Understanding House Bill 1275: New Protections for Injured Workers When Self-Insured Employers Are Decertified
In Washington State, workers’ compensation provides essential relief for employees injured or made ill on the job. Some employers meet this obligation by self-insuring—assuming full responsibility for the costs of workers’ compensation claims. But what happens when those employers are decertified?
House Bill 1275, recently passed by the Washington State Legislature, answers that critical question—and strengthens protections for injured workers in the process.
🏛️ What Is Self-Insurance?
Washington employers must either:
- Purchase workers’ compensation coverage through the state fund (administered by the Department of Labor and Industries (L&I)), or
- Qualify as a self-insured employer, taking on the full financial responsibility for workplace injury and illness claims.
Self-insured employers can manage their own claims or hire licensed third-party administrators. Regardless, they must maintain compliance with strict L&I requirements and are responsible for lifetime benefits related to those claims—even if their certification ends.
⚖️ What Does House Bill 1275 Do?
House Bill 1275 gives L&I explicit authority to step in and continue paying injured workers when a self-insured employer or self-insurance group loses its certification.
Key Provisions Include:
- If a self-insured municipality or group is decertified, L&I will administer and pay out the claims.
- The former self-insured employer remains financially liable and must reimburse L&I through quarterly charges.
- L&I may delay decertification of a municipal employer if there’s an active third-party administrator contract that can’t legally be terminated—but the contract cannot be renewed or extended.
🤝 Why This Matters
This legislation was requested by L&I to ensure that injured workers do not lose their benefits due to employer noncompliance or decertification. It reinforces the long-standing principle that workers’ rights must be protected regardless of an employer’s financial or legal status.
Although no municipal employers have been decertified yet, L&I is now prepared to act in the best interests of workers if it happens.
👷 For Workers: Your Benefits Are Protected
If you’re injured on the job—even under a self-insured employer who loses certification—you are still entitled to receive benefits. House Bill 1275 ensures those protections remain intact.
📣 For Employers: Stay Compliant or Risk Costly Consequences
If you’re a self-insured employer, maintaining L&I certification and complying with reporting, treatment, and payment obligations is crucial. Decertification could result in ongoing financial liability and damage to your reputation and finances.
💼 Need Legal Help? We Offer Free Injury Consultations
At Althauser Rayan Abbarno, we have decades of experience representing injured workers and guiding employers through complex workers’ compensation laws. If you’ve been injured at work—or if you’re a business concerned about compliance—contact our attorneys today for a FREE injury consultation.
📞 Call us at (360) 736-1301 or
🌐 Schedule online
Althauser Rayan Abbarno | Trusted Workers’ Compensation Attorneys Serving Centralia, Olympia, and Beyond
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