Wash. Rev. Code » Title 51 · Chapter 51.24
Revised Code of Washington

Wash. Rev. Code § 51.24.090 (2026)

Compromise or settlement less than benefits

✓ current as of May 2026
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(1) Any compromise or settlement of the third party cause of action by the injured worker or beneficiary which results in less than the entitlement under this title is void unless made with the written approval of the department or self-insurer. For a state fund claim, the department shall provide reasonable ongoing notice to the employer of the status of any compromise or settlement negotiations between the injured worker or beneficiary and the department, for the employer's information. For a state fund claim, notice to the employer is not required if the costs of the claim or claims are no longer included in the calculation of the employer's experience factor used to determine premiums; or if the employer cannot be located, is no longer in business, or requests that they not receive ongoing notice after the department provides timely notice of the settlement process to the employer. For the purposes of this chapter, "entitlement" means benefits and compensation paid and estimated by the department to be paid in the future.
(2) If a compromise or settlement is void because of subsection (1) of this section, the department or self-insurer may petition the court in which the action was filed for an order assigning the cause of action to the department or self-insurer. If an action has not been filed, the department or self-insurer may proceed as provided in chapter 7.24 RCW.
[ 2017 c 145 s 1; 1995 c 199 s 5; 1984 c 218 s 7; 1977 ex.s. c 85 s 7.]

Notes:

Severability—1995 c 199: See note following RCW 51.12.120.
Notes of Decisions
Cited in 7 cases (1 in the last 5 years), 1983–2021 · leading case: Clark v. Pacificorp, 822 P.2d 162 (Wash. 1991).
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Clark v. Pacificorp, 822 P.2d 162 (Wash. 1991). · cites it 2× “080; RCW 51.24.090 (these provisions remain in effect).”
In Re the Est. of Kinsman, 721 P.2d 981 (Wash. Ct. App. 1986). · cites it 8× “Based on the Department's liability to the estate and to Helene for these benefits, the Department, pursuant to RCW 51.24.090, 3 continually reminded the attorney for the three plaintiffs that "[t]he *176 Department would have to approve the basis for the breakdown between what…”
In Re the Est. of Boettcher, 665 P.2d 1378 (Wash. Ct. App. 1983). · cites it 4× “The dispositive issue is whether the failure to obtain written approval from the Department of Labor and Industries (DLI) of a third party settlement renders that settlement void under RCW 51.24.090. We hold it does and affirm the court's vacating an order which approved the…”
Maxey v. Dep't of Labor & Indus., 789 P.2d 75 (Wash. 1990). “Alternatively, the Department may require the worker to exercise the election to pursue a third party action. RCW 51.24.070(1). The statute furnishes even more conclusive proof that the worker does not "own" the entire third party recovery subject only to a Department lien for…”
Mills v. Dep't of Labor & Indus., 865 P.2d 41 (Wash. Ct. App. 1994). “See RCW 51.24.090. However, the collection provisions of the third party statute were intended to give the Department the means necessary to aggressively collect benefits paid under the Act.”
Hadley v. Dep't of Labor & Indus., 810 P.2d 500 (Wash. 1991). · cites it 4× “RCW 51.24.090 provides that any settlement of a third party action which results in an amount less than the claimant's entitlement (benefits and compensation paid and payable) "is void unless made with the written approval of the department or self-insurer".”
William A. Boley, V. Washington State Dep't Of Labor & Indus. (Wash. Ct. App. 2021). · cites it 3× “” After receiving a copy of the release and settlement, the Department issues a distribution order of the settlement funds under the formula in RCW 51.”
— Wash. Rev. Code § 51.24.090(1) — 3 cases
Maxey v. Dep't of Labor & Indus., 789 P.2d 75 (Wash. 1990). “Alternatively, the Department may require the worker to exercise the election to pursue a third party action. RCW 51.24.070(1). The statute furnishes even more conclusive proof that the worker does not "own" the entire third party recovery subject only to a Department lien for…”
Hadley v. Dep't of Labor & Indus., 810 P.2d 500 (Wash. 1991). “RCW 51.24.090 provides that any settlement of a third party action which results in an amount less than the claimant's entitlement (benefits and compensation paid and payable) "is void unless made with the written approval of the department or self-insurer".”
William A. Boley, V. Washington State Dep't Of Labor & Indus. (Wash. Ct. App. 2021). “” After receiving a copy of the release and settlement, the Department issues a distribution order of the settlement funds under the formula in RCW 51.”
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