HB 2189
In CommitteeHouse
Workers' comp. settlements
Expanding eligibility for voluntary workers' compensation settlements.
This status may be delayed. See Action History below for the latest updates.
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 expands access to voluntary settlement agreements for injured workers in Washington’s workers’ compensation system by removing the age 50 requirement and allowing workers age 18 and older to settle claims (excluding medical benefits) with self-insured or state fund employers. It establishes a standardized process for negotiating, reviewing, and approving these settlements through the Board of Industrial Insurance Appeals, with safeguards to protect unrepresented workers.
- Expands eligibility for voluntary workers’ compensation settlements to workers age 18 and older, removing the previous age 50 requirement for state fund claims.
- Allows injured workers to settle claims (excluding medical benefits) through a claim resolution settlement, which can be paid as a lump sum or structured payments (between 25% and 150% of the state’s average monthly wage, with an initial payment up to 6 times the average).
- Requires approval by the Board of Industrial Insurance Appeals (BIIA) before a settlement becomes final — including a mandatory conference for unrepresented workers to ensure understanding of rights and consequences.
- Sets strict requirements for settlement agreements, including written form, party signatures, and provisions allowing the claim to remain open for future necessary medical treatment.
- Grants the BIIA authority to reject settlements found to be coerced, unreasonable, or based on misrepresentation, and to impose penalties (up to 25% of unpaid amounts) for noncompliance.
- Bars settlement agreements from affecting eligibility for other benefits (e.g., Social Security), and limits reopening of settled claims to medical treatment only under existing law (RCW 51.32.160).
Who is affected
- Injured workers — Workers who are at least 18 years old and have a workers' compensation claim may now be eligible to settle their claim (excluding medical benefits) through a voluntary agreement, regardless of age — previously limited to workers age 50 and older for state fund claims.
- Self-insured employers — Self-insured employers gain the ability to negotiate and finalize voluntary settlements with injured workers, including options for lump-sum or structured payments, under the same rules as state fund claims.
- Employers in the state fund — State fund employers (those covered by the state-run workers’ comp system) benefit from expanded settlement options previously only available to older workers, helping resolve claims more efficiently.
- Unrepresented injured workers — The Office of the Ombuds for Self-Insured Injured Workers may be asked to assist unrepresented workers during settlement negotiations to ensure fairness and understanding.
- Board of Industrial Insurance Appeals (BIIA) — The Board of Industrial Insurance Appeals (BIIA) gains new responsibilities to review and approve settlement agreements, including holding conferences for unrepresented workers and ensuring agreements are fair.
Pro/Con Analysis
Potential Benefits (5)
Expanding settlement eligibility to workers age 18+ (vs. prior 50+) allows younger injured workers to receive lump-sum or structured compensation earlier, potentially improving financial stability and reducing reliance on long-term wage replacement benefits.
FinancialPeopleRef: Sec. 2(1)(a), Sec. 2(2)(a)-(c), Sec. 2(2)(e), Sec. 2(2)(f), Sec. 2(2)(h)-(i)Settlements can preserve future medical benefits — including by allowing parties to agree on specific future treatment without requiring a formal petition under RCW 51.32.160 — which may improve continuity of care for workers with evolving medical needs.
HealthcarePeopleRef: Sec. 2(2)(c)(v), Sec. 2(2)(f), Sec. 2(2)(h)-(i), Sec. 2(3)The requirement that BIIA judges approve settlements as being “in the best interest of the worker” — with mandatory review for unrepresented workers — adds a layer of judicial oversight that may reduce coercion and improve fairness in negotiations.
Rights & LibertiesPeopleRef: Sec. 2(2)(c)(i), Sec. 2(2)(f), Sec. 2(2)(h)-(i), Sec. 2(3), Sec. 2(6)Standardized settlement procedures for both state fund and self-insured claims may reduce administrative costs and litigation for employers, especially small businesses, by streamlining claim resolution.
Business & EmploymentLean peopleRef: Sec. 2(2)(c)(ii), Sec. 2(2)(e), Sec. 2(2)(h)-(i), Sec. 2(3)Aligning Washington with 44 other states that allow settlements for workers over 18 may reduce forum shopping and improve consistency in workers’ compensation outcomes nationwide, especially for mobile or multi-state workers.
Public SafetyLean peopleRef: Sec. 2(1)(c), Sec. 2(2)(a), Sec. 2(2)(e), Sec. 2(2)(h)-(i), Sec. 2(3)
Potential Concerns (5)
Mandatory BIIA review and conferences for unrepresented workers may delay settlements and create administrative bottlenecks, potentially prolonging uncertainty and financial instability for injured workers awaiting resolution.
Public SafetyLean industryRef: Sec. 2(2)(c)(v), Sec. 2(2)(e), Sec. 2(2)(h)-(i), Sec. 2(3)The requirement that unrepresented workers attend a BIIA conference before settlement approval may disproportionately burden low-income and rural workers, who face higher travel, time, and childcare costs to participate — effectively creating a de facto barrier to accessing the settlement option.
FinancialIndustryRef: Sec. 2(2)(c)(v), Sec. 2(2)(e), Sec. 2(2)(h)-(i), Sec. 2(3)Structured settlements capped at 150% of state average monthly wage (~$12,000/year) and lump-sum options may be insufficient for workers with serious long-term disabilities, especially those whose ongoing care needs exceed what the settlement covers — pushing them toward public assistance or debt.
FinancialIndustryRef: Sec. 2(2)(c)(ii), Sec. 2(2)(e), Sec. 2(2)(h)-(i), Sec. 2(3)While the bill provides a conference for unrepresented workers, it does not guarantee legal counsel or independent advice — leaving workers vulnerable to pressure from employers or insurers during negotiations, especially given the 180-day waiting period and the finality of approved settlements.
Rights & LibertiesIndustryRef: Sec. 2(2)(c)(v), Sec. 2(2)(e), Sec. 2(2)(h)-(i), Sec. 2(3)The prohibition on reopening settled claims for non-medical benefits (e.g., wage replacement, disability) — except for medical treatment under RCW 51.32.160 — may trap workers in unfair settlements if their condition deteriorates or if they later discover additional impairments, with no recourse to adjust compensation.
FinancialIndustryRef: Sec. 2(10), Sec. 2(9), Sec. 2(11)
Who Is Most Affected
Younger injured workers (ages 18–49) gain earlier access to settlements, which may improve financial stability and reduce dependency on long-term wage replacement — but those with serious disabilities may receive insufficient compensation if settlements are capped or fail to account for future needs.
Self-insured employers gain flexibility in resolving claims, potentially reducing litigation and administrative costs — but must still comply with BIIA review and may face penalties for coercion or noncompliance.
State fund employers benefit from expanded settlement options previously unavailable to them, potentially reducing long-term claim liabilities — but may face increased administrative burden during settlement negotiations.
Unrepresented injured workers gain access to a mandatory BIIA review process and potential assistance from the Ombuds office — but lack of guaranteed legal counsel may leave them vulnerable to imbalanced negotiations, especially when facing employer representatives.
The BIIA gains new responsibilities and authority to review settlements — which may improve fairness but also increases administrative workload and potential delays in claim resolution.