Full Text of HB0269 101st General Assembly
HB0269enr 101ST GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning employment.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Workers' Compensation Act is amended by | 5 | | changing Sections 4 and 4a-5 as follows:
| 6 | | (820 ILCS 305/4) (from Ch. 48, par. 138.4)
| 7 | | Sec. 4. (a) Any employer, including but not limited to | 8 | | general contractors
and their subcontractors, who shall come | 9 | | within the provisions of
Section 3 of this Act, and any other | 10 | | employer who shall elect to provide
and pay the compensation | 11 | | provided for in this Act shall:
| 12 | | (1) File with the Commission annually an application | 13 | | for approval as a
self-insurer which shall include a | 14 | | current financial statement, and
annually, thereafter, an | 15 | | application for renewal of self-insurance, which
shall | 16 | | include a current financial statement. Said
application | 17 | | and financial statement shall be signed and sworn to by the
| 18 | | president or vice president and secretary or assistant | 19 | | secretary of the
employer if it be a corporation, or by all | 20 | | of the partners, if it be a
copartnership, or by the owner | 21 | | if it be neither a copartnership nor a
corporation. All | 22 | | initial applications and all applications for renewal of
| 23 | | self-insurance must be submitted at least 60 days prior to |
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| 1 | | the requested
effective date of self-insurance. An | 2 | | employer may elect to provide and pay
compensation as | 3 | | provided
for in this Act as a member of a group workers' | 4 | | compensation pool under Article
V 3/4 of the Illinois | 5 | | Insurance Code. If an employer becomes a member of a
group | 6 | | workers' compensation pool, the employer shall not be | 7 | | relieved of any
obligations imposed by this Act.
| 8 | | If the sworn application and financial statement of any | 9 | | such employer
does not satisfy the Commission of the | 10 | | financial ability of the employer
who has filed it, the | 11 | | Commission shall require such employer to,
| 12 | | (2) Furnish security, indemnity or a bond guaranteeing | 13 | | the payment
by the employer of the compensation provided | 14 | | for in this Act, provided
that any such employer whose | 15 | | application and financial statement shall
not have | 16 | | satisfied the commission of his or her financial ability | 17 | | and
who shall have secured his liability in part by excess | 18 | | liability insurance
shall be required to furnish to the | 19 | | Commission security, indemnity or bond
guaranteeing his or | 20 | | her payment up to the effective limits of the excess
| 21 | | coverage, or
| 22 | | (3) Insure his entire liability to pay such | 23 | | compensation in some
insurance carrier authorized, | 24 | | licensed, or permitted to do such
insurance business in | 25 | | this State. Every policy of an insurance carrier,
insuring | 26 | | the payment of compensation under this Act shall cover all |
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| 1 | | the
employees and the entire compensation liability of the | 2 | | insured:
Provided, however, that any employer may insure | 3 | | his or her compensation
liability with 2 or more insurance | 4 | | carriers or may insure a part and
qualify under subsection | 5 | | 1, 2, or 4 for the remainder of his or her
liability to pay | 6 | | such compensation, subject to the following two | 7 | | provisions:
| 8 | | Firstly, the entire compensation liability of the | 9 | | employer to
employees working at or from one location | 10 | | shall be insured in one such
insurance carrier or shall | 11 | | be self-insured, and
| 12 | | Secondly, the employer shall submit evidence | 13 | | satisfactorily to the
Commission that his or her entire | 14 | | liability for the compensation provided
for in this Act | 15 | | will be secured. Any provisions in any policy, or in | 16 | | any
endorsement attached thereto, attempting to limit | 17 | | or modify in any way,
the liability of the insurance | 18 | | carriers issuing the same except as
otherwise provided | 19 | | herein shall be wholly void.
| 20 | | Nothing herein contained shall apply to policies of | 21 | | excess liability
carriage secured by employers who have | 22 | | been approved by the Commission
as self-insurers, or
| 23 | | (4) Make some other provision, satisfactory to the | 24 | | Commission, for
the securing of the payment of compensation | 25 | | provided for in this Act,
and
| 26 | | (5) Upon becoming subject to this Act and thereafter as |
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| 1 | | often as the
Commission may in writing demand, file with | 2 | | the Commission in form prescribed
by it evidence of his or | 3 | | her compliance with the provision of this Section.
