101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5366

 

Introduced , by Rep. Lawrence Walsh, Jr.

 

SYNOPSIS AS INTRODUCED:
 
820 ILCS 305/4  from Ch. 48, par. 138.4

    Amends the Workers' Compensation Act. Provides that in addition to other specified prohibitions, an employer may not demote an employee because of his or her exercise of rights under the Act. Effective immediately.


LRB101 18184 JLS 67626 b

 

 

A BILL FOR

 

HB5366LRB101 18184 JLS 67626 b

1    AN ACT concerning employment.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Workers' Compensation Act is amended by
5changing Section 4 as follows:
 
6    (820 ILCS 305/4)  (from Ch. 48, par. 138.4)
7    (Text of Section from P.A. 101-40)
8    Sec. 4. (a) Any employer, including but not limited to
9general contractors and their subcontractors, who shall come
10within the provisions of Section 3 of this Act, and any other
11employer who shall elect to provide and pay the compensation
12provided for in this Act shall:
13        (1) File with the Commission annually an application
14    for approval as a self-insurer which shall include a
15    current financial statement, and annually, thereafter, an
16    application for renewal of self-insurance, which shall
17    include a current financial statement. Said application
18    and financial statement shall be signed and sworn to by the
19    president or vice president and secretary or assistant
20    secretary of the employer if it be a corporation, or by all
21    of the partners, if it be a copartnership, or by the owner
22    if it be neither a copartnership nor a corporation. All
23    initial applications and all applications for renewal of

 

 

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1    self-insurance must be submitted at least 60 days prior to
2    the requested effective date of self-insurance. An
3    employer may elect to provide and pay compensation as
4    provided for in this Act as a member of a group workers'
5    compensation pool under Article V 3/4 of the Illinois
6    Insurance Code. If an employer becomes a member of a group
7    workers' compensation pool, the employer shall not be
8    relieved of any obligations imposed by this Act.
9        If the sworn application and financial statement of any
10    such employer does not satisfy the Commission of the
11    financial ability of the employer who has filed it, the
12    Commission shall require such employer to,
13        (2) Furnish security, indemnity or a bond guaranteeing
14    the payment by the employer of the compensation provided
15    for in this Act, provided that any such employer whose
16    application and financial statement shall not have
17    satisfied the commission of his or her financial ability
18    and who shall have secured his liability in part by excess
19    liability insurance shall be required to furnish to the
20    Commission security, indemnity or bond guaranteeing his or
21    her payment up to the effective limits of the excess
22    coverage, or
23        (3) Insure his entire liability to pay such
24    compensation in some insurance carrier authorized,
25    licensed, or permitted to do such insurance business in
26    this State. Every policy of an insurance carrier, insuring

 

 

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1    the payment of compensation under this Act shall cover all
2    the employees and the entire compensation liability of the
3    insured: Provided, however, that any employer may insure
4    his or her compensation liability with 2 or more insurance
5    carriers or may insure a part and qualify under subsection
6    1, 2, or 4 for the remainder of his or her liability to pay
7    such compensation, subject to the following two
8    provisions:
9            Firstly, the entire compensation liability of the
10        employer to employees working at or from one location
11        shall be insured in one such insurance carrier or shall
12        be self-insured, and
13            Secondly, the employer shall submit evidence
14        satisfactorily to the Commission that his or her entire
15        liability for the compensation provided for in this Act
16        will be secured. Any provisions in any policy, or in
17        any endorsement attached thereto, attempting to limit
18        or modify in any way, the liability of the insurance
19        carriers issuing the same except as otherwise provided
20        herein shall be wholly void.
21        Nothing herein contained shall apply to policies of
22    excess liability carriage secured by employers who have
23    been approved by the Commission as self-insurers, or
24        (4) Make some other provision, satisfactory to the
25    Commission, for the securing of the payment of compensation
26    provided for in this Act, and

 

 

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1        (5) Upon becoming subject to this Act and thereafter as
2    often as the Commission may in writing demand, file with
3    the Commission in form prescribed by it evidence of his or
4    her compliance with the provision of this Section.
5    (a-1) Regardless of its state of domicile or its principal
6place of business, an employer shall make payments to its
7insurance carrier or group self-insurance fund, where
8applicable, based upon the premium rates of the situs where the
9work or project is located in Illinois if:
10        (A) the employer is engaged primarily in the building
11    and construction industry; and
12        (B) subdivision (a)(3) of this Section applies to the
13    employer or the employer is a member of a group
14    self-insurance plan as defined in subsection (1) of Section
15    4a.
16    The Illinois Workers' Compensation Commission shall impose
17a penalty upon an employer for violation of this subsection
18(a-1) if:
19        (i) the employer is given an opportunity at a hearing
20    to present evidence of its compliance with this subsection
21    (a-1); and
22        (ii) after the hearing, the Commission finds that the
23    employer failed to make payments upon the premium rates of
24    the situs where the work or project is located in Illinois.
25    The penalty shall not exceed $1,000 for each day of work
26for which the employer failed to make payments upon the premium

 

 

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1rates of the situs where the work or project is located in
2Illinois, but the total penalty shall not exceed $50,000 for
3each project or each contract under which the work was
4performed.
5    Any penalty under this subsection (a-1) must be imposed not
6later than one year after the expiration of the applicable
7limitation period specified in subsection (d) of Section 6 of
8this Act. Penalties imposed under this subsection (a-1) shall
9be deposited into the Illinois Workers' Compensation
10Commission Operations Fund, a special fund that is created in
11the State treasury. Subject to appropriation, moneys in the
12Fund shall be used solely for the operations of the Illinois
13Workers' Compensation Commission, the salaries and benefits of
14the Self-Insurers Advisory Board employees, the operating
15costs of the Self-Insurers Advisory Board, and by the
16Department of Insurance for the purposes authorized in
17subsection (c) of Section 25.5 of this Act.
18    (a-2) Every Employee Leasing Company (ELC), as defined in
19Section 15 of the Employee Leasing Company Act, shall at a
20minimum provide the following information to the Commission or
21any entity designated by the Commission regarding each workers'
22compensation insurance policy issued to the ELC:
23        (1) Any client company of the ELC listed as an
24    additional named insured.
25        (2) Any informational schedule attached to the master
26    policy that identifies any individual client company's

 

 

