Illinois Senate Bill SB1996 Latest Draft

                            Public Act 103-0590
SB1996 EnrolledLRB103 28652 SPS 55033 b SB1996 Enrolled LRB103 28652 SPS 55033 b
SB1996 Enrolled LRB103 28652 SPS 55033 b
AN ACT concerning employment.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Insurance Code is amended by
changing Section 416 as follows:
(215 ILCS 5/416)
Sec. 416. Illinois Workers' Compensation Commission
Operations Fund Surcharge.
(a) As of July 30, 2004 (the effective date of Public Act
93-840), every company licensed or authorized by the Illinois
Department of Insurance and insuring employers' liabilities
arising under the Workers' Compensation Act or the Workers'
Occupational Diseases Act shall remit to the Director a
surcharge based upon the annual direct written premium, as
reported under Section 136 of this Act, of the company in the
manner provided in this Section. Such proceeds shall be
deposited into the Illinois Workers' Compensation Commission
Operations Fund as established in the Workers' Compensation
Act. If a company survives or was formed by a merger,
consolidation, reorganization, or reincorporation, the direct
written premiums of all companies party to the merger,
consolidation, reorganization, or reincorporation shall, for
purposes of determining the amount of the fee imposed by this

 

SB1996 Enrolled LRB103 28652 SPS 55033 b


Section, be regarded as those of the surviving or new company.
(b) Beginning (1) Except as provided in subsection (b)(2)
of this Section, beginning on July 30, 2004 (the effective
date of Public Act 93-840) and on July 1 of each year
thereafter through 2023, the Director shall charge an annual
Illinois Workers' Compensation Commission Operations Fund
Surcharge from every company subject to subsection (a) of this
Section equal to 1.01% of its direct written premium for
insuring employers' liabilities arising under the Workers'
Compensation Act or Workers' Occupational Diseases Act as
reported in each company's annual statement filed for the
previous year as required by Section 136. Within 15 days after
the effective date of this amendatory Act of the 103rd General
Assembly and on July 1 of each year thereafter, the Director
shall charge an annual Illinois Workers' Compensation
Commission Operations Fund Surcharge from every company
subject to subsection (a) of this Section equal to 1.092% of
its direct written premium for insuring employers' liabilities
arising under the Workers' Compensation Act or Workers'
Occupational Diseases Act as reported in each company's annual
statement filed for the previous year as required by Section
136. The Illinois Workers' Compensation Commission Operations
Fund Surcharge shall be collected by companies subject to
subsection (a) of this Section as a separately stated
surcharge on insured employers at the rate of 1.092% 1.01% of
direct written premium for the surcharge due in 2024 and each


year thereafter. The Illinois Workers' Compensation Commission
Operations Fund Surcharge shall not be collected by companies
subject to subsection (a) of this Section from any employer
that self-insures its liabilities arising under the Workers'
Compensation Act or Workers' Occupational Diseases Act,
provided that the employer has paid the Illinois Workers'
Compensation Commission Operations Fund Fee pursuant to
Section 4d of the Workers' Compensation Act. All sums
collected by the Department of Insurance under the provisions
of this Section shall be paid promptly after the receipt of the
same, accompanied by a detailed statement thereof, into the
Illinois Workers' Compensation Commission Operations Fund in
the State treasury.
(b)(2) (Blank). The surcharge due pursuant to Public Act
93-840 shall be collected instead of the surcharge due on July
1, 2004 under Public Act 93-32. Payment of the surcharge due
under Public Act 93-840 shall discharge the employer's
obligations due on July 1, 2004.
(c) In addition to the authority specifically granted
under Article XXV of this Code, the Director shall have such
authority to adopt rules or establish forms as may be
reasonably necessary for purposes of enforcing this Section.
The Director shall also have authority to defer, waive, or
abate the surcharge or any penalties imposed by this Section
if in the Director's opinion the company's solvency and
ability to meet its insured obligations would be immediately


threatened by payment of the surcharge due.
(d) When a company fails to pay the full amount of any
annual Illinois Workers' Compensation Commission Operations
Fund Surcharge of $100 or more due under this Section, there
shall be added to the amount due as a penalty an amount equal
to 10% of the deficiency for each month or part of a month that
the deficiency remains unpaid.
(e) The Department of Insurance may enforce the collection
of any delinquent payment, penalty, or portion thereof by
legal action or in any other manner by which the collection of
debts due the State of Illinois may be enforced under the laws
of this State.
(f) Whenever it appears to the satisfaction of the
Director that a company has paid pursuant to this Act an
Illinois Workers' Compensation Commission Operations Fund
Surcharge in an amount in excess of the amount legally
collectable from the company, the Director shall issue a
credit memorandum for an amount equal to the amount of such
overpayment. A credit memorandum may be applied for the 2-year
period from the date of issuance, against the payment of any
amount due during that period under the surcharge imposed by
this Section or, subject to reasonable rule of the Department
of Insurance including requirement of notification, may be
assigned to any other company subject to regulation under this
Act. Any application of credit memoranda after the period
provided for in this Section is void.


(g) Annually, the Governor may direct a transfer of up to
2% of all moneys collected under this Section to the Insurance
Financial Regulation Fund.
(Source: P.A. 102-775, eff. 5-13-22.)
Section 10. The Workers' Compensation Act is amended by
changing Sections 4, 4a-5, 4d, 7, 19, and 25.5 as follows:
(820 ILCS 305/4) (from Ch. 48, par. 138.4)
(Text of Section from P.A. 101-40 and 102-37)
Sec. 4. (a) Any employer, including but not limited to
general contractors and their subcontractors, who shall come
within the provisions of Section 3 of this Act, and any other
employer who shall elect to provide and pay the compensation
provided for in this Act shall:
(1) File with the Commission annually an application
for approval as a self-insurer which shall include a
current financial statement, and annually, thereafter, an
application for renewal of self-insurance, which shall
include a current financial statement. Said application
and financial statement shall be signed and sworn to by
the president or vice president and secretary or assistant
secretary of the employer if it be a corporation, or by all
of the partners, if it be a copartnership, or by the owner
if it be neither a copartnership nor a corporation. All
initial applications and all applications for renewal of


self-insurance must be submitted at least 60 days prior to
the requested effective date of self-insurance. An
employer may elect to provide and pay compensation as
provided for in this Act as a member of a group workers'
compensation pool under Article V 3/4 of the Illinois
Insurance Code. If an employer becomes a member of a group
workers' compensation pool, the employer shall not be
relieved of any obligations imposed by this Act.
If the sworn application and financial statement of
any such employer does not satisfy the Commission of the
financial ability of the employer who has filed it, the
Commission shall require such employer to,
(2) Furnish security, indemnity or a bond guaranteeing
the payment by the employer of the compensation provided
for in this Act, provided that any such employer whose
application and financial statement shall not have
satisfied the commission of his or her financial ability
and who shall have secured his liability in part by excess
liability insurance shall be required to furnish to the
Commission security, indemnity or bond guaranteeing his or
her payment up to the effective limits of the excess
coverage, or
(3) Insure his entire liability to pay such
compensation in some insurance carrier authorized,
licensed, or permitted to do such insurance business in
this State. Every policy of an insurance carrier, insuring


the payment of compensation under this Act shall cover all
the employees and the entire compensation liability of the
insured: Provided, however, that any employer may insure
his or her compensation liability with 2 or more insurance
carriers or may insure a part and qualify under subsection
1, 2, or 4 for the remainder of his or her liability to pay
such compensation, subject to the following two
provisions:
Firstly, the entire compensation liability of the
employer to employees working at or from one location
shall be insured in one such insurance carrier or
shall be self-insured, and
Secondly, the employer shall submit evidence
satisfactorily to the Commission that his or her
entire liability for the compensation provided for in
this Act will be secured. Any provisions in any
policy, or in any endorsement attached thereto,
attempting to limit or modify in any way, the
liability of the insurance carriers issuing the same
except as otherwise provided herein shall be wholly
void.
Nothing herein contained shall apply to policies of
excess liability carriage secured by employers who have
been approved by the Commission as self-insurers, or
(4) Make some other provision, satisfactory to the
Commission, for the securing of the payment of


compensation provided for in this Act, and
(5) Upon becoming subject to this Act and thereafter
as often as the Commission may in writing demand, file
with the Commission in form prescribed by it evidence of
his or her compliance with the provision of this Section.
(a-1) Regardless of its state of domicile or its principal
place of business, an employer shall make payments to its
insurance carrier or group self-insurance fund, where
applicable, based upon the premium rates of the situs where
the work or project is located in Illinois if:
(A) the employer is engaged primarily in the building
and construction industry; and
(B) subdivision (a)(3) of this Section applies to the
employer or the employer is a member of a group
self-insurance plan as defined in subsection (1) of
Section 4a.
The Illinois Workers' Compensation Commission shall impose
a penalty upon an employer for violation of this subsection
(a-1) if:
(i) the employer is given an opportunity at a hearing
to present evidence of its compliance with this subsection
(a-1); and
(ii) after the hearing, the Commission finds that the
employer failed to make payments upon the premium rates of
the situs where the work or project is located in
Illinois.


The penalty shall not exceed $1,000 for each day of work
for which the employer failed to make payments upon the
premium rates of the situs where the work or project is located
in Illinois, but the total penalty shall not exceed $50,000
for each project or each contract under which the work was
performed.
Any penalty under this subsection (a-1) must be imposed
not later than one year after the expiration of the applicable
limitation period specified in subsection (d) of Section 6 of
this Act. Penalties imposed under this subsection (a-1) shall
be deposited into the Illinois Workers' Compensation
Commission Operations Fund, a special fund that is created in
the State treasury. Subject to appropriation, moneys in the
Fund shall be used solely for the operations of the Illinois
Workers' Compensation Commission, the salaries and benefits of
the Self-Insurers Advisory Board employees, the operating
costs of the Self-Insurers Advisory Board, and by the
Department of Insurance for the purposes authorized in
subsection (c) of Section 25.5 of this Act.
(a-2) Every Employee Leasing Company (ELC), as defined in
Section 15 of the Employee Leasing Company Act, shall at a
minimum provide the following information to the Commission or
any entity designated by the Commission regarding each
workers' compensation insurance policy issued to the ELC:
(1) Any client company of the ELC listed as an
additional named insured.


(2) Any informational schedule attached to the master
policy that identifies any individual client company's
name, FEIN, and job location.
(3) Any certificate of insurance coverage document
issued to a client company specifying its rights and
obligations under the master policy that establishes both
the identity and status of the client, as well as the dates
of inception and termination of coverage, if applicable.
(b) The sworn application and financial statement, or
security, indemnity or bond, or amount of insurance, or other
provisions, filed, furnished, carried, or made by the
employer, as the case may be, shall be subject to the approval
of the Commission.
Deposits under escrow agreements shall be cash, negotiable
United States government bonds or negotiable general
obligation bonds of the State of Illinois. Such cash or bonds
shall be deposited in escrow with any State or National Bank or
Trust Company having trust authority in the State of Illinois.
Upon the approval of the sworn application and financial
statement, security, indemnity or bond or amount of insurance,
filed, furnished or carried, as the case may be, the
Commission shall send to the employer written notice of its
approval thereof. The certificate of compliance by the
employer with the provisions of subparagraphs (2) and (3) of
paragraph (a) of this Section shall be delivered by the
insurance carrier to the Illinois Workers' Compensation


Commission within five days after the effective date of the
policy so certified. The insurance so certified shall cover
all compensation liability occurring during the time that the
insurance is in effect and no further certificate need be
filed in case such insurance is renewed, extended or otherwise
continued by such carrier. The insurance so certified shall
not be cancelled or in the event that such insurance is not
renewed, extended or otherwise continued, such insurance shall
not be terminated until at least 10 days after receipt by the
Illinois Workers' Compensation Commission of notice of the
cancellation or termination of said insurance; provided,
however, that if the employer has secured insurance from
another insurance carrier, or has otherwise secured the
payment of compensation in accordance with this Section, and
such insurance or other security becomes effective prior to
the expiration of the 10 days, cancellation or termination
may, at the option of the insurance carrier indicated in such
notice, be effective as of the effective date of such other
insurance or security.
(c) Whenever the Commission shall find that any
corporation, company, association, aggregation of individuals,
reciprocal or interinsurers exchange, or other insurer
effecting workers' compensation insurance in this State shall
be insolvent, financially unsound, or unable to fully meet all
payments and liabilities assumed or to be assumed for
compensation insurance in this State, or shall practice a


policy of delay or unfairness toward employees in the
adjustment, settlement, or payment of benefits due such
employees, the Commission may after reasonable notice and
hearing order and direct that such corporation, company,
association, aggregation of individuals, reciprocal or
interinsurers exchange, or insurer, shall from and after a
date fixed in such order discontinue the writing of any such
workers' compensation insurance in this State. Subject to such
modification of the order as the Commission may later make on
review of the order, as herein provided, it shall thereupon be
unlawful for any such corporation, company, association,
aggregation of individuals, reciprocal or interinsurers
exchange, or insurer to effect any workers' compensation
insurance in this State. A copy of the order shall be served
upon the Director of Insurance by registered mail. Whenever
the Commission finds that any service or adjustment company
used or employed by a self-insured employer or by an insurance
carrier to process, adjust, investigate, compromise or
otherwise handle claims under this Act, has practiced or is
practicing a policy of delay or unfairness toward employees in
the adjustment, settlement or payment of benefits due such
employees, the Commission may after reasonable notice and
hearing order and direct that such service or adjustment
company shall from and after a date fixed in such order be
prohibited from processing, adjusting, investigating,
compromising or otherwise handling claims under this Act.


Whenever the Commission finds that any self-insured
employer has practiced or is practicing delay or unfairness
toward employees in the adjustment, settlement or payment of
benefits due such employees, the Commission may, after
reasonable notice and hearing, order and direct that after a
date fixed in the order such self-insured employer shall be
disqualified to operate as a self-insurer and shall be
required to insure his entire liability to pay compensation in
some insurance carrier authorized, licensed and permitted to
do such insurance business in this State, as provided in
subparagraph 3 of paragraph (a) of this Section.
All orders made by the Commission under this Section shall
be subject to review by the courts, said review to be taken in
the same manner and within the same time as provided by Section
19 of this Act for review of awards and decisions of the
Commission, upon the party seeking the review filing with the
clerk of the court to which said review is taken a bond in an
amount to be fixed and approved by the court to which the
review is taken, conditioned upon the payment of all
compensation awarded against the person taking said review
pending a decision thereof and further conditioned upon such
other obligations as the court may impose. Upon the review the
Circuit Court shall have power to review all questions of fact
as well as of law. The penalty hereinafter provided for in this
paragraph shall not attach and shall not begin to run until the
final determination of the order of the Commission.


