Oregon employers will face an average workers’ compensation premium of 92 cents per $100 of payroll beginning Jan. 1, 2027, according to a proposal released today by the Oregon Department of Consumer and Business Services (DCBS). The increase represents a 2.1% rise over the 2026 pure premium of 89 cents, but it still ranks as the second‑lowest rate ever recorded for the state.
Why the rate is changing
The modest uptick is tied to Senate Bill 1519, a 2026 law that adjusts weekly lost‑time wage benefits for injured workers with disabling claims. Effective Jan. 1, 2027, workers earning up to 75% of the state’s average weekly wage will see their weekly compensation rise to 75% of that wage, while those earning more than 75% will see a reduction to 65%.
Despite these benefit adjustments, the overall pure premium rate per $100 of payroll will have fallen 36.5% between 2018 and 2027, reflecting a long‑term decline in lost‑time claim frequency. The National Council on Compensation Insurance notes that lower claim frequency continues to offset higher medical and indemnity costs.
Assessment rates stay steady
The state’s premium assessment rate remains unchanged at 9.8% of premiums for the sixth year in a row. These funds support workplace safety and regulatory programs, including the Workers’ Compensation Division, Oregon OSHA, the Workers’ Compensation Board, the Ombuds Office for Oregon Workers, and the Office of the Small Business Ombudsman for Workers’ Compensation.
Self‑insured employers also see no change: individual self‑insured employers and public‑sector groups continue to pay a 0.1% assessment, while private‑sector groups pay 0.5%.
Additional hourly assessments
Employers and employees will share a small increase in cents‑per‑hour assessments. The Workers’ Benefit Fund assessment rises from 1.8 to 2.2 cents per hour worked in 2027 to fund return‑to‑work programs and disability benefits. Under House Bill 4027, a new BOLI Expense Fund component of 0.2 cents per hour will begin in 2027 to help fund the Oregon Bureau of Labor and Industries, bringing the total combined hourly assessment to 2.4 cents.
Local impact and next steps
Individual employer costs will vary based on industry, payroll size, claims experience, and insurer expense factors. In 2024, Oregon’s workers’ compensation rates ranked as the 14th least expensive in the nation, according to a biennial department study.
Public hearings on the premium assessment and Workers’ Benefit Fund assessment are scheduled for Sept. 17 at 3 p.m. and 4 p.m., respectively. Written testimony will be accepted through 5 p.m. on Sept. 24 by the DCBS Director’s Office in Salem.
Employers will see the new rates when they renew their policies, and the changes will take effect on Jan. 1, 2027.
Original reporting: KTVZ (Central Oregon) — read the source article.
