Report: Management Opposes Rate Hike

Monday, October 30, 2023 | 0

The majority of people testifying at a public hearing Thursday opposed a 4.9% rate increase proposed by the Washington State Department of Labor and Industries, according to a report by Center Square.

Bob Battles
(AWB.org photo)

Bob Battles, general counsel and government affairs director for the Association of Washington Business, said during the hearing that the rate increase would make it hard for businesses to operate in what is already an expensive state. Battles reportedly said that while the average increase is 4.9%, some businesses could see their rates go up as much as 20% under the proposal.

Tom Kwieciak, a lobbyist for the Building Industry Association of Washington, reportedly criticized L&I’s plan to tap into its contingency reserve fund to mitigate the extent of the rate increase.

When the department published the proposed 2024 rate information, it said it would have needed something closer to a 10% increase if not for dipping into the reserve funds. The department also noted this is the fourth consecutive year it has drawn on the reserve to avoid a larger increase.

Kwieciak said relying on the reserve funds masks real costs that are building in the system. He recommended that L&I consider changing the formula for cost-of-living increases so they’re not indexed to changes in the state’s average wage.

Lauren Gubbe, director of the workers’ compensation retrospective group program for the Associated General Contractors of Washington, reportedly agreed and suggested that cost-of-living increases should be based on changes in the Consumer Price Index.

Joe Kendo, chief of staff for the Washington State Labor Council, testified in support of the proposed 2024 rates.