Bill Would Establish Good Faith Requirement for Self-Insured Employers, TPAs

Self-insured employers and their third-party administrators would owe injured workers a duty of good faith and fair dealing, under legislation introduced in the Washington state Legislature. Senate Bill 5524, by Sen. Kevin Van De Wege, D-Sequim, and identical companion measure House Bill 1521, by Rep. Dan Bronoske, D-Lakewood, would create a new law declaring employers or their TPAs violate the obligation by inducing a worker to accept less in benefits than entitled to by law, “or otherwise fails to act in good faith.” The bills would require the Department of Labor and ...