation if the child is:

  1. the worker's natural born child, posthumous child, stepchild, legally adopted child who was adopted prior to the injury, child who was conceived before but born after the injury, or dependent child who the worker has legal custody and control of; and
  2. is under age 18, under age 23 and enrolled in a full-time course at an accredited school, or over age 18 but is a dependent because of a disability.
Summary of Substitute Bill:

Worker's Compensation Payment for Total Disability.

Workers' compensation claims with a date of injury or disease manifestation on or after July 1, 2026, that result in a determination of permanent or temporary total disability, shall entitle the worker to receive:

  1. compensation equal to 100 percent of the employer's payment or contribution for health care benefits, unless the employer continues payment or contributions for these benefits at the same level as at the time of injury; and
  2. a percentage of the worker's wages, excluding the employer's payment of contribution for health benefits.  The calculation of the percentage of wages that the worker is entitled to are as follows:

 

Worker's Status

Percentage of Worker's Wages

Unmarried with no children

60 percent

Unmarried with one child or

Married with no children

65 percent

Unmarried with two children or

Married with one child

67 percent

Unmarried with three children or

Married with two children

69 percent

Unmarried with four children or

Married with three children

71 percent

Unmarried with five children or

Married with four children

73 percent

Unmarried with six or or more children or

Married with five or more children

75 percent

 

Payments to a Person Who Has Legal Custody of an Injured Worker's Child.

A person who has legal custody of a child who is entitled to compensation under the Worker's Compensation Act is paid an amount equal to 2 percent of the worker's wages, excluding payments for health care benefits.  The payment to the injured worker or the worker's surviving spouse is reduced by the amount of the payment made to the person who has legal custody of the child.

Substitute Bill Compared to Original Bill:

The substitute bill changes the application of the new wage and health care benefit calculation to claims with dates of injury or disease manifestation that occur on or after July 1, 2026. 

 

The substitute bill adds "or more" to the number of children that a worker must have to receive 75 percent of the worker's wages, to signify that the 75 percent rate is the maximum rate of compensation.

Appropriation: None.
Fiscal Note: Preliminary fiscal note available.  New fiscal note requested on February 20, 2025..
Effective Date of Substitute Bill: The bill takes effect on July 1, 2026.
Staff Summary of Public Testimony:

(In support) This protects workers and their families by helping them maintain health care coverage after an injury.  Ensuring injured workers can maintain coverage and maintain relationships with current providers is vital to ensuring that these workers recover fully and quickly.  Increasing the payment parity between married and unmarried workers is good and equitable.  If there are concerns about attorney's fees being charged on the health benefit, there are other methods besides prohibiting fees:  fee costs can be shifted by statute.

 

(Opposed) The worker's compensation program is failing.  Washington has the most generous benefits, but 16 percent of cases end in total disability, and that rate is growing.  This is bad for workers because it increases worklessness and pension costs.  This is a piecemeal approach when what the worker's compensation program really needs is a thorough audit.  Giving workers 100 percent of the employer's payment or contribution for health care benefits may be good, but not if attorneys get a significant cut of that amount.

Persons Testifying:

(In support) Representative Adison Richards, prime sponsor; Minna Long, Washington State Building and Construction Trades Council; Chris Ellis, Bricklayers and Allied Craftworkers Local 1; Ray Dumas, OPCMIA Local 528; Joe Kendo, Washington State Labor Council, AFL-CIO; Brenda Wiest, Teamsters 117; and Rachel Hamar, Washington State Association for Justice.

(Opposed) Rose Gundersen, WA Retail Association; and Lauren Gubbe, Associated General Contractors of Washington.
Persons Signed In To Testify But Not Testifying: None.
HOUSE COMMITTEE ON APPROPRIATIONS
Majority Report: The second substitute bill be substituted therefor and the second substitute bill do pass and do not pass the substitute bill by Committee on Labor & Workplace Standards.Signed by 21 members:Representatives Ormsby, Chair; Gregerson, Vice Chair; Macri, Vice Chair; Berg, Bergquist, Caldier, Cortes, Doglio, Fitzgibbon, Leavitt, Lekanoff, Manjarrez, Peterson, Pollet, Rude, Ryu, Springer, Stonier, Street, Thai and Tharinger.
Minority Report: Do not pass.Signed by 8 members:Representatives Couture, Ranking Minority Member; Connors, Assistant Ranking Minority Member; Penner, Assistant Ranking Minority Member; Schmick, Assistant Ranking Minority Member; Burnett, Corry, Dye and Marshall.
Minority Report: Without recommendation.Signed by 1 member:Representative Keaton.
Staff: Xianyu Li (786-7094).
Summary of Recommendation of Committee On Appropriations Compared to Recommendation of Committee On Labor & Workplace Standards:

The second substitute bill makes the following changes:

  • removes the provision allowing the worker to receive 100 percent of health care benefit contributions rather than treating those contributions as wages; 
  • applies provisions related to payments made to persons with legal custody of an injured worker's children only to claims with a date of injury or disease manifestation occurring on or after July 1, 2026; and
  • adds a null and void clause.
Appropriation: None.
Fiscal Note: Available.  New fiscal note requested on February 24, 2025.
Effective Date of Second Substitute Bill: The bill takes effect on July 1, 2026. However, the bill is null and void unless funded in the budget.
Staff Summary of Public Testimony:

(In support) Substitute House Bill 1788 reduced the fiscal impact significantly.  There are workers who are in support of this bill.  This bill will bring significant benefit to injured single working parents and their families.  The equity consideration in the substitute bill is deeply appreciated.  In Washington 25 percent of the worker's compensation is paid by worker's contribution.  Employers pay for the 75 percent left, which is a middle level percentage rate among states.  Currently, a single working parent receives 3 percent less than one with a spouse.  This bill will fix this issue.

 

(Opposed) Based on the fiscal note for House Bill 1788, this bill will lead to an increase for employers to pay for worker's compensation benefits.  Washington has the fourth highest worker's compensation benefits per worker per year.  There is no revised fiscal note and not enough research on how to prevent worker injury.

Persons Testifying:

(In support) Minna Long, Washington State Building and  Construction Trades Council; Ray Dumas, OPCMIA Local 528; Joe Kendo, Washington State Labor Council, AFL-CIO; and Daniel Goodman, Washington State Association for Justice.

(Opposed) Patrick Connor, NFIB; Carolyn Logue, Associated Builders and Contractors-Inland Pacific Chapter; and Rose Gundersen, WA Retail Association.
Persons Signed In To Testify But Not Testifying: None.