Limitation on Annual Changes to the Experience Factor

Generally a firm's experience modification factor cannot increase or decrease by more than 25% in a year except where the "computed" experience factor is below 1.0 and the employer had an experience factor greater than 1.3333 in the prior year.

These limitations are shown in WAC 296‑17‑865 (www.leg.wa.gov).

An Example of the 25% Annual Increase Limitation.

An Example of the 25% Annual Decrease Limitation.

An Example of the Exception to the 25% Rule.

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