Office of Governor Gary Locke
FOR IMMEDIATE RELEASE - January 27, 1999
Contact:  Governor's Communications Office, 360-902-4136
Alt Contact:  Steve Valandra, Department of Labor and Industries, 360-902-5406

Locke delivers checks as employers receive $200 million refund

OLYMPIA – Gov. Gary Locke today personally delivered checks to employers in Spokane and the Tri-Cities that are among the 130,000 employers sharing in a $200 million refund in the Washington's workers' compensation system.

As part of a day of statewide visits, Locke and Department of Labor and Industries Director Gary Moore are delivering checks to employers in Tacoma, Seattle, Spokane and the Tri-Cities. The return of the money is the result of an investment windfall in the state's workers' compensation system.

"The beauty of this $200 million refund is that employers get a big chunk of money, and our workers' compensation system remains strong," Locke said. "Employers can put this money back into their businesses and create new jobs. Everyone benefits."

The refund is in addition to the $19 million rate cut that took effect Jan. 1 for workers' compensation premiums in 1999.

Each employer will receive 32.3 percent of premium paid to the Accident Fund for insurance coverage between July 1, 1997 through June 30, 1998. The refund is the first in the history of the state's workers' compensation system, which is managed by the Department of Labor and Industries.

Only employers pay into the Accident Fund, one of several funds that make up the workers' compensation system. Premiums to the Accident Fund provide benefits for injured workers, such as wages for time lost from work and disability awards.

Only employers who do not owe money to a state or federal agency will receive the full refund. Employers due less than a $10 refund will get a credit to their accounts.

The workers' compensation system in Washington, referred to as the State Fund, covers almost 1.6 million employees. The system also pays for medical bills and pensions when workers are hurt on the job.

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