(d) Whenever a Commissioner, with due process and after a
hearing, determines an employer has knowingly failed to
provide coverage as required by paragraph (a) of this Section,
the failure shall be deemed an immediate serious danger to
public health, safety, and welfare sufficient to justify
service by the Commission of a work-stop order on such
employer, requiring the cessation of all business operations
of such employer at the place of employment or job site. If a
business is declared to be extra hazardous, as defined in
Section 3, a Commissioner may issue an emergency work-stop
order on such an employer ex parte, prior to holding a hearing,
requiring the cessation of all business operations of such
employer at the place of employment or job site while awaiting
the ruling of the Commission. Whenever a Commissioner issues
an emergency work-stop order, the Commission shall issue a
notice of emergency work-stop hearing to be posted at the
employer's places of employment and job sites. Any law
enforcement agency in the State shall, at the request of the
Commission, render any assistance necessary to carry out the
provisions of this Section, including, but not limited to,
preventing any employee of such employer from remaining at a
place of employment or job site after a work-stop order has
taken effect. Any work-stop order shall be lifted upon proof
of insurance as required by this Act. Any orders under this
Section are appealable under Section 19(f) to the Circuit
Court.


Any individual employer, corporate officer or director of
a corporate employer, partner of an employer partnership, or
member of an employer limited liability company who knowingly
fails to provide coverage as required by paragraph (a) of this
Section is guilty of a Class 4 felony. This provision shall not
apply to any corporate officer or director of any
publicly-owned corporation. Each day's violation constitutes a
separate offense. The State's Attorney of the county in which
the violation occurred, or the Attorney General, shall bring
such actions in the name of the People of the State of
Illinois, or may, in addition to other remedies provided in
this Section, bring an action for an injunction to restrain
the violation or to enjoin the operation of any such employer.
Any individual employer, corporate officer or director of
a corporate employer, partner of an employer partnership, or
member of an employer limited liability company who
negligently fails to provide coverage as required by paragraph
(a) of this Section is guilty of a Class A misdemeanor. This
provision shall not apply to any corporate officer or director
of any publicly-owned corporation. Each day's violation
constitutes a separate offense. The State's Attorney of the
county in which the violation occurred, or the Attorney
General, shall bring such actions in the name of the People of
the State of Illinois.
The criminal penalties in this subsection (d) shall not
apply where there exists a good faith dispute as to the


existence of an employment relationship. Evidence of good
faith shall include, but not be limited to, compliance with
the definition of employee as used by the Internal Revenue
Service.
All investigative actions must be acted upon within 90
days of the issuance of the complaint. Employers who are
subject to and who knowingly fail to comply with this Section
shall not be entitled to the benefits of this Act during the
period of noncompliance, but shall be liable in an action
under any other applicable law of this State. In the action,
such employer shall not avail himself or herself of the
defenses of assumption of risk or negligence or that the
injury was due to a co-employee. In the action, proof of the
injury shall constitute prima facie evidence of negligence on
the part of such employer and the burden shall be on such
employer to show freedom of negligence resulting in the
injury. The employer shall not join any other defendant in any
such civil action. Nothing in this amendatory Act of the 94th
General Assembly shall affect the employee's rights under
subdivision (a)3 of Section 1 of this Act. Any employer or
carrier who makes payments under subdivision (a)3 of Section 1
of this Act shall have a right of reimbursement from the
proceeds of any recovery under this Section.
An employee of an uninsured employer, or the employee's
dependents in case death ensued, may, instead of proceeding
against the employer in a civil action in court, file an


application for adjustment of claim with the Commission in
accordance with the provisions of this Act and the Commission
shall hear and determine the application for adjustment of
claim in the manner in which other claims are heard and
determined before the Commission.
All proceedings under this subsection (d) shall be
reported on an annual basis to the Workers' Compensation
Advisory Board.
An investigator with the Department of Insurance may issue
a citation to any employer that is not in compliance with its
obligation to have workers' compensation insurance under this
Act. The amount of the fine shall be based on the period of
time the employer was in non-compliance, but shall be no less
than $500, and shall not exceed $10,000. An employer that has
been issued a citation shall pay the fine to the Department of
Insurance and provide to the Department of Insurance proof
that it obtained the required workers' compensation insurance
within 10 days after the citation was issued. This Section
does not affect any other obligations this Act imposes on
employers.
Upon a finding by the Commission, after reasonable notice
and hearing, of the knowing and willful failure or refusal of
an employer to comply with any of the provisions of paragraph
(a) of this Section, the failure or refusal of an employer,
service or adjustment company, or an insurance carrier to
comply with any order of the Illinois Workers' Compensation


Commission pursuant to paragraph (c) of this Section
disqualifying him or her to operate as a self insurer and
requiring him or her to insure his or her liability, or the
knowing and willful failure of an employer to comply with a
citation issued by an investigator with the Department of
Insurance, the Commission may assess a civil penalty of up to
$500 per day for each day of such failure or refusal after the
effective date of this amendatory Act of 1989. The minimum
penalty under this Section shall be the sum of $10,000. Each
day of such failure or refusal shall constitute a separate
offense. The Commission may assess the civil penalty
personally and individually against the corporate officers and
directors of a corporate employer, the partners of an employer
partnership, and the members of an employer limited liability
company, after a finding of a knowing and willful refusal or
failure of each such named corporate officer, director,
partner, or member to comply with this Section. The liability
for the assessed penalty shall be against the named employer
first, and if the named employer fails or refuses to pay the
penalty to the Commission within 30 days after the final order
of the Commission, then the named corporate officers,
directors, partners, or members who have been found to have
knowingly and willfully refused or failed to comply with this
Section shall be liable for the unpaid penalty or any unpaid
portion of the penalty. Upon investigation by the Department
of Insurance, the Attorney General shall have the authority to


prosecute all proceedings to enforce the civil and
administrative provisions of this Section before the
Commission. The Commission and the Department of Insurance
shall promulgate procedural rules for enforcing this Section
relating to their respective duties prescribed herein.
If an employer is found to be in non-compliance with any
provisions of paragraph (a) of this Section more than once,
all minimum penalties will double. Therefore, upon the failure
or refusal of an employer, service or adjustment company, or
insurance carrier to comply with any order of the Commission
pursuant to paragraph (c) of this Section disqualifying him or
her to operate as a self-insurer and requiring him or her to
insure his or her liability, or the knowing and willful
failure of an employer to comply with a citation issued by an
investigator with the Department of Insurance, the Commission
may assess a civil penalty of up to $1,000 per day for each day
of such failure or refusal after the effective date of this
amendatory Act of the 101st General Assembly. The minimum
penalty under this Section shall be the sum of $20,000. In
addition, employers with 2 or more violations of any
provisions of paragraph (a) of this Section may not
self-insure for one year or until all penalties are paid.
A Commission decision imposing penalties under this
Section may be judicially reviewed only as described in
Section 19(f). After expiration of the period for seeking
judicial review, the Commission's final decision imposing


penalties may be enforced in the same manner as a judgment
entered by a court of competent jurisdiction. The Commission's
final decision imposing penalties is a debt due and owing to
the State and can be enforced to the same extent as a judgment
entered by a circuit court. The Attorney General shall
represent the Commission and the Department of Insurance in
any action challenging the final decision in circuit court. If
the court affirms the Commission's decision, the court shall
enter judgment against the employer in the amount of the fines
assessed by the Commission. The Attorney General shall make
reasonable efforts to collect the amounts due under the
Commission's decision.
Upon the failure or refusal of any employer, service or
adjustment company or insurance carrier to comply with the
provisions of this Section and with the orders of the
Commission under this Section, or the order of the court on
review after final adjudication, the Commission may bring a
civil action to recover the amount of the penalty in Cook
County or in Sangamon County in which litigation the
Commission shall be represented by the Attorney General. The
Commission shall send notice of its finding of non-compliance
and assessment of the civil penalty to the Attorney General.
It shall be the duty of the Attorney General within 30 days
after receipt of the notice, to institute prosecutions and
promptly prosecute all reported violations of this Section.
Any individual employer, corporate officer or director of


a corporate employer, partner of an employer partnership, or
member of an employer limited liability company who, with the
intent to avoid payment of compensation under this Act to an
injured employee or the employee's dependents, knowingly
transfers, sells, encumbers, assigns, or in any manner
disposes of, conceals, secretes, or destroys any property
belonging to the employer, officer, director, partner, or
member is guilty of a Class 4 felony.
Penalties and fines collected pursuant to this paragraph
(d) shall be deposited upon receipt into a special fund which
shall be designated the Injured Workers' Benefit Fund, of
which the State Treasurer is ex-officio custodian, such
special fund to be held and disbursed in accordance with this
paragraph (d) for the purposes hereinafter stated in this
paragraph (d), upon the final order of the Commission. The
Injured Workers' Benefit Fund shall be deposited the same as
are State funds and any interest accruing thereon shall be
added thereto every 6 months. The Injured Workers' Benefit
Fund is subject to audit the same as State funds and accounts
and is protected by the general bond given by the State
Treasurer. The Injured Workers' Benefit Fund is considered
always appropriated for the purposes of disbursements as
provided in this paragraph, and shall be paid out and
disbursed as herein provided and shall not at any time be
appropriated or diverted to any other use or purpose. Moneys
in the Injured Workers' Benefit Fund shall be used only for


payment of workers' compensation benefits for injured
employees when the employer has failed to provide coverage as
determined under this paragraph (d) and has failed to pay the
benefits due to the injured employee. The employer shall
reimburse the Injured Workers' Benefit Fund for any amounts
paid to an employee on account of the compensation awarded by
the Commission. The Attorney General shall make reasonable
efforts to obtain reimbursement for the Injured Workers'
Benefit Fund.
The Commission shall have the right to obtain
reimbursement from the employer for compensation obligations
paid by the Injured Workers' Benefit Fund. Any such amounts
obtained shall be deposited by the Commission into the Injured
Workers' Benefit Fund. If an injured employee or his or her
personal representative receives payment from the Injured
Workers' Benefit Fund, the State of Illinois has the same
rights under paragraph (b) of Section 5 that the employer who
failed to pay the benefits due to the injured employee would
have had if the employer had paid those benefits, and any
moneys recovered by the State as a result of the State's
exercise of its rights under paragraph (b) of Section 5 shall
be deposited into the Injured Workers' Benefit Fund. The
custodian of the Injured Workers' Benefit Fund shall be joined
with the employer as a party respondent in the application for
adjustment of claim. After July 1, 2006, the Commission shall
make disbursements from the Fund once each year to each


eligible claimant. An eligible claimant is an injured worker
who has within the previous fiscal year obtained a final award
for benefits from the Commission against the employer and the
Injured Workers' Benefit Fund and has notified the Commission
within 90 days of receipt of such award. Within a reasonable
time after the end of each fiscal year, the Commission shall
make a disbursement to each eligible claimant. At the time of
disbursement, if there are insufficient moneys in the Fund to
pay all claims, each eligible claimant shall receive a
pro-rata share, as determined by the Commission, of the
available moneys in the Fund for that year. Payment from the
Injured Workers' Benefit Fund to an eligible claimant pursuant
to this provision shall discharge the obligations of the
Injured Workers' Benefit Fund regarding the award entered by
the Commission.
(e) This Act shall not affect or disturb the continuance
of any existing insurance, mutual aid, benefit, or relief
association or department, whether maintained in whole or in
part by the employer or whether maintained by the employees,
the payment of benefits of such association or department
being guaranteed by the employer or by some person, firm or
corporation for him or her: Provided, the employer contributes
to such association or department an amount not less than the
full compensation herein provided, exclusive of the cost of
the maintenance of such association or department and without
any expense to the employee. This Act shall not prevent the


organization and maintaining under the insurance laws of this
State of any benefit or insurance company for the purpose of
insuring against the compensation provided for in this Act,
the expense of which is maintained by the employer. This Act
shall not prevent the organization or maintaining under the
insurance laws of this State of any voluntary mutual aid,
benefit or relief association among employees for the payment
of additional accident or sick benefits.
(f) No existing insurance, mutual aid, benefit or relief
association or department shall, by reason of anything herein
contained, be authorized to discontinue its operation without
first discharging its obligations to any and all persons
carrying insurance in the same or entitled to relief or
benefits therein.
(g) Any contract, oral, written or implied, of employment
providing for relief benefit, or insurance or any other device
whereby the employee is required to pay any premium or
premiums for insurance against the compensation provided for
in this Act shall be null and void. Any employer withholding
from the wages of any employee any amount for the purpose of
paying any such premium shall be guilty of a Class B
misdemeanor.
In the event the employer does not pay the compensation
for which he or she is liable, then an insurance company,
association or insurer which may have insured such employer
against such liability shall become primarily liable to pay to


the employee, his or her personal representative or
beneficiary the compensation required by the provisions of
this Act to be paid by such employer. The insurance carrier may
be made a party to the proceedings in which the employer is a
party and an award may be entered jointly against the employer
and the insurance carrier.
(h) It shall be unlawful for any employer, insurance
company or service or adjustment company to interfere with,
restrain or coerce an employee in any manner whatsoever in the
exercise of the rights or remedies granted to him or her by
this Act or to discriminate, attempt to discriminate, or
threaten to discriminate against an employee in any way
because of his or her exercise of the rights or remedies
granted to him or her by this Act.
It shall be unlawful for any employer, individually or
through any insurance company or service or adjustment
company, to discharge or to threaten to discharge, or to
refuse to rehire or recall to active service in a suitable
capacity an employee because of the exercise of his or her
rights or remedies granted to him or her by this Act.
(i) If an employer elects to obtain a life insurance
policy on his employees, he may also elect to apply such
benefits in satisfaction of all or a portion of the death
benefits payable under this Act, in which case, the employer's
compensation premium shall be reduced accordingly.
(j) Within 45 days of receipt of an initial application or


application to renew self-insurance privileges the
Self-Insurers Advisory Board shall review and submit for
approval by the Chairman of the Commission recommendations of
disposition of all initial applications to self-insure and all
applications to renew self-insurance privileges filed by
private self-insurers pursuant to the provisions of this
Section and Section 4a-9 of this Act. Each private
self-insurer shall submit with its initial and renewal
applications the application fee required by Section 4a-4 of
this Act.
The Chairman of the Commission shall promptly act upon all
initial applications and applications for renewal in full
accordance with the recommendations of the Board or, should
the Chairman disagree with any recommendation of disposition
of the Self-Insurer's Advisory Board, he shall within 30 days
of receipt of such recommendation provide to the Board in
writing the reasons supporting his decision. The Chairman
shall also promptly notify the employer of his decision within
15 days of receipt of the recommendation of the Board.
If an employer is denied a renewal of self-insurance
privileges pursuant to application it shall retain said
privilege for 120 days after receipt of a notice of
cancellation of the privilege from the Chairman of the
Commission.
All orders made by the Chairman under this Section shall
be subject to review by the courts, such review to be taken in


the same manner and within the same time as provided by
subsection (f) of Section 19 of this Act for review of awards
and decisions of the Commission, upon the party seeking the
review filing with the clerk of the court to which such review
is taken a bond in an amount to be fixed and approved by the
court to which the review is taken, conditioned upon the
payment of all compensation awarded against the person taking
such review pending a decision thereof and further conditioned
upon such other obligations as the court may impose. Upon the
review the Circuit Court shall have power to review all
questions of fact as well as of law.
(Source: P.A. 101-40, eff. 1-1-20; 102-37, eff. 7-1-21.)
(Text of Section from P.A. 101-384 and 102-37)
Sec. 4. (a) Any employer, including but not limited to
general contractors and their subcontractors, who shall come
within the provisions of Section 3 of this Act, and any other
employer who shall elect to provide and pay the compensation
provided for in this Act shall:
(1) File with the Commission annually an application
for approval as a self-insurer which shall include a
current financial statement, and annually, thereafter, an
application for renewal of self-insurance, which shall
include a current financial statement. Said application
and financial statement shall be signed and sworn to by
the president or vice president and secretary or assistant


secretary of the employer if it be a corporation, or by all
of the partners, if it be a copartnership, or by the owner
if it be neither a copartnership nor a corporation. All
initial applications and all applications for renewal of
self-insurance must be submitted at least 60 days prior to
the requested effective date of self-insurance. An
employer may elect to provide and pay compensation as
provided for in this Act as a member of a group workers'
compensation pool under Article V 3/4 of the Illinois
Insurance Code. If an employer becomes a member of a group
workers' compensation pool, the employer shall not be
relieved of any obligations imposed by this Act.
If the sworn application and financial statement of
any such employer does not satisfy the Commission of the
financial ability of the employer who has filed it, the
Commission shall require such employer to,
(2) Furnish security, indemnity or a bond guaranteeing
the payment by the employer of the compensation provided
for in this Act, provided that any such employer whose
application and financial statement shall not have
satisfied the commission of his or her financial ability
and who shall have secured his liability in part by excess
liability insurance shall be required to furnish to the
Commission security, indemnity or bond guaranteeing his or
her payment up to the effective limits of the excess
coverage, or


