The Illinois Workers’ Compensation Act requires employers to carry workers’ compensation insurance. The definition of “employer” is broad and includes both private and public entities. In certain cases, an employer may elect to self-insure, but this requires filing an application with the Illinois Workers’ Compensation Commission for approval.

Consequences of Failing to Carry Insurance

Failing to provide coverage or obtain approval to self-insure carries serious legal consequences:

• Any employer, corporate officer, partner, or LLC member who knowingly fails to provide workers’ compensation coverage is guilty of a Class 4 felony.
• If the failure is deemed negligent, it is still a Class A misdemeanor.

Criminal penalties do not apply if there is a good faith dispute about the existence of an employment relationship. Evidence of good faith can include compliance with the IRS definition of “employee.”

Civil Fines and Penalties

Investigators with the Illinois Workers’ Compensation Commission Insurance Compliance Division may issue citations to non-compliant employers.

• Fines range from $500 to $2,500, based on the period of non-compliance.
• After a hearing, the Commission may impose civil penalties of up to $500 per day, with a minimum penalty of $10,000.

Employer Restrictions Under the Act

• Employers cannot require employees to share the cost of workers’ compensation insurance. Any such agreement is null and void.
• Withholding employee wages to cover premiums is also a criminal offense.
• Employers cannot discriminate, or threaten to discriminate, against employees for exercising their rights under the Act.

Protecting Injured Workers

If you have been injured on the job, you are entitled to protection under the Illinois Workers’ Compensation Act. The law is clear: employers must provide coverage, and employees cannot be forced to bear the cost or suffer retaliation for asserting their rights.

If you’ve been injured at work, contact Harter & Schottland today. We can advise you of your rights and fight to ensure you are fairly compensated.