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1    name, FEIN, and job location.
2        (3) Any certificate of insurance coverage document
3    issued to a client company specifying its rights and
4    obligations under the master policy that establishes both
5    the identity and status of the client, as well as the dates
6    of inception and termination of coverage, if applicable.
7    (b) The sworn application and financial statement, or
8security, indemnity or bond, or amount of insurance, or other
9provisions, filed, furnished, carried, or made by the employer,
10as the case may be, shall be subject to the approval of the
11Commission.
12    Deposits under escrow agreements shall be cash, negotiable
13United States government bonds or negotiable general
14obligation bonds of the State of Illinois. Such cash or bonds
15shall be deposited in escrow with any State or National Bank or
16Trust Company having trust authority in the State of Illinois.
17    Upon the approval of the sworn application and financial
18statement, security, indemnity or bond or amount of insurance,
19filed, furnished or carried, as the case may be, the Commission
20shall send to the employer written notice of its approval
21thereof. The certificate of compliance by the employer with the
22provisions of subparagraphs (2) and (3) of paragraph (a) of
23this Section shall be delivered by the insurance carrier to the
24Illinois Workers' Compensation Commission within five days
25after the effective date of the policy so certified. The
26insurance so certified shall cover all compensation liability

 

 

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1occurring during the time that the insurance is in effect and
2no further certificate need be filed in case such insurance is
3renewed, extended or otherwise continued by such carrier. The
4insurance so certified shall not be cancelled or in the event
5that such insurance is not renewed, extended or otherwise
6continued, such insurance shall not be terminated until at
7least 10 days after receipt by the Illinois Workers'
8Compensation Commission of notice of the cancellation or
9termination of said insurance; provided, however, that if the
10employer has secured insurance from another insurance carrier,
11or has otherwise secured the payment of compensation in
12accordance with this Section, and such insurance or other
13security becomes effective prior to the expiration of the 10
14days, cancellation or termination may, at the option of the
15insurance carrier indicated in such notice, be effective as of
16the effective date of such other insurance or security.
17    (c) Whenever the Commission shall find that any
18corporation, company, association, aggregation of individuals,
19reciprocal or interinsurers exchange, or other insurer
20effecting workers' compensation insurance in this State shall
21be insolvent, financially unsound, or unable to fully meet all
22payments and liabilities assumed or to be assumed for
23compensation insurance in this State, or shall practice a
24policy of delay or unfairness toward employees in the
25adjustment, settlement, or payment of benefits due such
26employees, the Commission may after reasonable notice and

 

 

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1hearing order and direct that such corporation, company,
2association, aggregation of individuals, reciprocal or
3interinsurers exchange, or insurer, shall from and after a date
4fixed in such order discontinue the writing of any such
5workers' compensation insurance in this State. Subject to such
6modification of the order as the Commission may later make on
7review of the order, as herein provided, it shall thereupon be
8unlawful for any such corporation, company, association,
9aggregation of individuals, reciprocal or interinsurers
10exchange, or insurer to effect any workers' compensation
11insurance in this State. A copy of the order shall be served
12upon the Director of Insurance by registered mail. Whenever the
13Commission finds that any service or adjustment company used or
14employed by a self-insured employer or by an insurance carrier
15to process, adjust, investigate, compromise or otherwise
16handle claims under this Act, has practiced or is practicing a
17policy of delay or unfairness toward employees in the
18adjustment, settlement or payment of benefits due such
19employees, the Commission may after reasonable notice and
20hearing order and direct that such service or adjustment
21company shall from and after a date fixed in such order be
22prohibited from processing, adjusting, investigating,
23compromising or otherwise handling claims under this Act.
24    Whenever the Commission finds that any self-insured
25employer has practiced or is practicing delay or unfairness
26toward employees in the adjustment, settlement or payment of

 

 

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1benefits due such employees, the Commission may, after
2reasonable notice and hearing, order and direct that after a
3date fixed in the order such self-insured employer shall be
4disqualified to operate as a self-insurer and shall be required
5to insure his entire liability to pay compensation in some
6insurance carrier authorized, licensed and permitted to do such
7insurance business in this State, as provided in subparagraph 3
8of paragraph (a) of this Section.
9    All orders made by the Commission under this Section shall
10be subject to review by the courts, said review to be taken in
11the same manner and within the same time as provided by Section
1219 of this Act for review of awards and decisions of the
13Commission, upon the party seeking the review filing with the
14clerk of the court to which said review is taken a bond in an
15amount to be fixed and approved by the court to which the
16review is taken, conditioned upon the payment of all
17compensation awarded against the person taking said review
18pending a decision thereof and further conditioned upon such
19other obligations as the court may impose. Upon the review the
20Circuit Court shall have power to review all questions of fact
21as well as of law. The penalty hereinafter provided for in this
22paragraph shall not attach and shall not begin to run until the
23final determination of the order of the Commission.
24    (d) Whenever a Commissioner, with due process and after a
25hearing, determines an employer has knowingly failed to provide
26coverage as required by paragraph (a) of this Section, the

 

 

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1failure shall be deemed an immediate serious danger to public
2health, safety, and welfare sufficient to justify service by
3the Commission of a work-stop order on such employer, requiring
4the cessation of all business operations of such employer at
5the place of employment or job site. If a business is declared
6to be extra hazardous, as defined in Section 3, a Commissioner
7may issue an emergency work-stop order on such an employer ex
8parte, prior to holding a hearing, requiring the cessation of
9all business operations of such employer at the place of
10employment or job site while awaiting the ruling of the
11Commission. Whenever a Commissioner issues an emergency
12work-stop order, the Commission shall issue a notice of
13emergency work-stop hearing to be posted at the employer's
14places of employment and job sites. Any law enforcement agency
15in the State shall, at the request of the Commission, render
16any assistance necessary to carry out the provisions of this
17Section, including, but not limited to, preventing any employee
18of such employer from remaining at a place of employment or job
19site after a work-stop order has taken effect. Any work-stop
20order shall be lifted upon proof of insurance as required by
21this Act. Any orders under this Section are appealable under
22Section 19(f) to the Circuit Court.
23    Any individual employer, corporate officer or director of a
24corporate employer, partner of an employer partnership, or
25member of an employer limited liability company who knowingly
26fails to provide coverage as required by paragraph (a) of this

 

 

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1Section is guilty of a Class 4 felony. This provision shall not
2apply to any corporate officer or director of any
3publicly-owned corporation. Each day's violation constitutes a
4separate offense. The State's Attorney of the county in which
5the violation occurred, or the Attorney General, shall bring
6such actions in the name of the People of the State of
7Illinois, or may, in addition to other remedies provided in
8this Section, bring an action for an injunction to restrain the
9violation or to enjoin the operation of any such employer.
10    Any individual employer, corporate officer or director of a
11corporate employer, partner of an employer partnership, or
12member of an employer limited liability company who negligently
13fails to provide coverage as required by paragraph (a) of this
14Section is guilty of a Class A misdemeanor. This provision
15shall not apply to any corporate officer or director of any
16publicly-owned corporation. Each day's violation constitutes a
17separate offense. The State's Attorney of the county in which
18the violation occurred, or the Attorney General, shall bring
19such actions in the name of the People of the State of
20Illinois.
21    The criminal penalties in this subsection (d) shall not
22apply where there exists a good faith dispute as to the
23existence of an employment relationship. Evidence of good faith
24shall include, but not be limited to, compliance with the
25definition of employee as used by the Internal Revenue Service.
26    All investigative actions must be acted upon within 90 days

