Amazon Injuries Risk State Backlash, Higher Workers’ Comp Costs

  • Washington state mulls boosting warehouse insurance rates 15%
  • If other states follow, Amazon could pay tens of millions more
Photographer: Andrew Harrer/Bloomberg
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Injuries in Amazon.com Inc. warehouses could damage more than just the company’s reputation. They could start to hurt the e-commerce giant’s bottom line, as well.

Washington state’s workplace safety regulator says workers in Amazon’s highly automated warehouses are injured at a higher rate than people working in other types of storage facilities. It’s proposing a new “fulfillment center” classification for warehouse employees to calculate workers’ compensation insurance rates. If approved, Amazon’s workers’ compensation costs in the state would increase 15% next year while most other warehouse operators would see costs go down about 20%.