State Return-to-Work Wage Subsidy Programs: Washington Stay at Work, Oregon EAIP, and Others

10/18/2026

A few states will pay part of an employer's wages when it brings an injured worker back on light duty. For a commercial lines agent with accounts in those states, that is one of the most concrete return-to-work points you can raise: a published, state-run reimbursement that many small employers have never heard of.

This article explains what these programs do, the current terms of Washington's Stay at Work program and Oregon's Employer-at-Injury Program (EAIP), a few related programs, how they fit with state funds and private carriers, and how to bring them up at renewal without overpromising. Figures below come from the state agencies' own pages. They change, so confirm current terms with the agency before quoting them to a client.

What a State Return-to-Work Subsidy Program Does

A return-to-work subsidy program reimburses an employer for part of the cost of bringing an injured worker back to temporary, modified work while the worker recovers. The common elements:

• A partial wage reimbursement for the light-duty or transitional job, usually a percentage of the wages paid, for a limited number of days.
• Reimbursement for items the worker needs to do the job: tools, equipment, clothing or training, each with a cap.
• Conditions: the worker has an accepted or open claim, is released to work with restrictions, and the job fits those restrictions. Some programs require the treating provider to approve the job description.
• A request process with documentation, run by the state agency or through the insurer.

The policy logic is simple. A worker doing modified work earns wages instead of drawing wage-loss benefits, and stays connected to the job. The state shares the employer's cost to make that offer easier.

Separate from these temporary programs, some states also run preferred worker programs for workers left with permanent restrictions who are hired or kept on in a new job. Those offer different incentives and are covered below.

Washington Stay at Work: Who Qualifies and What It Reimburses

Washington's Department of Labor & Industries (L&I) runs Stay at Work, which it describes as a return-to-work incentive program for Washington State Fund employers.

What it reimburses

L&I reimburses 50% of the basic gross wages paid to the injured worker while working light duty. Base wages exclude tips, bonuses and commissions. The limits depend on the date of injury:

Item	Date of injury before Jan. 1, 2025	Date of injury on or after Jan. 1, 2025
Wages	50% for up to 66 days worked, max $10,000	50% for up to 120 days worked, max $25,000
Tools and equipment	Up to $2,500	Up to $5,000
Training	Up to $1,000	Up to $2,000
Clothing	Up to $400	Up to $1,000

 

Source: L&I's Stay at Work page (lni.wa.gov/StayAtWork). Confirm current figures there before quoting them.

Key requirements

• An approved job description. L&I requires a light-duty job description approved by the attending provider for reimbursement, and the job must be within the worker's medical restrictions.
• A job offer. L&I calls a written offer letter a best practice but does not require one. If the offer is verbal, the employer should document the date.
• Eligible expenses only. Items must be necessary for the approved light-duty job and bought on or after the job offer. Items the employer normally provides to all employees are not eligible.
• Days worked only. Reimbursement is for days actually worked on light duty.
• Submission channel. L&I says reimbursement requests should be submitted through My L&I starting Jan. 1, 2026, with fax and mail being phased out. L&I publishes a checklist of the records it needs.

Self-insured employers

L&I describes Stay at Work as a program for State Fund employers. Washington employers that self-insure their workers' comp are in a different position, and a self-insured client should confirm with L&I's self-insurance program, and its own claims administrator, what if any incentive applies. Do not tell a self-insured client it can file Stay at Work requests without that confirmation.

Washington is one of the four monopolistic states (with North Dakota, Ohio and Wyoming): private carriers do not write Washington workers' comp, so the agent's role there is usually through multistate accounts, stop-gap employers liability, or general advisory work. Our Washington workers' compensation training page covers state-specific training.

Oregon Employer-at-Injury Program: Eligibility and How Employers Apply

Oregon's Department of Consumer and Business Services, Workers' Compensation Division (WCD), runs the Employer-at-Injury Program. Oregon is not monopolistic: employers insure through private carriers, the state-chartered insurer or self-insurance, and EAIP is coordinated through the employer's insurer.

What it reimburses

According to WCD's EAIP page:

• Wage subsidy: 50% of the employer's early return-to-work gross wages, for up to 66 work days within a 24-consecutive-month period.
• Worksite modification and tools or equipment: combined maximum of $5,000.
• Tuition, books and fees: up to $1,000 for instruction that meets the transitional work requirements.
• Clothing: up to $400, excluding clothing the worker already has or the employer normally provides.

Who qualifies

• The employer must be the employer at injury (or at the time of an aggravation or reopened claim) and must carry Oregon workers' comp coverage and follow Oregon workers' comp law.
• The worker must have a workers' comp claim and be released for work with restrictions that prevent regular full-duty work. WCD notes that hourly restrictions alone may qualify.

How employers use it

Participation is optional. The employer asks its workers' comp insurer for EAIP help, or the insurer suggests it. The insurer gets medical information from the worker's provider and helps identify transitional work within the restrictions. Reimbursement requests use the WCD form listed on the EAIP page. Agents should point clients to their insurer's claims or return-to-work staff and to WCD's EAIP page for current forms. Our Oregon workers' compensation training page covers state-specific training.

Other States With Return-to-Work Incentives or Assistance

Few states run a general wage subsidy for temporary light duty. More common are programs for workers with permanent restrictions, and grants or consulting to help employers build return-to-work programs. Verified examples:

Oregon Preferred Worker Program

For workers left with permanent restrictions from an on-the-job injury that keep them from their regular work. WCD's page lists, for an employer that hires a preferred worker: a three-year premium exemption on that worker's wages (the employer must notify WCD within 90 days of hire), a wage subsidy of 50% of the worker's wages for 183 days, reimbursement to the insurer for a new claim by the worker during the exemption period, and worksite modification reimbursement. Terms and eligibility rules are on WCD's Preferred Worker Program page.