| 4 | | (a-1) Regardless of its state of domicile or its principal | 5 | | place of
business, an employer shall make payments to its | 6 | | insurance carrier or group
self-insurance fund, where | 7 | | applicable, based upon the premium rates of the
situs where the | 8 | | work or project is located in Illinois if:
| 9 | | (A) the employer is engaged primarily in the building | 10 | | and
construction industry; and
| 11 | | (B) subdivision (a)(3) of this Section applies to the | 12 | | employer or
the employer is a member of a group | 13 | | self-insurance plan as defined in
subsection (1) of Section | 14 | | 4a.
| 15 | | The Illinois Workers' Compensation Commission shall impose | 16 | | a penalty upon an employer
for violation of this subsection | 17 | | (a-1) if:
| 18 | | (i) the employer is given an opportunity at a hearing | 19 | | to present
evidence of its compliance with this subsection | 20 | | (a-1); and
| 21 | | (ii) after the hearing, the Commission finds that the | 22 | | employer
failed to make payments upon the premium rates of | 23 | | the situs where the work or
project is located in Illinois.
| 24 | | The penalty shall not exceed $1,000 for each day of work | 25 | | for which
the employer failed to make payments upon the premium | 26 | | rates of the situs where
the
work or project is located in |
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| 1 | | Illinois, but the total penalty shall not exceed
$50,000 for | 2 | | each project or each contract under which the work was
| 3 | | performed.
| 4 | | Any penalty under this subsection (a-1) must be imposed not | 5 | | later
than one year after the expiration of the applicable | 6 | | limitation period
specified in subsection (d) of Section 6 of | 7 | | this Act. Penalties imposed under
this subsection (a-1) shall | 8 | | be deposited into the Illinois Workers' Compensation | 9 | | Commission
Operations Fund, a special fund that is created in | 10 | | the State treasury. Subject
to appropriation, moneys in the | 11 | | Fund shall be used solely for the operations
of the Illinois | 12 | | Workers' Compensation Commission , the salaries and benefits of | 13 | | the Self-Insurers Advisory Board employees, the operating | 14 | | costs of the Self-Insurers Advisory Board, and by the | 15 | | Department of Insurance for the purposes authorized in | 16 | | subsection (c) of Section 25.5 of this Act.
| 17 | | (a-2) Every Employee Leasing Company (ELC), as defined in | 18 | | Section 15 of the Employee Leasing Company Act, shall at a | 19 | | minimum provide the following information to the Commission or | 20 | | any entity designated by the Commission regarding each workers' | 21 | | compensation insurance policy issued to the ELC: | 22 | | (1) Any client company of the ELC listed as an | 23 | | additional named insured. | 24 | | (2) Any informational schedule attached to the master | 25 | | policy that identifies any individual client company's | 26 | | name, FEIN, and job location. |
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| 1 | | (3) Any certificate of insurance coverage document | 2 | | issued to a client company specifying its rights and | 3 | | obligations under the master policy that establishes both | 4 | | the identity and status of the client, as well as the dates | 5 | | of inception and termination of coverage, if applicable. | 6 | | (b) The sworn application and financial statement, or | 7 | | security,
indemnity or bond, or amount of insurance, or other | 8 | | provisions, filed,
furnished, carried, or made by the employer, | 9 | | as the case may be, shall
be subject to the approval of the | 10 | | Commission.
| 11 | | Deposits under escrow agreements shall be cash, negotiable | 12 | | United
States government bonds or negotiable general | 13 | | obligation bonds of the
State of Illinois. Such cash or bonds | 14 | | shall be deposited in
escrow with any State or National Bank or | 15 | | Trust Company having trust
authority in the State of Illinois.
| 16 | | Upon the approval of the sworn application and financial | 17 | | statement,
security, indemnity or bond or amount of insurance, | 18 | | filed, furnished or
carried, as the case may be, the Commission | 19 | | shall send to the employer
written notice of its approval | 20 | | thereof. The certificate of compliance
by the employer with the | 21 | | provisions of subparagraphs (2) and (3) of
paragraph (a) of | 22 | | this Section shall be delivered by the insurance
carrier to the | 23 | | Illinois Workers' Compensation Commission within five days | 24 | | after the
effective date of the policy so certified. The | 25 | | insurance so certified
shall cover all compensation liability | 26 | | occurring during the time that
the insurance is in effect and |
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| 1 | | no further certificate need be filed in case
such insurance is | 2 | | renewed, extended or otherwise continued by such
carrier. The | 3 | | insurance so certified shall not be cancelled or in the
event | 4 | | that such insurance is not renewed, extended or otherwise
| 5 | | continued, such insurance shall not be terminated until at | 6 | | least 10
days after receipt by the Illinois Workers' | 7 | | Compensation Commission of notice of the
cancellation or | 8 | | termination of said insurance; provided, however, that
if the | 9 | | employer has secured insurance from another insurance carrier, | 10 | | or
has otherwise secured the payment of compensation in | 11 | | accordance with
this Section, and such insurance or other | 12 | | security becomes effective
prior to the expiration of the 10 | 13 | | days, cancellation or termination may, at
the option of the | 14 | | insurance carrier indicated in such notice, be effective
as of | 15 | | the effective date of such other insurance or security.
