Concerning the duties of industrial insurance self-insured employers and third-party administrators.

HB 1059 strengthens oversight of self-insured employers and their third-party administrators in Washington State by requiring them to act in good faith when handling workers' compensation claims. It creates a new rule that allows the state director to withdraw a self-insurer's certification after three proven violations of good faith within three years (e.g., coercing workers to accept less compensation or hiding injury reports). Employers found violating this duty must pay penalties ranging from 1 to 52 times the worker’s average weekly wage, with investigations triggered by written complaints. The law applies to all workers’ compensation claims regardless of injury date and takes effect January 1, 2026.