 

 

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1of the issuance of the complaint. Employers who are subject to
2and who knowingly fail to comply with this Section shall not be
3entitled to the benefits of this Act during the period of
4noncompliance, but shall be liable in an action under any other
5applicable law of this State. In the action, such employer
6shall not avail himself or herself of the defenses of
7assumption of risk or negligence or that the injury was due to
8a co-employee. In the action, proof of the injury shall
9constitute prima facie evidence of negligence on the part of
10such employer and the burden shall be on such employer to show
11freedom of negligence resulting in the injury. The employer
12shall not join any other defendant in any such civil action.
13Nothing in this amendatory Act of the 94th General Assembly
14shall affect the employee's rights under subdivision (a)3 of
15Section 1 of this Act. Any employer or carrier who makes
16payments under subdivision (a)3 of Section 1 of this Act shall
17have a right of reimbursement from the proceeds of any recovery
18under this Section.
19    An employee of an uninsured employer, or the employee's
20dependents in case death ensued, may, instead of proceeding
21against the employer in a civil action in court, file an
22application for adjustment of claim with the Commission in
23accordance with the provisions of this Act and the Commission
24shall hear and determine the application for adjustment of
25claim in the manner in which other claims are heard and
26determined before the Commission.

 

 

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1    All proceedings under this subsection (d) shall be reported
2on an annual basis to the Workers' Compensation Advisory Board.
3    An investigator with the Illinois Workers' Compensation
4Commission Insurance Compliance Division may issue a citation
5to any employer that is not in compliance with its obligation
6to have workers' compensation insurance under this Act. The
7amount of the fine shall be based on the period of time the
8employer was in non-compliance, but shall be no less than $500,
9and shall not exceed $10,000. An employer that has been issued
10a citation shall pay the fine to the Commission and provide to
11the Commission proof that it obtained the required workers'
12compensation insurance within 10 days after the citation was
13issued. This Section does not affect any other obligations this
14Act imposes on employers.
15    Upon a finding by the Commission, after reasonable notice
16and hearing, of the knowing and willful failure or refusal of
17an employer to comply with any of the provisions of paragraph
18(a) of this Section, the failure or refusal of an employer,
19service or adjustment company, or an insurance carrier to
20comply with any order of the Illinois Workers' Compensation
21Commission pursuant to paragraph (c) of this Section
22disqualifying him or her to operate as a self insurer and
23requiring him or her to insure his or her liability, or the
24knowing and willful failure of an employer to comply with a
25citation issued by an investigator with the Illinois Workers'
26Compensation Commission Insurance Compliance Division, the

 

 

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1Commission may assess a civil penalty of up to $500 per day for
2each day of such failure or refusal after the effective date of
3this amendatory Act of 1989. The minimum penalty under this
4Section shall be the sum of $10,000. Each day of such failure
5or refusal shall constitute a separate offense. The Commission
6may assess the civil penalty personally and individually
7against the corporate officers and directors of a corporate
8employer, the partners of an employer partnership, and the
9members of an employer limited liability company, after a
10finding of a knowing and willful refusal or failure of each
11such named corporate officer, director, partner, or member to
12comply with this Section. The liability for the assessed
13penalty shall be against the named employer first, and if the
14named employer fails or refuses to pay the penalty to the
15Commission within 30 days after the final order of the
16Commission, then the named corporate officers, directors,
17partners, or members who have been found to have knowingly and
18willfully refused or failed to comply with this Section shall
19be liable for the unpaid penalty or any unpaid portion of the
20penalty. Upon investigation by the insurance non-compliance
21unit of the Commission, the Attorney General shall have the
22authority to prosecute all proceedings to enforce the civil and
23administrative provisions of this Section before the
24Commission. The Commission shall promulgate procedural rules
25for enforcing this Section.
26    If an employer is found to be in non-compliance with any

 

 

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1provisions of paragraph (a) of this Section more than once, all
2minimum penalties will double. Therefore, upon the failure or
3refusal of an employer, service or adjustment company, or
4insurance carrier to comply with any order of the Commission
5pursuant to paragraph (c) of this Section disqualifying him or
6her to operate as a self-insurer and requiring him or her to
7insure his or her liability, or the knowing and willful failure
8of an employer to comply with a citation issued by an
9investigator with the Illinois Workers' Compensation
10Commission Insurance Compliance Division, the Commission may
11assess a civil penalty of up to $1,000 per day for each day of
12such failure or refusal after the effective date of this
13amendatory Act of the 101st General Assembly. The minimum
14penalty under this Section shall be the sum of $20,000. In
15addition, employers with 2 or more violations of any provisions
16of paragraph (a) of this Section may not self-insure for one
17year or until all penalties are paid.
18    Upon the failure or refusal of any employer, service or
19adjustment company or insurance carrier to comply with the
20provisions of this Section and with the orders of the
21Commission under this Section, or the order of the court on
22review after final adjudication, the Commission may bring a
23civil action to recover the amount of the penalty in Cook
24County or in Sangamon County in which litigation the Commission
25shall be represented by the Attorney General. The Commission
26shall send notice of its finding of non-compliance and

 

 

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1assessment of the civil penalty to the Attorney General. It
2shall be the duty of the Attorney General within 30 days after
3receipt of the notice, to institute prosecutions and promptly
4prosecute all reported violations of this Section.
5    Any individual employer, corporate officer or director of a
6corporate employer, partner of an employer partnership, or
7member of an employer limited liability company who, with the
8intent to avoid payment of compensation under this Act to an
9injured employee or the employee's dependents, knowingly
10transfers, sells, encumbers, assigns, or in any manner disposes
11of, conceals, secretes, or destroys any property belonging to
12the employer, officer, director, partner, or member is guilty
13of a Class 4 felony.
14    Penalties and fines collected pursuant to this paragraph
15(d) shall be deposited upon receipt into a special fund which
16shall be designated the Injured Workers' Benefit Fund, of which
17the State Treasurer is ex-officio custodian, such special fund
18to be held and disbursed in accordance with this paragraph (d)
19for the purposes hereinafter stated in this paragraph (d), upon
20the final order of the Commission. The Injured Workers' Benefit
21Fund shall be deposited the same as are State funds and any
22interest accruing thereon shall be added thereto every 6
23months. The Injured Workers' Benefit Fund is subject to audit
24the same as State funds and accounts and is protected by the
25general bond given by the State Treasurer. The Injured Workers'
26Benefit Fund is considered always appropriated for the purposes

