Unlock the Value of Washington’s Preferred Worker Program
Vanessa Hughes, VP, SMART Association
The Preferred Worker Program offered by Washington Labor and Industries is an underutilized strategy that can help employers manage complex claims while retaining valuable employees. This program is designed for workers who have permanent medical restrictions that prevent them from returning to their original job. By creating a permanent light duty position, employers can avoid costly vocational retraining.
Employers who hire a certified preferred worker gain several advantages. First, there is claim protection for up to 36 months, meaning any new claim filed during this period will not affect the company’s experience factor or future rates. Second, employers receive premium discounts for hours worked by the preferred worker during the same timeframe. Wage reimbursement is another benefit, covering up to 50 percent of gross wages for 120 days, capped at $25,000. Additionally, employers can receive expense reimbursements for tools, equipment, and clothing needed to accommodate the new role, as well as a continuous employment incentive of $25,000 after 12 months of uninterrupted employment.
To qualify, the job offered must be permanent, meet the worker’s medical restrictions, and provide real economic value to the business. While permanent may sound intimidating, it simply means the job should be available for the foreseeable future. Seasonal work patterns are acceptable if they align with industry norms and the worker is prioritized for callback.
Employers must complete specific paperwork, including a job description and a signed job offer letter, and submit these to Labor and Industries for approval. Benefits only apply after all documentation is received, so timely submission is critical. This process can feel overwhelming, but Approach Management Services assists employers every step of the way from creating compliant job descriptions and offer letters to navigating L&I forms and deadlines, ensuring you maximize program benefits without unnecessary stress.
The program not only helps employers control costs but also supports injured workers in continuing their careers. For example, one employer retained a long-standing employee who could no longer work as a mason due to severe ankle restrictions. By creating a watchman role and using expense reimbursement to purchase a motorized cart, the employer avoided vocational retraining costs and preserved their experience rating. The worker remained employed, and the company saved thousands in claim-related expenses.
The Preferred Worker Program is a win-win solution that protects premiums, reduces claim costs, and keeps skilled employees engaged. Employers who take advantage of this program can turn challenging situations into opportunities for both their business and their workforce.
