Workers’ Comp., Min. Wage Rates Increasing Jan. 1

December 13, 2023

Workers’ Comp., Min. Wage Rates Increasing Jan. 1

It will cost more to employ people beginning January 1, 2024. That’s when Washington state’s minimum-wage rate shoots to $16.29 an hour and workers’ compensation premium rates spike by an average 4.9%. “The state minimum wage applies to workers age 16 and older,” according to a news release issued by the Department of Labor & Industries (L&I). “ Under state law, employers can pay 85 percent of the minimum wage to workers ages 14-15. For 2024, the wage for that younger group will be $13.84 per hour.” In another news release sent by L&I, explaining more about workers’ compensation premium rates, it said, “The increase, which takes effect Jan. 1, 2024, means employers and workers will jointly pay, on average, an additional $65 a year in workers’ compensation insurance premiums for each full-time employee. Similar to last year, workers will pay about a quarter of the premium.” Some businesses will pay more or less than the average. Industry specific information can be read here. The reason for the increase, according to L&I, is, “Health care costs are rising, and so are wages — which means it costs more to help workers when they get hurt. The increase in premium rates is less than five percent, because for the fourth straight year, L&I is using the workers’ compensation reserve to lower the impact.”