Restaurant Workers' Comp in Washington

Q: How much is restaurant workers' comp in Washington?

In Washington, the restaurant class-code rate is Washington does not use NCCI; it uses its own risk classifications with rates quoted per hour worked. Full-service restaurants fall in risk class 3905 (catering not part of a restaurant is 3909). The 3905 total base rate is roughly $0.40–$0.50 per employee hour worked (a published rate was ~$0.4247/hour on L&I's Rates per Hour Worked schedule). Approximate, industry tier.. Premium is that rate times your payroll (per $100), adjusted by your experience modifier. Washington is a monopolistic state-fund state: private workers' compensation insurance is not sold, and employers must buy coverage directly from the state fund (Department of Labor & Industries, L&I) unless certified as self-insured.

What Washington requires of restaurants and bars for workers' compensation — when it kicks in, who's exempt, and what it costs.

Reviewed by J. Robert Smith, Licensed Insurance Agent (NPN 10378680). Last updated July 26, 2026.

Yes. Washington requires workers' compensation for virtually every restaurant employee from the first hour worked, and it is a monopolistic state fund: private workers' comp is not sold, so you must buy coverage from the Department of Labor & Industries (L&I). Owners and corporate officers are exempt but may elect coverage for themselves.

Required?: Yes
Kicks in at: Any employee triggers coverage — there is no minimum-employee threshold. Coverage attaches from the first hour an employee works; L&I premiums are assessed on all worker-hours, so even a single part-time hire must be covered.
Restaurant rate: Washington does not use NCCI; it uses its own risk classifications with rates quoted per hour worked. Full-service restaurants fall in risk class 3905 (catering not part of a restaurant is 3909). The 3905 total base rate is roughly $0.40–$0.50 per employee hour worked (a published rate was ~$0.4247/hour on L&I's Rates per Hour Worked schedule). Approximate, industry tier.
Market: Washington is a monopolistic state-fund state: private workers' compensation insurance is not sold, and employers must buy coverage directly from the state fund (Department of Labor & Industries, L&I) unless certified as self-insured.

Is workers’ comp required for a restaurant in Washington?

Washington requires workers' compensation once you reach Any employee triggers coverage — there is no minimum-employee threshold. Coverage attaches from the first hour an employee works; L&I premiums are assessed on all worker-hours, so even a single part-time hire must be covered.. Sole proprietors, partners, and LLC members are not automatically covered for themselves, and corporate officers may be excluded from mandatory coverage. Washington lets these owners/officers voluntarily elect into coverage for themselves through L&I. Coverage for actual employees remains mandatory.

What restaurant workers’ comp costs in Washington

The restaurant class-code rate in Washington is Washington does not use NCCI; it uses its own risk classifications with rates quoted per hour worked. Full-service restaurants fall in risk class 3905 (catering not part of a restaurant is 3909). The 3905 total base rate is roughly $0.40–$0.50 per employee hour worked (a published rate was ~$0.4247/hour on L&I's Rates per Hour Worked schedule). Approximate, industry tier.. Your premium is that rate applied per $100 of payroll and adjusted by your experience modifier, so it scales with how many people you employ and your claims history. Washington is a monopolistic state-fund state: private workers' compensation insurance is not sold, and employers must buy coverage directly from the state fund (Department of Labor & Industries, L&I) unless certified as self-insured.

What owners in Washington miss

Washington is the only state that lets an employer deduct part of the workers' comp premium from employees' paychecks — up to roughly half of certain benefit-cost components — so each risk class carries both an employer-paid and an employee-paid rate portion.
Premiums are assessed per hour worked rather than per $100 of payroll, so restaurants track and report total employee worker-hours each quarter to L&I.
Because the L&I policy is monopolistic and excludes employers-liability coverage, a standard commercial workers' comp policy from a national carrier will not cover a Washington restaurant — you buy the state fund policy and add stop-gap employers liability as an endorsement to your commercial general liability (CGL) policy.
Restaurants serving spirits/hard liquor are classified under 3905-07, separate from beer-and-wine full-service restaurants (3905-00), which can change the applicable per-hour rate.

Sources

Washington State Department of Labor & Industries: Do I need a workers' comp account? (Insurance requirements)primaryretrieved 2026-07-27
Washington State Legislature: WAC 296-17A-3905 — Classification 3905: Restaurantsprimaryretrieved 2026-07-27
Washington State Department of Labor & Industries: Rates for Workers' Compensation / Rates per Hour Workedprimaryretrieved 2026-07-27

Cost examples are illustrative national figures gathered from public filings and industry surveys. They are not quotes. Your actual premium depends on your state, carrier, revenue, payroll, location, and coverage selections. Restaurant Insurance Authority is an insurance marketing and referral service, not an insurer or licensed agency. We connect business owners with licensed independent commercial-lines agents who specialize in food and beverage. Questions? Call (855) 480-1410.

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