Full Text of SB1204 102nd General Assembly
SB1204sam003 102ND GENERAL ASSEMBLY | Sen. Linda Holmes Filed: 5/26/2021
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| 1 | | AMENDMENT TO SENATE BILL 1204
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1204 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The School Code is amended by changing | 5 | | Sections 10-23.5 and 24-11 as follows:
| 6 | | (105 ILCS 5/10-23.5) (from Ch. 122, par. 10-23.5)
| 7 | | Sec. 10-23.5. Educational support personnel employees. | 8 | | (a) To employ such
educational support personnel employees | 9 | | as it deems advisable and to define
their employment duties; | 10 | | provided that residency within any school district
shall not | 11 | | be considered in determining the employment or the | 12 | | compensation of
any such employee, or whether to retain, | 13 | | promote, assign or transfer such
employee. If an educational | 14 | | support personnel employee is removed or dismissed
or the | 15 | | hours he or she works are reduced as a result of a decision of | 16 | | the school board (i) to decrease the number of
educational |
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| 1 | | support personnel employees employed by the board or (ii) to | 2 | | discontinue
some particular type of educational support | 3 | | service, written notice shall be
mailed to the employee and | 4 | | also given to the employee either by certified mail,
return | 5 | | receipt requested, or personal delivery with receipt, at least | 6 | | 30 days before the employee is removed or dismissed or the | 7 | | hours he or she works are reduced, together with a statement of | 8 | | honorable dismissal and the reason
therefor if applicable. | 9 | | However, if a reduction in hours is due to an unforeseen | 10 | | reduction in the student population, then the written notice | 11 | | must be mailed and given to the employee at least 5 days before | 12 | | the hours are reduced. The employee with the shorter length of | 13 | | continuing service with the
district, within the respective | 14 | | category of position, shall be dismissed first
unless an | 15 | | alternative method of determining the sequence of dismissal is
| 16 | | established in a collective bargaining agreement or contract | 17 | | between the
board and any exclusive bargaining agent and | 18 | | except that this provision shall
not impair the operation of | 19 | | any affirmative action program in the district,
regardless of | 20 | | whether it exists by operation of law or is conducted on a
| 21 | | voluntary basis by the board. If the board has any vacancies | 22 | | for the following
school term or within one calendar year from | 23 | | the beginning of the following
school term, the positions | 24 | | thereby becoming available within a specific
category of | 25 | | position shall be tendered to the employees so removed or | 26 | | dismissed
from that category or any other category of |
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| 1 | | position, so far as they are qualified to hold such
positions. | 2 | | Each board shall, in consultation with any exclusive employee
| 3 | | representative or bargaining agent, each year establish a | 4 | | list, categorized
by positions, showing the length of | 5 | | continuing service of each full time
educational support | 6 | | personnel employee who is qualified to hold any such
| 7 | | positions, unless an alternative method of determining a | 8 | | sequence of dismissal
is established as
provided for in this | 9 | | Section, in which case a list shall be made in
accordance with | 10 | | the alternative method. Copies of the list shall be
| 11 | | distributed to the exclusive employee representative or | 12 | | bargaining agent on
or before February 1 of each year. | 13 | | If an educational support personnel employee is removed or | 14 | | dismissed as a result of a decision of the board to decrease | 15 | | the number of educational support personnel employed by the | 16 | | board or to discontinue some particular type of educational | 17 | | support service and he or she accepts the tender of a vacancy | 18 | | within one calendar year from the beginning of the following | 19 | | school term, then that employee shall maintain any rights | 20 | | accrued during his or her previous service with the school | 21 | | district. | 22 | | Where an educational support personnel
employee is | 23 | | dismissed by the board as a result of a
decrease in the number | 24 | | of employees or the discontinuance of the employee's
job, the | 25 | | employee shall be paid all earned compensation on or before | 26 | | the
next regular pay date following his or her last day of |
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| 1 | | employment.
| 2 | | The provisions of this amendatory Act of 1986 relating to | 3 | | residency
within any school district shall not apply to cities | 4 | | having a population
exceeding 500,000 inhabitants.
| 5 | | (b) In the case of a new school district or districts | 6 | | formed in accordance with Article 11E of this Code, a school | 7 | | district or districts that annex all of the territory of one or | 8 | | more entire other school districts in accordance with Article | 9 | | 7 of this Code, or a school district receiving students from a | 10 | | deactivated school facility in accordance with Section | 11 | | 10-22.22b of this Code, or a special education cooperative | 12 | | that dissolves or reorganizes, the employment of educational | 13 | | support personnel in the new, annexing, or receiving school | 14 | | district immediately following the reorganization shall be | 15 | | governed by this subsection (b). Lists of the educational | 16 | | support personnel employed in the individual districts for the | 17 | | school year immediately prior to the effective date of the new | 18 | | district or districts, annexation, or deactivation shall be | 19 | | combined for the districts forming the new district or | 20 | | districts, for the annexed and annexing districts, or for the | 21 | | deactivating and receiving districts, as the case may be. The | 22 | | combined list shall be categorized by positions, showing the | 23 | | length of continuing service of each full-time educational | 24 | | support personnel employee who is qualified to hold any such | 25 | | position. If there are more full-time educational support | 26 | | personnel employees on the combined list than there are |
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| 1 | | available positions in the new, annexing, or receiving school | 2 | | district, then the employing school board shall first remove | 3 | | or dismiss those educational support personnel employees with | 4 | | the shorter length of continuing service within the respective | 5 | | category of position, following the procedures outlined in | 6 | | subsection (a) of this Section. The employment and position of | 7 | | each educational support personnel employee on the combined | 8 | | list not so removed or dismissed shall be transferred to the | 9 | | new, annexing, or receiving school board, and the new, | 10 | | annexing, or receiving school board is subject to this Code | 11 | | with respect to any educational support personnel employee so | 12 | | transferred as if the educational support personnel employee | 13 | | had been the new, annexing, or receiving board's employee | 14 | | during the time the educational support personnel employee was | 15 | | actually employed by the school board of the district from | 16 | | which the employment and position were transferred. | 17 | | The changes made by Public Act 95-148
shall not apply to | 18 | | the formation of a new district or districts in accordance | 19 | | with Article 11E of this Code, the annexation of one or more | 20 | | entire districts in accordance with Article 7 of this Code, or | 21 | | the deactivation of a school facility in accordance with | 22 | | Section 10-22.22b of this Code effective on or before July 1, | 23 | | 2007.
| 24 | | (Source: P.A. 101-46, eff. 7-12-19.)
| 25 | | (105 ILCS 5/24-11) (from Ch. 122, par. 24-11)
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| 1 | | Sec. 24-11. Boards of Education - Boards of School | 2 | | Inspectors -
Contractual continued service. | 3 | | (a) As used in this and the succeeding
Sections of this | 4 | | Article:
| 5 | | "Teacher" means any or all school district employees | 6 | | regularly required to be
certified under laws relating to the | 7 | | certification of teachers.
| 8 | | "Board" means board of directors, board of education, or | 9 | | board of school
inspectors, as the case may be.
| 10 | | "School term" means that portion of the school year, July | 11 | | 1 to the following
June 30, when school is in actual session.
| 12 | | "Program" means a program of a special education joint | 13 | | agreement. | 14 | | "Program of a special education joint agreement" means | 15 | | instructional, consultative, supervisory, administrative, | 16 | | diagnostic, and related services that are managed by a special | 17 | | educational joint agreement designed to service 2 or more | 18 | | school districts that are members of the joint agreement. | 19 | | "PERA implementation date" means the implementation date | 20 | | of an evaluation system for teachers as specified by Section | 21 | | 24A-2.5 of this Code for all schools within a school district | 22 | | or all programs of a special education joint agreement. | 23 | | (b) This Section and Sections 24-12 through 24-16 of this | 24 | | Article apply only to
school districts having less than | 25 | | 500,000 inhabitants.
| 26 | | (c) Any teacher who is first employed as a full-time |
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| 1 | | teacher in a school district or program prior to the PERA | 2 | | implementation date and who is employed in that district or | 3 | | program for
a probationary period of 4 consecutive school | 4 | | terms shall enter upon
contractual continued service in the | 5 | | district or in all of the programs that the teacher is legally | 6 | | qualified to hold, unless the teacher is given written notice | 7 | | of dismissal by certified mail, return receipt requested, by
| 8 | | the employing board at least 45 days before the end of any | 9 | | school term within such
period.
