All that Employers Need to Know about Workers Comp

It is important to have full-fledged knowledge about the prevalent workers' comp laws and regulations in your state. For Illinois, there is a lot of clarity on what comes under the stipulations of the Illinois Workers Compensation law and what is excluded from it.

Who is excluded from the definition of workers compensation insurance?

Section 2 of the Illinois Workers’ Compensation Act (“IWCA”), keeps out brokers, broker-salespersons, or salespersons when these entities are paid commissions only from the definition of the term ‘employee’. Hence workers fitting in this category may have a challenging time extracting benefit from workers comp.

What is the basic gist of the workers' compensation law in Illinois?

Certain employers have to register under Illinois Workers Compensation law and agree to provide compensation for work-related injuries or opt to not go for it. Employers working in the extra hazardous category of work need to compulsorily apply and act under provisions of Section 3 of the Act.

Here are some sectors that comprise of extra hazardous work here in Illinois

• Real estate development and construction
• Excavation and electrical work
• Building demolition projects
• Warehouse operations
• Any company or workplace in which explosive materials are used in more than negligible quantities
• Any company or workplace using sharp-edged cutting tools or grinders

Employees start being covered under the provisions of the law from day one of their jobs. It covers all irrespective of their tenure or seniority.

Can an out of state employer be eligible under this?

Yes, even if the company or owner is from outside Illinois if he/ she has even one employee in Illinois or whose work is mainly located in the state. Even if the company is from outside and the contract was entered into in Illinois, then to the employer needs to follow the norms of the Act. Failing to do so can invite stiff penalties from the government.

What are the penalties for non-compliance?

A worker who approaches the court for workplace injury has to be compensated adequately by the employer. For this, the employer should be registered under the act. Not doing so can invite harsh fines. Section 4(d) of the Act states that employers who knowingly defaulted on obtaining insurance can be fined up to $500 per day. This amount will keep getting added for all the days the employer is not complying with the provisions of the Act.

Employers need to know about the provisions for the Illinois Workers Compensation insurance law. They can come to know who is excluded from the definition of workers compensation insurance? Such exclusions comprise of brokers, broker-salespersons, or salespersons when these entities are paid commissions only from the definition of the term ‘employee’. Employers under the extra hazardous work have to opt for this insurance. These works include Real estate development and construction. Any company or workplace in which explosive materials are used in more than negligible quantities also come under this category. Even an out of state employer is eligible under this law and has to register if he/ she has even one employee in Illinois or whose work is mainly located in the state. Section 4(d) of the Act states that employers who knowingly defaulted on obtaining insurance can be fined up to $500 per day.

These were some important things to know as an employer under the regulations of the Illinois Workers Compensation insurance law.