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POSTED: Thursday, Oct. 29, 2009

State officials get earful about proposed workers' compensation increase

BELLINGHAM - State officials received plenty of feedback from the local business community about a proposed 7.6 percent average increase in workers' compensation premiums.

The State Department of Labor & Industry has been hosting hearings across the state about the increase, stopping in Bellingham on Thursday, Oct. 29.

The agency estimates average premiums would go up by about four cents per hour worked. Much of that is paid by employers, with a portion paid by employees.

The state-run compensation system collects insurance premiums from businesses to cover the cost of medical care and wage-replacement for workers injured on the job.

About 65 people gathered Thursday at Bellingham Quality Inn, with several speakers telling officials that, given the current economic climate, an increase would be yet another blow to businesses trying to survive.

Raising the rate at this time is "an extreme example of bad timing," said Bill Quehrn, executive director of the Building Industry Association of Whatcom County. He said his organization was concerned that raising premiums would result in an increase in unregistered operators who can no longer afford to pay into the system.

Darryl Ehlers, a Whatcom County farmer, said the compensation system has become inefficient.

"(The cost of premiums) has caused me to downsize my operation," he said.

A few speakers representing unions expressed support for the increase, saying they didn't want to see the compensation fund become depleted.

The department announced the proposed increase in September, citing several factors, including lower returns on investments, fewer premiums paid due to reduced hours for workers, and fewer jobs for injured workers to return to.

The department will hold two more hearings, in Spokane and Richland, on Friday, Oct. 30. Written comments will be accepted through Nov. 7. E-mails should go to Ronald Moore, program manager, at mooa235@Lni.wa.gov.