| Limitation on Annual Changes to the Experience Factor |  | |
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Generally a firm's experience modification factor cannot increase or decrease by more than 25% in a year except where the "computed" experience factor falls:
- Above 1.00 but the limited factor is below 1.00. In this case the factor will be 1.00.
- Below 1.00 but the limited factor is above 1.00. In this case the factor will be 1.00.
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.