 

 

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1of disbursements as provided in this paragraph, and shall be
2paid out and disbursed as herein provided and shall not at any
3time be appropriated or diverted to any other use or purpose.
4Moneys in the Injured Workers' Benefit Fund shall be used only
5for payment of workers' compensation benefits for injured
6employees when the employer has failed to provide coverage as
7determined under this paragraph (d) and has failed to pay the
8benefits due to the injured employee. The Commission shall have
9the right to obtain reimbursement from the employer for
10compensation obligations paid by the Injured Workers' Benefit
11Fund. Any such amounts obtained shall be deposited by the
12Commission into the Injured Workers' Benefit Fund. If an
13injured employee or his or her personal representative receives
14payment from the Injured Workers' Benefit Fund, the State of
15Illinois has the same rights under paragraph (b) of Section 5
16that the employer who failed to pay the benefits due to the
17injured employee would have had if the employer had paid those
18benefits, and any moneys recovered by the State as a result of
19the State's exercise of its rights under paragraph (b) of
20Section 5 shall be deposited into the Injured Workers' Benefit
21Fund. The custodian of the Injured Workers' Benefit Fund shall
22be joined with the employer as a party respondent in the
23application for adjustment of claim. After July 1, 2006, the
24Commission shall make disbursements from the Fund once each
25year to each eligible claimant. An eligible claimant is an
26injured worker who has within the previous fiscal year obtained

 

 

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1a final award for benefits from the Commission against the
2employer and the Injured Workers' Benefit Fund and has notified
3the Commission within 90 days of receipt of such award. Within
4a reasonable time after the end of each fiscal year, the
5Commission shall make a disbursement to each eligible claimant.
6At the time of disbursement, if there are insufficient moneys
7in the Fund to pay all claims, each eligible claimant shall
8receive a pro-rata share, as determined by the Commission, of
9the available moneys in the Fund for that year. Payment from
10the Injured Workers' Benefit Fund to an eligible claimant
11pursuant to this provision shall discharge the obligations of
12the Injured Workers' Benefit Fund regarding the award entered
13by the Commission.
14    (e) This Act shall not affect or disturb the continuance of
15any existing insurance, mutual aid, benefit, or relief
16association or department, whether maintained in whole or in
17part by the employer or whether maintained by the employees,
18the payment of benefits of such association or department being
19guaranteed by the employer or by some person, firm or
20corporation for him or her: Provided, the employer contributes
21to such association or department an amount not less than the
22full compensation herein provided, exclusive of the cost of the
23maintenance of such association or department and without any
24expense to the employee. This Act shall not prevent the
25organization and maintaining under the insurance laws of this
26State of any benefit or insurance company for the purpose of

 

 

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1insuring against the compensation provided for in this Act, the
2expense of which is maintained by the employer. This Act shall
3not prevent the organization or maintaining under the insurance
4laws of this State of any voluntary mutual aid, benefit or
5relief association among employees for the payment of
6additional accident or sick benefits.
7    (f) No existing insurance, mutual aid, benefit or relief
8association or department shall, by reason of anything herein
9contained, be authorized to discontinue its operation without
10first discharging its obligations to any and all persons
11carrying insurance in the same or entitled to relief or
12benefits therein.
13    (g) Any contract, oral, written or implied, of employment
14providing for relief benefit, or insurance or any other device
15whereby the employee is required to pay any premium or premiums
16for insurance against the compensation provided for in this Act
17shall be null and void. Any employer withholding from the wages
18of any employee any amount for the purpose of paying any such
19premium shall be guilty of a Class B misdemeanor.
20    In the event the employer does not pay the compensation for
21which he or she is liable, then an insurance company,
22association or insurer which may have insured such employer
23against such liability shall become primarily liable to pay to
24the employee, his or her personal representative or beneficiary
25the compensation required by the provisions of this Act to be
26paid by such employer. The insurance carrier may be made a

 

 

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1party to the proceedings in which the employer is a party and
2an award may be entered jointly against the employer and the
3insurance carrier.
4    (h) It shall be unlawful for any employer, insurance
5company or service or adjustment company to interfere with,
6demote, restrain, or coerce an employee in any manner
7whatsoever in the exercise of the rights or remedies granted to
8him or her by this Act or to discriminate, attempt to
9discriminate, or threaten to discriminate against an employee
10in any way because of his or her exercise of the rights or
11remedies granted to him or her by this Act.
12    It shall be unlawful for any employer, individually or
13through any insurance company or service or adjustment company,
14to demote, discharge, or to threaten to discharge, or to refuse
15to rehire or recall to active service in a suitable capacity an
16employee because of the exercise of his or her rights or
17remedies granted to him or her by this Act.
18    (i) If an employer elects to obtain a life insurance policy
19on his employees, he may also elect to apply such benefits in
20satisfaction of all or a portion of the death benefits payable
21under this Act, in which case, the employer's compensation
22premium shall be reduced accordingly.
23    (j) Within 45 days of receipt of an initial application or
24application to renew self-insurance privileges the
25Self-Insurers Advisory Board shall review and submit for
26approval by the Chairman of the Commission recommendations of

 

 

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1disposition of all initial applications to self-insure and all
2applications to renew self-insurance privileges filed by
3private self-insurers pursuant to the provisions of this
4Section and Section 4a-9 of this Act. Each private self-insurer
5shall submit with its initial and renewal applications the
6application fee required by Section 4a-4 of this Act.
7    The Chairman of the Commission shall promptly act upon all
8initial applications and applications for renewal in full
9accordance with the recommendations of the Board or, should the
10Chairman disagree with any recommendation of disposition of the
11Self-Insurer's Advisory Board, he shall within 30 days of
12receipt of such recommendation provide to the Board in writing
13the reasons supporting his decision. The Chairman shall also
14promptly notify the employer of his decision within 15 days of
15receipt of the recommendation of the Board.
16    If an employer is denied a renewal of self-insurance
17privileges pursuant to application it shall retain said
18privilege for 120 days after receipt of a notice of
19cancellation of the privilege from the Chairman of the
20Commission.
21    All orders made by the Chairman under this Section shall be
22subject to review by the courts, such review to be taken in the
23same manner and within the same time as provided by subsection
24(f) of Section 19 of this Act for review of awards and
25decisions of the Commission, upon the party seeking the review
26filing with the clerk of the court to which such review is

 

 

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1taken a bond in an amount to be fixed and approved by the court
2to which the review is taken, conditioned upon the payment of
3all compensation awarded against the person taking such review
4pending a decision thereof and further conditioned upon such
5other obligations as the court may impose. Upon the review the
6Circuit Court shall have power to review all questions of fact
7as well as of law.
8(Source: P.A. 101-40, eff. 1-1-20.)
 