| 10 | | (d) For any teacher who is first employed as a full-time | 11 | | teacher in a school district or program on or after the PERA | 12 | | implementation date, the probationary period shall be one of | 13 | | the following periods, based upon the teacher's school terms | 14 | | of service and performance, before the teacher shall enter | 15 | | upon contractual continued service in the district or in all | 16 | | of the programs that the teacher is legally qualified to hold, | 17 | | unless the teacher is given written notice of dismissal by | 18 | | certified mail, return receipt requested, by the employing | 19 | | board at least 45 days before the end of any school term within | 20 | | such period: | 21 | | (1) 4 consecutive school terms of service in which the | 22 | | teacher receives overall annual evaluation ratings of at | 23 | | least "Proficient" in the last school term and at least | 24 | | "Proficient" in either the second or third school term; | 25 | | (2) 3 consecutive school terms of service in which the | 26 | | teacher receives 3 overall annual evaluations of |
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| 1 | | "Excellent"; or | 2 | | (3) 2 consecutive school terms of service in which the | 3 | | teacher receives 2 overall annual evaluations of | 4 | | "Excellent" service, but only if the teacher (i) | 5 | | previously attained contractual continued service in a | 6 | | different school district or program in this State, (ii) | 7 | | voluntarily departed or was honorably dismissed from that | 8 | | school district or program in the school term immediately | 9 | | prior to the teacher's first school term of service | 10 | | applicable to the attainment of contractual continued | 11 | | service under this subdivision (3), and (iii) received, in | 12 | | his or her 2 most recent overall annual or biennial | 13 | | evaluations from the prior school district or program, | 14 | | ratings of at least "Proficient", with both such ratings | 15 | | occurring after the school district's or program's PERA | 16 | | implementation date. For a teacher to attain contractual | 17 | | continued service under this subdivision (3), the teacher | 18 | | shall provide official copies of his or her 2 most recent | 19 | | overall annual or biennial evaluations from the prior | 20 | | school district or program to the new school district or | 21 | | program within 60 days from the teacher's first day of | 22 | | service with the new school district or program. The prior | 23 | | school district or program must provide the teacher with | 24 | | official copies of his or her 2 most recent overall annual | 25 | | or biennial evaluations within 14 days after the teacher's | 26 | | request. If a teacher has requested such official copies |
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| 1 | | prior to 45 days after the teacher's first day of service | 2 | | with the new school district or program and the teacher's | 3 | | prior school district or program fails to provide the | 4 | | teacher with the official copies required under this | 5 | | subdivision (3), then the time period for the teacher to | 6 | | submit the official copies to his or her new school | 7 | | district or program must be extended until 14 days after | 8 | | receipt of such copies from the prior school district or | 9 | | program. If the prior school district or program fails to | 10 | | provide the teacher with the official copies required | 11 | | under this subdivision (3) within 90 days from the | 12 | | teacher's first day of service with the new school | 13 | | district or program, then the new school district or | 14 | | program shall rely upon the teacher's own copies of his or | 15 | | her evaluations for purposes of this subdivision (3). | 16 | | If the teacher does not receive overall annual evaluations | 17 | | of "Excellent" in the school terms necessary for eligibility | 18 | | to achieve accelerated contractual continued service in | 19 | | subdivisions (2) and (3) of this subsection (d), the teacher | 20 | | shall be eligible for contractual continued service pursuant | 21 | | to subdivision (1) of this subsection (d). If, at the | 22 | | conclusion of 4 consecutive school terms of service that count | 23 | | toward attainment of contractual continued service, the | 24 | | teacher's performance does not qualify the teacher for | 25 | | contractual continued service under subdivision (1) of this | 26 | | subsection (d), then the teacher shall not enter upon |
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| 1 | | contractual continued service and shall be dismissed. If a | 2 | | performance evaluation is not conducted for any school term | 3 | | when such evaluation is required to be conducted under Section | 4 | | 24A-5 of this Code, then the teacher's performance evaluation | 5 | | rating for such school term for purposes of determining the | 6 | | attainment of contractual continued service shall be deemed | 7 | | "Proficient", except that, during any time in which the | 8 | | Governor has declared a disaster due to a public health | 9 | | emergency pursuant to Section 7 of the Illinois Emergency | 10 | | Management Agency Act, this default to "Proficient" does not | 11 | | apply to any teacher who has entered into contractual | 12 | | continued service and who was deemed "Excellent" on his or her | 13 | | most recent evaluation. During any time in which the Governor | 14 | | has declared a disaster due to a public health emergency | 15 | | pursuant to Section 7 of the Illinois Emergency Management | 16 | | Agency Act and unless the school board and any exclusive | 17 | | bargaining representative have completed the performance | 18 | | rating for teachers or mutually agreed to an alternate | 19 | | performance rating, any teacher who has entered into | 20 | | contractual continued service, whose most recent evaluation | 21 | | was deemed "Excellent", and whose performance evaluation is | 22 | | not conducted when the evaluation is required to be conducted | 23 | | shall receive a teacher's performance rating deemed | 24 | | "Excellent". A school board and any exclusive bargaining | 25 | | representative may mutually agree to an alternate performance | 26 | | rating for teachers not in contractual continued service |
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| 1 | | during any time in which the Governor has declared a disaster | 2 | | due to a public health emergency pursuant to Section 7 of the | 3 | | Illinois Emergency Management Agency Act, as long as the | 4 | | agreement is in writing. | 5 | | (e) For the purposes of determining contractual continued | 6 | | service, a school term shall be counted only toward attainment | 7 | | of contractual continued service if the teacher actually | 8 | | teaches or is otherwise present and participating in the | 9 | | district's or program's educational program for 120 days or | 10 | | more, provided that the days of leave under the federal Family | 11 | | Medical Leave Act that the teacher is required to take until | 12 | | the end of the school term shall be considered days of teaching | 13 | | or participation in the district's or program's educational | 14 | | program. A school term that is not counted toward attainment | 15 | | of contractual continued service shall not be considered a | 16 | | break in service for purposes of determining whether a teacher | 17 | | has been employed for 4 consecutive school terms, provided | 18 | | that the teacher actually teaches or is otherwise present and | 19 | | participating in the district's or program's educational | 20 | | program in the following school term. | 21 | | (f) If the employing board determines to dismiss the | 22 | | teacher in the last year of the probationary period as | 23 | | provided in subsection (c) of this Section or subdivision (1) | 24 | | or (2) of subsection (d) of this Section, but not subdivision | 25 | | (3) of subsection (d) of this Section, the written notice of | 26 | | dismissal provided by the employing board must contain |
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| 1 | | specific reasons for dismissal. Any full-time teacher who does | 2 | | not receive written notice from the employing board at least | 3 | | 45 days before the end of any school term as provided in this | 4 | | Section and whose performance does not require dismissal after | 5 | | the fourth probationary year pursuant to subsection (d) of | 6 | | this Section shall be re-employed for the following school | 7 | | term.
| 8 | | (g) Contractual continued service shall continue in effect | 9 | | the terms and
provisions of the contract with the teacher | 10 | | during the last school term
of the probationary period, | 11 | | subject to this Act and the lawful
regulations of the | 12 | | employing board. This Section and succeeding Sections
do not | 13 | | modify any existing power of the board except with respect to | 14 | | the
procedure of the discharge of a teacher and reductions in | 15 | | salary as
hereinafter provided. Contractual continued service | 16 | | status shall not
restrict the power of the board to transfer a | 17 | | teacher to a position
which the teacher is qualified to fill or | 18 | | to make such salary
adjustments as it deems desirable, but | 19 | | unless reductions in salary are
uniform or based upon some | 20 | | reasonable classification, any teacher whose
salary is reduced | 21 | | shall be entitled to a notice and a hearing as
hereinafter | 22 | | provided in the case of certain dismissals or removals.
| 23 | | (h) If, by reason of any change in the boundaries of school | 24 | | districts , by reason of special education cooperative | 25 | | reorganizations, or by reason of the creation of a new school | 26 | | district, the position held by any teacher having a |
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| 1 | | contractual continued service status is transferred from one | 2 | | board to the control of a new or different board, then the | 3 | | contractual continued service status of the teacher is not | 4 | | thereby lost, and such new or different board is subject to | 5 | | this Code with respect to the teacher in the same manner as if | 6 | | the teacher were its employee and had been its employee during | 7 | | the time the teacher was actually employed by the board from | 8 | | whose control the position was transferred. | 9 | | (i) The employment of any teacher in a program of a special | 10 | | education joint
agreement established under Section 3-15.14, | 11 | | 10-22.31 or 10-22.31a shall be governed by
this and succeeding | 12 | | Sections of this Article. For purposes of
attaining and | 13 | | maintaining contractual continued service and computing
length | 14 | | of continuing service as referred to in this Section and | 15 | | Section
24-12, employment in a special educational joint | 16 | | program shall be deemed a
continuation of all previous | 17 | | certificated employment of such teacher for
such joint | 18 | | agreement whether the employer of the teacher was the joint
| 19 | | agreement, the regional superintendent, or one of the | 20 | | participating
districts in the joint agreement.