| 16 | | (c) Whenever the Commission shall find that any | 17 | | corporation,
company, association, aggregation of individuals, | 18 | | reciprocal or
interinsurers exchange, or other insurer | 19 | | effecting workers' compensation
insurance in this State shall | 20 | | be insolvent, financially unsound, or
unable to fully meet all | 21 | | payments and liabilities assumed or to be
assumed for | 22 | | compensation insurance in this State, or shall practice a
| 23 | | policy of delay or unfairness toward employees in the | 24 | | adjustment,
settlement, or payment of benefits due such | 25 | | employees, the Commission
may after reasonable notice and | 26 | | hearing order and direct that such
corporation, company, |
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| 1 | | association, aggregation of individuals,
reciprocal or | 2 | | interinsurers exchange, or insurer, shall from and after a
date | 3 | | fixed in such order discontinue the writing of any such | 4 | | workers'
compensation insurance in this State. Subject to such | 5 | | modification of
the order as the Commission may later make on | 6 | | review of the order,
as herein provided, it shall thereupon be | 7 | | unlawful for any such
corporation, company, association, | 8 | | aggregation of individuals,
reciprocal or interinsurers | 9 | | exchange, or insurer to effect any workers'
compensation | 10 | | insurance in this State. A copy of the order shall be served
| 11 | | upon the Director of Insurance by registered mail. Whenever the | 12 | | Commission
finds that any service or adjustment company used or | 13 | | employed
by a self-insured employer or by an insurance carrier | 14 | | to process,
adjust, investigate, compromise or otherwise | 15 | | handle claims under this
Act, has practiced or is practicing a | 16 | | policy of delay or unfairness
toward employees in the | 17 | | adjustment, settlement or payment of benefits
due such | 18 | | employees, the Commission may after reasonable notice and
| 19 | | hearing order and direct that such service or adjustment | 20 | | company shall
from and after a date fixed in such order be | 21 | | prohibited from processing,
adjusting, investigating, | 22 | | compromising or otherwise handling claims
under this Act.
| 23 | | Whenever the Commission finds that any self-insured | 24 | | employer has
practiced or is practicing delay or unfairness | 25 | | toward employees in the
adjustment, settlement or payment of | 26 | | benefits due such employees, the
Commission may, after |
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| 1 | | reasonable notice and hearing, order and direct
that after a | 2 | | date fixed in the order such self-insured employer shall be
| 3 | | disqualified to operate as a self-insurer and shall be required | 4 | | to
insure his entire liability to pay compensation in some | 5 | | insurance
carrier authorized, licensed and permitted to do such | 6 | | insurance business
in this State, as provided in subparagraph 3 | 7 | | of paragraph (a) of this
Section.
| 8 | | All orders made by the Commission under this Section shall | 9 | | be subject
to review by the courts, said review to be taken in | 10 | | the same manner and
within the same time as provided by Section | 11 | | 19 of this Act for review of
awards and decisions of the | 12 | | Commission, upon the party seeking the
review filing with the | 13 | | clerk of the court to which said review is taken
a bond in an | 14 | | amount to be fixed and approved by the court to which the
| 15 | | review is taken, conditioned upon the payment of all | 16 | | compensation awarded
against the person taking said review | 17 | | pending a decision thereof and
further conditioned upon such | 18 | | other obligations as the court may impose.
