Washington State Self-Insured Firms Required Good Faith, Fair Dealing

• Washington State Gov. Bob Ferguson has signed into law a new law mandating “good faith and fair dealing” by the state’s self-insured employers.
• The state’s self-insured employers includes Costco, Boeing and Nordstrom.
• The new last applies the duty of good faith and fair dealing to all workers’ compensation self-insurers and third-party administrators, rather than only self-insured municipal employers, self-insured private sector firefighter employers, and their third-party administrators.
• It also allows the Department of Labor and Industries to withdraw any self-insurer’s certification when the self-insurer has been found to have violated the duty of good faith and fair dealing three times within a three-year period, rather than just the certification of a municipal self-insurer.
• The law takes effect on Jan. 1, 2026.
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