2SHB 1788
SignedHouse
Workers' compensation
Concerning workers' compensation benefits.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill updates how permanent total disability benefits are calculated under Washington’s workers’ compensation system. It introduces new benefit formulas for claims filed on or after July 1, 2026, including full reimbursement for employer health care contributions and higher wage replacement percentages based on number of children. It also clarifies rules for payments to legal custodians of children and sets new minimum and maximum benefit limits.
- For claims filed on or after July 1, 2026, workers with permanent total disability receive 100% of employer health care contributions plus a wage replacement percentage that increases based on number of children (from 60% to 75%).
- For claims filed before July 1, 2026, benefit percentages remain tied to marital status and number of children at time of injury, with unchanged rates (e.g., 65% for married workers with no children).
- Legal custodians of a worker’s child may receive 2% of the worker’s wages (excluding health care contributions), and the worker’s benefit is reduced by that amount.
- If both spouses are receiving disability benefits, only the higher-earning spouse may claim children for benefit calculation purposes.
- Minimum and maximum benefit caps are adjusted: minimum benefit is 15% of state average monthly wage + $10 per month per child (up to 5 or 6), and maximum is 105% of state average monthly wage (for certain years), with special rules for low-income workers.
Who is affected
- Workers with permanent total disabilities (claims filed on or after July 1, 2026) — Workers who suffer permanent total disability due to job-related injuries on or after July 1, 2026, will receive monthly benefits based on updated formulas that include full reimbursement for employer health care contributions and higher wage replacement percentages depending on family status.
- Workers with permanent total disabilities (claims filed before July 1, 2026) — Workers who suffered permanent total disabilities before July 1, 2026, will continue to receive benefits under the older benefit formulas, which differ by marital status and number of children at time of injury.
- Legal custodians of children of injured or deceased workers — People (often a parent or guardian) who have legal custody of a worker’s child may receive 2% of the worker’s wages (excluding health care contributions) to help support the child, but must notify the Department of Labor & Industries if custody changes.
- Spouses of injured workers — Spouses of injured workers may see their benefit amounts reduced if another person receives payments on behalf of their shared child(ren), and only one spouse in a dual-claim household may claim children for benefit calculation purposes.
Pro/Con Analysis
Potential Benefits (5)
The bill increases projected costs to the state workers’ compensation fund, which may require higher employer premiums over time to maintain solvency. While the fund is currently well-funded, rising benefit payouts could pressure future rate-setting decisions.
Local GovernmentRef: Sec. 2(1)Workers whose claims were filed before July 1, 2026, are excluded from the improved benefit formulas, creating a two-tiered system that penalizes those injured just before the cutoff—potentially incentivizing timing of injury claims and creating inequity.
FinancialRef: Sec. 2(2)The 2% payment to legal custodians is deducted from the worker’s benefit, reducing the worker’s net income—even when the deduction is intended to support a child. This creates a structural disincentive for workers to involve custodians in benefit receipt.
FinancialRef: Sec. 1(2)(b)(ii)The minimum benefit formula includes $10 per child, but this is a nominal increase ($50–$60/year) and does not meaningfully offset inflation or rising living costs—especially for families with multiple children.
FinancialRef: Sec. 2(6)(b)The rule limiting child-claiming to the higher-earning spouse may disadvantage lower-earning spouses (often women) in dual-claim households, especially if they are primary caregivers but earn less—potentially reinforcing gendered economic disparities.
Rights & LibertiesRef: Sec. 2(3)
Potential Concerns (5)
The bill increases benefit amounts for permanent total disability claims filed on or after July 1, 2026, raising wage replacement percentages from current levels (e.g., 65% for married workers with no children) up to 75% for workers with many children. This improves income security for severely disabled workers and their families, especially those with dependents.
FinancialPeopleRef: Sec. 2(2)(b)The bill mandates 100% reimbursement for employer health care contributions for disabled workers, ensuring continuity of coverage without cost-sharing. This reduces out-of-pocket health costs for workers who may otherwise lose employer-sponsored insurance due to disability.
HealthcarePeopleRef: Sec. 2(2)(a)The bill allows legal custodians (e.g., grandparents, foster parents) to receive 2% of the worker’s wages to support children in their care, improving child support stability for non-parental caregivers.
FinancialPeopleRef: Sec. 1(2)(b)(i)The bill raises the minimum benefit floor to 15% of state average monthly wage plus $10 per child (up to 5 or 6), protecting low-wage workers from extremely low benefit levels under the new formula.
FinancialLean peopleRef: Sec. 2(6)(b)The bill prevents double-counting of children in dual-claim households by allowing only the higher-earning spouse to claim children for benefit calculation, reducing administrative complexity and potential benefit disputes among spouses.
Rights & LibertiesPeopleRef: Sec. 2(3)
Who Is Most Affected
Workers with severe, career-ending injuries who file claims on or after July 1, 2026, will see significantly higher monthly benefits—especially those with children—improving long-term financial stability and reducing reliance on public assistance.
Workers injured before July 1, 2026, are locked into older, lower benefit formulas—even if their disability is equally severe—creating a cliff effect that may discourage timely filing and penalize those injured just before the cutoff.
Legal custodians (e.g., grandparents, foster parents) gain formal recognition and a small payment stream, but the deduction from the worker’s benefit reduces net household income and may discourage formal custody arrangements due to administrative burden.
Spouses in dual-claim households may lose the ability to claim children for benefit calculation if their partner earns more, potentially reducing household benefits and disproportionately affecting lower-earning (often female) spouses.
Employers—especially small businesses—may face higher workers’ compensation premiums over time as the fund adjusts to increased benefit payouts, though the impact will be gradual and offset by current fund surpluses.