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1
HOUSE RESOLUTION

 
2    WHEREAS, High injury and death rates related to the
3Industrial Revolution spurred dissatisfaction among employees
4and employers; and
 
5    WHEREAS, The first modern workers' compensation law
6originated in Germany in 1884, whereby a compulsory system of
7accident insurance was created for high-risk occupations, and
8Wisconsin was the first state to enact a comprehensive workers'
9compensation law, with every state following by 1948; and
 
10    WHEREAS, In 1909, the Cherry Mining Diaster killed 259 men
11and boys, inciting public outrage toward the working conditions
12and compensation for workers harmed on the job, and in response
13to this tragedy, the Illinois General Assembly enacted the
14Illinois' Workers' Compensation Act in 1911; and
 
15    WHEREAS, This Act represented a "grand bargain" between
16labor and employers, establishing a "no-fault" system to
17provide for swift and fair compensation for injuries occurring
18in the workplace in exchange for workers' forfeiture of rights
19to common law actions against their employers; this "no-fault"
20system shields employers from being subjected to litigation
21brought by injured employees and protects employers from costs
22for pain and suffering, punitive damages, and other remedies

 

 

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1that are available under common law; and
 
2    WHEREAS, Workers' compensation insurance is a lifeline for
3injured employees who, despite their injuries, must continue to
4provide for themselves and their families; and
 
5    WHEREAS, Over 99% of Illinois' employers carry insurance to
6cover the costs associated with workers' compensation claims;
7and
 
8    WHEREAS, The Illinois' Workers' Compensation Act was
9amended in 2011, forcing injured workers to surrender
10significant benefits, with the intent to reduce premium costs
11that Illinois' employers pay for their workers' compensation
12insurance, and as a result, employers have netted $315 million
13in savings as a result of the 2011 legislation; and
 
14    WHEREAS, The Illinois Workers' Compensation Commission
15noted in its 2013 Fiscal Year annual report that the 2011
16legislation "produced demonstrable improvements to the
17workers' compensation environment in Illinois"; and
 
18    WHEREAS, According to a study published by the Oregon
19Department of Consumer and Business Services, Illinois has
20experienced a 24% reduction in workers' compensation rates
21between 2013 and 2014, representing the steepest drop in the

 

 

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1nation; the National Council on Compensation Insurance, the
2insurance industry rate-making agency upon which Illinois
3relies for rate recommendations, has recommended premium rate
4reductions of nearly 20% since 2011; a 20% premium rate
5reduction, if fully implemented by insurers, would result in
6premium savings to Illinois employers of nearly $1 billion; and
 
7    WHEREAS, Illinois has a robust workers' compensation
8insurance industry, with 330 companies offering insurance to
9employers, representing the second-most profitable line of
10insurance that is marketed; workers' compensation insurers do
11not disclose their rate-making formulas; and
 
12    WHEREAS, Annual workers' compensation claims in Illinois
13have dropped from 62,000 in 2003 to 42,500 in 2013,
14representing a 31% decrease in a 10-year period; and
 
15    WHEREAS, Illinois wages substantially outpace those of
16other Midwestern states; workers' compensation indemnity
17benefits directly correlate to wages earned and are responsible
18for 50% of workers' compensation costs; and
 
19    WHEREAS, High wages are desirable for the State and are one
20of the strongest measurable indicators of economic vitality;
21and
 

 

 

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1    WHEREAS, Further reductions in benefits for injured
2employees would create additional harm to those employees and
3their families, placing them in deeper financial peril and
4possible ruin; such financial peril results in a cost-shift to
5government-funded safety nets and entitlement programs; and
 
6    WHEREAS, Illinois has made great strides in its effort to
7reduce costs within the workers' compensation system;
8therefore, be it
 
9    RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE
10NINETY-NINTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we
11value the workforce of Illinois and recognize that labor is the
12engine which drives the State's economy; and be it further
 
13    RESOLVED, That injured employees, who have provided their
14labor and made sacrifices for the betterment of the State and
15its economy, should not be threatened or confronted with
16additional benefit reductions through further changes to the
17Illinois Workers' Compensation Act.