Modifies workers' compensation provisions.

Authorizes parties to an allowed claim for benefits to enter into a voluntary settlement agreement.

Requires the department of labor and industries to: (1) Contract for an independent study of voluntary settlement agreements approved by the board of industrial insurance appeals;

(2) Contract with an independent entity to study occupational disease claims in the workers' compensation system;

(3) Contract for an independent study of return to work provisions; and

(4) Create a Washington stay-at-work account which shall be funded by assessments of employers insured through the state fund for the costs of certain payments and for the cost of creating a reserve for anticipated liabilities.

Makes wage subsidies and other incentives available to employers insured with the department of labor and industries to encourage employers at the time of injury to provide light duty or transitional work for their workers.