Upon the review the | 19 | | Circuit Court shall have power to review all questions
of fact | 20 | | as well as of law. The penalty hereinafter provided for in this
| 21 | | paragraph shall not attach and shall not begin to run until the | 22 | | final
determination of the order of the Commission.
| 23 | | (d) Whenever a Commissioner, with due process and after a | 24 | | hearing, determines an employer has knowingly failed to provide | 25 | | coverage as required by paragraph (a) of this Section, the | 26 | | failure shall be deemed an immediate serious danger to public |
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| 1 | | health, safety, and welfare sufficient to justify service by | 2 | | the Commission of a work-stop order on such employer, requiring | 3 | | the cessation of all business operations of such employer at | 4 | | the place of employment or job site. If a business is declared | 5 | | to be extra hazardous, as defined in Section 3, a Commissioner | 6 | | may issue an emergency work-stop order on such an employer ex | 7 | | parte, prior to holding a hearing, requiring the cessation of | 8 | | all business operations of such employer at the place of | 9 | | employment or job site while awaiting the ruling of the | 10 | | Commission. Whenever a Commissioner issues an emergency | 11 | | work-stop order, the Commission shall issue a notice of | 12 | | emergency work-stop hearing to be posted at the employer's | 13 | | places of employment and job sites. Whenever a panel of 3 | 14 | | Commissioners comprised of one member of the employing class, | 15 | | one member of the employee class, and one member not identified | 16 | | with either the employing or employee class, with due process | 17 | | and after a hearing, determines an employer has knowingly | 18 | | failed to provide coverage as required by paragraph (a) of this | 19 | | Section, the failure shall be deemed an immediate serious | 20 | | danger to public health, safety, and welfare sufficient to | 21 | | justify service by the Commission of a work-stop order on such | 22 | | employer, requiring the cessation of all business operations of | 23 | | such employer at the place of employment or job site. Any law | 24 | | enforcement agency in the State shall, at the request of the | 25 | | Commission, render any assistance necessary to carry out the | 26 | | provisions of this Section, including, but not limited to, |
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| 1 | | preventing any employee of such employer from remaining at a | 2 | | place of employment or job site after a work-stop order has | 3 | | taken effect. Any work-stop order shall be lifted upon proof of | 4 | | insurance as required by this Act. Any orders under this | 5 | | Section are appealable under Section 19(f) to the Circuit | 6 | | Court.
| 7 | | Any individual employer, corporate officer or director of a | 8 | | corporate employer, partner of an employer partnership, or | 9 | | member of an employer limited liability company who knowingly | 10 | | fails to provide coverage as required by paragraph (a) of this | 11 | | Section is guilty of a Class 4 felony. This provision shall not | 12 | | apply to any corporate officer or director of any | 13 | | publicly-owned corporation. Each day's violation constitutes a | 14 | | separate offense. The State's Attorney of the county in which | 15 | | the violation occurred, or the Attorney General, shall bring | 16 | | such actions in the name of the People of the State of | 17 | | Illinois, or may, in addition to other remedies provided in | 18 | | this Section, bring an action for an injunction to restrain the | 19 | | violation or to enjoin the operation of any such employer.
| 20 | | Any individual employer, corporate officer or director of a | 21 | | corporate employer, partner of an employer partnership, or | 22 | | member of an employer limited liability company who negligently | 23 | | fails to provide coverage as required by paragraph (a) of this | 24 | | Section is guilty of a Class A misdemeanor. This provision | 25 | | shall not apply to any corporate officer or director of any | 26 | | publicly-owned corporation. Each day's violation constitutes a |
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| 1 | | separate offense. The State's Attorney of the county in which | 2 | | the violation occurred, or the Attorney General, shall bring | 3 | | such actions in the name of the People of the State of | 4 | | Illinois.
| 5 | | The criminal penalties in this subsection (d) shall not | 6 | | apply where
there exists a good faith dispute as to the | 7 | | existence of an
employment relationship. Evidence of good faith | 8 | | shall
include, but not be limited to, compliance with the | 9 | | definition
of employee as used by the Internal Revenue Service.
| 10 | | All investigative actions must be acted upon within 90 days | 11 | | of the issuance of the complaint. Employers who are subject to | 12 | | and who knowingly fail to comply with this Section shall not be | 13 | | entitled to the benefits of this Act during the period of | 14 | | noncompliance, but shall be liable in an action under any other | 15 | | applicable law of this State. In the action, such employer | 16 | | shall not avail himself or herself of the defenses of | 17 | | assumption of risk or negligence or that the injury was due to | 18 | | a co-employee. In the action, proof of the injury shall | 19 | | constitute prima facie evidence of negligence on the part of | 20 | | such employer and the burden shall be on such employer to show | 21 | | freedom of negligence resulting in the injury. The employer | 22 | | shall not join any other defendant in any such civil action. | 23 | | Nothing in this amendatory Act of the 94th General Assembly | 24 | | shall affect the employee's rights under subdivision (a)3 of | 25 | | Section 1 of this Act. Any employer or carrier who makes | 26 | | payments under subdivision (a)3 of Section 1 of this Act shall |
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| 1 | | have a right of reimbursement from the proceeds of any recovery | 2 | | under this Section.
