State law requires the Department of Labor and Industries (L&I) to establish and maintain a workers’ compensation classification plan and to set premium rates that are: 1) the lowest necessary to maintain actuarial solvency of the accident and medical aid funds; and 2) designed to attempt to limit fluctuations in premium rates. The plan must be consistent with recognized principles of insurance. L&I also has a statutory requirement to offer retrospective rating plans to employers as a further incentive to encourage workplace safety and prevent employee injury.683.

This rule adoption is needed to correct text and reference errors, format for better readability, update language to reflect technology changes, and make classification instructions and/or definitions clearer. The changes were adopted 5/21/2013 and will be effective on 7/1/2013.676.

A department study identified the need for a single classification that appropriately rates product demonstrator services according to the industry’s level of hazard. The proposed subclassification is a special exception available to product demonstrator services, manufacturers, and wholesalers if hiring product demonstrators with no other exposure to their business’ operations. At today’s rates, the base rate for product demonstrators would be about 9 cents per hour higher for firms currently reporting product demonstrators in Classification 6303 (outside sales) and 28 cents per hour lower for any firm currently reporting product demonstrators in Classification 7106-01 (temporary staffing services, retail or wholesale store operations). The changes were adopted 4/1/2013 and will be effective on 1/1/2014.667.

RCW 51.16.210 requires the department to assess industrial insurance premiums for certain horse racing employments and create and maintain rules implementing coverage for the horse racing industry. RCW 51.04.020, RCW 51.16.035, and RCW 51.16.100 require the department to maintain a classification system. This rule is being adopted to accommodate a request from representatives of the horse racing industry, Washington Horse Racing Commission and the Horseman’s Benevolent and Protective Association, to make changes in the reporting and rating system for the industry which would encourage participation and compliance of their licensees. The changes were adopted 12/4/2012 and became effective on 1/4/2013.664.

This rule adoption amended the tables of classification base premium rates, experience rating plan parameters, experience modification factor calculation limitations, and retrospective rating plan size groupings for the workers’ compensation insurance program for calendar year 2013. Classification base rates were amended for updated loss and payroll experience. The department adopted a zero (0) percent overall average premium rate increase. The changes were adopted 11/30/2012 and became effective on 1/1/2013.659.

This rulemaking amends the tables of classification base premium rates, experience rating plan parameters, experience modification factor calculation limitations, and retrospective rating plan size groupings for the workers’ compensation insurance program for calendar year 2012. Classification base rates are being amended to base the rates on updated loss and payroll experience, and to result in no overall increase in premium rates for 2012. This rulemaking adds language to reflect the new Stay-at-Work Program, created by Engrossed House Bill 2123 (Chapter 37, 2011 Laws, 1st Special Session). This rulemaking repeals rules related to the expired Farm Internship Program. Final rules were adopted through two separate CR-103s. The first CR-103 filing incorporated all rules and changes with the exception of 2012 supplemental pension fund rates. The second CR-103 filing provided 2012 supplemental pension fund rates. The changes were adopted 12/1/2011 and became effective on 1/1/2012.625.

This rulemaking amends five rules to implement Engrossed Substitute House Bill 1367 (Chapter 190, 2011 Laws). This law requires for-hire vehicle owners to cover drivers for workers’ compensation insurance and mandates coverage for owners. These amendments provide three reporting options: a flat rate per vehicle per quarter; a flat rate per driver per quarter; or actual hours worked, if appropriate records are kept. The changes were adopted 11/30/2011 and became effective on 1/1/2012.623.