(3) Insure his entire liability to pay such
compensation in some insurance carrier authorized,
licensed, or permitted to do such insurance business in
this State. Every policy of an insurance carrier, insuring
the payment of compensation under this Act shall cover all
the employees and the entire compensation liability of the
insured: Provided, however, that any employer may insure
his or her compensation liability with 2 or more insurance
carriers or may insure a part and qualify under subsection
1, 2, or 4 for the remainder of his or her liability to pay
such compensation, subject to the following two
provisions:
Firstly, the entire compensation liability of the
employer to employees working at or from one location
shall be insured in one such insurance carrier or
shall be self-insured, and
Secondly, the employer shall submit evidence
satisfactorily to the Commission that his or her
entire liability for the compensation provided for in
this Act will be secured. Any provisions in any
policy, or in any endorsement attached thereto,
attempting to limit or modify in any way, the
liability of the insurance carriers issuing the same
except as otherwise provided herein shall be wholly
void.
Nothing herein contained shall apply to policies of


excess liability carriage secured by employers who have
been approved by the Commission as self-insurers, or
(4) Make some other provision, satisfactory to the
Commission, for the securing of the payment of
compensation provided for in this Act, and
(5) Upon becoming subject to this Act and thereafter
as often as the Commission may in writing demand, file
with the Commission in form prescribed by it evidence of
his or her compliance with the provision of this Section.
(a-1) Regardless of its state of domicile or its principal
place of business, an employer shall make payments to its
insurance carrier or group self-insurance fund, where
applicable, based upon the premium rates of the situs where
the work or project is located in Illinois if:
(A) the employer is engaged primarily in the building
and construction industry; and
(B) subdivision (a)(3) of this Section applies to the
employer or the employer is a member of a group
self-insurance plan as defined in subsection (1) of
Section 4a.
The Illinois Workers' Compensation Commission shall impose
a penalty upon an employer for violation of this subsection
(a-1) if:
(i) the employer is given an opportunity at a hearing
to present evidence of its compliance with this subsection
(a-1); and


(ii) after the hearing, the Commission finds that the
employer failed to make payments upon the premium rates of
the situs where the work or project is located in
Illinois.
The penalty shall not exceed $1,000 for each day of work
for which the employer failed to make payments upon the
premium rates of the situs where the work or project is located
in Illinois, but the total penalty shall not exceed $50,000
for each project or each contract under which the work was
performed.
Any penalty under this subsection (a-1) must be imposed
not later than one year after the expiration of the applicable
limitation period specified in subsection (d) of Section 6 of
this Act. Penalties imposed under this subsection (a-1) shall
be deposited into the Illinois Workers' Compensation
Commission Operations Fund, a special fund that is created in
the State treasury. Subject to appropriation, moneys in the
Fund shall be used solely for the operations of the Illinois
Workers' Compensation Commission and by the Department of
Insurance for the purposes authorized in subsection (c) of
Section 25.5 of this Act.
(a-2) Every Employee Leasing Company (ELC), as defined in
Section 15 of the Employee Leasing Company Act, shall at a
minimum provide the following information to the Commission or
any entity designated by the Commission regarding each
workers' compensation insurance policy issued to the ELC:


(1) Any client company of the ELC listed as an
additional named insured.
(2) Any informational schedule attached to the master
policy that identifies any individual client company's
name, FEIN, and job location.
(3) Any certificate of insurance coverage document
issued to a client company specifying its rights and
obligations under the master policy that establishes both
the identity and status of the client, as well as the dates
of inception and termination of coverage, if applicable.
(b) The sworn application and financial statement, or
security, indemnity or bond, or amount of insurance, or other
provisions, filed, furnished, carried, or made by the
employer, as the case may be, shall be subject to the approval
of the Commission.
Deposits under escrow agreements shall be cash, negotiable
United States government bonds or negotiable general
obligation bonds of the State of Illinois. Such cash or bonds
shall be deposited in escrow with any State or National Bank or
Trust Company having trust authority in the State of Illinois.
Upon the approval of the sworn application and financial
statement, security, indemnity or bond or amount of insurance,
filed, furnished or carried, as the case may be, the
Commission shall send to the employer written notice of its
approval thereof. The certificate of compliance by the
employer with the provisions of subparagraphs (2) and (3) of


paragraph (a) of this Section shall be delivered by the
insurance carrier to the Illinois Workers' Compensation
Commission within five days after the effective date of the
policy so certified. The insurance so certified shall cover
all compensation liability occurring during the time that the
insurance is in effect and no further certificate need be
filed in case such insurance is renewed, extended or otherwise
continued by such carrier. The insurance so certified shall
not be cancelled or in the event that such insurance is not
renewed, extended or otherwise continued, such insurance shall
not be terminated until at least 10 days after receipt by the
Illinois Workers' Compensation Commission of notice of the
cancellation or termination of said insurance; provided,
however, that if the employer has secured insurance from
another insurance carrier, or has otherwise secured the
payment of compensation in accordance with this Section, and
such insurance or other security becomes effective prior to
the expiration of the 10 days, cancellation or termination
may, at the option of the insurance carrier indicated in such
notice, be effective as of the effective date of such other
insurance or security.
(c) Whenever the Commission shall find that any
corporation, company, association, aggregation of individuals,
reciprocal or interinsurers exchange, or other insurer
effecting workers' compensation insurance in this State shall
be insolvent, financially unsound, or unable to fully meet all


payments and liabilities assumed or to be assumed for
compensation insurance in this State, or shall practice a
policy of delay or unfairness toward employees in the
adjustment, settlement, or payment of benefits due such
employees, the Commission may after reasonable notice and
hearing order and direct that such corporation, company,
association, aggregation of individuals, reciprocal or
interinsurers exchange, or insurer, shall from and after a
date fixed in such order discontinue the writing of any such
workers' compensation insurance in this State. Subject to such
modification of the order as the Commission may later make on
review of the order, as herein provided, it shall thereupon be
unlawful for any such corporation, company, association,
aggregation of individuals, reciprocal or interinsurers
exchange, or insurer to effect any workers' compensation
insurance in this State. A copy of the order shall be served
upon the Director of Insurance by registered mail. Whenever
the Commission finds that any service or adjustment company
used or employed by a self-insured employer or by an insurance
carrier to process, adjust, investigate, compromise or
otherwise handle claims under this Act, has practiced or is
practicing a policy of delay or unfairness toward employees in
the adjustment, settlement or payment of benefits due such
employees, the Commission may after reasonable notice and
hearing order and direct that such service or adjustment
company shall from and after a date fixed in such order be


prohibited from processing, adjusting, investigating,
compromising or otherwise handling claims under this Act.
Whenever the Commission finds that any self-insured
employer has practiced or is practicing delay or unfairness
toward employees in the adjustment, settlement or payment of
benefits due such employees, the Commission may, after
reasonable notice and hearing, order and direct that after a
date fixed in the order such self-insured employer shall be
disqualified to operate as a self-insurer and shall be
required to insure his entire liability to pay compensation in
some insurance carrier authorized, licensed and permitted to
do such insurance business in this State, as provided in
subparagraph 3 of paragraph (a) of this Section.
All orders made by the Commission under this Section shall
be subject to review by the courts, said review to be taken in
the same manner and within the same time as provided by Section
19 of this Act for review of awards and decisions of the
Commission, upon the party seeking the review filing with the
clerk of the court to which said review is taken a bond in an
amount to be fixed and approved by the court to which the
review is taken, conditioned upon the payment of all
compensation awarded against the person taking said review
pending a decision thereof and further conditioned upon such
other obligations as the court may impose. Upon the review the
Circuit Court shall have power to review all questions of fact
as well as of law. The penalty hereinafter provided for in this


paragraph shall not attach and shall not begin to run until the
final determination of the order of the Commission.
(d) Whenever a panel of 3 Commissioners comprised of one
member of the employing class, one representative of a labor
organization recognized under the National Labor Relations Act
or an attorney who has represented labor organizations or has
represented employees in workers' compensation cases, and one
member not identified with either the employing class or a
labor organization, with due process and after a hearing,
determines an employer has knowingly failed to provide
coverage as required by paragraph (a) of this Section, the
failure shall be deemed an immediate serious danger to public
health, safety, and welfare sufficient to justify service by
the Commission of a work-stop order on such employer,
requiring the cessation of all business operations of such
employer at the place of employment or job site. Any law
enforcement agency in the State shall, at the request of the
Commission, render any assistance necessary to carry out the
provisions of this Section, including, but not limited to,
preventing any employee of such employer from remaining at a
place of employment or job site after a work-stop order has
taken effect. Any work-stop order shall be lifted upon proof
of insurance as required by this Act. Any orders under this
Section are appealable under Section 19(f) to the Circuit
Court.
Any individual employer, corporate officer or director of


a corporate employer, partner of an employer partnership, or
member of an employer limited liability company who knowingly
fails to provide coverage as required by paragraph (a) of this
Section is guilty of a Class 4 felony. This provision shall not
apply to any corporate officer or director of any
publicly-owned corporation. Each day's violation constitutes a
separate offense. The State's Attorney of the county in which
the violation occurred, or the Attorney General, shall bring
such actions in the name of the People of the State of
Illinois, or may, in addition to other remedies provided in
this Section, bring an action for an injunction to restrain
the violation or to enjoin the operation of any such employer.
Any individual employer, corporate officer or director of
a corporate employer, partner of an employer partnership, or
member of an employer limited liability company who
negligently fails to provide coverage as required by paragraph
(a) of this Section is guilty of a Class A misdemeanor. This
provision shall not apply to any corporate officer or director
of any publicly-owned corporation. Each day's violation
constitutes a separate offense. The State's Attorney of the
county in which the violation occurred, or the Attorney
General, shall bring such actions in the name of the People of
the State of Illinois.
The criminal penalties in this subsection (d) shall not
apply where there exists a good faith dispute as to the
existence of an employment relationship. Evidence of good


faith shall include, but not be limited to, compliance with
the definition of employee as used by the Internal Revenue
Service.
Employers who are subject to and who knowingly fail to
comply with this Section shall not be entitled to the benefits
of this Act during the period of noncompliance, but shall be
liable in an action under any other applicable law of this
State. In the action, such employer shall not avail himself or
herself of the defenses of assumption of risk or negligence or
that the injury was due to a co-employee. In the action, proof
of the injury shall constitute prima facie evidence of
negligence on the part of such employer and the burden shall be
on such employer to show freedom of negligence resulting in
the injury. The employer shall not join any other defendant in
any such civil action. Nothing in this amendatory Act of the
94th General Assembly shall affect the employee's rights under
subdivision (a)3 of Section 1 of this Act. Any employer or
carrier who makes payments under subdivision (a)3 of Section 1
of this Act shall have a right of reimbursement from the
proceeds of any recovery under this Section.
An employee of an uninsured employer, or the employee's
dependents in case death ensued, may, instead of proceeding
against the employer in a civil action in court, file an
application for adjustment of claim with the Commission in
accordance with the provisions of this Act and the Commission
shall hear and determine the application for adjustment of


claim in the manner in which other claims are heard and
determined before the Commission.
All proceedings under this subsection (d) shall be
reported on an annual basis to the Workers' Compensation
Advisory Board.
An investigator with the Department of Insurance may issue
a citation to any employer that is not in compliance with its
obligation to have workers' compensation insurance under this
Act. The amount of the fine shall be based on the period of
time the employer was in non-compliance, but shall be no less
than $500, and shall not exceed $2,500. An employer that has
been issued a citation shall pay the fine to the Department of
Insurance and provide to the Department of Insurance proof
that it obtained the required workers' compensation insurance
within 10 days after the citation was issued. This Section
does not affect any other obligations this Act imposes on
employers.
Upon a finding by the Commission, after reasonable notice
and hearing, of the knowing and wilful failure or refusal of an
employer to comply with any of the provisions of paragraph (a)
of this Section, the failure or refusal of an employer,
service or adjustment company, or an insurance carrier to
comply with any order of the Illinois Workers' Compensation
Commission pursuant to paragraph (c) of this Section
disqualifying him or her to operate as a self insurer and
requiring him or her to insure his or her liability, or the


knowing and willful failure of an employer to comply with a
citation issued by an investigator with the Department of
Insurance, the Commission may assess a civil penalty of up to
$500 per day for each day of such failure or refusal after the
effective date of this amendatory Act of 1989. The minimum
penalty under this Section shall be the sum of $10,000. Each
day of such failure or refusal shall constitute a separate
offense. The Commission may assess the civil penalty
personally and individually against the corporate officers and
directors of a corporate employer, the partners of an employer
partnership, and the members of an employer limited liability
company, after a finding of a knowing and willful refusal or
failure of each such named corporate officer, director,
partner, or member to comply with this Section. The liability
for the assessed penalty shall be against the named employer
first, and if the named employer fails or refuses to pay the
penalty to the Commission within 30 days after the final order
of the Commission, then the named corporate officers,
directors, partners, or members who have been found to have
knowingly and willfully refused or failed to comply with this
Section shall be liable for the unpaid penalty or any unpaid
portion of the penalty. Upon investigation by the Department
of Insurance, the Attorney General shall have the authority to
prosecute all proceedings to enforce the civil and
administrative provisions of this Section before the
Commission. The Commission and the Department of Insurance


shall promulgate procedural rules for enforcing this Section
relating to their respective duties prescribed herein.
A Commission decision imposing penalties under this
Section may be judicially reviewed only as described in
Section 19(f). After expiration of the period for seeking
judicial review, the Commission's final decision imposing
penalties may be enforced in the same manner as a judgment
entered by a court of competent jurisdiction. The Commission's
final decision imposing penalties is a debt due and owing to
the State and can be enforced to the same extent as a judgment
entered by a circuit court. The Attorney General shall
represent the Commission and the Department of Insurance in
any action challenging the final decision in circuit court. If
the court affirms the Commission's decision, the court shall
enter judgment against the employer in the amount of the fines
assessed by the Commission. The Attorney General shall make
reasonable efforts to collect the amounts due under the
Commission's decision.
Upon the failure or refusal of any employer, service or
adjustment company or insurance carrier to comply with the
provisions of this Section and with the orders of the
Commission under this Section, or the order of the court on
review after final adjudication, the Commission may bring a
civil action to recover the amount of the penalty in Cook
County or in Sangamon County in which litigation the
Commission shall be represented by the Attorney General. The