| 3 | | An employee of an uninsured employer, or the employee's | 4 | | dependents in case death ensued, may, instead of proceeding | 5 | | against the employer in a civil action in court, file an | 6 | | application for adjustment of claim with the Commission in | 7 | | accordance with the provisions of this Act and the Commission | 8 | | shall hear and determine the application for adjustment of | 9 | | claim in the manner in which other claims are heard and | 10 | | determined before the Commission.
| 11 | | All proceedings under this subsection (d) shall be reported | 12 | | on an annual basis to the Workers' Compensation Advisory Board.
| 13 | | An investigator with the Illinois Workers' Compensation | 14 | | Commission Insurance Compliance Division may issue a citation | 15 | | to any employer that is not in compliance with its obligation | 16 | | to have workers' compensation insurance under this Act. The | 17 | | amount of the fine shall be based on the period of time the | 18 | | employer was in non-compliance, but shall be no less than $500, | 19 | | and shall not exceed $10,000 $2,500 . An employer that has been | 20 | | issued a citation shall pay the fine to the Commission and | 21 | | provide to the Commission proof that it obtained the required | 22 | | workers' compensation insurance within 10 days after the | 23 | | citation was issued. This Section does not affect any other | 24 | | obligations this Act imposes on employers. | 25 | | Upon a finding by the Commission, after reasonable notice | 26 | | and
hearing, of the knowing and willful wilful failure or |
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| 1 | | refusal of an employer to
comply with
any of the provisions of | 2 | | paragraph (a) of this Section, the failure or
refusal of an | 3 | | employer, service or adjustment company, or an insurance
| 4 | | carrier to comply with any order of the Illinois Workers' | 5 | | Compensation Commission pursuant to
paragraph (c) of this | 6 | | Section disqualifying him or her to operate as a self
insurer | 7 | | and requiring him or her to insure his or her liability, or the | 8 | | knowing and willful failure of an employer to comply with a | 9 | | citation issued by an investigator with the Illinois Workers' | 10 | | Compensation Commission Insurance Compliance Division, the
| 11 | | Commission may assess a civil penalty of up to $500 per day for | 12 | | each day of
such failure or refusal after the effective date of | 13 | | this amendatory Act of
1989. The minimum penalty under this | 14 | | Section shall be the sum of $10,000.
Each day of such failure | 15 | | or refusal shall constitute a separate offense.
The Commission | 16 | | may assess the civil penalty personally and individually
| 17 | | against the corporate officers and directors of a corporate | 18 | | employer, the
partners of an employer partnership, and the | 19 | | members of an employer limited
liability company, after a | 20 | | finding of a knowing and willful refusal or failure
of each | 21 | | such named corporate officer, director, partner, or member to | 22 | | comply
with this Section. The liability for the assessed | 23 | | penalty shall be
against the named employer first, and
if the | 24 | | named employer fails or refuses to pay the penalty to the
| 25 | | Commission within 30 days after the final order of the | 26 | | Commission, then the
named
corporate officers, directors, |
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| 1 | | partners, or members who have been found to have
knowingly and | 2 | | willfully refused or failed to comply with this Section shall | 3 | | be
liable for the unpaid penalty or any unpaid portion of the | 4 | | penalty. Upon investigation by the insurance non-compliance | 5 | | unit of the Commission, the Attorney General shall have the | 6 | | authority to prosecute all proceedings to enforce the civil and | 7 | | administrative provisions of this Section before the | 8 | | Commission. The Commission shall promulgate procedural rules | 9 | | for enforcing this Section.