| 21 | | (j) For any teacher employed after July 1, 1987 as a | 22 | | full-time teacher in a program of a special education joint | 23 | | agreement, whether the program is operated by the joint | 24 | | agreement or a member district on behalf of the joint | 25 | | agreement, in the event of a reduction in the number of | 26 | | programs or positions in the joint agreement in which the |
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| 1 | | notice of dismissal is provided on or before the end of the | 2 | | 2010-2011 school term, the teacher in contractual continued | 3 | | service is eligible for employment in the joint agreement | 4 | | programs for which the teacher is legally qualified in order | 5 | | of greater length of continuing service in the joint | 6 | | agreement, unless an alternative method of determining the | 7 | | sequence of dismissal is established in a collective | 8 | | bargaining agreement. For any teacher employed after July 1, | 9 | | 1987 as a full-time teacher in a program of a special education | 10 | | joint agreement, whether the program is operated by the joint | 11 | | agreement or a member district on behalf of the joint | 12 | | agreement, in the event of a reduction in the number of | 13 | | programs or positions in the joint agreement in which the | 14 | | notice of dismissal is provided during the 2011-2012 school | 15 | | term or a subsequent school term, the teacher shall be | 16 | | included on the honorable dismissal lists of all joint | 17 | | agreement programs for positions for which the teacher is | 18 | | qualified and is eligible for employment in such programs in | 19 | | accordance with subsections (b) and (c) of Section 24-12 of | 20 | | this Code and the applicable honorable dismissal policies of | 21 | | the joint agreement. | 22 | | (k) For any teacher employed after July 1, 1987 as a | 23 | | full-time teacher in a program of a special education joint | 24 | | agreement, whether the program is operated by the joint | 25 | | agreement or a member district on behalf of the joint | 26 | | agreement, in the event of the dissolution of a joint |
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| 1 | | agreement, in which the notice to teachers of the dissolution | 2 | | is provided during the 2010-2011 school term, the teacher in | 3 | | contractual continued service who is legally qualified shall | 4 | | be assigned to any comparable position in a member district | 5 | | currently held by a teacher who has not entered upon | 6 | | contractual continued service or held by a teacher who has | 7 | | entered upon contractual continued service with a shorter | 8 | | length of contractual continued service. Any teacher employed | 9 | | after July 1, 1987 as a full-time teacher in a program of a | 10 | | special education joint agreement, whether the program is | 11 | | operated by the joint agreement or a member district on behalf | 12 | | of the joint agreement, in the event of the dissolution of a | 13 | | joint agreement in which the notice to teachers of the | 14 | | dissolution is provided during the 2011-2012 school term or a | 15 | | subsequent school term, the teacher who is qualified shall be | 16 | | included on the order of honorable dismissal lists of each | 17 | | member district and shall be assigned to any comparable | 18 | | position in any such district in accordance with subsections | 19 | | (b) and (c) of Section 24-12 of this Code and the applicable | 20 | | honorable dismissal policies of each member district.
| 21 | | (l) The governing board of the joint agreement, or the | 22 | | administrative
district, if so authorized by the articles of | 23 | | agreement of the joint
agreement, rather than the board of | 24 | | education of a school district, may
carry out employment and | 25 | | termination actions including dismissals under
this Section | 26 | | and Section 24-12.
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| 1 | | (m) The employment of any teacher in a special education | 2 | | program
authorized by Section 14-1.01 through 14-14.01, or a | 3 | | joint educational
program established under Section 10-22.31a, | 4 | | shall be under this and the
succeeding Sections of this | 5 | | Article, and such employment shall be deemed
a continuation of | 6 | | the previous employment of such teacher in any of the
| 7 | | participating districts, regardless of the participation of | 8 | | other
districts in the program. | 9 | | (n) Any teacher employed as a full-time teacher in
a | 10 | | special education program prior to September 23, 1987 in which | 11 | | 2 or
more school districts
participate for a probationary | 12 | | period of 2 consecutive years shall enter
upon contractual | 13 | | continued service in each of the participating
districts, | 14 | | subject to this and the succeeding Sections of this Article,
| 15 | | and, notwithstanding Section 24-1.5 of this Code, in the event | 16 | | of the termination of the program shall be eligible for
any | 17 | | vacant position in any of such districts for which such | 18 | | teacher is
qualified.
| 19 | | (Source: P.A. 101-643, eff. 6-18-20.)
| 20 | | Section 10. The Workers' Compensation Act is amended by | 21 | | changing Section 4 as follows:
| 22 | | (820 ILCS 305/4) (from Ch. 48, par. 138.4)
| 23 | | (Text of Section from P.A. 101-40) | 24 | | Sec. 4. (a) Any employer, including but not limited to |
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| 1 | | general contractors
and their subcontractors, who shall come | 2 | | within the provisions of
Section 3 of this Act, and any other | 3 | | employer who shall elect to provide
and pay the compensation | 4 | | provided for in this Act shall:
| 5 | | (1) File with the Commission annually an application | 6 | | for approval as a
self-insurer which shall include a | 7 | | current financial statement, and
annually, thereafter, an | 8 | | application for renewal of self-insurance, which
shall | 9 | | include a current financial statement. Said
application | 10 | | and financial statement shall be signed and sworn to by | 11 | | the
president or vice president and secretary or assistant | 12 | | secretary of the
employer if it be a corporation, or by all | 13 | | of the partners, if it be a
copartnership, or by the owner | 14 | | if it be neither a copartnership nor a
corporation. All | 15 | | initial applications and all applications for renewal of
| 16 | | self-insurance must be submitted at least 60 days prior to | 17 | | the requested
effective date of self-insurance. An | 18 | | employer may elect to provide and pay
compensation as | 19 | | provided
for in this Act as a member of a group workers' | 20 | | compensation pool under Article
V 3/4 of the Illinois | 21 | | Insurance Code. If an employer becomes a member of a
group | 22 | | workers' compensation pool, the employer shall not be | 23 | | relieved of any
obligations imposed by this Act.
| 24 | | If the sworn application and financial statement of | 25 | | any such employer
does not satisfy the Commission of the | 26 | | financial ability of the employer
who has filed it, the |
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| 1 | | Commission shall require such employer to,
| 2 | | (2) Furnish security, indemnity or a bond guaranteeing | 3 | | the payment
by the employer of the compensation provided | 4 | | for in this Act, provided
that any such employer whose | 5 | | application and financial statement shall
not have | 6 | | satisfied the commission of his or her financial ability | 7 | | and
who shall have secured his liability in part by excess | 8 | | liability insurance
shall be required to furnish to the | 9 | | Commission security, indemnity or bond
guaranteeing his or | 10 | | her payment up to the effective limits of the excess
| 11 | | coverage, or
| 12 | | (3) Insure his entire liability to pay such | 13 | | compensation in some
insurance carrier authorized, | 14 | | licensed, or permitted to do such
insurance business in | 15 | | this State. Every policy of an insurance carrier,
insuring | 16 | | the payment of compensation under this Act shall cover all | 17 | | the
employees and the entire compensation liability of the | 18 | | insured:
Provided, however, that any employer may insure | 19 | | his or her compensation
liability with 2 or more insurance | 20 | | carriers or may insure a part and
qualify under subsection | 21 | | 1, 2, or 4 for the remainder of his or her
liability to pay | 22 | | such compensation, subject to the following two | 23 | | provisions:
| 24 | | Firstly, the entire compensation liability of the | 25 | | employer to
employees working at or from one location | 26 | | shall be insured in one such
insurance carrier or |
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| 1 | | shall be self-insured, and
| 2 | | Secondly, the employer shall submit evidence | 3 | | satisfactorily to the
Commission that his or her | 4 | | entire liability for the compensation provided
for in | 5 | | this Act will be secured. Any provisions in any | 6 | | policy, or in any
endorsement attached thereto, | 7 | | attempting to limit or modify in any way,
the | 8 | | liability of the insurance carriers issuing the same | 9 | | except as
otherwise provided herein shall be wholly | 10 | | void.
