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Illinois is steeped in history and natural splendor, from the vibrant city of Chicago to the enchanting vistas of Starved Rock State Park. The Prairie State offers a thriving business environment with ample prospects for entrepreneurs and business proprietors.
Whether situated in the heart of Illinois' technological hub or nestled along the picturesque shores of Lake Michigan, ensuring the protection of your business and employees through workers’ compensation insurance is paramount.
Workers' compensation is a state-mandated insurance program for all employers, including those with part-time employees. It’s designed to provide employees who suffer work-related injuries or illnesses with medical treatment and indemnity benefits.
Without workers’ compensation, the cost of a work-related injured or ill employee’s medical treatment could become the responsibility of your business.
The Illinois Workers’ Compensation Commission oversees the workers’ compensation law in Illinois. The law requires employers to provide workers’ comp insurance, with limited exemptions .
Part-time, seasonal and temporary workers, minors, trainees, immigrants and working family members are considered employees under Illinois workers’ compensation law.
Employees can verify online if their employer has coverage through an online search tool.
Policies include protection for full-time and part-time workers, seasonal and temporary employees.
Exemptions from Illinois workers’ compensation may include, for example:
Workers' compensation covers a range of work-related injuries and illnesses, including physical injuries resulting from an accident and occupational diseases that may develop over time due to job conditions.
Illinois workers’ comp insurance provides several types of benefits for work injuries, which include:
These benefits include:
Benefits received rely on many factors, such as the employee’s:
In Illinois, the weekly compensation rate is 66 ⅔% of a person’s average weekly wage based on the 52 weeks prior to the injury or illness.
This amount is subject to a statewide maximum reimbursement amount. Injured workers will not receive lost wages for the first three days unless they need at least 14 days of work off. The state maximum compensation (that change bi-annually) is $1,897.92 as of January 15, 2024.
Find more information on annual Illinois’ workers’ compensation rates.
In the event of a work-related injury or illness, employees must promptly notify their employer and seek medical attention.
It is crucial for workers to seek medical immediately when suffering a work-related injury for diagnosis and treatment. All care is covered by your employer and their workers’ comp partner with no cost to you.
Employers must be made aware of the worker’s injury no more than 45 days after the incident.
When first treated, the medical provider should issue work restriction documentation that workers are to make their employer aware of with a copy.
Employers are required by law to report accidents that result in more than three lost work days to the Workers’ Compensation Commission.
Once the accident is reported, the worker should receive a handbook that explains the law, benefits, and procedures. Handbooks can also be found on the Commission’s website.
If the worker loses time from work due to the work injury or illness, they may be entitled to receive weekly payments and necessary medical care until they are able to return to work safely.
It’s against the law for an employer to harass, discharge, refuse to rehire or in any way discriminate against an employee for exercising their rights under the Workers' Compensation or Occupational Diseases Acts.
If a fraudulent claim is filed it may result in legal repercussions.
Employers and their insurance partners must pay for all medical treatment connected to the work injury. Treatment is to continue until the worker reaches maximum medical improvement (MMI). MMI means that no further medical treatment would benefit the worker, as the medical condition has plateaued.
Following their recovery, a worker is expected to resume work safely. If an employee is unable to return to their previous position or any other type of work due to their work-related injury, they may be entitled to permanent total disability benefits.
If the workers’ compensation insurance partner accepts the claim, benefits will be issued immediately to ensure timely care.
Employers in Illinois should provide the injured worker with a panel of providers from which to choose a treating physician. The physician chosen becomes the authorized treating physician.
Employees must seek medical treatment from these designated providers to ensure coverage.
If an employee is off work for more than 14 days, they are eligible for lost time benefits.
Generally, employers in Illinois with two or more employees must carry workers' compensation insurance or qualify for self-insurance, depending on their size and industry. Compliance with these requirements is essential to protect both the employer and employees.
When selecting a workers' compensation insurance provider, consider factors such as the provider's experience in the industry, financial stability, coverage options, claims process, customer service, and cost.
We recommend requesting multiple quotes and comparing the offerings before making a decision.
Covering your business and employees with a trusted insurance partner — like EverPeak — brings peace of mind so you can focus on your bottom line.
In Illinois, employers who fail to procure or sustain the appropriate workers' compensation coverage for their employees may be fined up to $500 for every day of noncompliance, with a minimum fine of $10,000.
In most cases, employees in Illinois are barred from suing their employers for work-related injuries or illnesses. The workers' compensation system provides an exclusive remedy, meaning that employees typically cannot file a lawsuit against their employers. Instead, they must pursue a workers' compensation claim to receive benefits for their injuries or illnesses.
Generally, independent contractors aren’t covered by workers' compensation insurance in Illinois. Workers' compensation laws typically apply to employees rather than independent contractors.
However, it's important to note that the classification of a worker as an independent contractor or an employee can be complex, and misclassification can lead to legal disputes. If you’re unsure about your classification, we recommend seeking legal guidance.
Ideally, the incident should be reported immediately or within a few days of the occurrence. Prompt reporting helps ensure the necessary steps are taken to initiate the workers' compensation claims process.
Employees can verify online if their employer has coverage through an online search tool.