| 10 | | If an employer is found to be in non-compliance with any | 11 | | provisions of paragraph (a) of this Section more than once, all | 12 | | minimum penalties will double. Therefore, upon the failure or | 13 | | refusal of an employer, service or adjustment company, or | 14 | | insurance carrier to comply with any order of the Commission | 15 | | pursuant to paragraph (c) of this Section disqualifying him or | 16 | | her to operate as a self-insurer and requiring him or her to | 17 | | insure his or her liability, or the knowing and willful failure | 18 | | of an employer to comply with a citation issued by an | 19 | | investigator with the Illinois Workers' Compensation | 20 | | Commission Insurance Compliance Division, the Commission may | 21 | | assess a civil penalty of up to $1,000 per day for each day of | 22 | | such failure or refusal after the effective date of this | 23 | | amendatory Act of the 101st General Assembly. The minimum | 24 | | penalty under this Section shall be the sum of $20,000. In | 25 | | addition, employers with 2 or more violations of any provisions | 26 | | of paragraph (a) of this Section may not self-insure for one |
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| 1 | | year or until all penalties are paid. | 2 | | Upon the failure or refusal of any employer, service or | 3 | | adjustment
company or insurance carrier to comply with the | 4 | | provisions of this Section
and with the orders of the | 5 | | Commission under this Section, or the order of
the court on | 6 | | review after final adjudication, the Commission may bring a
| 7 | | civil action to recover the amount of the penalty in Cook | 8 | | County or in
Sangamon County in which litigation the Commission | 9 | | shall be represented by
the Attorney General. The Commission | 10 | | shall send notice of its finding of
non-compliance and | 11 | | assessment of the civil penalty to the Attorney General.
It | 12 | | shall be the duty of the Attorney General within 30 days after | 13 | | receipt
of the notice, to institute prosecutions and promptly | 14 | | prosecute all
reported violations of this Section.
| 15 | | Any individual employer, corporate officer or director of a | 16 | | corporate employer, partner of an employer partnership, or | 17 | | member of an employer limited liability company who, with the | 18 | | intent to avoid payment of compensation under this Act to an | 19 | | injured employee or the employee's dependents, knowingly | 20 | | transfers, sells, encumbers, assigns, or in any manner disposes | 21 | | of, conceals, secretes, or destroys any property belonging to | 22 | | the employer, officer, director, partner, or member is guilty | 23 | | of a Class 4 felony.
| 24 | | Penalties and fines collected pursuant to this paragraph | 25 | | (d) shall be deposited upon receipt into a special fund which | 26 | | shall be designated the Injured Workers' Benefit Fund, of which |
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| 1 | | the State Treasurer is ex-officio custodian, such special fund | 2 | | to be held and disbursed in accordance with this paragraph (d) | 3 | | for the purposes hereinafter stated in this paragraph (d), upon | 4 | | the final order of the Commission. The Injured Workers' Benefit | 5 | | Fund shall be deposited the same as are State funds and any | 6 | | interest accruing thereon shall be added thereto every 6 | 7 | | months. The Injured Workers' Benefit Fund is subject to audit | 8 | | the same as State funds and accounts and is protected by the | 9 | | general bond given by the State Treasurer. The Injured Workers' | 10 | | Benefit Fund is considered always appropriated for the purposes | 11 | | of disbursements as provided in this paragraph, and shall be | 12 | | paid out and disbursed as herein provided and shall not at any | 13 | | time be appropriated or diverted to any other use or purpose. | 14 | | Moneys in the Injured Workers' Benefit Fund shall be used only | 15 | | for payment of workers' compensation benefits for injured | 16 | | employees when the employer has failed to provide coverage as | 17 | | determined under this paragraph (d) and has failed to pay the | 18 | | benefits due to the injured employee. The Commission shall have | 19 | | the right to obtain reimbursement from the employer for | 20 | | compensation obligations paid by the Injured Workers' Benefit | 21 | | Fund. Any such amounts obtained shall be deposited by the | 22 | | Commission into the Injured Workers' Benefit Fund. If an | 23 | | injured employee or his or her personal representative receives | 24 | | payment from the Injured Workers' Benefit Fund, the State of | 25 | | Illinois has the same rights under paragraph (b) of Section 5 | 26 | | that the employer who failed to pay the benefits due to the |
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| 1 | | injured employee would have had if the employer had paid those | 2 | | benefits, and any moneys recovered by the State as a result of | 3 | | the State's exercise of its rights under paragraph (b) of | 4 | | Section 5 shall be deposited into the Injured Workers' Benefit | 5 | | Fund. The custodian of the Injured Workers' Benefit Fund shall | 6 | | be joined with the employer as a party respondent in the | 7 | | application for adjustment of claim. After July 1, 2006, the | 8 | | Commission shall make disbursements from the Fund once each | 9 | | year to each eligible claimant. An eligible claimant is an | 10 | | injured worker who has within the previous fiscal year obtained | 11 | | a final award for benefits from the Commission against the | 12 | | employer and the Injured Workers' Benefit Fund and has notified | 13 | | the Commission within 90 days of receipt of such award. Within | 14 | | a reasonable time after the end of each fiscal year, the | 15 | | Commission shall make a disbursement to each eligible claimant. | 16 | | At the time of disbursement, if there are insufficient moneys | 17 | | in the Fund to pay all claims, each eligible claimant shall | 18 | | receive a pro-rata share, as determined by the Commission, of | 19 | | the available moneys in the Fund for that year. Payment from | 20 | | the Injured Workers' Benefit Fund to an eligible claimant | 21 | | pursuant to this provision shall discharge the obligations of | 22 | | the Injured Workers' Benefit Fund regarding the award entered | 23 | | by the Commission.