| 11 | | Nothing herein contained shall apply to policies of | 12 | | excess liability
carriage secured by employers who have | 13 | | been approved by the Commission
as self-insurers, or
| 14 | | (4) Make some other provision, satisfactory to the | 15 | | Commission, for
the securing of the payment of | 16 | | compensation provided for in this Act,
and
| 17 | | (5) Upon becoming subject to this Act and thereafter | 18 | | as often as the
Commission may in writing demand, file | 19 | | with the Commission in form prescribed
by it evidence of | 20 | | his or her compliance with the provision of this Section.
| 21 | | (a-1) Regardless of its state of domicile or its principal | 22 | | place of
business, an employer shall make payments to its | 23 | | insurance carrier or group
self-insurance fund, where | 24 | | applicable, based upon the premium rates of the
situs where | 25 | | the work or project is located in Illinois if:
| 26 | | (A) the employer is engaged primarily in the building |
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| 1 | | and
construction industry; and
| 2 | | (B) subdivision (a)(3) of this Section applies to the | 3 | | employer or
the employer is a member of a group | 4 | | self-insurance plan as defined in
subsection (1) of | 5 | | Section 4a.
| 6 | | The Illinois Workers' Compensation Commission shall impose | 7 | | a penalty upon an employer
for violation of this subsection | 8 | | (a-1) if:
| 9 | | (i) the employer is given an opportunity at a hearing | 10 | | to present
evidence of its compliance with this subsection | 11 | | (a-1); and
| 12 | | (ii) after the hearing, the Commission finds that the | 13 | | employer
failed to make payments upon the premium rates of | 14 | | the situs where the work or
project is located in | 15 | | Illinois.
| 16 | | The penalty shall not exceed $1,000 for each day of work | 17 | | for which
the employer failed to make payments upon the | 18 | | premium rates of the situs where
the
work or project is located | 19 | | in Illinois, but the total penalty shall not exceed
$50,000 | 20 | | for each project or each contract under which the work was
| 21 | | performed.
| 22 | | Any penalty under this subsection (a-1) must be imposed | 23 | | not later
than one year after the expiration of the applicable | 24 | | limitation period
specified in subsection (d) of Section 6 of | 25 | | this Act. Penalties imposed under
this subsection (a-1) shall | 26 | | be deposited into the Illinois Workers' Compensation |
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| 1 | | Commission
Operations Fund, a special fund that is created in | 2 | | the State treasury. Subject
to appropriation, moneys in the | 3 | | Fund shall be used solely for the operations
of the Illinois | 4 | | Workers' Compensation Commission, the salaries and benefits of | 5 | | the Self-Insurers Advisory Board employees, the operating | 6 | | costs of the Self-Insurers Advisory Board, and by the | 7 | | Department of Insurance for the purposes authorized in | 8 | | subsection (c) of Section 25.5 of this Act.
| 9 | | (a-2) Every Employee Leasing Company (ELC), as defined in | 10 | | Section 15 of the Employee Leasing Company Act, shall at a | 11 | | minimum provide the following information to the Commission or | 12 | | any entity designated by the Commission regarding each | 13 | | workers' compensation insurance policy issued to the ELC: | 14 | | (1) Any client company of the ELC listed as an | 15 | | additional named insured. | 16 | | (2) Any informational schedule attached to the master | 17 | | policy that identifies any individual client company's | 18 | | name, FEIN, and job location. | 19 | | (3) Any certificate of insurance coverage document | 20 | | issued to a client company specifying its rights and | 21 | | obligations under the master policy that establishes both | 22 | | the identity and status of the client, as well as the dates | 23 | | of inception and termination of coverage, if applicable. | 24 | | (b) The sworn application and financial statement, or | 25 | | security,
indemnity or bond, or amount of insurance, or other | 26 | | provisions, filed,
furnished, carried, or made by the |
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| 1 | | employer, as the case may be, shall
be subject to the approval | 2 | | of the Commission.
| 3 | | Deposits under escrow agreements shall be cash, negotiable | 4 | | United
States government bonds or negotiable general | 5 | | obligation bonds of the
State of Illinois. Such cash or bonds | 6 | | shall be deposited in
escrow with any State or National Bank or | 7 | | Trust Company having trust
authority in the State of Illinois.
| 8 | | Upon the approval of the sworn application and financial | 9 | | statement,
security, indemnity or bond or amount of insurance, | 10 | | filed, furnished or
carried, as the case may be, the | 11 | | Commission shall send to the employer
written notice of its | 12 | | approval thereof. The certificate of compliance
by the | 13 | | employer with the provisions of subparagraphs (2) and (3) of
| 14 | | paragraph (a) of this Section shall be delivered by the | 15 | | insurance
carrier to the Illinois Workers' Compensation | 16 | | Commission within five days after the
effective date of the | 17 | | policy so certified. The insurance so certified
shall cover | 18 | | all compensation liability occurring during the time that
the | 19 | | insurance is in effect and no further certificate need be | 20 | | filed in case
such insurance is renewed, extended or otherwise | 21 | | continued by such
carrier. The insurance so certified shall | 22 | | not be cancelled or in the
event that such insurance is not | 23 | | renewed, extended or otherwise
continued, such insurance shall | 24 | | not be terminated until at least 10
days after receipt by the | 25 | | Illinois Workers' Compensation Commission of notice of the
| 26 | | cancellation or termination of said insurance; provided, |
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| 1 | | however, that
if the employer has secured insurance from | 2 | | another insurance carrier, or
has otherwise secured the | 3 | | payment of compensation in accordance with
this Section, and | 4 | | such insurance or other security becomes effective
prior to | 5 | | the expiration of the 10 days, cancellation or termination | 6 | | may, at
the option of the insurance carrier indicated in such | 7 | | notice, be effective
as of the effective date of such other | 8 | | insurance or security.
| 9 | | (c) Whenever the Commission shall find that any | 10 | | corporation,
company, association, aggregation of individuals, | 11 | | reciprocal or
interinsurers exchange, or other insurer | 12 | | effecting workers' compensation
insurance in this State shall | 13 | | be insolvent, financially unsound, or
unable to fully meet all | 14 | | payments and liabilities assumed or to be
assumed for | 15 | | compensation insurance in this State, or shall practice 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
corporation, company, | 20 | | association, aggregation of individuals,
reciprocal or | 21 | | interinsurers exchange, or insurer, shall from and after a
| 22 | | date fixed in such order discontinue the writing of any such | 23 | | workers'
compensation insurance in this State. Subject to such | 24 | | modification of
the order as the Commission may later make on | 25 | | review of the order,
as herein provided, it shall thereupon be | 26 | | unlawful for any such
corporation, company, association, |
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| 1 | | aggregation of individuals,
reciprocal or interinsurers | 2 | | exchange, or insurer to effect any workers'
compensation | 3 | | insurance in this State. A copy of the order shall be served
| 4 | | upon the Director of Insurance by registered mail. Whenever | 5 | | the Commission
finds that any service or adjustment company | 6 | | used or employed
by a self-insured employer or by an insurance | 7 | | carrier to process,
adjust, investigate, compromise or | 8 | | otherwise handle claims under this
Act, has practiced or is | 9 | | practicing a policy of delay or unfairness
toward employees in | 10 | | the adjustment, settlement or payment of benefits
due such | 11 | | employees, the Commission may after reasonable notice and
| 12 | | hearing order and direct that such service or adjustment | 13 | | company shall
from and after a date fixed in such order be | 14 | | prohibited from processing,
adjusting, investigating, | 15 | | compromising or otherwise handling claims
under this Act.
| 16 | | Whenever the Commission finds that any self-insured | 17 | | employer has
practiced or is practicing delay or unfairness | 18 | | toward employees in the
adjustment, settlement or payment of | 19 | | benefits due such employees, the
Commission may, after | 20 | | reasonable notice and hearing, order and direct
that after a | 21 | | date fixed in the order such self-insured employer shall be
| 22 | | disqualified to operate as a self-insurer and shall be | 23 | | required to
insure his entire liability to pay compensation in | 24 | | some insurance
carrier authorized, licensed and permitted to | 25 | | do such insurance business
in this State, as provided in | 26 | | subparagraph 3 of paragraph (a) of this
Section.
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| 1 | | All orders made by the Commission under this Section shall | 2 | | be subject
to review by the courts, said review to be taken in | 3 | | the same manner and
within the same time as provided by Section | 4 | | 19 of this Act for review of
awards and decisions of the | 5 | | Commission, upon the party seeking the
review filing with the | 6 | | clerk of the court to which said review is taken
a bond in an | 7 | | amount to be fixed and approved by the court to which the
| 8 | | review is taken, conditioned upon the payment of all | 9 | | compensation awarded
against the person taking said review | 10 | | pending a decision thereof and
further conditioned upon such | 11 | | other obligations as the court may impose.
