State Stay-at-Work and Employer-at-Injury Programs: How RTW Wage Subsidies Work

Bringing an injured employee back on light duty already saves money: wage-loss benefits stop or shrink, the claim closes sooner and the employee stays connected to work. A few states go further and pay the employer part of the cost of that light-duty job. Washington and Oregon run the best-known programs, and both reimburse half of the wages paid during an early return, plus some of the cost of tools, training and clothing the job requires.

Many eligible employers never claim the money. The usual reasons are that nobody in HR knew the program existed, the light-duty job description was never approved by the provider, or the paperwork was not kept. This article explains what these programs pay for, how the Washington and Oregon programs work, which other state programs to look at, what documentation they typically need and how to build a subsidy into your normal return-to-work process.

Program terms change. The figures below were checked against the state agencies' own pages; confirm them with the agency or your insurer before relying on them for a specific claim.

What State Return-to-Work Incentive Programs Pay For

State return-to-work incentives generally share a structure:

• A wage subsidy. The state reimburses a percentage of the wages the employer pays an injured worker during temporary, restricted work, for a limited number of days and sometimes up to a dollar cap.
• Expense reimbursement. Costs the employer incurs to make the light-duty job possible: tools or equipment, worksite modifications, training or tuition, and required clothing, each with its own cap.
• The worker must have an accepted or pending workers' compensation claim and medical restrictions that prevent regular work, and the job usually must be approved by the treating provider.

The programs are funded through the state workers' compensation system, not general tax revenue. Their purpose is to make early return cheaper than paying time-loss benefits. They are also distinct from programs for permanently restricted workers hired by a new employer, which some states run separately and which have their own terms.

Washington Stay at Work: Eligibility and What Can Be Reimbursed

Washington's Department of Labor & Industries (L&I) runs Stay at Work for employers insured through the Washington State Fund. L&I's program page does not extend it to self-insured employers.

The reimbursement depends on the worker's date of injury. For claims with a date of injury on or after January 1, 2025, L&I lists:

A few details catch employers out:

• Base wages are the gross hourly wages or salary the worker earned performing the approved light-duty job. L&I says they can include overtime if overtime is not restricted, and they exclude tips, bonuses and commissions.
• The job description must be approved by the attending provider. L&I calls this a requirement for reimbursement. A general release to "light duty" is not enough.
• Expenses must be purchased on or after the job offer date. L&I says a written job-offer letter is a best practice but not required; if the offer was verbal, document the date.
• Submission channel. L&I says that starting January 1, 2026, Stay at Work requests should be submitted through My L&I, as fax and mail submissions are being phased out.

L&I publishes a checklist (F243-288-000) and step-by-step application instructions (F243-287-000). Use the current versions from L&I's site rather than an old copy saved on a shared drive.

Oregon Employer-at-Injury Program: How the Wage Subsidy Works

Oregon's Employer-at-Injury Program (EAIP) is run by the Workers' Compensation Division (WCD) of the Department of Consumer and Business Services. It is available to the employer at the time of injury (or at the time of an aggravation or own-motion claim opening) that maintains Oregon workers' compensation coverage and follows Oregon workers' compensation law.

According to WCD, EAIP offers:

• Wage subsidy: 50% of the early return-to-work gross wages, for up to 66 workdays within a period of 24 consecutive months.
• Worksite modification and tools or equipment: a combined maximum of $5,000, covering rental, purchase or modification.
• Tuition, books and fees: up to $1,000 for a class or course that meets transitional work requirements.
• Required clothing: up to $400, excluding clothing the worker already has or the employer normally provides. The clothing becomes the worker's property.
• Administrative fee: a one-time $180 included in reimbursement requests.

Worker eligibility. The worker must have a workers' compensation claim and be released for work with restrictions that prevent regular full-duty work. WCD notes that hours restrictions alone can qualify.

How it is administered. The employer decides whether to use EAIP. It can ask its insurer for help, or the insurer may suggest the program, and if the employer requests it, the insurer must assist. The insurer obtains the medical reports from the worker's provider and submits reimbursement requests to WCD on Form 2360. In practice, that means the HR or RTW coordinator's job is to tell the insurer early that transitional work is available and to send the job details and payroll records the insurer needs.

Oregon's Preferred Worker Program

Oregon also runs a separate Preferred Worker Program for workers with permanent restrictions from an on-the-job injury who cannot return to their regular work. It is aimed at the next job, whether with the employer at injury or a new employer. WCD lists a three-year exemption from workers' compensation premiums and premium assessments on the preferred worker's wages (the employer must notify WCD within 90 days of hiring), a wage subsidy of 50% of wages for 183 days, reimbursement of a new claim filed during the exemption period, and capped reimbursement for worksite modifications, tools, tuition and other purchases. If a transitional assignment ends with permanent restrictions, check whether the employee becomes a preferred worker before deciding there is no job.

Other States With Return-to-Work Incentives to Check

Washington and Oregon are the clearest examples of a direct wage subsidy for the employer at injury. Other states take different approaches, and HR in a multi-state organization should check each state's workers' compensation agency rather than assume a program does or does not exist.

