“Kept on Salary” (KOS) allows Washington employers to continue paying injured employees their regular wages during an accepted Workers’ Compensation claim — instead of the state’s time-loss benefits. It’s a proactive strategy that reduces claim costs, improves compliance, and supports faster employee recovery.
Why ‘Kept on Salary’ Matters to Employers
In Washington State, the Department of Labor & Industries (L&I) allows employers to voluntarily keep injured workers on full salary while they recover.
This approach — known as Kept on Salary — offers several benefits to employers who want to maintain control over claims and protect their L&I premium rates.
Key employer advantages:
- Cost Control: Prevents L&I from issuing time-loss payments that can inflate future premiums.
- Simplified Claims Management: Keeps wage continuity in-house, reducing disputes over wage calculations.
- Stronger Employee Relations: Demonstrates care and commitment, improving morale and return-to-work outcomes.
- Fewer Administrative Delays: Employers maintain direct payment, avoiding L&I’s processing lags.
- Improved Compliance: Ensures ongoing coverage and proper documentation under Washington’s industrial insurance laws.
How ‘Kept on Salary’ Works in Washington
- Voluntary Program: Employers choose to continue regular wages while the employee is medically unable to perform their full duties.
- Medical Certification Required: A provider confirms the injury prevents regular work or if the injury requires light duty, but none is available.
- No Dual Payments: Employees can’t receive both KOS and L&I time-loss benefits simultaneously.
- L&I Reporting: Employers still file and update the claim, but payments come directly from the company’s payroll.
- Duration: KOS can continue as long as the employer agrees — often until the worker transitions to light duty or returns full-time.
Employer Benefits at a Glance
| Benefit | Description |
|---|---|
| Lower Claim Costs | Avoids time-loss payments that increase experience ratings and premiums. |
| Better Control | Employers manage payments directly, maintaining financial and compliance oversight. |
| Employee Retention | Keeps injured staff connected to the workplace and motivated to recover. |
| Simpler Administration | Reduces L&I wage disputes and claim complexity. |
| Compliance Confidence | Ensures continuous pay and documentation align with state regulations. |
Common Employer Questions
A: No — it’s voluntary. However, many employers use it strategically to reduce claim impact and preserve premium ratings.
A: Generally no, as long as they are medically excused from work and paid their normal wages. It’s an employer-directed approach.
A: No. The worker’s medical benefits through L&I continue as normal while the employer maintains wage payments.
A: It depends on policy and recovery progress. Many employers use it until a transitional (light duty) role becomes available.
How Integrated Claims Management (ICM) Supports Employers
At Integrated Claims Management (ICM), we help Washington employers design and manage Kept on Salary programs that align with L&I regulations and best practices.
Our services include:
- Claims Administration: Full L&I claim oversight, from reporting to closure.
- Compliance Guidance: Ensuring wage payments, forms, and documentation meet legal standards.
- Return-to-Work Coordination: Collaborating with medical providers to transition employees safely back to work.
- Premium Protection: Strategies to prevent unnecessary time-loss payments and control experience ratings.
- Employer Education: Training HR and safety teams on claim handling, documentation, and risk prevention.
Risks of Not Using Kept on Salary
- ❌ Higher L&I Premiums — Time-loss payments increase your experience rating and future premiums.
- ❌ Loss of Claim Control — L&I dictates payments and claim duration.
- ❌ Employee Disengagement — Long absences can reduce morale and increase turnover.
- ❌ Administrative Complexity — Time-loss claims often lead to wage disputes and extended processing.
Bottom Line
Employers who use Kept on Salary demonstrate proactive management, employee care, and regulatory compliance — all while reducing total claim costs.
With the right structure and support, it’s one of the most effective Workers’ Compensation strategies available in Washington State.
Need help managing a Workers’ Compensation claim or setting up a Kept on Salary program?
📞 Contact Integrated Claims Management (ICM) — your partner in compliant, cost-effective claim handling.
Visit icmoly.com/workers-compensation to learn more.