| 24 | | (e) This Act shall not affect or disturb the continuance of | 25 | | any
existing insurance, mutual aid, benefit, or relief | 26 | | association or
department, whether maintained in whole or in |
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| 1 | | part by the employer or
whether maintained by the employees, | 2 | | the payment of benefits of such
association or department being | 3 | | guaranteed by the employer or by some
person, firm or | 4 | | corporation for him or her: Provided, the employer contributes
| 5 | | to such association or department an amount not less than the | 6 | | full
compensation herein provided, exclusive of the cost of the | 7 | | maintenance
of such association or department and without any | 8 | | expense to the
employee. This Act shall not prevent the | 9 | | organization and maintaining
under the insurance laws of this | 10 | | State of any benefit or insurance
company for the purpose of | 11 | | insuring against the compensation provided
for in this Act, the | 12 | | expense of which is maintained by the employer.
This Act shall | 13 | | not prevent the organization or maintaining under the
insurance | 14 | | laws of this State of any voluntary mutual aid, benefit or
| 15 | | relief association among employees for the payment of | 16 | | additional
accident or sick benefits.
| 17 | | (f) No existing insurance, mutual aid, benefit or relief | 18 | | association
or department shall, by reason of anything herein | 19 | | contained, be
authorized to discontinue its operation without | 20 | | first discharging its
obligations to any and all persons | 21 | | carrying insurance in the same or
entitled to relief or | 22 | | benefits therein.
| 23 | | (g) Any contract, oral, written or implied, of employment | 24 | | providing
for relief benefit, or insurance or any other device | 25 | | whereby the
employee is required to pay any premium or premiums | 26 | | for insurance
against the compensation provided for in this Act |
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| 1 | | shall be null and
void. Any employer withholding from the wages | 2 | | of any employee any
amount for the purpose of paying any such | 3 | | premium shall be guilty of a
Class B misdemeanor.
| 4 | | In the event the employer does not pay the compensation for | 5 | | which he or
she is liable, then an insurance company, | 6 | | association or insurer which may
have insured such employer | 7 | | against such liability shall become primarily
liable to pay to | 8 | | the employee, his or her personal representative or
beneficiary | 9 | | the compensation required by the provisions of this Act to
be | 10 | | paid by such employer. The insurance carrier may be made a | 11 | | party to
the proceedings in which the employer is a party and | 12 | | an award may be
entered jointly against the employer and the | 13 | | insurance carrier.
| 14 | | (h) It shall be unlawful for any employer, insurance | 15 | | company or
service or adjustment company to interfere with, | 16 | | restrain or coerce an
employee in any manner whatsoever in the | 17 | | exercise of the rights or
remedies granted to him or her by | 18 | | this Act or to discriminate, attempt to
discriminate, or | 19 | | threaten to discriminate against an employee in any way
because | 20 | | of his or her exercise of the rights or remedies granted to
him | 21 | | or her by this Act.
| 22 | | It shall be unlawful for any employer, individually or | 23 | | through any
insurance company or service or adjustment company, | 24 | | to discharge or to
threaten to discharge, or to refuse to | 25 | | rehire or recall to active
service in a suitable capacity an | 26 | | employee because of the exercise of
his or her rights or |
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| 1 | | remedies granted to him or her by this Act.
| 2 | | (i) If an employer elects to obtain a life insurance policy | 3 | | on his
employees, he may also elect to apply such benefits in | 4 | | satisfaction of all
or a portion of the death benefits payable | 5 | | under this Act, in which case,
the employer's compensation | 6 | | premium shall be reduced accordingly.
