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SF 455

A bill for an act requiring certain weekly workers’ compensation benefits to be calculated by including an employee’s overtime and premium pay, and to include an annual cost-of-living adjustment.

2025-2026 Regular Session Introduced by Tony Bisignano and 8 co-sponsors

The bill adds overtime and premium pay to weekly workers’ compensation calculations and establishes an annual SSA COLA-based increase for PTD and death benefits.

Subcommittee: Driscoll, Alons, and Townsend.
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Bill Summary · SF 455

Summary of SF 455 (2025)

Overview

SF 455 is a 2025 bill introduced on February 26, 2025, that would change how weekly workers’ compensation benefits are calculated and would add an annual cost-of-living adjustment (COLA) for certain long-term benefits. The bill is currently in a subcommittee (Driscoll, Alons, Townsend) after being referred to the Workforce committee.

Purpose and intent

  • Ensure weekly workers’ compensation benefits reflect an employee’s actual earnings by including overtime and premium pay in the calculation.
  • Establish a recurring annual COLA for benefits paid under permanent total disability (PTD) and death benefits, aligning increases with the federal Social Security Administration’s COLA.

Key provisions

  1. Inclusion of overtime and premium pay in weekly benefits

    • The calculation of weekly workers’ compensation benefits would include, rather than exclude, an employee’s overtime earnings and premium pay when determining the weekly benefit amount.

  2. Annual COLA for PTD and death benefits

    • For benefits payable as PTD or death benefits, the basis of compensation would increase each January 1.
    • The increase would be by a percentage equal to the SSA COLA announced in December of the immediately preceding year.
    • This creates a year-to-year adjustment mechanism tied to SSA’s COLA.

  3. Technical corrections for clarity

    • The bill includes corrections such as removing an unnumbered paragraph and enhancing clarity in the text.

Who would be affected

  • Workers receiving weekly workers’ compensation benefits, particularly those whose earnings include overtime and premium pay.
  • Beneficiaries of PTD and death benefits, since their benefit base would be adjusted annually by the SSA COLA.
  • Employers and insurers administering workers’ compensation, who would see changes in benefit calculations and potential long-term cost implications due to higher benefit bases and annual COLAs.

Financial and timing considerations

  • The bill does not provide specific dollar amounts or funding mechanisms within the introduced text.
  • Annual COLAs would apply to benefits “that becomes due that year,” with increases calculated based on the SSA COLA determined in December of the immediately preceding year.
  • The first applicable COLA would align with the SSA COLA determined for the preceding December, affecting January 1 of the following year.

Legislative actions and sponsors

  • Introduced: February 26, 2025
  • Referred to: Workforce
  • Subcommittee (as of February 27, 2025): Driscoll, Alons, and Townsend
  • Primary sponsors: Blake, Winckler, Zimmer, Wahls, Townsend, Bisignano, Dotzler, Trone Garriott, Donahue

Notes for readers

  • The bill represents a shift toward more fully indexing weekly benefits to actual earnings and to federal COLA levels.
  • As introduced, the text reflects the stated provisions; final applicability, potential transition rules, and any fiscal impact analyses would be clarified in subsequent committee discussions and amendments.

Compiled from official sources — confirm details with the bill’s official record.

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