A few months ago, we wrote about the “Grand Compromise” that built Washington’s workers’ compensation system and how that compromise had quietly tilted into something far less balanced.
Since then, RCW 51.14.180 went into effect. Washington lawmakers enacted a statutory duty of “good faith and fair dealing” within the Labor & Industries system designed to recenter the Grand Compromise — taking a step toward ensuring self-insured employers were actually living up to their end.
On paper, this was a meaningful step.
For the first time, the obligation that employers and claim administrators act fairly wasn’t just implied.
It was codified in Washington law.
The obvious question now is this:
Has anything actually changed?
The Law Is Clear. The Behavior Is… Complicated.
The new good faith requirements were designed to correct the imbalance that has developed in self-insured claims handling.
The expectation was straightforward:
- Claims would be processed promptly
- Treatment decisions would be made on medical merit
- Communication would be transparent
- Delays designed to pressure injured workers would stop
What we’re seeing so far is more nuanced.
Self-insured employers appear to be adjusting — but primarily in documentation.
Usually, it’s a pretty clear attempt on forms to accommodate the new law without actually changing their practices.
Denial letters may now reference “good faith.”
Communications are more artfully phrased to give the appearance that they are not only complying, but doing everything they can to look out for the best interest of their injured employees.
But in many claims, the underlying friction remains:
- Treatment is still delayed
- Independent Medical Examinations are still used aggressively
- Vocational disputes still surface early and often
- Workers still find themselves fighting for basic benefits
Two Emerging Approaches Among Self-Insured Employers
What we’re seeing so far suggests two different paths developing among employers.
Some Employers Are Adapting
Some employers appear to be taking the new statute seriously.
They are:
- Training claims managers
- Reevaluating delay practices
- Adjusting internal handling procedures
These claims tend to move more efficiently, and disputes resolve faster.
That’s exactly what lawmakers intended when they passed the statute.
Others Are Testing the Edges
Other employers appear to be testing the limits of the law.
The approach seems to be something like:
Comply procedurally… ish.
Use appropriate, undoctored L&I-approved forms… ish.
But continue pushing aggressively on the substance of the claim:
- IMEs
- Denials
- Delays
- Procedural pressure on injured workers
The dividing line will eventually be defined by enforcement.
But enforcement only happens when claims are challenged.
Eventually, those challenges make their way to the Board of Industrial Insurance Appeals, and ultimately the Washington court system.
Right now, we are still in the early phase.
The statute exists.
But the culture shift has not fully arrived.
What Will Determine Whether the Law Works
The success of this new law will likely depend on two crucial factors.
1. Whether the Board Treats Delay as Bad Faith
The Board of Industrial Insurance Appeals will play a major role in defining what “good faith” actually means.
If repeated delay, obstruction, or gamesmanship are treated as actionable bad faith, behavior will change quickly.
2. Whether Employers Recalculate the Cost of Aggressive Claims Handling
Self-insured employers ultimately respond to incentives.
If the cost of aggressive claim handling begins to outweigh the benefits — through penalties, litigation, or administrative decisions — practices will change.
Until then, some employers may continue to test how far they can push.
What Injured Workers Should Do Right Now
If you are involved in a self-insured workers’ compensation claim, documentation is critical.
Keep track of everything:
- Document communications
- Keep copies of letters and emails
- Track treatment requests and response times
- Write down when calls are not returned
- Note when medical recommendations are ignored
Good faith is no longer just a principle.
It is a legal obligation under Washington law.
What We’ll Be Watching Going Forward
Over the coming months, we will continue watching several key developments in Washington workers’ compensation law:
- Whether penalties for bad faith increase
- Whether self-insured employers modify internal incentives
- Whether claims begin resolving faster
- Whether appellate decisions clarify what “good faith” truly requires
The Grand Compromise may have drifted over time.
The good faith statute is an attempt to restore balance.
The real test is not what the law says.
It’s what the system does with it.
We as citizens, workers, and residents of Washington must be brave enough to be vigilant — and vocal — in demanding that the rights and protections for which we have paid dearly are properly and justly administered.
Need Help With a Self-Insured L&I Claim?
If you’re dealing with delays, denials, or pressure from a self-insured employer, you don’t have to navigate the workers’ compensation system alone.
At Carlisle Byers Casey, we help injured workers across Eastern and Central Washington protect their rights and hold employers accountable when the system stops working the way it should.
Learn how we can help: https://carlislebyerscasey.com/contact/
Or call (509) 228-7011.
