This bill amends existing laws regarding industrial insurance for self-insured municipal employers and their third-party administrators in Washington State. It introduces a new section that establishes a duty of good faith and fair dealing towards workers, outlining specific violations such as coercing workers to accept less compensation than due. The Department of Labor is tasked with adopting rules to further define this duty and establish penalties for violations. Additionally, the bill mandates that the department investigate complaints and issue orders regarding violations, with penalties ranging from one to 52 times the average weekly wage based on the severity of the violation.

Furthermore, the bill amends RCW 51.14.080 to include additional grounds for withdrawing certification from self-insurers, particularly focusing on repeated violations of the duty of good faith and fair dealing. A self-insured municipal employer can have its certification withdrawn if it is found to have violated this duty three times within a three-year period. The bill also allows for a delay in withdrawing certification if the employer has an enforceable contract with a licensed third-party administrator. The provisions of this act will apply to alleged violations occurring on or after July 1, 2024.

Statutes affected:
Original Bill: 51.48.080, 51.48.017
Substitute Bill: 51.14.080