Upon the review the | 12 | | Circuit Court shall have power to review all questions
of fact | 13 | | as well as of law. The penalty hereinafter provided for in this
| 14 | | paragraph shall not attach and shall not begin to run until the | 15 | | final
determination of the order of the Commission.
| 16 | | (d) Whenever a Commissioner, with due process and after a | 17 | | hearing, determines an employer has knowingly failed to | 18 | | provide coverage as required by paragraph (a) of this Section, | 19 | | the failure shall be deemed an immediate serious danger to | 20 | | public health, safety, and welfare sufficient to justify | 21 | | service by the Commission of a work-stop order on such | 22 | | employer, requiring the cessation of all business operations | 23 | | of such employer at the place of employment or job site. If a | 24 | | business is declared to be extra hazardous, as defined in | 25 | | Section 3, a Commissioner may issue an emergency work-stop | 26 | | order on such an employer ex parte, prior to holding a hearing, |
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| 1 | | requiring the cessation of all business operations of such | 2 | | employer at the place of employment or job site while awaiting | 3 | | the ruling of the Commission. Whenever a Commissioner issues | 4 | | an emergency work-stop order, the Commission shall issue a | 5 | | notice of emergency work-stop hearing to be posted at the | 6 | | employer's places of employment and job sites. Any law | 7 | | enforcement agency in the State shall, at the request of the | 8 | | Commission, render any assistance necessary to carry out the | 9 | | provisions of this Section, including, but not limited to, | 10 | | preventing any employee of such employer from remaining at a | 11 | | place of employment or job site after a work-stop order has | 12 | | taken effect. Any work-stop order shall be lifted upon proof | 13 | | of insurance as required by this Act. Any orders under this | 14 | | Section are appealable under Section 19(f) to the Circuit | 15 | | Court.
| 16 | | Any individual employer, corporate officer or director of | 17 | | a corporate employer, partner of an employer partnership, or | 18 | | member of an employer limited liability company who knowingly | 19 | | fails to provide coverage as required by paragraph (a) of this | 20 | | Section is guilty of a Class 4 felony. This provision shall not | 21 | | apply to any corporate officer or director of any | 22 | | publicly-owned corporation. Each day's violation constitutes a | 23 | | separate offense. The State's Attorney of the county in which | 24 | | the violation occurred, or the Attorney General, shall bring | 25 | | such actions in the name of the People of the State of | 26 | | Illinois, or may, in addition to other remedies provided in |
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| 1 | | this Section, bring an action for an injunction to restrain | 2 | | the violation or to enjoin the operation of any such employer.
| 3 | | Any individual employer, corporate officer or director of | 4 | | a corporate employer, partner of an employer partnership, or | 5 | | member of an employer limited liability company who | 6 | | negligently fails to provide coverage as required by paragraph | 7 | | (a) of this Section is guilty of a Class A misdemeanor. This | 8 | | provision shall not apply to any corporate officer or director | 9 | | of any publicly-owned corporation. Each day's violation | 10 | | constitutes a separate offense. The State's Attorney of the | 11 | | county in which the violation occurred, or the Attorney | 12 | | General, shall bring such actions in the name of the People of | 13 | | the State of Illinois.
| 14 | | The criminal penalties in this subsection (d) shall not | 15 | | apply where
there exists a good faith dispute as to the | 16 | | existence of an
employment relationship. Evidence of good | 17 | | faith shall
include, but not be limited to, compliance with | 18 | | the definition
of employee as used by the Internal Revenue | 19 | | Service.
| 20 | | All investigative actions must be acted upon within 90 | 21 | | days of the issuance of the complaint. Employers who are | 22 | | subject to and who knowingly fail to comply with this Section | 23 | | shall not be entitled to the benefits of this Act during the | 24 | | period of noncompliance, but shall be liable in an action | 25 | | under any other applicable law of this State. In the action, | 26 | | such employer shall not avail himself or herself of the |
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| 1 | | defenses of assumption of risk or negligence or that the | 2 | | injury was due to a co-employee. In the action, proof of the | 3 | | injury shall constitute prima facie evidence of negligence on | 4 | | the part of such employer and the burden shall be on such | 5 | | employer to show freedom of negligence resulting in the | 6 | | injury. The employer shall not join any other defendant in any | 7 | | such civil action. Nothing in this amendatory Act of the 94th | 8 | | General Assembly shall affect the employee's rights under | 9 | | subdivision (a)3 of Section 1 of this Act. Any employer or | 10 | | carrier who makes payments under subdivision (a)3 of Section 1 | 11 | | of this Act shall have a right of reimbursement from the | 12 | | proceeds of any recovery under this Section.
| 13 | | An employee of an uninsured employer, or the employee's | 14 | | dependents in case death ensued, may, instead of proceeding | 15 | | against the employer in a civil action in court, file an | 16 | | application for adjustment of claim with the Commission in | 17 | | accordance with the provisions of this Act and the Commission | 18 | | shall hear and determine the application for adjustment of | 19 | | claim in the manner in which other claims are heard and | 20 | | determined before the Commission.
| 21 | | All proceedings under this subsection (d) shall be | 22 | | reported on an annual basis to the Workers' Compensation | 23 | | Advisory Board.
| 24 | | An investigator with the Illinois Workers' Compensation | 25 | | Commission Insurance Compliance Division may issue a citation | 26 | | to any employer that is not in compliance with its obligation |
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| 1 | | to have workers' compensation insurance under this Act. The | 2 | | amount of the fine shall be based on the period of time the | 3 | | employer was in non-compliance, but shall be no less than | 4 | | $500, and shall not exceed $10,000. An employer that has been | 5 | | issued a citation shall pay the fine to the Commission and | 6 | | provide to the Commission proof that it obtained the required | 7 | | workers' compensation insurance within 10 days after the | 8 | | citation was issued. This Section does not affect any other | 9 | | obligations this Act imposes on employers. | 10 | | Upon a finding by the Commission, after reasonable notice | 11 | | and
hearing, of the knowing and willful failure or refusal of | 12 | | an employer to
comply with
any of the provisions of paragraph | 13 | | (a) of this Section, the failure or
refusal of an employer, | 14 | | service or adjustment company, or an insurance
carrier to | 15 | | comply with any order of the Illinois Workers' Compensation | 16 | | Commission pursuant to
paragraph (c) of this Section | 17 | | disqualifying him or her to operate as a self
insurer and | 18 | | requiring him or her to insure his or her liability, or the | 19 | | knowing and willful failure of an employer to comply with a | 20 | | citation issued by an investigator with the Illinois Workers' | 21 | | Compensation Commission Insurance Compliance Division, the
| 22 | | Commission may assess a civil penalty of up to $500 per day for | 23 | | each day of
such failure or refusal after the effective date of | 24 | | this amendatory Act of
1989. The minimum penalty under this | 25 | | Section shall be the sum of $10,000.
Each day of such failure | 26 | | or refusal shall constitute a separate offense.
The Commission |
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| 1 | | may assess the civil penalty personally and individually
| 2 | | against the corporate officers and directors of a corporate | 3 | | employer, the
partners of an employer partnership, and the | 4 | | members of an employer limited
liability company, after a | 5 | | finding of a knowing and willful refusal or failure
of each | 6 | | such named corporate officer, director, partner, or member to | 7 | | comply
with this Section. The liability for the assessed | 8 | | penalty shall be
against the named employer first, and
if the | 9 | | named employer fails or refuses to pay the penalty to the
| 10 | | Commission within 30 days after the final order of the | 11 | | Commission, then the
named
corporate officers, directors, | 12 | | partners, or members who have been found to have
knowingly and | 13 | | willfully refused or failed to comply with this Section shall | 14 | | be
liable for the unpaid penalty or any unpaid portion of the | 15 | | penalty. Upon investigation by the insurance non-compliance | 16 | | unit of the Commission, the Attorney General shall have the | 17 | | authority to prosecute all proceedings to enforce the civil | 18 | | and administrative provisions of this Section before the | 19 | | Commission. The Commission shall promulgate procedural rules | 20 | | for enforcing this Section.