Commission shall send notice of its finding of non-compliance
and assessment of the civil penalty to the Attorney General.
It shall be the duty of the Attorney General within 30 days
after receipt of the notice, to institute prosecutions and
promptly prosecute all reported violations of this Section.
Any individual employer, corporate officer or director of
a corporate employer, partner of an employer partnership, or
member of an employer limited liability company who, with the
intent to avoid payment of compensation under this Act to an
injured employee or the employee's dependents, knowingly
transfers, sells, encumbers, assigns, or in any manner
disposes of, conceals, secretes, or destroys any property
belonging to the employer, officer, director, partner, or
member is guilty of a Class 4 felony.
Penalties and fines collected pursuant to this paragraph
(d) shall be deposited upon receipt into a special fund which
shall be designated the Injured Workers' Benefit Fund, of
which the State Treasurer is ex-officio custodian, such
special fund to be held and disbursed in accordance with this
paragraph (d) for the purposes hereinafter stated in this
paragraph (d), upon the final order of the Commission. The
Injured Workers' Benefit Fund shall be deposited the same as
are State funds and any interest accruing thereon shall be
added thereto every 6 months. The Injured Workers' Benefit
Fund is subject to audit the same as State funds and accounts
and is protected by the general bond given by the State


Treasurer. The Injured Workers' Benefit Fund is considered
always appropriated for the purposes of disbursements as
provided in this paragraph, and shall be paid out and
disbursed as herein provided and shall not at any time be
appropriated or diverted to any other use or purpose. Moneys
in the Injured Workers' Benefit Fund shall be used only for
payment of workers' compensation benefits for injured
employees when the employer has failed to provide coverage as
determined under this paragraph (d) and has failed to pay the
benefits due to the injured employee. The employer shall
reimburse the Injured Workers' Benefit Fund for any amounts
paid to an employee on account of the compensation awarded by
the Commission. The Attorney General shall make reasonable
efforts to obtain reimbursement for the Injured Workers'
Benefit Fund.
The Commission shall have the right to obtain
reimbursement from the employer for compensation obligations
paid by the Injured Workers' Benefit Fund. Any such amounts
obtained shall be deposited by the Commission into the Injured
Workers' Benefit Fund. If an injured employee or his or her
personal representative receives payment from the Injured
Workers' Benefit Fund, the State of Illinois has the same
rights under paragraph (b) of Section 5 that the employer who
failed to pay the benefits due to the injured employee would
have had if the employer had paid those benefits, and any
moneys recovered by the State as a result of the State's


exercise of its rights under paragraph (b) of Section 5 shall
be deposited into the Injured Workers' Benefit Fund. The
custodian of the Injured Workers' Benefit Fund shall be joined
with the employer as a party respondent in the application for
adjustment of claim. After July 1, 2006, the Commission shall
make disbursements from the Fund once each year to each
eligible claimant. An eligible claimant is an injured worker
who has within the previous fiscal year obtained a final award
for benefits from the Commission against the employer and the
Injured Workers' Benefit Fund and has notified the Commission
within 90 days of receipt of such award. Within a reasonable
time after the end of each fiscal year, the Commission shall
make a disbursement to each eligible claimant. At the time of
disbursement, if there are insufficient moneys in the Fund to
pay all claims, each eligible claimant shall receive a
pro-rata share, as determined by the Commission, of the
available moneys in the Fund for that year. Payment from the
Injured Workers' Benefit Fund to an eligible claimant pursuant
to this provision shall discharge the obligations of the
Injured Workers' Benefit Fund regarding the award entered by
the Commission.
(e) This Act shall not affect or disturb the continuance
of any existing insurance, mutual aid, benefit, or relief
association or department, whether maintained in whole or in
part by the employer or whether maintained by the employees,
the payment of benefits of such association or department


being guaranteed by the employer or by some person, firm or
corporation for him or her: Provided, the employer contributes
to such association or department an amount not less than the
full compensation herein provided, exclusive of the cost of
the maintenance of such association or department and without
any expense to the employee. This Act shall not prevent the
organization and maintaining under the insurance laws of this
State of any benefit or insurance company for the purpose of
insuring against the compensation provided for in this Act,
the expense of which is maintained by the employer. This Act
shall not prevent the organization or maintaining under the
insurance laws of this State of any voluntary mutual aid,
benefit or relief association among employees for the payment
of additional accident or sick benefits.
(f) No existing insurance, mutual aid, benefit or relief
association or department shall, by reason of anything herein
contained, be authorized to discontinue its operation without
first discharging its obligations to any and all persons
carrying insurance in the same or entitled to relief or
benefits therein.
(g) Any contract, oral, written or implied, of employment
providing for relief benefit, or insurance or any other device
whereby the employee is required to pay any premium or
premiums for insurance against the compensation provided for
in this Act shall be null and void. Any employer withholding
from the wages of any employee any amount for the purpose of


paying any such premium shall be guilty of a Class B
misdemeanor.
In the event the employer does not pay the compensation
for which he or she is liable, then an insurance company,
association or insurer which may have insured such employer
against such liability shall become primarily liable to pay to
the employee, his or her personal representative or
beneficiary the compensation required by the provisions of
this Act to be paid by such employer. The insurance carrier may
be made a party to the proceedings in which the employer is a
party and an award may be entered jointly against the employer
and the insurance carrier.
(h) It shall be unlawful for any employer, insurance
company or service or adjustment company to interfere with,
restrain or coerce an employee in any manner whatsoever in the
exercise of the rights or remedies granted to him or her by
this Act or to discriminate, attempt to discriminate, or
threaten to discriminate against an employee in any way
because of his or her exercise of the rights or remedies
granted to him or her by this Act.
It shall be unlawful for any employer, individually or
through any insurance company or service or adjustment
company, to discharge or to threaten to discharge, or to
refuse to rehire or recall to active service in a suitable
capacity an employee because of the exercise of his or her
rights or remedies granted to him or her by this Act.


(i) If an employer elects to obtain a life insurance
policy on his employees, he may also elect to apply such
benefits in satisfaction of all or a portion of the death
benefits payable under this Act, in which case, the employer's
compensation premium shall be reduced accordingly.
(j) Within 45 days of receipt of an initial application or
application to renew self-insurance privileges the
Self-Insurers Advisory Board shall review and submit for
approval by the Chairman of the Commission recommendations of
disposition of all initial applications to self-insure and all
applications to renew self-insurance privileges filed by
private self-insurers pursuant to the provisions of this
Section and Section 4a-9 of this Act. Each private
self-insurer shall submit with its initial and renewal
applications the application fee required by Section 4a-4 of
this Act.
The Chairman of the Commission shall promptly act upon all
initial applications and applications for renewal in full
accordance with the recommendations of the Board or, should
the Chairman disagree with any recommendation of disposition
of the Self-Insurer's Advisory Board, he shall within 30 days
of receipt of such recommendation provide to the Board in
writing the reasons supporting his decision. The Chairman
shall also promptly notify the employer of his decision within
15 days of receipt of the recommendation of the Board.
If an employer is denied a renewal of self-insurance


privileges pursuant to application it shall retain said
privilege for 120 days after receipt of a notice of
cancellation of the privilege from the Chairman of the
Commission.
All orders made by the Chairman under this Section shall
be subject to review by the courts, such review to be taken in
the same manner and within the same time as provided by
subsection (f) of Section 19 of this Act for review of awards
and decisions of the Commission, upon the party seeking the
review filing with the clerk of the court to which such review
is taken a bond in an amount to be fixed and approved by the
court to which the review is taken, conditioned upon the
payment of all compensation awarded against the person taking
such review pending a decision thereof and further conditioned
upon such other obligations as the court may impose. Upon the
review the Circuit Court shall have power to review all
questions of fact as well as of law.
(Source: P.A. 101-384, eff. 1-1-20; 102-37, eff. 7-1-21.)
(820 ILCS 305/4a-5) (from Ch. 48, par. 138.4a-5)
Sec. 4a-5. There is hereby created a Self-Insurers
Security Fund. The State Treasurer shall be the ex officio
custodian of the Self-Insurers Security Fund. Moneys in the
Fund shall be deposited in a separate account in the same
manner as are State Funds and any interest accruing thereon
shall be added thereto every 6 months. It shall be subject to


audit the same as State funds and accounts and shall be
protected by the general bond given by the State Treasurer.
The funds in the Self-Insurers Security Fund shall not be
subject to appropriation and shall be made available for the
purposes of compensating employees who are eligible to receive
benefits from their employers pursuant to the provisions of
the Workers' Compensation Act or Workers' Occupational
Diseases Act, when, pursuant to this Section, the Board has
determined that a private self-insurer has become an insolvent
self-insurer and is unable to pay compensation benefits due to
financial insolvency. Moneys in the Fund may be used to
compensate any type of injury or occupational disease which is
compensable under either Act, and for all claims for related
administrative fees, operating costs of the Board, attorney's
fees, and other costs reasonably incurred by the Board. Moneys
in the Self-Insurers Security Fund may also be used for paying
the salaries and benefits of the Self-Insurers Advisory Board
employees and the operating costs of the Board. The Chairman,
with the advice of the Board, may direct the State Comptroller
and the State Treasurer to transfer up to $2,000,000 in any
fiscal year from the Self-Insurers Security Fund to the
Illinois Workers' Compensation Commission Operations Fund, to
the extent that there are insufficient funds in the Illinois
Workers' Compensation Commission Operations Fund to pay the
operating costs of the Illinois Workers' Compensation
Commission or the salaries and benefits of employees of the


Illinois Workers' Compensation Commission. No later than
October 31 of the fiscal year following any transfer from the
Self-Insurers Security Fund to the Illinois Workers'
Compensation Commission Operations Fund, the Chairman, with
the advice of the Board, shall direct the State Comptroller
and the State Treasurer to transfer from the Illinois Workers'
Compensation Commission Operations Fund to the Self-Insurers
Security Fund an amount equivalent to the sum of all amounts
transferred from the Self-Insurers Security Fund to the
Illinois Workers' Compensation Commission Operations Fund in
the prior fiscal year with interest at the rate earned by
moneys on deposit in the Self-Insurers Security Fund. Upon
receipt of funds from any transfer between the Self-Insurers
Security Fund and the Illinois Workers' Compensation
Commission Operations Fund, the Chairman shall submit notice,
including the date and amount of the transfer, to the Governor
and the General Assembly. Payment from the Self-Insurers
Security Fund shall be made by the Comptroller only upon the
authorization of the Chairman as evidenced by properly
certified vouchers of the Commission, upon the direction of
the Board.
(Source: P.A. 101-40, eff. 1-1-20; 102-558, eff. 8-20-21;
102-910, eff. 5-27-22.)
(820 ILCS 305/4d)
Sec. 4d. Illinois Workers' Compensation Commission


Operations Fund Fee.
(a) As of the effective date of this amendatory Act of the
93rd General Assembly, each employer that self-insures its
liabilities arising under this Act or Workers' Occupational
Diseases Act shall pay a fee measured by the annual actual
wages paid in this State of such an employer in the manner
provided in this Section. Such proceeds shall be deposited in
the Illinois Workers' Compensation Commission Operations Fund.
If an employer survives or was formed by a merger,
consolidation, reorganization, or reincorporation, the actual
wages paid in this State of all employers party to the merger,
consolidation, reorganization, or reincorporation shall, for
purposes of determining the amount of the fee imposed by this
Section, be regarded as those of the surviving or new
employer.
(b) Beginning on July 30, 2004 (the effective date of
Public Act 93-840) and on July 1 of each year thereafter
through 2023, the Chairman shall charge and collect an annual
Illinois Workers' Compensation Commission Operations Fund Fee
from every employer subject to subsection (a) of this Section
equal to 0.0075% of its annual actual wages paid in this State
as reported in each employer's annual self-insurance renewal
filed for the previous year as required by Section 4 of this
Act and Section 4 of the Workers' Occupational Diseases Act.
Beginning on July 1, 2024 and on July 1 of each year
thereafter, the Chairman shall charge and collect an annual


