This bill amends existing laws related to industrial insurance for self-insured employers and third-party administrators in Washington State. Key provisions include the establishment of penalties for violations of statutory provisions and rules, with penalties for non-compliance now set at a maximum of $1,000. Additionally, for specific violations, the department may impose penalties up to three times this amount. The bill also introduces a new section that mandates self-insured municipal employers and private sector firefighter employers to uphold a duty of good faith and fair dealing towards workers, prohibiting coercive practices that undermine workers' compensation rights.

Further amendments clarify the grounds for withdrawing certification from self-insurers, including repeated violations of good faith obligations. The bill specifies that penalties for violations will benefit the workers and outlines the department's responsibilities in investigating complaints and determining penalties. Importantly, the act asserts that it does not create a private cause of action outside the department's jurisdiction and applies to all claims regardless of the injury date. The act is set to take effect on July 1, 2024.

Statutes affected:
Original Bill: 51.48.080, 51.48.017
Substitute Bill: 51.48.080, 51.48.017
Bill as Passed Legislature: 51.48.080, 51.48.017, 51.14.080
Session Law: 51.48.080, 51.48.017, 51.14.080