Workers Compensation Time-Loss Change

Colleen Malmassari
Founder of Back40 Advisors LLC

House Bill 1927 passed during the 2024 legislative session brings a time sensitive adjustment to the workers’ compensation system. Effective July 1, 2025, the new law eases access to temporary total disability (TTD) time-loss benefits by reducing the qualifying waiting period from fourteen to seven days.

What HB 1927 Changes

Under the previous law, injured workers had to be disabled for at least fourteen consecutive days to qualify for back-pay covering the first three-day waiting period. As a result, workers missing between four and thirteen days of work often received nothing for those first three days. HB 1927 lowers this requirement: now, staying off work for at least seven days is sufficient to trigger retroactive pay for the first three missed days. In other words, if an employee can’t return to work after seven days, they’ll receive compensation not just starting from day four—but retroactively for all days missed.

Addressing a Financial Gap

The aim of this policy was to close what some viewed as a week and a half loophole. For those unable to work any time over seven days but less than two weeks, the existing fourteen day rule could mean no pay for almost two weeks of work, which had a major impact on hourly workers.

A goal of HB 1927 is to restore partial wage replacement, helping injured workers avoid debt or missed bills due to the uncompensated waiting period.

Employer Impact

This change highlights the value of early return-to-work programs. Employers who can offer light-duty or transitional work within the first week after an injury may avoid triggering retroactive time-loss payments altogether. Businesses should review and update job descriptions to support modified-duty assignments that comply with medical restrictions, reducing both time-loss duration and costs. Human Resources and payroll teams will need to adjust their claims tracking systems to align with the new seven-day benchmark and ensure proper documentation for benefits eligibility.

Broader Policy Change

HB 1927 parallels other recent Washington reforms aimed at supporting injured workers and encouraging early return-to-work. Companion legislation, such as Substitute House Bill 2127 passed in 2024, increased incentives for ​stay-at-work and return-to-work programs—raising reimbursement caps for employers offering light-duty accommodations and extending subsidy durations. Together, these bills aim to strengthen worker protections while reducing long-term claim costs by facilitating early workforce reintegration.

Employer Action 

With implementation already underway for new claims, businesses should begin preparing to comply with the updated standard. Here are a few action items for employers and HR teams: Review L&I claim guidance to understand eligibility and documentation requirements under the new rule. Then train supervisors and managers on early injury reporting and modified-duty options. Next, update all internal policies to reflect the shortened time-loss threshold. Lastly, communicate clearly with employees about the benefit change and encourage prompt injury reporting.

HB 1927 marks a notable change in Washington’s workers’ compensation landscape. For employers, the message is hopeful: being prepared and responsive can both reduce costs and improve outcomes. As we enter this new structure, businesses that invest in clear communication, updated policies, and proactive return-to-work strategies will be best positioned to keep their employees at work or get them back to work quickly. Injured workers now face less financial uncertainty, and employers are incentivized—financially and practically—to promote early reintegration. 

Colleen Malmassari, a Society for Human Resource Management-Certified Professional, Professional in Human Resources, is the founder of Back40 Advisors LLC