9    (Text of Section from P.A. 101-384)
10    Sec. 4. (a) Any employer, including but not limited to
11general contractors and their subcontractors, who shall come
12within the provisions of Section 3 of this Act, and any other
13employer who shall elect to provide and pay the compensation
14provided for in this Act shall:
15        (1) File with the Commission annually an application
16    for approval as a self-insurer which shall include a
17    current financial statement, and annually, thereafter, an
18    application for renewal of self-insurance, which shall
19    include a current financial statement. Said application
20    and financial statement shall be signed and sworn to by the
21    president or vice president and secretary or assistant
22    secretary of the employer if it be a corporation, or by all
23    of the partners, if it be a copartnership, or by the owner
24    if it be neither a copartnership nor a corporation. All
25    initial applications and all applications for renewal of

 

 

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1    self-insurance must be submitted at least 60 days prior to
2    the requested effective date of self-insurance. An
3    employer may elect to provide and pay compensation as
4    provided for in this Act as a member of a group workers'
5    compensation pool under Article V 3/4 of the Illinois
6    Insurance Code. If an employer becomes a member of a group
7    workers' compensation pool, the employer shall not be
8    relieved of any obligations imposed by this Act.
9        If the sworn application and financial statement of any
10    such employer does not satisfy the Commission of the
11    financial ability of the employer who has filed it, the
12    Commission shall require such employer to,
13        (2) Furnish security, indemnity or a bond guaranteeing
14    the payment by the employer of the compensation provided
15    for in this Act, provided that any such employer whose
16    application and financial statement shall not have
17    satisfied the commission of his or her financial ability
18    and who shall have secured his liability in part by excess
19    liability insurance shall be required to furnish to the
20    Commission security, indemnity or bond guaranteeing his or
21    her payment up to the effective limits of the excess
22    coverage, or
23        (3) Insure his entire liability to pay such
24    compensation in some insurance carrier authorized,
25    licensed, or permitted to do such insurance business in
26    this State. Every policy of an insurance carrier, insuring

 

 

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1    the payment of compensation under this Act shall cover all
2    the employees and the entire compensation liability of the
3    insured: Provided, however, that any employer may insure
4    his or her compensation liability with 2 or more insurance
5    carriers or may insure a part and qualify under subsection
6    1, 2, or 4 for the remainder of his or her liability to pay
7    such compensation, subject to the following two
8    provisions:
9            Firstly, the entire compensation liability of the
10        employer to employees working at or from one location
11        shall be insured in one such insurance carrier or shall
12        be self-insured, and
13            Secondly, the employer shall submit evidence
14        satisfactorily to the Commission that his or her entire
15        liability for the compensation provided for in this Act
16        will be secured. Any provisions in any policy, or in
17        any endorsement attached thereto, attempting to limit
18        or modify in any way, the liability of the insurance
19        carriers issuing the same except as otherwise provided
20        herein shall be wholly void.
21        Nothing herein contained shall apply to policies of
22    excess liability carriage secured by employers who have
23    been approved by the Commission as self-insurers, or
24        (4) Make some other provision, satisfactory to the
25    Commission, for the securing of the payment of compensation
26    provided for in this Act, and

 

 

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1        (5) Upon becoming subject to this Act and thereafter as
2    often as the Commission may in writing demand, file with
3    the Commission in form prescribed by it evidence of his or
4    her compliance with the provision of this Section.
5    (a-1) Regardless of its state of domicile or its principal
6place of business, an employer shall make payments to its
7insurance carrier or group self-insurance fund, where
8applicable, based upon the premium rates of the situs where the
9work or project is located in Illinois if:
10        (A) the employer is engaged primarily in the building
11    and construction industry; and
12        (B) subdivision (a)(3) of this Section applies to the
13    employer or the employer is a member of a group
14    self-insurance plan as defined in subsection (1) of Section
15    4a.
16    The Illinois Workers' Compensation Commission shall impose
17a penalty upon an employer for violation of this subsection
18(a-1) if:
19        (i) the employer is given an opportunity at a hearing
20    to present evidence of its compliance with this subsection
21    (a-1); and
22        (ii) after the hearing, the Commission finds that the
23    employer failed to make payments upon the premium rates of
24    the situs where the work or project is located in Illinois.
25    The penalty shall not exceed $1,000 for each day of work
26for which the employer failed to make payments upon the premium

 

 

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1rates of the situs where the work or project is located in
2Illinois, but the total penalty shall not exceed $50,000 for
3each project or each contract under which the work was
4performed.
5    Any penalty under this subsection (a-1) must be imposed not
6later than one year after the expiration of the applicable
7limitation period specified in subsection (d) of Section 6 of
8this Act. Penalties imposed under this subsection (a-1) shall
9be deposited into the Illinois Workers' Compensation
10Commission Operations Fund, a special fund that is created in
11the State treasury. Subject to appropriation, moneys in the
12Fund shall be used solely for the operations of the Illinois
13Workers' Compensation Commission and by the Department of
14Insurance for the purposes authorized in subsection (c) of
15Section 25.5 of this Act.
16    (a-2) Every Employee Leasing Company (ELC), as defined in
17Section 15 of the Employee Leasing Company Act, shall at a
18minimum provide the following information to the Commission or
19any entity designated by the Commission regarding each workers'
20compensation insurance policy issued to the ELC:
21        (1) Any client company of the ELC listed as an
22    additional named insured.
23        (2) Any informational schedule attached to the master
24    policy that identifies any individual client company's
25    name, FEIN, and job location.
26        (3) Any certificate of insurance coverage document

 

 