| 21 | | If an employer is found to be in non-compliance with any | 22 | | provisions of paragraph (a) of this Section more than once, | 23 | | all minimum penalties will double. Therefore, upon the failure | 24 | | or refusal of an employer, service or adjustment company, or | 25 | | insurance carrier to comply with any order of the Commission | 26 | | pursuant to paragraph (c) of this Section disqualifying him or |
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| 1 | | her to operate as a self-insurer and requiring him or her to | 2 | | insure his or her liability, or the knowing and willful | 3 | | failure of an employer to comply with a citation issued by an | 4 | | investigator with the Illinois Workers' Compensation | 5 | | Commission Insurance Compliance Division, the Commission may | 6 | | assess a civil penalty of up to $1,000 per day for each day of | 7 | | such failure or refusal after the effective date of this | 8 | | amendatory Act of the 101st General Assembly. The minimum | 9 | | penalty under this Section shall be the sum of $20,000. In | 10 | | addition, employers with 2 or more violations of any | 11 | | provisions of paragraph (a) of this Section may not | 12 | | self-insure for one year or until all penalties are paid. | 13 | | Upon the failure or refusal of any employer, service or | 14 | | adjustment
company or insurance carrier to comply with the | 15 | | provisions of this Section
and with the orders of the | 16 | | Commission under this Section, or the order of
the court on | 17 | | review after final adjudication, the Commission may bring a
| 18 | | civil action to recover the amount of the penalty in Cook | 19 | | County or in
Sangamon County in which litigation the | 20 | | Commission shall be represented by
the Attorney General. The | 21 | | Commission shall send notice of its finding of
non-compliance | 22 | | and assessment of the civil penalty to the Attorney General.
| 23 | | It shall be the duty of the Attorney General within 30 days | 24 | | after receipt
of the notice, to institute prosecutions and | 25 | | promptly prosecute all
reported violations of this Section.
| 26 | | Any individual employer, corporate officer or director of |
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| 1 | | a corporate employer, partner of an employer partnership, or | 2 | | member of an employer limited liability company who, with the | 3 | | intent to avoid payment of compensation under this Act to an | 4 | | injured employee or the employee's dependents, knowingly | 5 | | transfers, sells, encumbers, assigns, or in any manner | 6 | | disposes of, conceals, secretes, or destroys any property | 7 | | belonging to the employer, officer, director, partner, or | 8 | | member is guilty of a Class 4 felony.
| 9 | | Penalties and fines collected pursuant to this paragraph | 10 | | (d) shall be deposited upon receipt into a special fund which | 11 | | shall be designated the Injured Workers' Benefit Fund, of | 12 | | which the State Treasurer is ex-officio custodian, such | 13 | | special fund to be held and disbursed in accordance with this | 14 | | paragraph (d) for the purposes hereinafter stated in this | 15 | | paragraph (d), upon the final order of the Commission. The | 16 | | Injured Workers' Benefit Fund shall be deposited the same as | 17 | | are State funds and any interest accruing thereon shall be | 18 | | added thereto every 6 months. The Injured Workers' Benefit | 19 | | Fund is subject to audit the same as State funds and accounts | 20 | | and is protected by the general bond given by the State | 21 | | Treasurer. The Injured Workers' Benefit Fund is considered | 22 | | always appropriated for the purposes of disbursements as | 23 | | provided in this paragraph, and shall be paid out and | 24 | | disbursed as herein provided and shall not at any time be | 25 | | appropriated or diverted to any other use or purpose. Moneys | 26 | | in the Injured Workers' Benefit Fund shall be used only for |
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| 1 | | payment of workers' compensation benefits for injured | 2 | | employees when the employer has failed to provide coverage as | 3 | | determined under this paragraph (d) and has failed to pay the | 4 | | benefits due to the injured employee. The Commission shall | 5 | | have the right to obtain reimbursement from the employer for | 6 | | compensation obligations paid by the Injured Workers' Benefit | 7 | | Fund. Any such amounts obtained shall be deposited by the | 8 | | Commission into the Injured Workers' Benefit Fund. If an | 9 | | injured employee or his or her personal representative | 10 | | receives payment from the Injured Workers' Benefit Fund, the | 11 | | State of Illinois has the same rights under paragraph (b) of | 12 | | Section 5 that the employer who failed to pay the benefits due | 13 | | to the injured employee would have had if the employer had paid | 14 | | those benefits, and any moneys recovered by the State as a | 15 | | result of the State's exercise of its rights under paragraph | 16 | | (b) of Section 5 shall be deposited into the Injured Workers' | 17 | | Benefit Fund. The custodian of the Injured Workers' Benefit | 18 | | Fund shall be joined with the employer as a party respondent in | 19 | | the application for adjustment of claim. After July 1, 2006, | 20 | | the Commission shall make disbursements from the Fund once | 21 | | each year to each eligible claimant. An eligible claimant is | 22 | | an injured worker who has within the previous fiscal year | 23 | | obtained a final award for benefits from the Commission | 24 | | against the employer and the Injured Workers' Benefit Fund and | 25 | | has notified the Commission within 90 days of receipt of such | 26 | | award. Within a reasonable time after the end of each fiscal |
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| 1 | | year, the Commission shall make a disbursement to each | 2 | | eligible claimant. At the time of disbursement, if there are | 3 | | insufficient moneys in the Fund to pay all claims, each | 4 | | eligible claimant shall receive a pro-rata share, as | 5 | | determined by the Commission, of the available moneys in the | 6 | | Fund for that year. Payment from the Injured Workers' Benefit | 7 | | Fund to an eligible claimant pursuant to this provision shall | 8 | | discharge the obligations of the Injured Workers' Benefit Fund | 9 | | regarding the award entered by the Commission.
| 10 | | (e) This Act shall not affect or disturb the continuance | 11 | | of any
existing insurance, mutual aid, benefit, or relief | 12 | | association or
department, whether maintained in whole or in | 13 | | part by the employer or
whether maintained by the employees, | 14 | | the payment of benefits of such
association or department | 15 | | being guaranteed by the employer or by some
person, firm or | 16 | | corporation for him or her: Provided, the employer contributes
| 17 | | to such association or department an amount not less than the | 18 | | full
compensation herein provided, exclusive of the cost of | 19 | | the maintenance
of such association or department and without | 20 | | any expense to the
employee. This Act shall not prevent the | 21 | | organization and maintaining
under the insurance laws of this | 22 | | State of any benefit or insurance
company for the purpose of | 23 | | insuring against the compensation provided
for in this Act, | 24 | | the expense of which is maintained by the employer.
This Act | 25 | | shall not prevent the organization or maintaining under the
| 26 | | insurance laws of this State of any voluntary mutual aid, |
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| 1 | | benefit or
relief association among employees for the payment | 2 | | of additional
accident or sick benefits.
| 3 | | (f) No existing insurance, mutual aid, benefit or relief | 4 | | association
or department shall, by reason of anything herein | 5 | | contained, be
authorized to discontinue its operation without | 6 | | first discharging its
obligations to any and all persons | 7 | | carrying insurance in the same or
entitled to relief or | 8 | | benefits therein.
| 9 | | (g) Any contract, oral, written or implied, of employment | 10 | | providing
for relief benefit, or insurance or any other device | 11 | | whereby the
employee is required to pay any premium or | 12 | | premiums for insurance
against the compensation provided for | 13 | | in this Act shall be null and
void. Any employer withholding | 14 | | from the wages of any employee any
amount for the purpose of | 15 | | paying any such premium shall be guilty of a
Class B | 16 | | misdemeanor.
| 17 | | In the event the employer does not pay the compensation | 18 | | for which he or
she is liable, then an insurance company, | 19 | | association or insurer which may
have insured such employer | 20 | | against such liability shall become primarily
liable to pay to | 21 | | the employee, his or her personal representative or
| 22 | | beneficiary the compensation required by the provisions of | 23 | | this Act to
be paid by such employer. The insurance carrier may | 24 | | be made a party to
the proceedings in which the employer is a | 25 | | party and an award may be
entered jointly against the employer | 26 | | and the insurance carrier.
