HB 2372
In CommitteeHouse
Workers' compensation
Concerning workers' compensation benefits.
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 raises the wage replacement percentages for workers who suffer permanent total disabilities from job-related injuries or diseases on or after July 1, 2026, and adds full reimbursement of employer-paid health care benefits to their compensation. It also updates rules for benefit calculations when both spouses receive disability pay and clarifies when benefits stop if a worker retires voluntarily.
- For injuries on or after July 1, 2026, workers with permanent total disability will receive 100% reimbursement of employer-paid health care benefits, plus increased wage replacement percentages based on family status (from 60% to 75%, depending on marital and child status).
- For injuries before July 1, 2026, current benefit levels remain in place, but with slightly lower percentages (e.g., 62% for unmarried with one child vs. 65% for same status after July 1, 2026).
- If both spouses are receiving disability benefits, only the higher-earning spouse can claim children for benefit calculation purposes.
- Workers who require an attendant due to physical helplessness may receive separate monthly payments for attendant care, unless they are already receiving care under specific chapters (e.g., long-term care).
- New or reopened claims will not pay benefits if the worker is voluntarily retired and no longer working at the time of filing or reopening.
- Monthly benefits are capped at 105% of the state’s average monthly wage (as of 1993) and floored at 15% of the state’s average monthly wage plus $10 per child (up to 6 children), with special rules to ensure minimum payments for older claims.
Who is affected
- Workers with permanent total disabilities — Workers who suffer permanent total disabilities from job-related injuries or diseases on or after July 1, 2026, will receive higher wage replacement percentages and full coverage of employer-paid health care benefits as part of their compensation.
- Spouses of injured workers — Spouses of injured workers may be affected if both spouses are receiving disability benefits — only the higher-earning spouse can claim children for benefit calculation purposes.
- Families of injured workers — Families of injured workers may benefit from increased monthly payments and expanded child-based adjustments, especially for workers with multiple children.
- Employers — Employers who pay health care benefits may need to continue those payments at the same level to avoid having the state reimburse workers directly for that portion of benefits.
- Department of Labor & Industries — The Department of Labor & Industries will administer updated benefit calculations and may need to hire or retrain staff to handle new rules for permanent total disability claims.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
The bill guarantees 100% reimbursement of employer-paid health care benefits for workers with permanent total disabilities on or after July 1, 2026—eliminating a major source of financial and medical insecurity for the most severely injured workers, many of whom rely on employer-sponsored coverage and face long-term health complications.
HealthcarePeopleRef: Sec. 1(1)(a)-(b)Raising wage replacement percentages to 65–75% (from 60–70%) significantly improves income security for disabled workers and their families, especially those with children—reducing poverty risk and enabling better access to housing, nutrition, and care; this is particularly impactful for low- and middle-income workers who lack alternative income sources.
FinancialPeopleRef: Sec. 1(1)(b)Mandating separate attendant care payments for physically helpless workers ensures critical support services are available and not contingent on long-term care eligibility—reducing institutionalization risk and enabling independent living for the most severely disabled workers.
Public SafetyPeopleRef: Sec. 1(4)Raising the minimum benefit floor to 15% of average wage + $10 per child (up to 6 children for new claims) protects families with multiple children from falling below subsistence levels—though the cap remains outdated, the floor helps prevent extreme hardship for large families of disabled workers.
FinancialPeopleRef: Sec. 1(6)(b)Allowing叠加 benefits for subsequent accidents (Sec. 1(5)) ensures workers who suffer multiple catastrophic injuries are not penalized for prior settlements—preserving full compensation for cumulative harm, which is critical for workers in high-risk industries (e.g., construction, logging).
Rights & LibertiesPeopleRef: Sec. 1(5)
Potential Concerns (5)
The bill increases state workers’ compensation costs by raising wage replacement percentages (from 60–75% to 65–75%) and requiring full reimbursement of employer-paid health care benefits for new permanent total disability claims — a significant expansion of benefits that will increase premiums and state liabilities, potentially leading to higher employer assessments or reduced funding for other L&I services.
FinancialPeopleRef: Sec. 1(1)(b)The new voluntary retirement bar (Sec. 1(7)) denies benefits to workers who retire before filing or reopening a claim—even if they developed a disability *after* retirement—disproportionately harming older workers who may delay filing due to health deterioration or lack of awareness, especially those without employer-sponsored retiree health coverage.
Rights & LibertiesPeopleRef: Sec. 1(7)The rule that only the higher-earning spouse may claim children for benefit calculations may reduce total household benefits for dual-earning disabled couples, especially if the lower-earning spouse has primary caregiving responsibilities or higher care needs, potentially increasing financial strain on families with multiple disabled spouses.
familyPeopleRef: Sec. 1(3)The 1993-based wage cap (105% of 1993 average monthly wage ≈ $2,300/month in 2026 dollars) remains unchanged, meaning high-earning workers (e.g., tradespeople, engineers) who suffer permanent total disability may receive significantly less than 100% of lost wages—undermining the bill’s stated goal of full wage replacement.
FinancialPeopleRef: Sec. 1(6)(a)The bill creates a two-tiered system where workers injured before July 1, 2026 receive *lower* percentages than those injured after (e.g., 62% vs. 65% for unmarried with one child), which penalizes workers who suffered injuries just before the effective date and delays claims—potentially discouraging timely reporting or incentivizing employers to delay diagnosis.
FinancialLean peopleRef: Sec. 1(2)
Who Is Most Affected
Workers with permanent total disabilities—especially those in low- and middle-wage jobs—will see substantial income and healthcare security improvements, but high earners may still fall short of full wage replacement due to the outdated cap.
Families with children benefit from higher replacement rates and child-based adjustments, but dual-earning couples may lose out if only one spouse can claim children—potentially increasing gendered financial disparities.
Employers may face higher assessments if L&I raises rates to cover increased benefits, but the health care reimbursement rule may reduce their out-of-pocket costs if they continue coverage (since they’re reimbursed 100%).
Older workers who retire before developing symptoms (e.g., from latent occupational diseases like mesothelioma) may be barred from benefits entirely—hurting those without employer retiree health coverage.
The Department of Labor & Industries will face increased administrative and financial burdens, but the bill does not provide new funding—potentially straining resources and slowing claim processing for all workers.