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1    issued to a client company specifying its rights and
2    obligations under the master policy that establishes both
3    the identity and status of the client, as well as the dates
4    of inception and termination of coverage, if applicable.
5    (b) The sworn application and financial statement, or
6security, indemnity or bond, or amount of insurance, or other
7provisions, filed, furnished, carried, or made by the employer,
8as the case may be, shall be subject to the approval of the
9Commission.
10    Deposits under escrow agreements shall be cash, negotiable
11United States government bonds or negotiable general
12obligation bonds of the State of Illinois. Such cash or bonds
13shall be deposited in escrow with any State or National Bank or
14Trust Company having trust authority in the State of Illinois.
15    Upon the approval of the sworn application and financial
16statement, security, indemnity or bond or amount of insurance,
17filed, furnished or carried, as the case may be, the Commission
18shall send to the employer written notice of its approval
19thereof. The certificate of compliance by the employer with the
20provisions of subparagraphs (2) and (3) of paragraph (a) of
21this Section shall be delivered by the insurance carrier to the
22Illinois Workers' Compensation Commission within five days
23after the effective date of the policy so certified. The
24insurance so certified shall cover all compensation liability
25occurring during the time that the insurance is in effect and
26no further certificate need be filed in case such insurance is

 

 

HB5366- 28 -LRB101 18184 JLS 67626 b

1renewed, extended or otherwise continued by such carrier. The
2insurance so certified shall not be cancelled or in the event
3that such insurance is not renewed, extended or otherwise
4continued, such insurance shall not be terminated until at
5least 10 days after receipt by the Illinois Workers'
6Compensation Commission of notice of the cancellation or
7termination of said insurance; provided, however, that if the
8employer has secured insurance from another insurance carrier,
9or has otherwise secured the payment of compensation in
10accordance with this Section, and such insurance or other
11security becomes effective prior to the expiration of the 10
12days, cancellation or termination may, at the option of the
13insurance carrier indicated in such notice, be effective as of
14the effective date of such other insurance or security.
15    (c) Whenever the Commission shall find that any
16corporation, company, association, aggregation of individuals,
17reciprocal or interinsurers exchange, or other insurer
18effecting workers' compensation insurance in this State shall
19be insolvent, financially unsound, or unable to fully meet all
20payments and liabilities assumed or to be assumed for
21compensation insurance in this State, or shall practice a
22policy of delay or unfairness toward employees in the
23adjustment, settlement, or payment of benefits due such
24employees, the Commission may after reasonable notice and
25hearing order and direct that such corporation, company,
26association, aggregation of individuals, reciprocal or

 

 

HB5366- 29 -LRB101 18184 JLS 67626 b

1interinsurers exchange, or insurer, shall from and after a date
2fixed in such order discontinue the writing of any such
3workers' compensation insurance in this State. Subject to such
4modification of the order as the Commission may later make on
5review of the order, as herein provided, it shall thereupon be
6unlawful for any such corporation, company, association,
7aggregation of individuals, reciprocal or interinsurers
8exchange, or insurer to effect any workers' compensation
9insurance in this State. A copy of the order shall be served
10upon the Director of Insurance by registered mail. Whenever the
11Commission finds that any service or adjustment company used or
12employed by a self-insured employer or by an insurance carrier
13to process, adjust, investigate, compromise or otherwise
14handle claims under this Act, has practiced or is practicing a
15policy of delay or unfairness toward employees in the
16adjustment, settlement or payment of benefits due such
17employees, the Commission may after reasonable notice and
18hearing order and direct that such service or adjustment
19company shall from and after a date fixed in such order be
20prohibited from processing, adjusting, investigating,
21compromising or otherwise handling claims under this Act.
22    Whenever the Commission finds that any self-insured
23employer has practiced or is practicing delay or unfairness
24toward employees in the adjustment, settlement or payment of
25benefits due such employees, the Commission may, after
26reasonable notice and hearing, order and direct that after a

 

 

HB5366- 30 -LRB101 18184 JLS 67626 b

1date fixed in the order such self-insured employer shall be
2disqualified to operate as a self-insurer and shall be required
3to insure his entire liability to pay compensation in some
4insurance carrier authorized, licensed and permitted to do such
5insurance business in this State, as provided in subparagraph 3
6of paragraph (a) of this Section.
7    All orders made by the Commission under this Section shall
8be subject to review by the courts, said review to be taken in
9the same manner and within the same time as provided by Section
1019 of this Act for review of awards and decisions of the
11Commission, upon the party seeking the review filing with the
12clerk of the court to which said review is taken a bond in an
13amount to be fixed and approved by the court to which the
14review is taken, conditioned upon the payment of all
15compensation awarded against the person taking said review
16pending a decision thereof and further conditioned upon such
17other obligations as the court may impose. Upon the review the
18Circuit Court shall have power to review all questions of fact
19as well as of law. The penalty hereinafter provided for in this
20paragraph shall not attach and shall not begin to run until the
21final determination of the order of the Commission.
22    (d) Whenever a panel of 3 Commissioners comprised of one
23member of the employing class, one representative of a labor
24organization recognized under the National Labor Relations Act
25or an attorney who has represented labor organizations or has
26represented employees in workers' compensation cases, and one

 

 

HB5366- 31 -LRB101 18184 JLS 67626 b

1member not identified with either the employing class or a
2labor organization, with due process and after a hearing,
3determines an employer has knowingly failed to provide coverage
4as required by paragraph (a) of this Section, the failure shall
5be deemed an immediate serious danger to public health, safety,
6and welfare sufficient to justify service by the Commission of
7a work-stop order on such employer, requiring the cessation of
8all business operations of such employer at the place of
9employment or job site. Any law enforcement agency in the State
10shall, at the request of the Commission, render any assistance
11necessary to carry out the provisions of this Section,
12including, but not limited to, preventing any employee of such
13employer from remaining at a place of employment or job site
14after a work-stop order has taken effect. Any work-stop order
15shall be lifted upon proof of insurance as required by this
16Act. Any orders under this Section are appealable under Section
1719(f) to the Circuit Court.
18    Any individual employer, corporate officer or director of a
19corporate employer, partner of an employer partnership, or
20member of an employer limited liability company who knowingly
21fails to provide coverage as required by paragraph (a) of this
22Section is guilty of a Class 4 felony. This provision shall not
23apply to any corporate officer or director of any
24publicly-owned corporation. Each day's violation constitutes a
25separate offense. The State's Attorney of the county in which
26the violation occurred, or the Attorney General, shall bring

 

 