Illinois Workers' Compensation Commission Operations Fund Fee
from every employer subject to subsection (a) of this Section
equal to 0.0081% of its annual actual wages paid in this State
as reported in each employer's annual self-insurance renewal
filed for the previous year as required by Section 4 of this
Act and Section 4 of the Workers' Occupational Diseases Act.
All sums collected by the Commission under the provisions of
this Section shall be paid promptly after the receipt of the
same, accompanied by a detailed statement thereof, into the
Illinois Workers' Compensation Commission Operations Fund. The
fee due pursuant to Public Act 93-840 shall be collected
instead of the fee due on July 1, 2004 under Public Act 93-32.
Payment of the fee due under Public Act 93-840 shall discharge
the employer's obligations due on July 1, 2004.
(c) In addition to the authority specifically granted
under Section 16, the Chairman shall have such authority to
adopt rules or establish forms as may be reasonably necessary
for purposes of enforcing this Section. The Commission shall
have authority to defer, waive, or abate the fee or any
penalties imposed by this Section if in the Commission's
opinion the employer's solvency and ability to meet its
obligations to pay workers' compensation benefits would be
immediately threatened by payment of the fee due.
(d) When an employer fails to pay the full amount of any
annual Illinois Workers' Compensation Commission Operations
Fund Fee of $100 or more due under this Section, there shall be


added to the amount due as a penalty the greater of $1,000 or
an amount equal to 5% of the deficiency for each month or part
of a month that the deficiency remains unpaid.
(e) The Commission may enforce the collection of any
delinquent payment, penalty or portion thereof by legal action
or in any other manner by which the collection of debts due the
State of Illinois may be enforced under the laws of this State.
(f) Whenever it appears to the satisfaction of the
Chairman that an employer has paid pursuant to this Act an
Illinois Workers' Compensation Commission Operations Fund Fee
in an amount in excess of the amount legally collectable from
the employer, the Chairman shall issue a credit memorandum for
an amount equal to the amount of such overpayment. A credit
memorandum may be applied for the 2-year period from the date
of issuance against the payment of any amount due during that
period under the fee imposed by this Section or, subject to
reasonable rule of the Commission including requirement of
notification, may be assigned to any other employer subject to
regulation under this Act. Any application of credit memoranda
after the period provided for in this Section is void.
(Source: P.A. 95-331, eff. 8-21-07.)
(820 ILCS 305/7) (from Ch. 48, par. 138.7)
Sec. 7. The amount of compensation which shall be paid for
an accidental injury to the employee resulting in death is:
(a) If the employee leaves surviving a widow, widower,


child or children, the applicable weekly compensation rate
computed in accordance with subparagraph 2 of paragraph (b) of
Section 8, shall be payable during the life of the widow or
widower and if any surviving child or children shall not be
physically or mentally incapacitated then until the death of
the widow or widower or until the youngest child shall reach
the age of 18, whichever shall come later; provided that if
such child or children shall be enrolled as a full time student
in any accredited educational institution, the payments shall
continue until such child has attained the age of 25. In the
event any surviving child or children shall be physically or
mentally incapacitated, the payments shall continue for the
duration of such incapacity.
The term "child" means a child whom the deceased employee
left surviving, including a posthumous child, a child legally
adopted, a child whom the deceased employee was legally
obligated to support or a child to whom the deceased employee
stood in loco parentis. The term "children" means the plural
of "child".
The term "physically or mentally incapacitated child or
children" means a child or children incapable of engaging in
regular and substantial gainful employment.
In the event of the remarriage of a widow or widower, where
the decedent did not leave surviving any child or children
who, at the time of such remarriage, are entitled to
compensation benefits under this Act, the surviving spouse


shall be paid a lump sum equal to 2 years compensation benefits
and all further rights of such widow or widower shall be
extinguished.
If the employee leaves surviving any child or children
under 18 years of age who at the time of death shall be
entitled to compensation under this paragraph (a) of this
Section, the weekly compensation payments herein provided for
such child or children shall in any event continue for a period
of not less than 6 years.
Any beneficiary entitled to compensation under this
paragraph (a) of this Section shall receive from the special
fund provided in paragraph (f) of this Section, in addition to
the compensation herein provided, supplemental benefits in
accordance with paragraph (g) of Section 8.
(b) If no compensation is payable under paragraph (a) of
this Section and the employee leaves surviving a parent or
parents who at the time of the accident were totally dependent
upon the earnings of the employee then weekly payments equal
to the compensation rate payable in the case where the
employee leaves surviving a widow or widower, shall be paid to
such parent or parents for the duration of their lives, and in
the event of the death of either, for the life of the survivor.
(c) If no compensation is payable under paragraphs (a) or
(b) of this Section and the employee leaves surviving any
child or children who are not entitled to compensation under
the foregoing paragraph (a) but who at the time of the accident


were nevertheless in any manner dependent upon the earnings of
the employee, or leaves surviving a parent or parents who at
the time of the accident were partially dependent upon the
earnings of the employee, then there shall be paid to such
dependent or dependents for a period of 8 years weekly
compensation payments at such proportion of the applicable
rate if the employee had left surviving a widow or widower as
such dependency bears to total dependency. In the event of the
death of any such beneficiary the share of such beneficiary
shall be divided equally among the surviving beneficiaries and
in the event of the death of the last such beneficiary all the
rights under this paragraph shall be extinguished.
(d) If no compensation is payable under paragraphs (a),
(b) or (c) of this Section and the employee leaves surviving
any grandparent, grandparents, grandchild or grandchildren or
collateral heirs dependent upon the employee's earnings to the
extent of 50% or more of total dependency, then there shall be
paid to such dependent or dependents for a period of 5 years
weekly compensation payments at such proportion of the
applicable rate if the employee had left surviving a widow or
widower as such dependency bears to total dependency. In the
event of the death of any such beneficiary the share of such
beneficiary shall be divided equally among the surviving
beneficiaries and in the event of the death of the last such
beneficiary all rights hereunder shall be extinguished.
(e) The compensation to be paid for accidental injury


which results in death, as provided in this Section, shall be
paid to the persons who form the basis for determining the
amount of compensation to be paid by the employer, the
respective shares to be in the proportion of their respective
dependency at the time of the accident on the earnings of the
deceased. The Commission or an Arbitrator thereof may, in its
or his discretion, order or award the payment to the parent or
grandparent of a child for the latter's support the amount of
compensation which but for such order or award would have been
paid to such child as its share of the compensation payable,
which order or award may be modified from time to time by the
Commission in its discretion with respect to the person to
whom shall be paid the amount of the order or award remaining
unpaid at the time of the modification.
The payments of compensation by the employer in accordance
with the order or award of the Commission discharges such
employer from all further obligation as to such compensation.
(f) The sum of $8,000 for burial expenses shall be paid by
the employer to the widow or widower, other dependent, next of
kin or to the person or persons incurring the expense of
burial.
In the event the employer failed to provide necessary
first aid, medical, surgical or hospital service, he shall pay
the cost thereof to the person or persons entitled to
compensation under paragraphs (a), (b), (c) or (d) of this
Section, or to the person or persons incurring the obligation


therefore, or providing the same.
On January 15 and July 15, 1981, and on January 15 and July
15 of each year thereafter the employer shall within 60 days
pay a sum equal to 1/8 of 1% of all compensation payments made
by him after July 1, 1980, either under this Act or the
Workers' Occupational Diseases Act, whether by lump sum
settlement or weekly compensation payments, but not including
hospital, surgical or rehabilitation payments, made during the
first 6 months and during the second 6 months respectively of
the fiscal year next preceding the date of the payments, into a
special fund which shall be designated the "Second Injury
Fund", of which the State Treasurer is ex-officio custodian,
such special fund to be held and disbursed for the purposes
hereinafter stated in paragraphs (f) and (g) of Section 8,
either upon the order of the Commission or of a competent
court. Said special fund shall be deposited the same as are
State funds and any interest accruing thereon shall be added
thereto every 6 months. It is subject to audit the same as
State funds and accounts and is protected by the General bond
given by the State Treasurer. It is considered always
appropriated for the purposes of disbursements as provided in
Section 8, paragraph (f), of this Act, and shall be paid out
and disbursed as therein provided and shall not at any time be
appropriated or diverted to any other use or purpose.
On January 15, 1991, the employer shall further pay a sum
equal to one half of 1% of all compensation payments made by


him from January 1, 1990 through June 30, 1990 either under
this Act or under the Workers' Occupational Diseases Act,
whether by lump sum settlement or weekly compensation
payments, but not including hospital, surgical or
rehabilitation payments, into an additional Special Fund which
shall be designated as the "Rate Adjustment Fund". On March
15, 1991, the employer shall pay into the Rate Adjustment Fund
a sum equal to one half of 1% of all such compensation payments
made from July 1, 1990 through December 31, 1990. Within 60
days after July 15, 1991, the employer shall pay into the Rate
Adjustment Fund a sum equal to one half of 1% of all such
compensation payments made from January 1, 1991 through June
30, 1991. Within 60 days after January 15 of 1992 and each
subsequent year through 1996, the employer shall pay into the
Rate Adjustment Fund a sum equal to one half of 1% of all such
compensation payments made in the last 6 months of the
preceding calendar year. Within 60 days after July 15 of 1992
and each subsequent year through 1995, the employer shall pay
into the Rate Adjustment Fund a sum equal to one half of 1% of
all such compensation payments made in the first 6 months of
the same calendar year. Within 60 days after January 15 of 1997
and each subsequent year through 2005, the employer shall pay
into the Rate Adjustment Fund a sum equal to three-fourths of
1% of all such compensation payments made in the last 6 months
of the preceding calendar year. Within 60 days after July 15 of
1996 and each subsequent year through 2004, the employer shall


pay into the Rate Adjustment Fund a sum equal to three-fourths
of 1% of all such compensation payments made in the first 6
months of the same calendar year. Within 60 days after July 15
of 2005, the employer shall pay into the Rate Adjustment Fund a
sum equal to 1% of such compensation payments made in the first
6 months of the same calendar year. Within 60 days after
January 15 of 2006 and each subsequent year through 2024, the
employer shall pay into the Rate Adjustment Fund a sum equal to
1.25% of such compensation payments made in the last 6 months
of the preceding calendar year. Within 60 days after July 15 of
2006 and each subsequent year through 2023, the employer shall
pay into the Rate Adjustment Fund a sum equal to 1.25% of such
compensation payments made in the first 6 months of the same
calendar year. Within 60 days after July 15 of 2024 and each
subsequent year thereafter, the employer shall pay into the
Rate Adjustment Fund a sum equal to 1.375% of such
compensation payments made in the first 6 months of the same
calendar year. Within 60 days after January 15 of 2025 and each
subsequent year thereafter, the employer shall pay into the
Rate Adjustment Fund a sum equal to 1.375% of such
compensation payments made in the last 6 months of the
preceding calendar year. The administrative costs of
collecting assessments from employers for the Rate Adjustment
Fund shall be paid from the Rate Adjustment Fund. The cost of
an actuarial audit of the Fund shall be paid from the Rate
Adjustment Fund. The State Treasurer is ex officio custodian


of such Special Fund and the same shall be held and disbursed
for the purposes hereinafter stated in paragraphs (f) and (g)
of Section 8 upon the order of the Commission or of a competent
court. The Rate Adjustment Fund shall be deposited the same as
are State funds and any interest accruing thereon shall be
added thereto every 6 months. It shall be subject to audit the
same as State funds and accounts and shall be protected by the
general bond given by the State Treasurer. It is considered
always appropriated for the purposes of disbursements as
provided in paragraphs (f) and (g) of Section 8 of this Act and
shall be paid out and disbursed as therein provided and shall
not at any time be appropriated or diverted to any other use or
purpose. Within 5 days after the effective date of this
amendatory Act of 1990, the Comptroller and the State
Treasurer shall transfer $1,000,000 from the General Revenue
Fund to the Rate Adjustment Fund. By February 15, 1991, the
Comptroller and the State Treasurer shall transfer $1,000,000
from the Rate Adjustment Fund to the General Revenue Fund. The
Comptroller and Treasurer are authorized to make transfers at
the request of the Chairman up to a total of $19,000,000 from
the Second Injury Fund, the General Revenue Fund, and the
Workers' Compensation Benefit Trust Fund to the Rate
Adjustment Fund to the extent that there is insufficient money
in the Rate Adjustment Fund to pay claims and obligations.
Amounts may be transferred from the General Revenue Fund only
if the funds in the Second Injury Fund or the Workers'


Compensation Benefit Trust Fund are insufficient to pay claims
and obligations of the Rate Adjustment Fund. All amounts
transferred from the Second Injury Fund, the General Revenue
Fund, and the Workers' Compensation Benefit Trust Fund shall
be repaid from the Rate Adjustment Fund within 270 days of a
transfer, together with interest at the rate earned by moneys
on deposit in the Fund or Funds from which the moneys were
transferred.
Upon a finding by the Commission, after reasonable notice
and hearing, that any employer has willfully and knowingly
failed to pay the proper amounts into the Second Injury Fund or
the Rate Adjustment Fund required by this Section or if such
payments are not made within the time periods prescribed by
this Section, the employer shall, in addition to such
payments, pay a penalty of 20% of the amount required to be
paid or $2,500, whichever is greater, for each year or part
thereof of such failure to pay. This penalty shall only apply
to obligations of an employer to the Second Injury Fund or the
Rate Adjustment Fund accruing after the effective date of this
amendatory Act of 1989. All or part of such a penalty may be
waived by the Commission for good cause shown.
Any obligations of an employer to the Second Injury Fund
and Rate Adjustment Fund accruing prior to the effective date
of this amendatory Act of 1989 shall be paid in full by such
employer within 5 years of the effective date of this
amendatory Act of 1989, with at least one-fifth of such


obligation to be paid during each year following the effective
date of this amendatory Act of 1989. If the Commission finds,
following reasonable notice and hearing, that an employer has
failed to make timely payment of any obligation accruing under
the preceding sentence, the employer shall, in addition to all
other payments required by this Section, be liable for a
penalty equal to 20% of the overdue obligation or $2,500,
whichever is greater, for each year or part thereof that
obligation is overdue. All or part of such a penalty may be
waived by the Commission for good cause shown.
The Chairman of the Illinois Workers' Compensation
Commission shall, annually, furnish to the Director of the
Department of Insurance a list of the amounts paid into the
Second Injury Fund and the Rate Adjustment Fund by each
insurance company on behalf of their insured employers. The
Director shall verify to the Chairman that the amounts paid by
each insurance company are accurate as best as the Director
can determine from the records available to the Director. The
Chairman shall verify that the amounts paid by each
self-insurer are accurate as best as the Chairman can
determine from records available to the Chairman. The Chairman
may require each self-insurer to provide information
concerning the total compensation payments made upon which
contributions to the Second Injury Fund and the Rate
Adjustment Fund are predicated and any additional information
establishing that such payments have been made into these


funds. Any deficiencies in payments noted by the Director or
Chairman shall be subject to the penalty provisions of this
Act.
The State Treasurer, or his duly authorized
representative, shall be named as a party to all proceedings
in all cases involving claim for the loss of, or the permanent
and complete loss of the use of one eye, one foot, one leg, one
arm or one hand.
The State Treasurer or his duly authorized agent shall
have the same rights as any other party to the proceeding,
including the right to petition for review of any award. The
reasonable expenses of litigation, such as medical
examinations, testimony, and transcript of evidence, incurred
by the State Treasurer or his duly authorized representative,
shall be borne by the Second Injury Fund.
If the award is not paid within 30 days after the date the
award has become final, the Commission shall proceed to take
judgment thereon in its own name as is provided for other
awards by paragraph (g) of Section 19 of this Act and take the
necessary steps to collect the award.
Any person, corporation or organization who has paid or
become liable for the payment of burial expenses of the
deceased employee may in his or its own name institute
proceedings before the Commission for the collection thereof.
For the purpose of administration, receipts and
disbursements, the Special Fund provided for in paragraph (f)


of this Section shall be administered jointly with the Special
Fund provided for in Section 7, paragraph (f) of the Workers'
Occupational Diseases Act.
(g) All compensation, except for burial expenses provided
in this Section to be paid in case accident results in death,
shall be paid in installments equal to the percentage of the
average earnings as provided for in Section 8, paragraph (b)
of this Act, at the same intervals at which the wages or
earnings of the employees were paid. If this is not feasible,
then the installments shall be paid weekly. Such compensation
may be paid in a lump sum upon petition as provided in Section
9 of this Act. However, in addition to the benefits provided by
Section 9 of this Act where compensation for death is payable
to the deceased's widow, widower or to the deceased's widow,
widower and one or more children, and where a partial lump sum
is applied for by such beneficiary or beneficiaries within 18
months after the deceased's death, the Commission may, in its
discretion, grant a partial lump sum of not to exceed 100 weeks
of the compensation capitalized at their present value upon
the basis of interest calculated at 3% per annum with annual
rests, upon a showing that such partial lump sum is for the
best interest of such beneficiary or beneficiaries.
(h) In case the injured employee is under 16 years of age
at the time of the accident and is illegally employed, the
amount of compensation payable under paragraphs (a), (b), (c),
(d) and (f) of this Section shall be increased 50%.