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| 1 | | (h) It shall be unlawful for any employer, insurance | 2 | | company , or
service or adjustment company to interfere with, | 3 | | demote, restrain , or coerce an
employee in any manner | 4 | | whatsoever in the exercise of the rights or
remedies granted | 5 | | to him or her by this Act or to discriminate, attempt to
| 6 | | discriminate, or threaten to discriminate against an employee | 7 | | in any way
because of his or her exercise of the rights or | 8 | | remedies granted to
him or her by this Act.
| 9 | | It shall be unlawful for any employer, individually or | 10 | | through any
insurance company or service or adjustment | 11 | | company, to demote, to discharge or to
threaten to discharge, | 12 | | or to refuse to rehire or recall to active
service in a | 13 | | suitable capacity an employee because of the exercise of
his | 14 | | or her rights or remedies granted to him or her by this Act.
| 15 | | (i) If an employer elects to obtain a life insurance | 16 | | policy on his
employees, he may also elect to apply such | 17 | | benefits in satisfaction of all
or a portion of the death | 18 | | benefits payable under this Act, in which case,
the employer's | 19 | | compensation premium shall be reduced accordingly.
| 20 | | (j) Within 45 days of receipt of an initial application or | 21 | | application
to renew self-insurance privileges the | 22 | | Self-Insurers Advisory Board shall
review and submit for | 23 | | approval by the Chairman of the Commission
recommendations of | 24 | | disposition of all initial applications to self-insure
and all | 25 | | applications to renew self-insurance privileges filed by | 26 | | private
self-insurers pursuant to the provisions of this |
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| 1 | | Section and Section 4a-9
of this Act. Each private | 2 | | self-insurer shall submit with its initial and
renewal | 3 | | applications the application fee required by Section 4a-4 of | 4 | | this Act.
| 5 | | The Chairman of the Commission shall promptly act upon all | 6 | | initial
applications and applications for renewal in full | 7 | | accordance with the
recommendations of the Board or, should | 8 | | the Chairman disagree with any
recommendation of disposition | 9 | | of the Self-Insurer's Advisory Board, he
shall within 30 days | 10 | | of receipt of such recommendation provide to the Board
in | 11 | | writing the reasons supporting his decision. The Chairman | 12 | | shall also
promptly notify the employer of his decision within | 13 | | 15 days of receipt of
the recommendation of the Board.
| 14 | | If an employer is denied a renewal of self-insurance | 15 | | privileges pursuant
to application it shall retain said | 16 | | privilege for 120 days after receipt of
a notice of | 17 | | cancellation of the privilege from the Chairman of the | 18 | | Commission.
| 19 | | All orders made by the Chairman under this Section shall | 20 | | be subject to
review by the courts, such review to be taken in | 21 | | the same manner and within
the same time as provided by | 22 | | subsection (f) of Section 19 of this Act for
review of awards | 23 | | and decisions of the Commission, upon the party seeking
the | 24 | | review filing with the clerk of the court to which such review | 25 | | is taken
a bond in an amount to be fixed and approved by the | 26 | | court to which the
review is taken, conditioned upon the |
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| 1 | | payment of all compensation awarded
against the person taking | 2 | | such review pending a decision thereof and
further conditioned | 3 | | upon such other obligations as the court may impose.
Upon the | 4 | | review the Circuit Court shall have power to review all | 5 | | questions
of fact as well as of law.
| 6 | | (Source: P.A. 101-40, eff. 1-1-20.)
| 7 | | (Text of Section from P.A. 101-384)
| 8 | | Sec. 4. (a) Any employer, including but not limited to | 9 | | general contractors
and their subcontractors, who shall come | 10 | | within the provisions of
Section 3 of this Act, and any other | 11 | | employer who shall elect to provide
and pay the compensation | 12 | | provided 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 | 19 | | the
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
| 24 | | self-insurance must be submitted at least 60 days prior to | 25 | | the requested
effective date of self-insurance. An |
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| 1 | | employer may elect to provide and pay
compensation as | 2 | | provided
for in this Act as a member of a group workers' | 3 | | compensation pool under Article
V 3/4 of the Illinois | 4 | | Insurance Code. If an employer becomes a member of a
group | 5 | | workers' compensation pool, the employer shall not be | 6 | | relieved of any
obligations imposed by this Act.
| 7 | | If the sworn application and financial statement of | 8 | | any such employer
does not satisfy the Commission of the | 9 | | financial ability of the employer
who has filed it, the | 10 | | Commission shall require such employer to,
| 11 | | (2) Furnish security, indemnity or a bond guaranteeing | 12 | | the payment
by the employer of the compensation provided | 13 | | for in this Act, provided
that any such employer whose | 14 | | application and financial statement shall
not have | 15 | | satisfied the commission of his or her financial ability | 16 | | and
who shall have secured his liability in part by excess | 17 | | liability insurance
shall be required to furnish to the | 18 | | Commission security, indemnity or bond
guaranteeing his or | 19 | | her payment up to the effective limits of the excess
| 20 | | coverage, or
| 21 | | (3) Insure his entire liability to pay such | 22 | | compensation in some
insurance carrier authorized, | 23 | | licensed, or permitted to do such
insurance business in | 24 | | this State. Every policy of an insurance carrier,
insuring | 25 | | the payment of compensation under this Act shall cover all | 26 | | the
employees and the entire compensation liability of the |
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| 1 | | insured:
Provided, however, that any employer may insure | 2 | | his or her compensation
liability with 2 or more insurance | 3 | | carriers or may insure a part and
qualify under subsection | 4 | | 1, 2, or 4 for the remainder of his or her
liability to pay | 5 | | such compensation, subject to the following two | 6 | | provisions:
| 7 | | Firstly, the entire compensation liability of the | 8 | | employer to
employees working at or from one location | 9 | | shall be insured in one such
insurance carrier or | 10 | | shall be self-insured, and
| 11 | | Secondly, the employer shall submit evidence | 12 | | satisfactorily to the
Commission that his or her | 13 | | entire liability for the compensation provided
for in | 14 | | this Act will be secured. Any provisions in any | 15 | | policy, or in any
endorsement attached thereto, | 16 | | attempting to limit or modify in any way,
the | 17 | | liability of the insurance carriers issuing the same | 18 | | except as
otherwise provided herein shall be wholly | 19 | | 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 | 25 | | compensation provided for in this Act,
and
| 26 | | (5) Upon becoming subject to this Act and thereafter |
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| 1 | | as often as the
Commission may in writing demand, file | 2 | | with the Commission in form prescribed
by it evidence of | 3 | | his or 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 | 8 | | the 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 | 14 | | Section 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 | 24 | | Illinois.
| 25 | | The penalty shall not exceed $1,000 for each day of work | 26 | | for which
the employer failed to make payments upon the |
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| 1 | | premium rates of the situs where
the
work or project is located | 2 | | in Illinois, but the total penalty shall not exceed
$50,000 | 3 | | for each project or each contract under which the work was
| 4 | | performed.
| 5 | | Any penalty under this subsection (a-1) must be imposed | 6 | | not later
than one year after the expiration of the applicable | 7 | | limitation period
specified in subsection (d) of Section 6 of | 8 | | this Act. Penalties imposed under
this subsection (a-1) shall | 9 | | be deposited into the Illinois Workers' Compensation | 10 | | Commission
Operations Fund, a special fund that is created in | 11 | | the State treasury. Subject
to appropriation, moneys in the | 12 | | Fund shall be used solely for the operations
of the Illinois | 13 | | Workers' Compensation Commission and by the Department of | 14 | | Insurance for the purposes authorized in subsection (c) of | 15 | | Section 25.5 of this Act.
| 16 | | (a-2) Every Employee Leasing Company (ELC), as defined in | 17 | | Section 15 of the Employee Leasing Company Act, shall at a | 18 | | minimum provide the following information to the Commission or | 19 | | any entity designated by the Commission regarding each | 20 | | workers' compensation 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 | 6 | | security,
indemnity or bond, or amount of insurance, or other | 7 | | provisions, filed,
furnished, carried, or made by the | 8 | | employer, as the case may be, shall
be subject to the approval | 9 | | of the Commission.
| 10 | | Deposits under escrow agreements shall be cash, negotiable | 11 | | United
States government bonds or negotiable general | 12 | | obligation bonds of the
State of Illinois. Such cash or bonds | 13 | | shall be deposited in
escrow with any State or National Bank or | 14 | | Trust Company having trust
authority in the State of Illinois.