HB5366- 32 -LRB101 18184 JLS 67626 b

1such actions in the name of the People of the State of
2Illinois, or may, in addition to other remedies provided in
3this Section, bring an action for an injunction to restrain the
4violation or to enjoin the operation of any such employer.
5    Any individual employer, corporate officer or director of a
6corporate employer, partner of an employer partnership, or
7member of an employer limited liability company who negligently
8fails to provide coverage as required by paragraph (a) of this
9Section is guilty of a Class A misdemeanor. This provision
10shall not apply to any corporate officer or director of any
11publicly-owned corporation. Each day's violation constitutes a
12separate offense. The State's Attorney of the county in which
13the violation occurred, or the Attorney General, shall bring
14such actions in the name of the People of the State of
15Illinois.
16    The criminal penalties in this subsection (d) shall not
17apply where there exists a good faith dispute as to the
18existence of an employment relationship. Evidence of good faith
19shall include, but not be limited to, compliance with the
20definition of employee as used by the Internal Revenue Service.
21    Employers who are subject to and who knowingly fail to
22comply with this Section shall not be entitled to the benefits
23of this Act during the period of noncompliance, but shall be
24liable in an action under any other applicable law of this
25State. In the action, such employer shall not avail himself or
26herself of the defenses of assumption of risk or negligence or

 

 

HB5366- 33 -LRB101 18184 JLS 67626 b

1that the injury was due to a co-employee. In the action, proof
2of the injury shall constitute prima facie evidence of
3negligence on the part of such employer and the burden shall be
4on such employer to show freedom of negligence resulting in the
5injury. The employer shall not join any other defendant in any
6such civil action. Nothing in this amendatory Act of the 94th
7General Assembly shall affect the employee's rights under
8subdivision (a)3 of Section 1 of this Act. Any employer or
9carrier who makes payments under subdivision (a)3 of Section 1
10of this Act shall have a right of reimbursement from the
11proceeds of any recovery under this Section.
12    An employee of an uninsured employer, or the employee's
13dependents in case death ensued, may, instead of proceeding
14against the employer in a civil action in court, file an
15application for adjustment of claim with the Commission in
16accordance with the provisions of this Act and the Commission
17shall hear and determine the application for adjustment of
18claim in the manner in which other claims are heard and
19determined before the Commission.
20    All proceedings under this subsection (d) shall be reported
21on an annual basis to the Workers' Compensation Advisory Board.
22    An investigator with the Illinois Workers' Compensation
23Commission Insurance Compliance Division may issue a citation
24to any employer that is not in compliance with its obligation
25to have workers' compensation insurance under this Act. The
26amount of the fine shall be based on the period of time the

 

 

HB5366- 34 -LRB101 18184 JLS 67626 b

1employer was in non-compliance, but shall be no less than $500,
2and shall not exceed $2,500. An employer that has been issued a
3citation shall pay the fine to the Commission and provide to
4the Commission proof that it obtained the required workers'
5compensation insurance within 10 days after the citation was
6issued. This Section does not affect any other obligations this
7Act imposes on employers.
8    Upon a finding by the Commission, after reasonable notice
9and hearing, of the knowing and wilful failure or refusal of an
10employer to comply with any of the provisions of paragraph (a)
11of this Section, the failure or refusal of an employer, service
12or adjustment company, or an insurance carrier to comply with
13any order of the Illinois Workers' Compensation Commission
14pursuant to paragraph (c) of this Section disqualifying him or
15her to operate as a self insurer and requiring him or her to
16insure his or her liability, or the knowing and willful failure
17of an employer to comply with a citation issued by an
18investigator with the Illinois Workers' Compensation
19Commission Insurance Compliance Division, the Commission may
20assess a civil penalty of up to $500 per day for each day of
21such failure or refusal after the effective date of this
22amendatory Act of 1989. The minimum penalty under this Section
23shall be the sum of $10,000. Each day of such failure or
24refusal shall constitute a separate offense. The Commission may
25assess the civil penalty personally and individually against
26the corporate officers and directors of a corporate employer,

 

 

HB5366- 35 -LRB101 18184 JLS 67626 b

1the partners of an employer partnership, and the members of an
2employer limited liability company, after a finding of a
3knowing and willful refusal or failure of each such named
4corporate officer, director, partner, or member to comply with
5this Section. The liability for the assessed penalty shall be
6against the named employer first, and if the named employer
7fails or refuses to pay the penalty to the Commission within 30
8days after the final order of the Commission, then the named
9corporate officers, directors, partners, or members who have
10been found to have knowingly and willfully refused or failed to
11comply with this Section shall be liable for the unpaid penalty
12or any unpaid portion of the penalty. Upon investigation by the
13insurance non-compliance unit of the Commission, the Attorney
14General shall have the authority to prosecute all proceedings
15to enforce the civil and administrative provisions of this
16Section before the Commission. The Commission shall promulgate
17procedural rules for enforcing this Section.
18    Upon the failure or refusal of any employer, service or
19adjustment company or insurance carrier to comply with the
20provisions of this Section and with the orders of the
21Commission under this Section, or the order of the court on
22review after final adjudication, the Commission may bring a
23civil action to recover the amount of the penalty in Cook
24County or in Sangamon County in which litigation the Commission
25shall be represented by the Attorney General. The Commission
26shall send notice of its finding of non-compliance and

 

 

HB5366- 36 -LRB101 18184 JLS 67626 b

1assessment of the civil penalty to the Attorney General. It
2shall be the duty of the Attorney General within 30 days after
3receipt of the notice, to institute prosecutions and promptly
4prosecute all reported violations of this Section.
5    Any individual employer, corporate officer or director of a
6corporate employer, partner of an employer partnership, or
7member of an employer limited liability company who, with the
8intent to avoid payment of compensation under this Act to an
9injured employee or the employee's dependents, knowingly
10transfers, sells, encumbers, assigns, or in any manner disposes
11of, conceals, secretes, or destroys any property belonging to
12the employer, officer, director, partner, or member is guilty
13of a Class 4 felony.
14    Penalties and fines collected pursuant to this paragraph
15(d) shall be deposited upon receipt into a special fund which
16shall be designated the Injured Workers' Benefit Fund, of which
17the State Treasurer is ex-officio custodian, such special fund
18to be held and disbursed in accordance with this paragraph (d)
19for the purposes hereinafter stated in this paragraph (d), upon
20the final order of the Commission. The Injured Workers' Benefit
21Fund shall be deposited the same as are State funds and any
22interest accruing thereon shall be added thereto every 6
23months. The Injured Workers' Benefit Fund is subject to audit
24the same as State funds and accounts and is protected by the
25general bond given by the State Treasurer. The Injured Workers'
26Benefit Fund is considered always appropriated for the purposes

 

 