| 7 | | (j) Within 45 days of receipt of an initial application or | 8 | | application
to renew self-insurance privileges the | 9 | | Self-Insurers Advisory Board shall
review and submit for | 10 | | approval by the Chairman of the Commission
recommendations of | 11 | | disposition of all initial applications to self-insure
and all | 12 | | applications to renew self-insurance privileges filed by | 13 | | private
self-insurers pursuant to the provisions of this | 14 | | Section and Section 4a-9
of this Act. Each private self-insurer | 15 | | shall submit with its initial and
renewal applications the | 16 | | application fee required by Section 4a-4 of this Act.
| 17 | | The Chairman of the Commission shall promptly act upon all | 18 | | initial
applications and applications for renewal in full | 19 | | accordance with the
recommendations of the Board or, should the | 20 | | Chairman disagree with any
recommendation of disposition of the | 21 | | Self-Insurer's Advisory Board, he
shall within 30 days of | 22 | | receipt of such recommendation provide to the Board
in writing | 23 | | the reasons supporting his decision. The Chairman shall also
| 24 | | promptly notify the employer of his decision within 15 days of | 25 | | receipt of
the recommendation of the Board.
| 26 | | If an employer is denied a renewal of self-insurance |
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| 1 | | privileges pursuant
to application it shall retain said | 2 | | privilege for 120 days after receipt of
a notice of | 3 | | cancellation of the privilege from the Chairman of the | 4 | | Commission.
| 5 | | All orders made by the Chairman under this Section shall be | 6 | | subject to
review by the courts, such review to be taken in the | 7 | | same manner and within
the same time as provided by subsection | 8 | | (f) of Section 19 of this Act for
review of awards and | 9 | | decisions of the Commission, upon the party seeking
the review | 10 | | filing with the clerk of the court to which such review is | 11 | | taken
a bond in an amount to be fixed and approved by the court | 12 | | to which the
review is taken, conditioned upon the payment of | 13 | | all compensation awarded
against the person taking such review | 14 | | pending a decision thereof and
further conditioned upon such | 15 | | other obligations as the court may impose.
Upon the review the | 16 | | Circuit Court shall have power to review all questions
of fact | 17 | | as well as of law.
| 18 | | (Source: P.A. 97-18, eff. 6-28-11.)
| 19 | | (820 ILCS 305/4a-5) (from Ch. 48, par. 138.4a-5)
| 20 | | Sec. 4a-5. There is hereby created a Self-Insurers Security | 21 | | Fund. The State
Treasurer shall be the ex-officio custodian of | 22 | | the Self-Insurers Security
Fund. Moneys Monies in the Fund | 23 | | shall be deposited in a separate account in the
same manner as | 24 | | are State Funds and any interest accruing thereon shall be
| 25 | | added thereto every 6 months. It shall be subject to audit the |
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| 1 | | same as
State funds and accounts and shall be protected by the | 2 | | general bond given
by the State Treasurer. The funds in the | 3 | | Self-Insurers Security Fund shall
not be subject to | 4 | | appropriation and shall be made available for the
purposes of | 5 | | compensating employees who are eligible to receive benefits
| 6 | | from their employers pursuant to the provisions of the Workers'
| 7 | | Compensation Act or Workers' Occupational Diseases Act, when, | 8 | | pursuant to
this Section, the Board has determined that a | 9 | | private self-insurer has
become an insolvent self-insurer and | 10 | | is unable to pay compensation benefits
due to financial | 11 | | insolvency. Moneys Monies in the Fund may be used to compensate
| 12 | | any type of injury or occupational disease which is compensable | 13 | | under either
Act, and all claims for related administrative | 14 | | fees,
operating costs of the Board, attorney's attorneys fees, | 15 | | and other costs reasonably
incurred by the Board. At the | 16 | | discretion of the Chairman, moneys in the Self-Insurers | 17 | | Security Fund may also be used for paying the salaries and | 18 | | benefits of the Self-Insurers Advisory Board employees and the | 19 | | operating costs of the Board. Payment from the Self-Insurers | 20 | | Security Fund shall
be made by the Comptroller only upon the | 21 | | authorization of the Chairman as
evidenced by properly | 22 | | certified vouchers of the Commission, upon the
direction of the | 23 | | Board.
| 24 | | (Source: P.A. 85-1385.)
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