Nothing herein contained repeals or amends the provisions
of the Child Labor Law relating to the employment of minors
under the age of 16 years.
However, where an employer has on file an employment
certificate issued pursuant to the Child Labor Law or work
permit issued pursuant to the Federal Fair Labor Standards
Act, as amended, or a birth certificate properly and duly
issued, such certificate, permit or birth certificate is
conclusive evidence as to the age of the injured minor
employee for the purposes of this Section only.
(i) Whenever the dependents of a deceased employee are
noncitizens not residing in the United States, Mexico or
Canada, the amount of compensation payable is limited to the
beneficiaries described in paragraphs (a), (b) and (c) of this
Section and is 50% of the compensation provided in paragraphs
(a), (b) and (c) of this Section, except as otherwise provided
by treaty.
In a case where any of the persons who would be entitled to
compensation is living at any place outside of the United
States, then payment shall be made to the personal
representative of the deceased employee. The distribution by
such personal representative to the persons entitled shall be
made to such persons and in such manner as the Commission
orders.
(Source: P.A. 102-1030, eff. 5-27-22.)


(820 ILCS 305/19) (from Ch. 48, par. 138.19)
Sec. 19. Any disputed questions of law or fact shall be
determined as herein provided.
(a) It shall be the duty of the Commission upon
notification that the parties have failed to reach an
agreement, to designate an Arbitrator.
1. Whenever any claimant misconceives his remedy and
files an application for adjustment of claim under this
Act and it is subsequently discovered, at any time before
final disposition of such cause, that the claim for
disability or death which was the basis for such
application should properly have been made under the
Workers' Occupational Diseases Act, then the provisions of
Section 19, paragraph (a-1) of the Workers' Occupational
Diseases Act having reference to such application shall
apply.
2. Whenever any claimant misconceives his remedy and
files an application for adjustment of claim under the
Workers' Occupational Diseases Act and it is subsequently
discovered, at any time before final disposition of such
cause that the claim for injury or death which was the
basis for such application should properly have been made
under this Act, then the application so filed under the
Workers' Occupational Diseases Act may be amended in form,
substance or both to assert claim for such disability or
death under this Act and it shall be deemed to have been so


filed as amended on the date of the original filing
thereof, and such compensation may be awarded as is
warranted by the whole evidence pursuant to this Act. When
such amendment is submitted, further or additional
evidence may be heard by the Arbitrator or Commission when
deemed necessary. Nothing in this Section contained shall
be construed to be or permit a waiver of any provisions of
this Act with reference to notice but notice if given
shall be deemed to be a notice under the provisions of this
Act if given within the time required herein.
(b) The Arbitrator shall make such inquiries and
investigations as he or they shall deem necessary and may
examine and inspect all books, papers, records, places, or
premises relating to the questions in dispute and hear such
proper evidence as the parties may submit.
The hearings before the Arbitrator shall be held in the
vicinity where the injury occurred after 10 days' notice of
the time and place of such hearing shall have been given to
each of the parties or their attorneys of record.
The Arbitrator may find that the disabling condition is
temporary and has not yet reached a permanent condition and
may order the payment of compensation up to the date of the
hearing, which award shall be reviewable and enforceable in
the same manner as other awards, and in no instance be a bar to
a further hearing and determination of a further amount of
temporary total compensation or of compensation for permanent


disability, but shall be conclusive as to all other questions
except the nature and extent of said disability.
The decision of the Arbitrator shall be filed with the
Commission which Commission shall immediately send to each
party or his attorney a copy of such decision, together with a
notification of the time when it was filed. As of the effective
date of this amendatory Act of the 94th General Assembly, all
decisions of the Arbitrator shall set forth in writing
findings of fact and conclusions of law, separately stated, if
requested by either party. Unless a petition for review is
filed by either party within 30 days after the receipt by such
party of the copy of the decision and notification of time when
filed, and unless such party petitioning for a review shall
within 35 days after the receipt by him of the copy of the
decision, file with the Commission either an agreed statement
of the facts appearing upon the hearing before the Arbitrator,
or if such party shall so elect a correct transcript of
evidence of the proceedings at such hearings, then the
decision shall become the decision of the Commission and in
the absence of fraud shall be conclusive. The Petition for
Review shall contain a statement of the petitioning party's
specific exceptions to the decision of the arbitrator. The
jurisdiction of the Commission to review the decision of the
arbitrator shall not be limited to the exceptions stated in
the Petition for Review. The Commission, or any member
thereof, may grant further time not exceeding 30 days, in


which to file such agreed statement or transcript of evidence.
Such agreed statement of facts or correct transcript of
evidence, as the case may be, shall be authenticated by the
signatures of the parties or their attorneys, and in the event
they do not agree as to the correctness of the transcript of
evidence it shall be authenticated by the signature of the
Arbitrator designated by the Commission.
Whether the employee is working or not, if the employee is
not receiving or has not received medical, surgical, or
hospital services or other services or compensation as
provided in paragraph (a) of Section 8, or compensation as
provided in paragraph (b) of Section 8, the employee may at any
time petition for an expedited hearing by an Arbitrator on the
issue of whether or not he or she is entitled to receive
payment of the services or compensation. Provided the employer
continues to pay compensation pursuant to paragraph (b) of
Section 8, the employer may at any time petition for an
expedited hearing on the issue of whether or not the employee
is entitled to receive medical, surgical, or hospital services
or other services or compensation as provided in paragraph (a)
of Section 8, or compensation as provided in paragraph (b) of
Section 8. When an employer has petitioned for an expedited
hearing, the employer shall continue to pay compensation as
provided in paragraph (b) of Section 8 unless the arbitrator
renders a decision that the employee is not entitled to the
benefits that are the subject of the expedited hearing or


unless the employee's treating physician has released the
employee to return to work at his or her regular job with the
employer or the employee actually returns to work at any other
job. If the arbitrator renders a decision that the employee is
not entitled to the benefits that are the subject of the
expedited hearing, a petition for review filed by the employee
shall receive the same priority as if the employee had filed a
petition for an expedited hearing by an Arbitrator. Neither
party shall be entitled to an expedited hearing when the
employee has returned to work and the sole issue in dispute
amounts to less than 12 weeks of unpaid compensation pursuant
to paragraph (b) of Section 8.
Expedited hearings shall have priority over all other
petitions and shall be heard by the Arbitrator and Commission
with all convenient speed. Any party requesting an expedited
hearing shall give notice of a request for an expedited
hearing under this paragraph. A copy of the Application for
Adjustment of Claim shall be attached to the notice. The
Commission shall adopt rules and procedures under which the
final decision of the Commission under this paragraph is filed
not later than 180 days from the date that the Petition for
Review is filed with the Commission.
Where 2 or more insurance carriers, private self-insureds,
or a group workers' compensation pool under Article V 3/4 of
the Illinois Insurance Code dispute coverage for the same
injury, any such insurance carrier, private self-insured, or


group workers' compensation pool may request an expedited
hearing pursuant to this paragraph to determine the issue of
coverage, provided coverage is the only issue in dispute and
all other issues are stipulated and agreed to and further
provided that all compensation benefits including medical
benefits pursuant to Section 8(a) continue to be paid to or on
behalf of petitioner. Any insurance carrier, private
self-insured, or group workers' compensation pool that is
determined to be liable for coverage for the injury in issue
shall reimburse any insurance carrier, private self-insured,
or group workers' compensation pool that has paid benefits to
or on behalf of petitioner for the injury.
(b-1) If the employee is not receiving medical, surgical
or hospital services as provided in paragraph (a) of Section 8
or compensation as provided in paragraph (b) of Section 8, the
employee, in accordance with Commission Rules, may file a
petition for an emergency hearing by an Arbitrator on the
issue of whether or not he is entitled to receive payment of
such compensation or services as provided therein. Such
petition shall have priority over all other petitions and
shall be heard by the Arbitrator and Commission with all
convenient speed.
Such petition shall contain the following information and
shall be served on the employer at least 15 days before it is
filed:
(i) the date and approximate time of accident;


(ii) the approximate location of the accident;
(iii) a description of the accident;
(iv) the nature of the injury incurred by the
employee;
(v) the identity of the person, if known, to whom the
accident was reported and the date on which it was
reported;
(vi) the name and title of the person, if known,
representing the employer with whom the employee conferred
in any effort to obtain compensation pursuant to paragraph
(b) of Section 8 of this Act or medical, surgical or
hospital services pursuant to paragraph (a) of Section 8
of this Act and the date of such conference;
(vii) a statement that the employer has refused to pay
compensation pursuant to paragraph (b) of Section 8 of
this Act or for medical, surgical or hospital services
pursuant to paragraph (a) of Section 8 of this Act;
(viii) the name and address, if known, of each witness
to the accident and of each other person upon whom the
employee will rely to support his allegations;
(ix) the dates of treatment related to the accident by
medical practitioners, and the names and addresses of such
practitioners, including the dates of treatment related to
the accident at any hospitals and the names and addresses
of such hospitals, and a signed authorization permitting
the employer to examine all medical records of all


practitioners and hospitals named pursuant to this
paragraph;
(x) a copy of a signed report by a medical
practitioner, relating to the employee's current inability
to return to work because of the injuries incurred as a
result of the accident or such other documents or
affidavits which show that the employee is entitled to
receive compensation pursuant to paragraph (b) of Section
8 of this Act or medical, surgical or hospital services
pursuant to paragraph (a) of Section 8 of this Act. Such
reports, documents or affidavits shall state, if possible,
the history of the accident given by the employee, and
describe the injury and medical diagnosis, the medical
services for such injury which the employee has received
and is receiving, the physical activities which the
employee cannot currently perform as a result of any
impairment or disability due to such injury, and the
prognosis for recovery;
(xi) complete copies of any reports, records,
documents and affidavits in the possession of the employee
on which the employee will rely to support his
allegations, provided that the employer shall pay the
reasonable cost of reproduction thereof;
(xii) a list of any reports, records, documents and
affidavits which the employee has demanded by subpoena and
on which he intends to rely to support his allegations;


(xiii) a certification signed by the employee or his
representative that the employer has received the petition
with the required information 15 days before filing.
Fifteen days after receipt by the employer of the petition
with the required information the employee may file said
petition and required information and shall serve notice of
the filing upon the employer. The employer may file a motion
addressed to the sufficiency of the petition. If an objection
has been filed to the sufficiency of the petition, the
arbitrator shall rule on the objection within 2 working days.
If such an objection is filed, the time for filing the final
decision of the Commission as provided in this paragraph shall
be tolled until the arbitrator has determined that the
petition is sufficient.
The employer shall, within 15 days after receipt of the
notice that such petition is filed, file with the Commission
and serve on the employee or his representative a written
response to each claim set forth in the petition, including
the legal and factual basis for each disputed allegation and
the following information: (i) complete copies of any reports,
records, documents and affidavits in the possession of the
employer on which the employer intends to rely in support of
his response, (ii) a list of any reports, records, documents
and affidavits which the employer has demanded by subpoena and
on which the employer intends to rely in support of his
response, (iii) the name and address of each witness on whom


the employer will rely to support his response, and (iv) the
names and addresses of any medical practitioners selected by
the employer pursuant to Section 12 of this Act and the time
and place of any examination scheduled to be made pursuant to
such Section.
Any employer who does not timely file and serve a written
response without good cause may not introduce any evidence to
dispute any claim of the employee but may cross examine the
employee or any witness brought by the employee and otherwise
be heard.
No document or other evidence not previously identified by
either party with the petition or written response, or by any
other means before the hearing, may be introduced into
evidence without good cause. If, at the hearing, material
information is discovered which was not previously disclosed,
the Arbitrator may extend the time for closing proof on the
motion of a party for a reasonable period of time which may be
more than 30 days. No evidence may be introduced pursuant to
this paragraph as to permanent disability. No award may be
entered for permanent disability pursuant to this paragraph.
Either party may introduce into evidence the testimony taken
by deposition of any medical practitioner.
The Commission shall adopt rules, regulations and
procedures whereby the final decision of the Commission is
filed not later than 90 days from the date the petition for
review is filed but in no event later than 180 days from the


date the petition for an emergency hearing is filed with the
Illinois Workers' Compensation Commission.
All service required pursuant to this paragraph (b-1) must
be by personal service or by certified mail and with evidence
of receipt. In addition for the purposes of this paragraph,
all service on the employer must be at the premises where the
accident occurred if the premises are owned or operated by the
employer. Otherwise service must be at the employee's
principal place of employment by the employer. If service on
the employer is not possible at either of the above, then
service shall be at the employer's principal place of
business. After initial service in each case, service shall be
made on the employer's attorney or designated representative.
(c)(1) At a reasonable time in advance of and in
connection with the hearing under Section 19(e) or 19(h), the
Commission may on its own motion order an impartial physical
or mental examination of a petitioner whose mental or physical
condition is in issue, when in the Commission's discretion it
appears that such an examination will materially aid in the
just determination of the case. The examination shall be made
by a member or members of a panel of physicians chosen for
their special qualifications by the Illinois State Medical
Society. The Commission shall establish procedures by which a
physician shall be selected from such list.
(2) Should the Commission at any time during the hearing
find that compelling considerations make it advisable to have


an examination and report at that time, the commission may in
its discretion so order.
(3) A copy of the report of examination shall be given to
the Commission and to the attorneys for the parties.
(4) Either party or the Commission may call the examining
physician or physicians to testify. Any physician so called
shall be subject to cross-examination.
(5) The examination shall be made, and the physician or
physicians, if called, shall testify, without cost to the
parties. The Commission shall determine the compensation and
the pay of the physician or physicians. The compensation for
this service shall not exceed the usual and customary amount
for such service.
(6) The fees and payment thereof of all attorneys and
physicians for services authorized by the Commission under
this Act shall, upon request of either the employer or the
employee or the beneficiary affected, be subject to the review
and decision of the Commission.
(d) If any employee shall persist in insanitary or
injurious practices which tend to either imperil or retard his
recovery or shall refuse to submit to such medical, surgical,
or hospital treatment as is reasonably essential to promote
his recovery, the Commission may, in its discretion, reduce or
suspend the compensation of any such injured employee.
However, when an employer and employee so agree in writing,
the foregoing provision shall not be construed to authorize


