HB 2189

H-2633.1
  HOUSE BILL 2189
State of Washington        69th Legislature  2026 Regular Session
By Representatives    Schmidt,   Dufault,   McEntire,   Jacobsen,   Ybarra,
Barnard, and Graham
Prefiled 12/23/25. Read first time 01/12/26.       Referred to Committee
on Labor & Workplace Standards.
1      AN ACT Relating to expanding eligibility for voluntary workers'
2  compensation settlements; amending RCW 51.04.063; and creating a new
3  section.
4  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
5     NEW SECTION. Sec. 1. (1) The legislature finds that:
6     (a) The utilization of voluntary claims settlements in the
7 state's workers' compensation program is a valuable option to
8 expediently ensure the worker is properly compensated. This is
9 especially important for claims that may not involve total permanent
10 disability thus amounting to a pension award;
11     (b) The average age of workers who enter into a settlement
12 agreement with a self-insured employer is 40 years old, 10 years
13 below the currently imposed 50 years of age threshold for those
14 utilizing the state fund; and
15     (c) Forty-four states allow workers over the age of 18 to enter
16 settlements for workers' compensation claims.
17     (2) Therefore, it is the intent of the legislature to extend the
18 ability to enter into voluntary settlements for workers' compensation
19 claims.
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1     Sec. 2. RCW 51.04.063 and 2021 c 89 s 3 are each amended to read
2 as follows:
3     (1) Notwithstanding RCW 51.04.060 or any other provision of this
4 title, an injured worker ((who is at least fifty years of age)) may
5 choose from the following: (a) To continue to receive all benefits
6 for which they are eligible under this title, (b) to participate in
7 vocational training if eligible, or (c) to initiate and agree to a
8 resolution of their claim with a claim resolution settlement.
9     (2)(a) As provided in this section, the parties to an allowed
10 claim may initiate and agree to resolve a claim with a claim
11 resolution settlement for all benefits other than medical. Parties as
12 defined in (b) of this subsection may only initiate claim resolution
13 settlements if at least one hundred eighty days have passed since the
14 claim was received by the department or self-insurer and the order
15 allowing the claim is final and binding, unless the agreement is to
16 resolve a closed or disputed claim. All requirements of this title
17 regarding entitlement to and payment of benefits will apply during
18 this period. All claim resolution settlement agreements must be
19 approved by the board of industrial insurance appeals.
20     (b) For purposes of this section, "parties" means:
21     (i) For a state fund claim, the worker, the employer, and the
22 department. The employer will not be a party if the costs of the
23 claim or claims are no longer included in the calculation of the
24 employer's experience factor used to determine premiums, if they
25 cannot be located, are no longer in business, or they fail to respond
26 or decline to participate after timely notice of the claim resolution
27 settlement process provided by the board and the department.
28     (ii) For a self-insured claim, the worker and the employer.
29     (c) The claim resolution settlement agreements shall:
30     (i) Bind the parties with regard to all aspects of a claim except
31 medical benefits unless revoked by one of the parties as provided in
32 subsection (6) of this section;
33     (ii) At the option of the parties, either be paid out in a single
34 lump sum or be paid on a structured basis. If the parties opt to have
35 the settlement paid based on a structured basis, the agreement shall
36 provide a periodic payment schedule to the worker equal to at least
37 twenty-five percent but not more than one hundred fifty percent of
38 the average monthly wage in the state pursuant to RCW 51.08.018,
39 except for the initial payment which may be up to six times the
40 average monthly wage in the state pursuant to RCW 51.08.018;
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1     (iii) Not set aside or reverse an allowance order, unless the
2 agreement is to resolve a closed or disputed claim;
3     (iv) Not subject any employer who is not a signatory to the
4 agreement to any responsibility or burden under any claim; and
5     (v) Not subject any funds covered under this title to any
6 responsibility or burden without prior approval from the director or
7 designee.
8     (d) For state fund claims, the department shall negotiate the
9 claim resolution settlement agreement with the worker or their
10 representative and with the employer or employers and their
11 representative or representatives.
12     (e) For self-insured claims, the self-insured employer shall
13 negotiate the agreement with the worker or his or her representative.
14 Workers of self-insured employers who are unrepresented may request
15 that the office of the ombuds for self-insured injured workers
16 provide assistance or be present during negotiations.
17     (f) Terms of the agreement may include the parties' agreement
18 that the claim shall remain open for future necessary medical or
19 surgical treatment related to the injury where there is a reasonable
20 expectation such treatment is necessary. The parties may also agree
21 that specific future treatment shall be provided without the
22 application required in RCW 51.32.160.
23     (g) Any claim resolution settlement agreement entered into under
24 this section must be in writing and signed by the parties or their
25 representatives and must clearly state that the parties understand
26 and agree to the terms of the agreement.
27     (h) If a worker is not represented by an attorney at the time of
28 signing a claim resolution settlement agreement, the parties must
29 forward a copy of the signed agreement to the board with a request
30 for a conference with an industrial appeals judge. The industrial
31 appeals judge must schedule a conference with all parties within
32 fourteen days for the purpose of (i) reviewing the terms of the
33 proposed settlement agreement by the parties; and (ii) ensuring the
34 worker has an understanding of the benefits generally available under
35 this title and that a claim resolution settlement agreement may alter
36 the benefits payable on the claim or claims. The judge may schedule
37 the initial conference for a later date with the consent of the
38 parties.
