L&I's Three Year Lag


Now that you've had a claim, you're probably worried that your rates are going to go up next year. Well, because L&I has a three-year lag, new claims do not impact your rates right away.

This means, that a claim that occurs during this fiscal year, will not impact your rates until 2019. But, that's only two years from now, not three… confused yet? L&I looks at your claims in fiscal years. An L&I year runs from July 1st through June 30th the following year. So, technically a claim that happens at the beginning of the year, happened “last year”… and if a claim occurred today, “last year”, it would take three years to hit your rates; 2016 + 3 years = 2019.

Here's a chart to help make it easier.

Claim occurring between these dates (fiscal year):

Impacts rates for these years (calendar year):

07/01/16 – 07/01/172019, 2020, 2021

07/01/17 – 07/01/182020, 2021, 2022 

07/01/18 – 07/01/192021, 2022, 2023

07/01/19 – 07/01/202022, 2023, 2024

So, when managing your company's L&I claims, programs, policies, it's important to be looking forward.  A dollar spent now may mean thousands saved over the three years a claim impacts your rates. This is one of those situations where “it's a marathon, not a sprint” kind of things.