Workers' Comp Settlements in Washington

An injured worker who is at least 50 years old may resolve an allowed claim through a structured (claim resolution) settlement with the employer and, for state-fund claims, the Department of Labor & Industries. The claim must have been received at least 180 days earlier and the order allowing it must be final. The settlement covers all benefits other than medical benefits, which cannot be settled. Every settlement must be approved by the Board of Industrial Insurance Appeals: for an unrepresented worker, an industrial appeals judge holds a conference and approves only if the agreement is in the worker's best interest; an attorney-represented worker submits it directly to the Board. Any party may revoke consent in writing within 30 days after Board approval.

Washington law sets no maximum number of weeks for time-loss (temporary total disability) compensation. It is paid so long as the total disability continues and stops as soon as recovery is complete enough that the worker's earning power is restored to its pre-injury level. If earning power is only partly restored, reduced (loss of earning power) payments may continue, but only when the loss of earning power exceeds five percent. Benefits also end for a worker who has voluntarily retired from the workforce.

Washington law limits attorney fees for services before L&I to a reasonable fee of not more than 30 percent of the increase in the award the attorney secures, fixed by the L&I director on application; for appeals, the Board of Industrial Insurance Appeals fixes the fee, and it is unlawful to charge more. Fees on claim resolution settlement agreements are limited to 15 percent of the total paid to the worker. You can request a fee review by writing to the Director of Labor & Industries, PO Box 44000, Olympia WA 98504-4000, or the Board of Industrial Insurance Appeals, PO Box 42401, Olympia WA 98504-2401. You don't need an attorney to protest an L&I decision.