Oregon releases biennial workers’ compensation study

Oregon’s workers’ compensation rates remain among the lowest in the nation, according to an analysis released today by the Oregon Department of Consumer and Business Services (DCBS). This reflects the state’s ongoing success in making workplaces safer and keeping costs under control.

The biennial study ranks all 50 states and Washington, D.C., based on premium rates that were in effect Jan. 1, 2024.

Oregon had the 14th least expensive rates in 2022. Oregon fell in the rankings by four spots from the 2022 study, despite having a lower premium index rate, because rates in other states dropped further. Oregon’s index rate is 89 cents per $100 of payroll, down from 93 cents from 2022 and its lowest rate in the history of the study.

Oregon workers’ compensation rates have declined another 3.2 percent since the 2024 effective date used in the study. Workers’ compensation pays injured workers for lost wages and medical care for job-related injuries.

“What makes Oregon’s workers’ compensation system truly effective is that our low premium rates are not achieved by cutting corners on worker benefits,” said Matt West, Workers’ Compensation Division administrator. “We have shown that it’s possible to maintain strong protections for workers while keeping rates affordable for employers.”

In recent years, rates have dropped all over the country, which has led to a compression of the scores in the survey. The premium index rates are bunched up at the low end, so that small changes in the index rates can lead to big jumps in the ranking.

The study shows Hawaii had the most expensive rates, followed by New Jersey, New York, and California. Meanwhile, North Dakota had the least expensive rates. In the Northwest, Washington’s rates were the 12th most expensive and Idaho was the 25th most expensive.

Oregon researchers also compared each state’s rates to the national median (the 26th ranked state) rate of $1.09 per $100 of payroll. Oregon’s rate of 89 cents is 82 percent of the median.

To produce a valid comparison of states, which have various mixes of industries, the study calculates rates for each state using the same mix of the 50 industries with the highest workers’ compensation claims costs in Oregon.

Oregon has conducted these studies in even-numbered years since 1986, when Oregon’s rates were among the highest in the nation. The department reports the results to the Oregon Legislature as a performance measure. Oregon’s relatively low rate today underscores the success of the state’s workers’ compensation system reforms and its improvements in workplace safety and health.

Oregon has long taken a comprehensive approach to making workplaces safer, keeping business costs low, and providing strong worker benefits. This approach includes enforcing requirements that employers carry insurance for their workers, keeping medical costs under control, and helping injured workers return to work sooner and minimize the impact on their wages.

It also includes efforts to prevent on-the-job injuries by enforcing workplace safety and health rules, and advising employers about how to improve worker safety and health.

The study can be found at https://www.oregon.gov/DCBS/DCBSPubs/reports/general/prem-rpt/24-2083.pdf.

Contact information
Mark Peterson, communications director
971-283-5405
Mark.Peterson@dcbs.oregon.gov