• The Ohio Bureau of Workers' Compensation runs a Transitional Work Grant program for state-fund private employers and public taxing districts (self-insuring employers and state agencies are excluded), which helps pay for an accredited transitional work developer to build a written transitional work program. It is a program-development grant, not a per-claim wage subsidy. Eligibility, grant caps and how often an employer may receive one are set by BWC; check BWC's current grant agreement and application before applying.
• Monopolistic states. In North Dakota, Ohio, Washington and Wyoming, workers' compensation is written through a state fund, so any incentive program is run by that fund. Washington's Stay at Work and Ohio's grant are two examples.
• Re-employment programs for permanent restrictions. Several states have historically run programs that help employers hire workers with permanent restrictions, sometimes through second-injury or re-employment funds. Many states have closed or narrowed second-injury funds, so verify current status with the state agency.
• Carrier programs. Some insurers offer their own return-to-work incentives or premium credits. These are contract terms, not state law, so read the policy or ask your agent.

The fastest way to check a state: search the state workers' compensation agency's site for "return to work," "employer incentive" or "transitional work," and ask your carrier or TPA which programs they routinely file for.

Documentation the Programs Usually Require From the Employer

Program forms differ, but the evidence they ask for is consistent. Build these into every light-duty case, whether or not you expect to claim a subsidy:

1. The claim number and confirmation that the claim was filed.
2. Current medical restrictions from the treating provider, dated.
3. A light-duty job description listing tasks, physical demands, hours and location, approved and signed by the provider where the program requires it, as Washington's does.
4. The job offer, ideally in writing, with the offer date, start date, pay rate and hours. Under Washington's program, expenses must be purchased on or after the offer date, so the date matters.
5. Payroll records: pay stubs and time records showing hours worked and wages paid in the light-duty job for each period claimed.
6. Receipts for tools, equipment, clothing or training, with a short note linking each purchase to a restriction or a task in the job description.
7. Records of changes: updated restrictions, hour increases, the date of full release or the end of the assignment.

If you already run return-to-work programs with written offers and provider-approved job descriptions, most of this exists. The gap is usually payroll: time records for the light-duty job get mixed with regular hours, and reconstructing them later is slow.

Fitting a Subsidy Into Your Light-Duty Process

A subsidy should follow your process, not drive it. The employee comes back because the work fits the restrictions and the timing helps recovery, and the subsidy reduces the cost. Practical steps:

• Add a "subsidy check" to intake. When a claim opens in Washington or Oregon, the coordinator notes the program and the date of injury, which in Washington determines the reimbursement limits.
• Send the provider a job description, not a question. Ask the provider to approve or amend a specific description. This speeds the release and satisfies the program requirement at once. See our guide to light-duty assignments for job description content.
• Code light-duty hours separately in payroll. A separate earnings code or department makes the reimbursement request a report rather than a project.
• Calendar the program limits. Track days worked against the program cap so you know when the subsidy will stop. The subsidy ending is not a reason to end the assignment, and your transitional duty policy, not the subsidy, should set the duration.
• Keep the FMLA and ADA rules in view. An employee on FMLA leave may decline light duty and stay on unpaid FMLA leave (29 CFR 825.220(d), 825.702(d)(2)). A subsidy does not change that, and it does not change ADA obligations when the assignment ends.
• Tell your insurer. In Oregon, the insurer submits EAIP requests. In any state, the adjuster needs the return date and wage to adjust time-loss benefits.

Train Your Team to Use These Programs

Wage subsidies reward employers who already run a disciplined return-to-work process. Our return-to-work training for HR explains how to build one. The online Return-to-Work Training & Certification program covers modified duty and restrictions, documentation, workers' comp interaction, FMLA restoration and ADA accommodation, with an optional exam for the Certified Return-to-Work Administrator designation and free updates when the law changes.

Frequently Asked Questions

What is the Washington Stay at Work program?

Stay at Work is a Washington L&I program for State Fund employers that reimburses part of the cost of bringing an injured worker back to temporary light-duty work. For claims with a date of injury on or after January 1, 2025, L&I lists reimbursement of 50% of base wages for up to 120 days worked, up to $25,000, plus capped amounts for tools and equipment, training and clothing. The light-duty job description must be approved by the worker's attending provider.

Can self-insured employers use Stay at Work?

L&I describes Stay at Work as a program for Washington State Fund employers, and its program page does not extend it to self-insured employers. A self-insured employer in Washington should confirm directly with L&I's self-insurance section. Self-insured employers still save on time-loss costs when they bring workers back to light duty, because they pay those benefits themselves.

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

EAIP, run by Oregon's Workers' Compensation Division, reimburses the employer at injury for 50% of early return-to-work gross wages for up to 66 workdays within 24 consecutive months, plus capped amounts for worksite modification and tools, tuition and required clothing. The worker must have a claim and restrictions that prevent full regular duty. The employer chooses to use it, and the insurer handles the paperwork and submits the reimbursement request on Form 2360.

What is the difference between EAIP and Oregon's Preferred Worker Program?

EAIP supports a temporary early return to work with the employer at injury while the worker is still recovering. The Preferred Worker Program supports re-employment of a worker with permanent restrictions who cannot return to their regular job, with benefits including a three-year premium exemption on that worker's wages, a wage subsidy and reimbursement for worksite modifications and purchases. A worker can move from one to the other as the claim progresses.

Do other states offer return-to-work incentives?

Some do, but the structure varies. Ohio's Bureau of Workers' Compensation offers a Transitional Work Grant toward building a written transitional work program, rather than a per-claim wage subsidy. Some states run re-employment programs for workers with permanent restrictions, and some insurers offer their own incentives. Check each state's workers' compensation agency site and ask your carrier or TPA which programs they file for.

Is the wage subsidy taxable or counted as wages to the employee?

The subsidy is paid to the employer, not the employee, and does not change the employee's pay. The employee receives normal wages for the light-duty job, which are subject to normal payroll taxes and withholding. How the employer should report the reimbursement for its own income tax purposes is a question for its tax adviser.