This bill amends existing laws regarding the responsibilities of self-insured employers and third-party administrators in the context of industrial insurance in Washington State. Key changes include the removal of specific references to "municipal" employers in various sections, thereby broadening the scope of the law to apply to all self-insured employers. The bill introduces a new requirement that a self-insurer can have their certification withdrawn if they violate their duty of good faith and fair dealing three times within a three-year period, as defined under RCW 51.14.180. Additionally, it clarifies that minor errors or delays are not considered violations of good faith.

The bill also establishes that the duty of good faith and fair dealing applies to all self-insured employers and their third-party administrators, mandating fair treatment of workers in all aspects of industrial insurance. It outlines the process for investigating alleged violations and stipulates that penalties for violations can range from one to 52 times the average weekly wage, depending on the severity of the infraction. Importantly, the act applies to all claims regardless of the date of injury and is set to take effect on January 1, 2026.

Statutes affected:
Original Bill: 51.14.080, 51.14.180