Washington Preferred Worker Program

L&I also runs a preferred worker program for workers with permanent restrictions who are hired or retained in a new job. L&I material describes wage reimbursement on terms similar to Stay at Work, with higher limits for newer injury dates, plus claim cost protection for a period after hire. Confirm current terms on L&I's employer incentives pages before quoting them.

Ohio transitional work support

Ohio's Bureau of Workers' Compensation (BWC), a monopolistic state fund, has offered transitional work grants that help eligible state-fund employers pay a BWC-accredited developer to build a transitional work program. BWC's materials have changed over time and some older programs were discontinued, so check bwc.ohio.gov for what is currently offered and who qualifies before raising it with a client.

Everywhere else

In other states, look in three places: the state workers' comp agency's return-to-work or employer pages, the state fund if there is one, and the client's carrier. Many carriers offer return-to-work consulting and templates even where the state offers no money. Do not tell a client a program exists in their state until you have found it on the agency's site.

How These Programs Fit With Monopolistic State Funds and Private Carriers

Setting	Who runs the incentive	Agent's practical role
Washington State Fund employer	L&I, directly with the employer	Tell the client the program exists, point to L&I's page and checklist
Washington self-insured employer	Confirm with L&I self-insurance program	Do not assume eligibility
Oregon insured employer	WCD, coordinated through the insurer	Connect the client with the insurer's return-to-work staff
Ohio state-fund employer	BWC	Point to BWC's current transitional work resources
Other states	Carrier resources, state agency programs if any	Ask the carrier, check the state agency

 

For multistate accounts, map each location to its state. A client with a plant in Oregon and a warehouse in Idaho has EAIP for the Oregon workers only. Our overview of return-to-work programs covers the program design side that applies in every state.

A subsidy also does not change the basic rules: the treating provider sets restrictions, the employer decides whether it has work within them, and the claim administrator decides how the return affects benefits under state law.

Raising Subsidy Programs at Renewal Without Overpromising

These programs make a good renewal conversation because they are specific and verifiable. Keep it accurate:

• Describe, do not promise. Say "Oregon's EAIP can reimburse part of light-duty wages for eligible claims; here is the WCD page." Do not say the client "will get 50% back" on every claim.
• Point to the source. Give the client the agency link and tell them the terms are set by the agency and can change.
• Name the steps. The client still needs a modified-duty job, a provider-approved job description where required, wage records and a timely request.
• Keep premium out of it. A subsidy reimburses wages and expenses. It does not lower the premium rate, and you should not imply it improves the experience mod. Return to work can affect claim costs, but outcomes depend on the claims and the rating rules.
• Record what you told them. Note the date, the program and the link in the account file.

The harder part for most clients is not the subsidy form. It is having someone who can run modified duty well: matching restrictions to tasks, writing offers, coordinating with FMLA and ADA, and keeping records. The Return-to-Work Training & Certification program is an online, self-paced course that teaches those skills, with an optional exam for the Certified Return-to-Work Administrator designation. It is professional training, not state insurance continuing education.

Frequently Asked Questions

What is the Washington Stay at Work program?

Stay at Work is a Washington L&I return-to-work incentive for State Fund employers. It reimburses 50% of the basic gross wages paid to an injured worker doing light-duty work, plus some costs for tools, equipment, clothing and training. For injuries on or after Jan. 1, 2025, L&I lists up to 120 days worked and a $25,000 wage maximum; older injuries have lower limits. The job description must be approved by the attending provider. Check L&I's site for current terms.

Can self-insured Washington employers use Stay at Work?

L&I describes Stay at Work as a program for Washington State Fund employers. A self-insured employer should confirm with L&I's self-insurance program and its claims administrator what, if anything, applies to it before assuming eligibility or submitting requests. An agent should not tell a self-insured client it qualifies without that confirmation.

How does the Oregon Employer-at-Injury Program work?

Oregon's EAIP, run by the DCBS Workers' Compensation Division, reimburses the employer at injury for 50% of early return-to-work wages for up to 66 work days in a 24-month period, plus capped amounts for worksite modification, tools, training and clothing. The worker must have a claim and be released with restrictions. The employer asks its insurer for EAIP help, and the insurer helps identify transitional work.

Does a return-to-work wage subsidy lower workers' comp premium?

Not directly. A subsidy reimburses part of the wages and expenses of a light-duty job. It does not change premium rates. Bringing employees back to work can reduce time off and claim costs, and claim costs feed experience rating where an account is rated, but no one can promise a premium or mod result. Describe the program accurately and let the claims speak for themselves.

Do other states have programs like Stay at Work?

A few. Oregon and Washington both run preferred worker programs for workers with permanent restrictions, and Ohio's BWC has offered transitional work grants to help eligible employers build programs. Many states offer no wage subsidy at all. Check the state workers' comp agency's site, the state fund if one exists, and the client's carrier before telling a client a program exists.

What records does an employer need to claim a subsidy?

Typically the light-duty job offer or offer date, the job description (approved by the attending provider where required), wage records showing days and hours actually worked on light duty, and receipts for any tools, clothing or training. Each agency publishes its own forms and checklist, and Washington is moving requests to its online My L&I system. Keep records as the work happens rather than rebuilding them later.

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