the reduction or suspension of compensation of an employee who
is relying in good faith, on treatment by prayer or spiritual
means alone, in accordance with the tenets and practice of a
recognized church or religious denomination, by a duly
accredited practitioner thereof.
(e) This paragraph shall apply to all hearings before the
Commission. Such hearings may be held in its office or
elsewhere as the Commission may deem advisable. The taking of
testimony on such hearings may be had before any member of the
Commission. If a petition for review and agreed statement of
facts or transcript of evidence is filed, as provided herein,
the Commission shall promptly review the decision of the
Arbitrator and all questions of law or fact which appear from
the statement of facts or transcript of evidence.
In all cases in which the hearing before the arbitrator is
held after December 18, 1989, no additional evidence shall be
introduced by the parties before the Commission on review of
the decision of the Arbitrator. In reviewing decisions of an
arbitrator the Commission shall award such temporary
compensation, permanent compensation and other payments as are
due under this Act. The Commission shall file in its office its
decision thereon, and shall immediately send to each party or
his attorney a copy of such decision and a notification of the
time when it was filed. Decisions shall be filed within 60 days
after the Statement of Exceptions and Supporting Brief and
Response thereto are required to be filed or oral argument


whichever is later.
In the event either party requests oral argument, such
argument shall be had before a panel of 3 members of the
Commission (or before all available members pursuant to the
determination of 7 members of the Commission that such
argument be held before all available members of the
Commission) pursuant to the rules and regulations of the
Commission. A panel of 3 members, which shall be comprised of
not more than one representative citizen of the employing
class and not more than one representative from a labor
organization recognized under the National Labor Relations Act
or an attorney who has represented labor organizations or has
represented employees in workers' compensation cases, shall
hear the argument; provided that if all the issues in dispute
are solely the nature and extent of the permanent partial
disability, if any, a majority of the panel may deny the
request for such argument and such argument shall not be held;
and provided further that 7 members of the Commission may
determine that the argument be held before all available
members of the Commission. A decision of the Commission shall
be approved by a majority of Commissioners present at such
hearing if any; provided, if no such hearing is held, a
decision of the Commission shall be approved by a majority of a
panel of 3 members of the Commission as described in this
Section. The Commission shall give 10 days' notice to the
parties or their attorneys of the time and place of such taking


of testimony and of such argument.
In any case the Commission in its decision may find
specially upon any question or questions of law or fact which
shall be submitted in writing by either party whether ultimate
or otherwise; provided that on issues other than nature and
extent of the disability, if any, the Commission in its
decision shall find specially upon any question or questions
of law or fact, whether ultimate or otherwise, which are
submitted in writing by either party; provided further that
not more than 5 such questions may be submitted by either
party. Any party may, within 20 days after receipt of notice of
the Commission's decision, or within such further time, not
exceeding 30 days, as the Commission may grant, file with the
Commission either an agreed statement of the facts appearing
upon the hearing, or, if such party shall so elect, a correct
transcript of evidence of the additional proceedings presented
before the Commission, in which report the party may embody a
correct statement of such other proceedings in the case as
such party may desire to have reviewed, such statement of
facts or transcript of evidence to be authenticated by the
signature of the parties or their attorneys, and in the event
that they do not agree, then the authentication of such
transcript of evidence shall be by the signature of any member
of the Commission.
If a reporter does not for any reason furnish a transcript
of the proceedings before the Arbitrator in any case for use on


a hearing for review before the Commission, within the
limitations of time as fixed in this Section, the Commission
may, in its discretion, order a trial de novo before the
Commission in such case upon application of either party. The
applications for adjustment of claim and other documents in
the nature of pleadings filed by either party, together with
the decisions of the Arbitrator and of the Commission and the
statement of facts or transcript of evidence hereinbefore
provided for in paragraphs (b) and (c) shall be the record of
the proceedings of the Commission, and shall be subject to
review as hereinafter provided.
At the request of either party or on its own motion, the
Commission shall set forth in writing the reasons for the
decision, including findings of fact and conclusions of law
separately stated. The Commission shall by rule adopt a format
for written decisions for the Commission and arbitrators. The
written decisions shall be concise and shall succinctly state
the facts and reasons for the decision. The Commission may
adopt in whole or in part, the decision of the arbitrator as
the decision of the Commission. When the Commission does so
adopt the decision of the arbitrator, it shall do so by order.
Whenever the Commission adopts part of the arbitrator's
decision, but not all, it shall include in the order the
reasons for not adopting all of the arbitrator's decision.
When a majority of a panel, after deliberation, has arrived at
its decision, the decision shall be filed as provided in this


Section without unnecessary delay, and without regard to the
fact that a member of the panel has expressed an intention to
dissent. Any member of the panel may file a dissent. Any
dissent shall be filed no later than 10 days after the decision
of the majority has been filed.
Decisions rendered by the Commission and dissents, if any,
shall be published together by the Commission. The conclusions
of law set out in such decisions shall be regarded as
precedents by arbitrators for the purpose of achieving a more
uniform administration of this Act.
(f) The decision of the Commission acting within its
powers, according to the provisions of paragraph (d) of
Section 4 and paragraph (e) of this Section shall, in the
absence of fraud, be conclusive unless reviewed as in this
paragraph hereinafter provided. However, the Arbitrator or the
Commission may on his or its own motion, or on the motion of
either party, correct any clerical error or errors in
computation within 15 days after the date of receipt of any
award by such Arbitrator or any decision on review of the
Commission and shall have the power to recall the original
award on arbitration or decision on review, and issue in lieu
thereof such corrected award or decision. Where such
correction is made the time for review herein specified shall
begin to run from the date of the receipt of the corrected
award or decision.
(1) Except in cases of claims against the State of


Illinois other than those claims under Section 18.1, in
which case the decision of the Commission shall not be
subject to judicial review, the Circuit Court of the
county where any of the parties defendant may be found, or
if none of the parties defendant can be found in this State
then the Circuit Court of the county where the accident
occurred, shall by summons to the Commission have power to
review all questions of law and fact presented by such
record.
A proceeding for review shall be commenced within 20
days of the receipt of notice of the decision of the
Commission. The summons shall be issued by the clerk of
such court upon written request returnable on a designated
return day, not less than 10 or more than 60 days from the
date of issuance thereof, and the written request shall
contain the last known address of other parties in
interest and their attorneys of record who are to be
served by summons. Service upon any member of the
Commission or the Secretary or the Assistant Secretary
thereof shall be service upon the Commission, and service
upon other parties in interest and their attorneys of
record shall be by summons, and such service shall be made
upon the Commission and other parties in interest by
mailing notices of the commencement of the proceedings and
the return day of the summons to the office of the
Commission and to the last known place of residence of


other parties in interest or their attorney or attorneys
of record. The clerk of the court issuing the summons
shall on the day of issue mail notice of the commencement
of the proceedings which shall be done by mailing a copy of
the summons to the office of the Commission, and a copy of
the summons to the other parties in interest or their
attorney or attorneys of record and the clerk of the court
shall make certificate that he has so sent said notices in
pursuance of this Section, which shall be evidence of
service on the Commission and other parties in interest.
The Commission shall not be required to certify the
record of their proceedings to the Circuit Court, unless
the party commencing the proceedings for review in the
Circuit Court as above provided, shall file with the
Commission notice of intent to file for review in Circuit
Court. It shall be the duty of the Commission upon such
filing of notice of intent to file for review in the
Circuit Court to prepare a true and correct copy of such
testimony and a true and correct copy of all other matters
contained in such record and certified to by the Secretary
or Assistant Secretary thereof. The changes made to this
subdivision (f)(1) by this amendatory Act of the 98th
General Assembly apply to any Commission decision entered
after the effective date of this amendatory Act of the
98th General Assembly.
No request for a summons may be filed and no summons


shall issue unless the party seeking to review the
decision of the Commission shall exhibit to the clerk of
the Circuit Court proof of filing with the Commission of
the notice of the intent to file for review in the Circuit
Court or an affidavit of the attorney setting forth that
notice of intent to file for review in the Circuit Court
has been given in writing to the Secretary or Assistant
Secretary of the Commission.
(2) No such summons shall issue unless the one against
whom the Commission shall have rendered an award for the
payment of money shall upon the filing of his written
request for such summons file with the clerk of the court a
bond conditioned that if he shall not successfully
prosecute the review, he will pay the award and the costs
of the proceedings in the courts. The amount of the bond
shall be fixed by any member of the Commission and the
surety or sureties of the bond shall be approved by the
clerk of the court. The acceptance of the bond by the clerk
of the court shall constitute evidence of his approval of
the bond.
The following shall not be required to file a bond to
secure the payment of the award and the costs of the
proceedings in the court to authorize the court to issue
such summons:
(1) the State Treasurer, for a fund administered
by the State Treasurer ex officio against whom the


Commission shall have rendered an award for the
payment of money; and
(2) a county, city, town, township, incorporated
village, school district, body politic, or municipal
corporation against whom the Commission shall have
rendered an award for the payment of money.
The court may confirm or set aside the decision of the
Commission. If the decision is set aside and the facts
found in the proceedings before the Commission are
sufficient, the court may enter such decision as is
justified by law, or may remand the cause to the
Commission for further proceedings and may state the
questions requiring further hearing, and give such other
instructions as may be proper. If the court affirms the
Commission's decision imposing fines on the employer under
subsection (d) of Section 4, the court shall enter
judgment against the employer in the amount of the fines
assessed by the Commission. Appeals shall be taken to the
Appellate Court in accordance with Supreme Court Rules
22(g) and 303. Appeals shall be taken from the Appellate
Court to the Supreme Court in accordance with Supreme
Court Rule 315.
It shall be the duty of the clerk of any court
rendering a decision affecting or affirming an award of
the Commission to promptly furnish the Commission with a
copy of such decision, without charge.


The decision of a majority of the members of the panel
of the Commission, shall be considered the decision of the
Commission.
(g) Except in the case of a claim against the State of
Illinois, either party may present a certified copy of the
award of the Arbitrator, or a certified copy of the decision of
the Commission when the same has become final, when no
proceedings for review are pending, providing for the payment
of compensation according to this Act, to the Circuit Court of
the county in which such accident occurred or either of the
parties are residents, whereupon the court shall enter a
judgment in accordance therewith. In a case where the employer
refuses to pay compensation according to such final award or
such final decision upon which such judgment is entered the
court shall in entering judgment thereon, tax as costs against
him the reasonable costs and attorney fees in the arbitration
proceedings and in the court entering the judgment for the
person in whose favor the judgment is entered, which judgment
and costs taxed as therein provided shall, until and unless
set aside, have the same effect as though duly entered in an
action duly tried and determined by the court, and shall with
like effect, be entered and docketed. The Circuit Court shall
have power at any time upon application to make any such
judgment conform to any modification required by any
subsequent decision of the Supreme Court upon appeal, or as
the result of any subsequent proceedings for review, as


provided in this Act.
Judgment shall not be entered until 15 days' notice of the
time and place of the application for the entry of judgment
shall be served upon the employer by filing such notice with
the Commission, which Commission shall, in case it has on file
the address of the employer or the name and address of its
agent upon whom notices may be served, immediately send a copy
of the notice to the employer or such designated agent.
(h) An agreement or award under this Act providing for
compensation in installments, may at any time within 18 months
after such agreement or award be reviewed by the Commission at
the request of either the employer or the employee, on the
ground that the disability of the employee has subsequently
recurred, increased, diminished or ended.
However, as to accidents occurring subsequent to July 1,
1955, which are covered by any agreement or award under this
Act providing for compensation in installments made as a
result of such accident, such agreement or award may at any
time within 30 months, or 60 months in the case of an award
under Section 8(d)1, after such agreement or award be reviewed
by the Commission at the request of either the employer or the
employee on the ground that the disability of the employee has
subsequently recurred, increased, diminished or ended.
On such review, compensation payments may be
re-established, increased, diminished or ended. The Commission
shall give 15 days' notice to the parties of the hearing for


review. Any employee, upon any petition for such review being
filed by the employer, shall be entitled to one day's notice
for each 100 miles necessary to be traveled by him in attending
the hearing of the Commission upon the petition, and 3 days in
addition thereto. Such employee shall, at the discretion of
the Commission, also be entitled to 5 cents per mile
necessarily traveled by him within the State of Illinois in
attending such hearing, not to exceed a distance of 300 miles,
to be taxed by the Commission as costs and deposited with the
petition of the employer.
When compensation which is payable in accordance with an
award or settlement contract approved by the Commission, is
ordered paid in a lump sum by the Commission, no review shall
be had as in this paragraph mentioned.
(i) Each party, upon taking any proceedings or steps
whatsoever before any Arbitrator, Commission or court, shall
file with the Commission his address, or the name and address
of any agent upon whom all notices to be given to such party
shall be served, either personally or by registered mail,
addressed to such party or agent at the last address so filed
with the Commission. In the event such party has not filed his
address, or the name and address of an agent as above provided,
service of any notice may be had by filing such notice with the
Commission.
(j) Whenever in any proceeding testimony has been taken or
a final decision has been rendered and after the taking of such


testimony or after such decision has become final, the injured
employee dies, then in any subsequent proceedings brought by
the personal representative or beneficiaries of the deceased
employee, such testimony in the former proceeding may be
introduced with the same force and effect as though the
witness having so testified were present in person in such
subsequent proceedings and such final decision, if any, shall
be taken as final adjudication of any of the issues which are
the same in both proceedings.
(k) In case where there has been any unreasonable or
vexatious delay of payment or intentional underpayment of
compensation, or proceedings have been instituted or carried
on by the one liable to pay the compensation, which do not
present a real controversy, but are merely frivolous or for
delay, then the Commission may award compensation additional
to that otherwise payable under this Act equal to 50% of the
amount payable at the time of such award. Failure to pay
compensation in accordance with the provisions of Section 8,
paragraph (b) of this Act, shall be considered unreasonable
delay.
When determining whether this subsection (k) shall apply,
the Commission shall consider whether an Arbitrator has
determined that the claim is not compensable or whether the
employer has made payments under Section 8(j).
(l) If the employee has made written demand for payment of
benefits under Section 8(a) or Section 8(b), the employer


shall have 14 days after receipt of the demand to set forth in
writing the reason for the delay. In the case of demand for
payment of medical benefits under Section 8(a), the time for
the employer to respond shall not commence until the
expiration of the allotted 30 days specified under Section
8.2(d). In case the employer or his or her insurance carrier
shall without good and just cause fail, neglect, refuse, or
unreasonably delay the payment of benefits under Section 8(a)
or Section 8(b), the Arbitrator or the Commission shall allow
to the employee additional compensation in the sum of $30 per
day for each day that the benefits under Section 8(a) or
Section 8(b) have been so withheld or refused, not to exceed
$10,000. A delay in payment of 14 days or more shall create a
rebuttable presumption of unreasonable delay.
(m) If the commission finds that an accidental injury was
directly and proximately caused by the employer's wilful
violation of a health and safety standard under the Health and
Safety Act or the Occupational Safety and Health Act in force
at the time of the accident, the arbitrator or the Commission
shall allow to the injured employee or his dependents, as the
case may be, additional compensation equal to 25% of the
amount which otherwise would be payable under the provisions
of this Act exclusive of this paragraph. The additional
compensation herein provided shall be allowed by an
appropriate increase in the applicable weekly compensation
rate.


