Workers' compensation is a system of no-fault insurance that provides monetary and medical benefits to employees for work-related injuries and diseases. Employers in Illinois must comply with the Illinois Workers' Compensation and Occupational Diseases Act (IWCA). The Illinois Workers' Compensation Commission (IWCC) monitors and enforces employer compliance with the IWCA.

This Employment Law Summary examines the Illinois workers' compensation requirements for employers.

COVERAGE REQUIREMENT

Although the IWCA provides limited exceptions for certain partnerships, limited liability companies and sole proprietors, it generally requires almost every employer in Illinois to provide workers' compensation coverage for its employees. An employer may satisfy this requirement by either purchasing workers' compensation insurance or obtaining the IWCC's permission to self-insure.

To qualify for self-insurance, an employer must demonstrate that it has sufficient financial strength to meet its workers' compensation obligations in a timely manner. This may require an employer to submit detailed financial statements to the IWCC.

Regardless of how coverage is provided, employers are responsible for paying the full cost of their workers' compensation coverage. Employers may not require or allow employees to contribute to workers' compensation premiums or benefits in any way.

Required Notices

In addition to obtaining workers' compensation coverage, employers are required to post a notice about the coverage in each workplace. The notice must state, in plain language, what an employee should do and whom the employee should contact if an accident occurs. Employers may request a model notice from the IWCC to satisfy this requirement.

RecordKeeping and Reporting

Employers must maintain accurate records of all work-related deaths, illnesses or injuries, other than minor injuries. An injury is recordable (and not a minor injury) if it requires more than first aid treatment and results in:

• .Additional medical treatment;
• .Loss of consciousness;
• .Restriction of work or motion; or
• .Transfer to another job.

After recording a work-related condition, employers must file a written report with the IWCC within two days following the incident.

Employers must also report to the IWCC all work-related injuries and illnesses that result in the loss of more than three scheduled work days. This report is generally due between the** 15**

th

and 25

th

day of each month. An additional report is required for all injuries that result in permanent disability.

The reports submitted to the IWCC must state the:

• .Date of injury (including the time of day);
• .Nature of the employer's business;
• .Injured employee's name, address, age, sex and conjugal condition;
• .Injured employee's specific occupation;
• .Direct cause of the injury;
• .Nature of the accident;
• .Character of the injury;
• .Length of disability;
• .Wages of the injured employee;
• .Amount of compensation paid to the injured employee (or legal representative, heirs or next of kin);
• .Amount of medical compensation paid to health care providers; and
• .Amount paid for funeral or burial expenses, if applicable.

Employers may use Form IC45 or Form IA-1 for their initial injury reports and Form IC85 or Form IA-2 for subsequent injury reports. The IWCC does not accept OSHA Form 301 because this form does not require employers to provide all the information required by Illinois law.

Discrimination

Employers may not discriminate against employees for exercising their rights under the IWCA. Impermissible discrimination includes harassing, firing or refusing to hire an employee because he or she submitted a workers' compensation claim.

Prohibited Retaliation

The IWCA prohibits employers from interfering with, restraining or coercing employees in any manner when they chose to exercise the rights or claim the benefits provided to them by law. In addition, employers cannot retaliate, attempt to retaliate or threaten to retaliate against an employee in any way because the employee exercises his or her rights under the law. Acts of retaliation include discharging, refusing to hire or refusing to recall an employee.

MORE INFORMATION

For specific information on particular areas of the IWCA, please contact your official ThinkTank Insurance Partners representative.