HB5366- 37 -LRB101 18184 JLS 67626 b

1of disbursements as provided in this paragraph, and shall be
2paid out and disbursed as herein provided and shall not at any
3time be appropriated or diverted to any other use or purpose.
4Moneys in the Injured Workers' Benefit Fund shall be used only
5for payment of workers' compensation benefits for injured
6employees when the employer has failed to provide coverage as
7determined under this paragraph (d) and has failed to pay the
8benefits due to the injured employee. The Commission shall have
9the right to obtain reimbursement from the employer for
10compensation obligations paid by the Injured Workers' Benefit
11Fund. Any such amounts obtained shall be deposited by the
12Commission into the Injured Workers' Benefit Fund. If an
13injured employee or his or her personal representative receives
14payment from the Injured Workers' Benefit Fund, the State of
15Illinois has the same rights under paragraph (b) of Section 5
16that the employer who failed to pay the benefits due to the
17injured employee would have had if the employer had paid those
18benefits, and any moneys recovered by the State as a result of
19the State's exercise of its rights under paragraph (b) of
20Section 5 shall be deposited into the Injured Workers' Benefit
21Fund. The custodian of the Injured Workers' Benefit Fund shall
22be joined with the employer as a party respondent in the
23application for adjustment of claim. After July 1, 2006, the
24Commission shall make disbursements from the Fund once each
25year to each eligible claimant. An eligible claimant is an
26injured worker who has within the previous fiscal year obtained

 

 

HB5366- 38 -LRB101 18184 JLS 67626 b

1a final award for benefits from the Commission against the
2employer and the Injured Workers' Benefit Fund and has notified
3the Commission within 90 days of receipt of such award. Within
4a reasonable time after the end of each fiscal year, the
5Commission shall make a disbursement to each eligible claimant.
6At the time of disbursement, if there are insufficient moneys
7in the Fund to pay all claims, each eligible claimant shall
8receive a pro-rata share, as determined by the Commission, of
9the available moneys in the Fund for that year. Payment from
10the Injured Workers' Benefit Fund to an eligible claimant
11pursuant to this provision shall discharge the obligations of
12the Injured Workers' Benefit Fund regarding the award entered
13by the Commission.
14    (e) This Act shall not affect or disturb the continuance of
15any existing insurance, mutual aid, benefit, or relief
16association or department, whether maintained in whole or in
17part by the employer or whether maintained by the employees,
18the payment of benefits of such association or department being
19guaranteed by the employer or by some person, firm or
20corporation for him or her: Provided, the employer contributes
21to such association or department an amount not less than the
22full compensation herein provided, exclusive of the cost of the
23maintenance of such association or department and without any
24expense to the employee. This Act shall not prevent the
25organization and maintaining under the insurance laws of this
26State of any benefit or insurance company for the purpose of

 

 

HB5366- 39 -LRB101 18184 JLS 67626 b

1insuring against the compensation provided for in this Act, the
2expense of which is maintained by the employer. This Act shall
3not prevent the organization or maintaining under the insurance
4laws of this State of any voluntary mutual aid, benefit or
5relief association among employees for the payment of
6additional accident or sick benefits.
7    (f) No existing insurance, mutual aid, benefit or relief
8association or department shall, by reason of anything herein
9contained, be authorized to discontinue its operation without
10first discharging its obligations to any and all persons
11carrying insurance in the same or entitled to relief or
12benefits therein.
13    (g) Any contract, oral, written or implied, of employment
14providing for relief benefit, or insurance or any other device
15whereby the employee is required to pay any premium or premiums
16for insurance against the compensation provided for in this Act
17shall be null and void. Any employer withholding from the wages
18of any employee any amount for the purpose of paying any such
19premium shall be guilty of a Class B misdemeanor.
20    In the event the employer does not pay the compensation for
21which he or she is liable, then an insurance company,
22association or insurer which may have insured such employer
23against such liability shall become primarily liable to pay to
24the employee, his or her personal representative or beneficiary
25the compensation required by the provisions of this Act to be
26paid by such employer. The insurance carrier may be made a

 

 

HB5366- 40 -LRB101 18184 JLS 67626 b

1party to the proceedings in which the employer is a party and
2an award may be entered jointly against the employer and the
3insurance carrier.
4    (h) It shall be unlawful for any employer, insurance
5company or service or adjustment company to interfere with,
6demote, restrain, or coerce an employee in any manner
7whatsoever in the exercise of the rights or remedies granted to
8him or her by this Act or to discriminate, attempt to
9discriminate, or threaten to discriminate against an employee
10in any way because of his or her exercise of the rights or
11remedies granted to him or her by this Act.
12    It shall be unlawful for any employer, individually or
13through any insurance company or service or adjustment company,
14to demote, discharge, or to threaten to discharge, or to refuse
15to rehire or recall to active service in a suitable capacity an
16employee because of the exercise of his or her rights or
17remedies granted to him or her by this Act.
18    (i) If an employer elects to obtain a life insurance policy
19on his employees, he may also elect to apply such benefits in
20satisfaction of all or a portion of the death benefits payable
21under this Act, in which case, the employer's compensation
22premium shall be reduced accordingly.
23    (j) Within 45 days of receipt of an initial application or
24application to renew self-insurance privileges the
25Self-Insurers Advisory Board shall review and submit for
26approval by the Chairman of the Commission recommendations of

 

 

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1disposition of all initial applications to self-insure and all
2applications to renew self-insurance privileges filed by
3private self-insurers pursuant to the provisions of this
4Section and Section 4a-9 of this Act. Each private self-insurer
5shall submit with its initial and renewal applications the
6application fee required by Section 4a-4 of this Act.
7    The Chairman of the Commission shall promptly act upon all
8initial applications and applications for renewal in full
9accordance with the recommendations of the Board or, should the
10Chairman disagree with any recommendation of disposition of the
11Self-Insurer's Advisory Board, he shall within 30 days of
12receipt of such recommendation provide to the Board in writing
13the reasons supporting his decision. The Chairman shall also
14promptly notify the employer of his decision within 15 days of
15receipt of the recommendation of the Board.
16    If an employer is denied a renewal of self-insurance
17privileges pursuant to application it shall retain said
18privilege for 120 days after receipt of a notice of
19cancellation of the privilege from the Chairman of the
20Commission.
21    All orders made by the Chairman under this Section shall be
22subject to review by the courts, such review to be taken in the
23same manner and within the same time as provided by subsection
24(f) of Section 19 of this Act for review of awards and
25decisions of the Commission, upon the party seeking the review
26filing with the clerk of the court to which such review is

 

 

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1taken a bond in an amount to be fixed and approved by the court
2to which the review is taken, conditioned upon the payment of
3all compensation awarded against the person taking such review
4pending a decision thereof and further conditioned upon such
5other obligations as the court may impose. Upon the review the
6Circuit Court shall have power to review all questions of fact
7as well as of law.
8(Source: P.A. 101-384, eff. 1-1-20.)
 
9    Section 99. Effective date. This Act takes effect upon
10becoming law.