(n) After June 30, 1984, decisions of the Illinois
Workers' Compensation Commission reviewing an award of an
arbitrator of the Commission shall draw interest at a rate
equal to the yield on indebtedness issued by the United States
Government with a 26-week maturity next previously auctioned
on the day on which the decision is filed. Said rate of
interest shall be set forth in the Arbitrator's Decision.
Interest shall be drawn from the date of the arbitrator's
award on all accrued compensation due the employee through the
day prior to the date of payments. However, when an employee
appeals an award of an Arbitrator or the Commission, and the
appeal results in no change or a decrease in the award,
interest shall not further accrue from the date of such
appeal.
The employer or his insurance carrier may tender the
payments due under the award to stop the further accrual of
interest on such award notwithstanding the prosecution by
either party of review, certiorari, appeal to the Supreme
Court or other steps to reverse, vacate or modify the award.
(o) By the 15th day of each month each insurer providing
coverage for losses under this Act shall notify each insured
employer of any compensable claim incurred during the
preceding month and the amounts paid or reserved on the claim
including a summary of the claim and a brief statement of the
reasons for compensability. A cumulative report of all claims
incurred during a calendar year or continued from the previous


year shall be furnished to the insured employer by the insurer
within 30 days after the end of that calendar year.
The insured employer may challenge, in proceeding before
the Commission, payments made by the insurer without
arbitration and payments made after a case is determined to be
noncompensable. If the Commission finds that the case was not
compensable, the insurer shall purge its records as to that
employer of any loss or expense associated with the claim,
reimburse the employer for attorneys' fees arising from the
challenge and for any payment required of the employer to the
Rate Adjustment Fund or the Second Injury Fund, and may not
reflect the loss or expense for rate making purposes. The
employee shall not be required to refund the challenged
payment. The decision of the Commission may be reviewed in the
same manner as in arbitrated cases. No challenge may be
initiated under this paragraph more than 3 years after the
payment is made. An employer may waive the right of challenge
under this paragraph on a case by case basis.
(p) After filing an application for adjustment of claim
but prior to the hearing on arbitration the parties may
voluntarily agree to submit such application for adjustment of
claim for decision by an arbitrator under this subsection (p)
where such application for adjustment of claim raises only a
dispute over temporary total disability, permanent partial
disability or medical expenses. Such agreement shall be in
writing in such form as provided by the Commission.


Applications for adjustment of claim submitted for decision by
an arbitrator under this subsection (p) shall proceed
according to rule as established by the Commission. The
Commission shall promulgate rules including, but not limited
to, rules to ensure that the parties are adequately informed
of their rights under this subsection (p) and of the voluntary
nature of proceedings under this subsection (p). The findings
of fact made by an arbitrator acting within his or her powers
under this subsection (p) in the absence of fraud shall be
conclusive. However, the arbitrator may on his own motion, or
the motion of either party, correct any clerical errors or
errors in computation within 15 days after the date of receipt
of such award of the arbitrator and shall have the power to
recall the original award on arbitration, and issue in lieu
thereof such corrected award. The decision of the arbitrator
under this subsection (p) shall be considered the decision of
the Commission and proceedings for review of questions of law
arising from the decision may be commenced by either party
pursuant to subsection (f) of Section 19. The Advisory Board
established under Section 13.1 shall compile a list of
certified Commission arbitrators, each of whom shall be
approved by at least 7 members of the Advisory Board. The
chairman shall select 5 persons from such list to serve as
arbitrators under this subsection (p). By agreement, the
parties shall select one arbitrator from among the 5 persons
selected by the chairman except that if the parties do not


agree on an arbitrator from among the 5 persons, the parties
may, by agreement, select an arbitrator of the American
Arbitration Association, whose fee shall be paid by the State
in accordance with rules promulgated by the Commission.
Arbitration under this subsection (p) shall be voluntary.
(Source: P.A. 101-384, eff. 1-1-20; 102-775, eff. 5-13-22.)
(820 ILCS 305/25.5)
Sec. 25.5. Unlawful acts; penalties.
(a) It is unlawful for any person, company, corporation,
insurance carrier, healthcare provider, or other entity to:
(1) Intentionally present or cause to be presented any
false or fraudulent claim for the payment of any workers'
compensation benefit.
(2) Intentionally make or cause to be made any false
or fraudulent material statement or material
representation for the purpose of obtaining or denying any
workers' compensation benefit.
(3) Intentionally make or cause to be made any false
or fraudulent statements with regard to entitlement to
workers' compensation benefits with the intent to prevent
an injured worker from making a legitimate claim for any
workers' compensation benefits.
(4) Intentionally prepare or provide an invalid,
false, or counterfeit certificate of insurance as proof of
workers' compensation insurance.


(5) Intentionally make or cause to be made any false
or fraudulent material statement or material
representation for the purpose of obtaining workers'
compensation insurance at less than the proper amount for
that insurance.
(6) Intentionally make or cause to be made any false
or fraudulent material statement or material
representation on an initial or renewal self-insurance
application or accompanying financial statement for the
purpose of obtaining self-insurance status or reducing the
amount of security that may be required to be furnished
pursuant to Section 4 of this Act.
(7) Intentionally make or cause to be made any false
or fraudulent material statement to the Department of
Insurance's fraud and insurance non-compliance unit in the
course of an investigation of fraud or insurance
non-compliance.
(8) Intentionally assist, abet, solicit, or conspire
with any person, company, or other entity to commit any of
the acts in paragraph (1), (2), (3), (4), (5), (6), or (7)
of this subsection (a).
(8.5) Intentionally assist, abet, solicit, or conspire
with any person, company, or other entity to commit any of
the acts in paragraph (4) of this subsection (a).
(9) Intentionally present a bill or statement for the
payment for medical services that were not provided.


For the purposes of paragraphs (2), (3), (5), (6), (7),
and (9), the term "statement" includes any writing, notice,
proof of injury, bill for services, hospital or doctor records
and reports, or X-ray and test results.
(b) Sentences for violations of paragraphs (1), (2), (3),
(5), (6), (7), (8), and (9) of subsection (a) are as follows:
(1) A violation in which the value of the property
obtained or attempted to be obtained is $300 or less is a
Class A misdemeanor.
(2) A violation in which the value of the property
obtained or attempted to be obtained is more than $300 but
not more than $10,000 is a Class 3 felony.
(3) A violation in which the value of the property
obtained or attempted to be obtained is more than $10,000
but not more than $100,000 is a Class 2 felony.
(4) A violation in which the value of the property
obtained or attempted to be obtained is more than $100,000
is a Class 1 felony.
(5) A person convicted under this subsection Section
shall be ordered to pay monetary restitution to the
injured worker, insurance company, or self-insured entity,
or any other person for any financial loss sustained as a
result of a violation of this Section, including any court
costs and attorney fees. An order of restitution also
includes expenses incurred and paid by the State of
Illinois, or an insurance company, a or self-insured


entity, an injured worker, or any other person in
connection with any medical evaluation or treatment
services. For the purposes of this subsection, "person"
includes any legal entity created under Section 535 of the
Illinois Insurance Code.
For the purposes of this subsection Section, where the
exact value of property obtained or attempted to be obtained
is either not alleged or is not specifically set by the terms
of a policy of insurance, the value of the property shall be
the fair market replacement value of the property claimed to
be lost, the reasonable costs of reimbursing a vendor or other
claimant for services to be rendered, or both. Notwithstanding
the foregoing, an injured worker, an insurance company,
self-insured entity, or any other person suffering financial
loss sustained as a result of violation of this Section may
seek restitution, including court costs and attorney's fees in
a civil action in a court of competent jurisdiction.
(b-5) Sentences for violations of paragraphs (4) and (8.5)
of
subsection (a) are as follows:
(1) A violation in which the value of the property
obtained or attempted to be obtained is $10,000 or less,
is a Class 3 felony and a civil penalty of up to $10,000
per violation, payable to the Injured Workers' Benefit
Fund, shall be assessed.
(2) A violation in which the value of the property
obtained or attempted to be obtained is more than $10,000,


but not more than $100,000, is a Class 2 felony and a civil
penalty of up to $10,000 per violation, payable to the
Injured Workers' Benefit Fund, shall be assessed.
(3) A violation in which the value of the property
obtained or attempted to be obtained is more than $100,000
is a Class 1 felony and a civil penalty of up to $10,000
per violation, payable to the Injured Workers' Benefit
Fund, shall be assessed.
(4) A person convicted under this subsection shall be
ordered to pay monetary restitution to the injured worker,
insurance company, self-insured entity, or any other
person for any financial loss sustained as a result of a
violation of this Section. An order of restitution also
includes expenses incurred and paid by the State of
Illinois, an insurance company, a self-insured entity, an
injured person, or any other person in connection with any
medical evaluation or treatment services.
For the purposes of this subsection, the value of the
property obtained or attempted to be obtained shall be the
amount of premiums saved by use of the invalid, false, or
counterfeit certificate of insurance, the value of any
payments under any contract obtained by reliance on the
invalid, false, or counterfeit certificate of insurance, or
both. Notwithstanding the foregoing, an injured worker,
insurance company, self-insured entity, or any other person
suffering financial loss sustained as a result of violation of


this subsection may seek restitution, including court costs
and attorney's fees in a civil action in a court of competent
jurisdiction.
(c) The Department of Insurance shall establish a fraud
and insurance non-compliance unit responsible for
investigating incidences of fraud and insurance non-compliance
pursuant to this Section. The size of the staff of the unit
shall be subject to appropriation by the General Assembly. It
shall be the duty of the fraud and insurance non-compliance
unit to determine the identity of insurance carriers,
employers, employees, or other persons or entities who have
violated the fraud and insurance non-compliance provisions of
this Section. The fraud and insurance non-compliance unit
shall report violations of the fraud and insurance
non-compliance provisions of this Section to the Special
Prosecutions Bureau of the Criminal Division of the Office of
the Attorney General or to the State's Attorney of the county
in which the offense allegedly occurred, either of whom has
the authority to prosecute violations under this Section.
With respect to the subject of any investigation being
conducted, the fraud and insurance non-compliance unit shall
have the general power of subpoena of the Department of
Insurance, including the authority to issue a subpoena to a
medical provider, pursuant to Section 8-802 of the Code of
Civil Procedure.
(d) Any person may report allegations of insurance


non-compliance and fraud pursuant to this Section to the
Department of Insurance's fraud and insurance non-compliance
unit whose duty it shall be to investigate the report. The unit
shall notify the Commission of reports of insurance
non-compliance. Any person reporting an allegation of
insurance non-compliance or fraud against either an employee
or employer under this Section must identify himself. Except
as provided in this subsection and in subsection (e), all
reports shall remain confidential except to refer an
investigation to the Attorney General or State's Attorney for
prosecution or if the fraud and insurance non-compliance
unit's investigation reveals that the conduct reported may be
in violation of other laws or regulations of the State of
Illinois, the unit may report such conduct to the appropriate
governmental agency charged with administering such laws and
regulations. Any person who intentionally makes a false report
under this Section to the fraud and insurance non-compliance
unit is guilty of a Class A misdemeanor.
(e) In order for the fraud and insurance non-compliance
unit to investigate a report of fraud related to an employee's
claim, (i) the employee must have filed with the Commission an
Application for Adjustment of Claim and the employee must have
either received or attempted to receive benefits under this
Act that are related to the reported fraud or (ii) the employee
must have made a written demand for the payment of benefits
that are related to the reported fraud. There shall be no


immunity, under this Act or otherwise, for any person who
files a false report or who files a report without good and
just cause. Confidentiality of medical information shall be
strictly maintained. Investigations that are not referred for
prosecution shall be destroyed upon the expiration of the
statute of limitations for the acts under investigation and
shall not be disclosed except that the person making the
report shall be notified that the investigation is being
closed. It is unlawful for any employer, insurance carrier,
service adjustment company, third party administrator,
self-insured, or similar entity to file or threaten to file a
report of fraud against an employee because of the exercise by
the employee of the rights and remedies granted to the
employee by this Act.
(e-5) (Blank).
(f) Any person convicted of fraud related to workers'
compensation pursuant to this Section shall be subject to the
penalties prescribed in the Criminal Code of 2012 and shall be
ineligible to receive or retain any compensation, disability,
or medical benefits as defined in this Act if the
compensation, disability, or medical benefits were owed or
received as a result of fraud for which the recipient of the
compensation, disability, or medical benefit was convicted.
This subsection applies to accidental injuries or diseases
that occur on or after the effective date of this amendatory
Act of the 94th General Assembly.


(g) Civil liability. Any person convicted of fraud who
knowingly obtains, attempts to obtain, or causes to be
obtained any benefits under this Act by the making of a false
claim or who knowingly misrepresents any material fact shall
be civilly liable to the payor of benefits or the insurer or
the payor's or insurer's subrogee or assignee in an amount
equal to 3 times the value of the benefits or insurance
coverage wrongfully obtained or twice the value of the
benefits or insurance coverage attempted to be obtained, plus
reasonable attorney's fees and expenses incurred by the payor
or the payor's subrogee or assignee who successfully brings a
claim under this subsection. This subsection applies to
accidental injuries or diseases that occur on or after the
effective date of this amendatory Act of the 94th General
Assembly.
(h) The fraud and insurance non-compliance unit shall
submit a written report on an annual basis to the Chairman of
the Commission, the Workers' Compensation Advisory Board, the
General Assembly, the Governor, and the Attorney General by
January 1 and July 1 of each year. This report shall include,
at the minimum, the following information:
(1) The number of allegations of insurance
non-compliance and fraud reported to the fraud and
insurance non-compliance unit.
(2) The source of the reported allegations
(individual, employer, or other).


(3) The number of allegations investigated by the
fraud and insurance non-compliance unit.
(4) The number of criminal referrals made in
accordance with this Section and the entity to which the
referral was made.
(5) All proceedings under this Section.
(6) Recommendations regarding opportunities for
additional fraud detection.
(Source: P.A. 102-37, eff. 7-1-21.)