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1     (i) Before approving the agreement, the industrial appeals judge
2 shall ensure the worker has an adequate understanding of the
3 agreement and its consequences to the worker.
4     (j) The industrial appeals judge may approve a claim resolution
5 settlement agreement only if the judge finds that the agreement is in
6 the best interest of the worker. When determining whether the
7 agreement is in the best interest of the worker, the industrial
8 appeals judge shall consider the following factors, taken as a whole,
9 with no individual factor being determinative:
10     (i) The nature and extent of the injuries and disabilities of the
11 worker;
12     (ii) The age and life expectancy of the injured worker;
13     (iii) Other benefits the injured worker is receiving or is
14 entitled to receive and the effect a claim resolution settlement
15 agreement might have on those benefits; and
16     (iv) The marital or domestic partnership status of the injured
17 worker.
18     (k) Within seven days after the conference, the industrial
19 appeals judge shall issue an order allowing or rejecting the claim
20 resolution settlement agreement. There is no appeal from the
21 industrial appeals judge's decision.
22     (l) If the industrial appeals judge issues an order allowing the
23 claim resolution settlement agreement, the order must be submitted to
24 the board.
25     (3) Upon receiving the agreement, the board shall approve it
26 within thirty working days of receipt unless it finds that:
27     (a) The parties have not entered into the agreement knowingly and
28 willingly;
29     (b) The agreement does not meet the requirements of a claim
30 resolution settlement agreement;
31     (c) The agreement is the result of a material misrepresentation
32 of law or fact;
33     (d) The agreement is the result of harassment or coercion; or
34     (e) The agreement is unreasonable as a matter of law.
35     (4) If a worker is represented by an attorney at the time of
36 signing a claim resolution settlement agreement, the parties shall
37 submit the agreement directly to the board without the conference
38 described in this section.
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1     (5) If the board approves the agreement, it shall provide notice
2 to all parties. The department shall place the agreement in the
3 applicable claim file or files.
4     (6) A party may revoke consent to the claim resolution settlement
5 agreement by providing written notice to the other parties and the
6 board within thirty days after the date the agreement is approved by
7 the board.
8     (7) To the extent the worker is entitled to any benefits while a
9 claim resolution settlement agreement is being negotiated or during
10 the revocation period of an agreement, the benefits must be paid
11 pursuant to the requirements of this title until the agreement
12 becomes final.
13     (8) A claim resolution settlement agreement that meets the
14 conditions in this section and that has become final and binding as
15 provided in this section is binding on all parties to the agreement
16 as to its terms and the injuries and occupational diseases to which
17 the agreement applies. A claim resolution settlement agreement that
18 has become final and binding is not subject to appeal.
19     (9) All payments made to a worker pursuant to a final claim
20 resolution settlement agreement must be reported to the department as
21 claims costs pursuant to this title. If a self-insured employer
22 contracts with a third-party administrator for claim services and the
23 payment of benefits under this title, the third-party administrator
24 shall also disburse the claim resolution settlement payments pursuant
25 to the agreement.
26     (10) Claims closed pursuant to a claim resolution settlement
27 agreement can be reopened pursuant to RCW 51.32.160 for medical
28 treatment only. Further temporary total, temporary partial, permanent
29 partial, or permanent total benefits are not payable under the same
30 claim or claims for which a claim resolution settlement agreement has
31 been approved by the board and has become final.
32     (11) Parties aggrieved by the failure of any other party to
33 comply with the terms of a claim resolution settlement agreement have
34 one year from the date of failure to comply to petition to the board.
35 If the board determines that a party has failed to comply with an
36 agreement, it will order compliance and will impose a penalty payable
37 to the aggrieved party of up to twenty-five percent of the monetary
38 amount unpaid at the time the petition for noncompliance was filed.
39 The board will also decide on any disputes as to attorneys' fees for
40 services related to claim resolution settlement agreements.
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1     (12) Parties and their representatives may not use settlement
2 offers or the claim resolution settlement agreement process to harass
3 or coerce any party. If the department determines that an employer
4 has engaged in a pattern of harassment or coercion, the employer may
5 be subject to penalty or corrective action, and may be removed from
6 the retrospective rating program or be decertified from self-
7 insurance under RCW 51.14.030.
8     (13) All information related to individual claim resolution
9 settlement agreements submitted to the board of industrial insurance
10 appeals, other than final orders from the board of industrial
11 insurance appeals, is private and exempt from disclosure under
12 chapter 42.56 RCW. The board of industrial insurance appeals shall
13 provide to the department copies of all final claim resolution
14 settlement agreements.
15     (14) Information gathered during the claim resolution settlement
16 agreement process, including but not limited to forms filled out by
17 the parties and testimony during a claim resolution settlement
18 conference before the board of industrial insurance appeals, is a
19 statement made in the course of compromise negotiations and is
20 inadmissible in any future litigation.
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