| 15 | | Upon the approval of the sworn application and financial | 16 | | statement,
security, indemnity or bond or amount of insurance, | 17 | | filed, furnished or
carried, as the case may be, the | 18 | | Commission shall send to the employer
written notice of its | 19 | | approval thereof. The certificate of compliance
by the | 20 | | employer with the provisions of subparagraphs (2) and (3) of
| 21 | | paragraph (a) of this Section shall be delivered by the | 22 | | insurance
carrier to the Illinois Workers' Compensation | 23 | | Commission within five days after the
effective date of the | 24 | | policy so certified. The insurance so certified
shall cover | 25 | | all compensation liability occurring during the time that
the | 26 | | insurance is in effect and no further certificate need be |
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| 1 | | filed in case
such insurance is renewed, extended or otherwise | 2 | | continued by such
carrier. The insurance so certified shall | 3 | | not be cancelled or in the
event that such insurance is not | 4 | | renewed, extended or otherwise
continued, such insurance shall | 5 | | not be terminated until at least 10
days after receipt by the | 6 | | Illinois Workers' Compensation Commission of notice of the
| 7 | | cancellation or termination of said insurance; provided, | 8 | | however, that
if the employer has secured insurance from | 9 | | another insurance carrier, or
has otherwise secured the | 10 | | payment of compensation in accordance with
this Section, and | 11 | | such insurance or other security becomes effective
prior to | 12 | | the expiration of the 10 days, cancellation or termination | 13 | | may, at
the option of the insurance carrier indicated in such | 14 | | notice, be effective
as of the effective date of such other | 15 | | 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
| 3 | | date 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 | 12 | | the Commission
finds that any service or adjustment company | 13 | | used or employed
by a self-insured employer or by an insurance | 14 | | carrier to process,
adjust, investigate, compromise or | 15 | | otherwise handle claims under this
Act, has practiced or is | 16 | | practicing a policy of delay or unfairness
toward employees in | 17 | | the 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 | 4 | | required to
insure his entire liability to pay compensation in | 5 | | some insurance
carrier authorized, licensed and permitted to | 6 | | do such insurance business
in this State, as provided in | 7 | | subparagraph 3 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 panel of 3 Commissioners comprised of one | 24 | | member of the employing class, one representative of a labor | 25 | | organization recognized under the National Labor Relations Act | 26 | | or an attorney who has represented labor organizations or has |
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| 1 | | represented employees in workers' compensation cases, and one | 2 | | member not identified with either the employing class or a | 3 | | labor organization, with due process and after a hearing, | 4 | | determines an employer has knowingly failed to provide | 5 | | coverage as required by paragraph (a) of this Section, the | 6 | | failure shall be deemed an immediate serious danger to public | 7 | | health, safety, and welfare sufficient to justify service by | 8 | | the Commission of a work-stop order on such employer, | 9 | | requiring the cessation of all business operations of such | 10 | | employer at the place of employment or job site. Any law | 11 | | enforcement agency in the State shall, at the request of the | 12 | | Commission, render any assistance necessary to carry out the | 13 | | provisions of this Section, including, but not limited to, | 14 | | preventing any employee of such employer from remaining at a | 15 | | place of employment or job site after a work-stop order has | 16 | | taken effect. Any work-stop order shall be lifted upon proof | 17 | | of insurance as required by this Act. Any orders under this | 18 | | Section are appealable under Section 19(f) to the Circuit | 19 | | Court.
| 20 | | Any individual employer, corporate officer or director of | 21 | | a corporate employer, partner of an employer partnership, or | 22 | | member of an employer limited liability company who knowingly | 23 | | fails to provide coverage as required by paragraph (a) of this | 24 | | Section is guilty of a Class 4 felony. This provision shall not | 25 | | 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, or may, in addition to other remedies provided in | 5 | | this Section, bring an action for an injunction to restrain | 6 | | the violation or to enjoin the operation of any such employer.
| 7 | | Any individual employer, corporate officer or director of | 8 | | a corporate employer, partner of an employer partnership, or | 9 | | member of an employer limited liability company who | 10 | | negligently fails to provide coverage as required by paragraph | 11 | | (a) of this Section is guilty of a Class A misdemeanor. This | 12 | | provision shall not apply to any corporate officer or director | 13 | | of any publicly-owned corporation. Each day's violation | 14 | | constitutes a separate offense. The State's Attorney of the | 15 | | county in which the violation occurred, or the Attorney | 16 | | General, shall bring such actions in the name of the People of | 17 | | the State of Illinois.
| 18 | | The criminal penalties in this subsection (d) shall not | 19 | | apply where
there exists a good faith dispute as to the | 20 | | existence of an
employment relationship. Evidence of good | 21 | | faith shall
include, but not be limited to, compliance with | 22 | | the definition
of employee as used by the Internal Revenue | 23 | | Service.
| 24 | | Employers who are subject to and who knowingly fail to | 25 | | comply with this Section shall not be entitled to the benefits | 26 | | of this Act during the period of noncompliance, but shall be |
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| 1 | | liable in an action under any other applicable law of this | 2 | | State. In the action, such employer shall not avail himself or | 3 | | herself of the defenses of assumption of risk or negligence or | 4 | | that the injury was due to a co-employee. In the action, proof | 5 | | of the injury shall constitute prima facie evidence of | 6 | | negligence on the part of such employer and the burden shall be | 7 | | on such employer to show freedom of negligence resulting in | 8 | | the injury. The employer shall not join any other defendant in | 9 | | any such civil action. Nothing in this amendatory Act of the | 10 | | 94th General Assembly shall affect the employee's rights under | 11 | | subdivision (a)3 of Section 1 of this Act. Any employer or | 12 | | carrier who makes payments under subdivision (a)3 of Section 1 | 13 | | of this Act shall have a right of reimbursement from the | 14 | | proceeds of any recovery under this Section.
| 15 | | An employee of an uninsured employer, or the employee's | 16 | | dependents in case death ensued, may, instead of proceeding | 17 | | against the employer in a civil action in court, file an | 18 | | application for adjustment of claim with the Commission in | 19 | | accordance with the provisions of this Act and the Commission | 20 | | shall hear and determine the application for adjustment of | 21 | | claim in the manner in which other claims are heard and | 22 | | determined before the Commission.
| 23 | | All proceedings under this subsection (d) shall be | 24 | | reported on an annual basis to the Workers' Compensation | 25 | | Advisory Board.
| 26 | | An investigator with the Illinois Workers' Compensation |
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| 1 | | Commission Insurance Compliance Division may issue a citation | 2 | | to any employer that is not in compliance with its obligation | 3 | | to have workers' compensation insurance under this Act. The | 4 | | amount of the fine shall be based on the period of time the | 5 | | employer was in non-compliance, but shall be no less than | 6 | | $500, and shall not exceed $2,500. An employer that has been | 7 | | issued a citation shall pay the fine to the Commission and | 8 | | provide to the Commission proof that it obtained the required | 9 | | workers' compensation insurance within 10 days after the | 10 | | citation was issued. This Section does not affect any other | 11 | | obligations this Act imposes on employers. | 12 | | Upon a finding by the Commission, after reasonable notice | 13 | | and
hearing, of the knowing and wilful failure or refusal of an | 14 | | employer to
comply with
any of the provisions of paragraph (a) | 15 | | of this Section, the failure or
refusal of an employer, | 16 | | service or adjustment company, or an insurance
carrier to | 17 | | comply with any order of the Illinois Workers' Compensation | 18 | | Commission pursuant to
paragraph (c) of this Section | 19 | | disqualifying him or her to operate as a self
insurer and | 20 | | requiring him or her to insure his or her liability, or the | 21 | | knowing and willful failure of an employer to comply with a | 22 | | citation issued by an investigator with the Illinois Workers' | 23 | | Compensation Commission Insurance Compliance Division, the
| 24 | | Commission may assess a civil penalty of up to $500 per day for | 25 | | each day of
such failure or refusal after the effective date of | 26 | | this amendatory Act of
1989. The minimum penalty under this |
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| 1 | | Section shall be the sum of $10,000.
Each day of such failure | 2 | | or refusal shall constitute a separate offense.
The Commission | 3 | | may assess the civil penalty personally and individually
| 4 | | against the corporate officers and directors of a corporate | 5 | | employer, the
partners of an employer partnership, and the | 6 | | members of an employer limited
liability company, after a | 7 | | finding of a knowing and willful refusal or failure
of each | 8 | | such named corporate officer, director, partner, or member to | 9 | | comply
with this Section. The liability for the assessed | 10 | | penalty shall be
against the named employer first, and
if the | 11 | | named employer fails or refuses to pay the penalty to the
| 12 | | Commission within 30 days after the final order of the | 13 | | Commission, then the
named
corporate officers, directors, | 14 | | partners, or members who have been found to have
knowingly and | 15 | | willfully refused or failed to comply with this Section shall | 16 | | be
liable for the unpaid penalty or any unpaid portion of the | 17 | | penalty. Upon investigation by the insurance non-compliance | 18 | | unit of the Commission, the Attorney General shall have the | 19 | | authority to prosecute all proceedings to enforce the civil | 20 | | and administrative provisions of this Section before the | 21 | | Commission. The Commission shall promulgate procedural rules | 22 | | for enforcing this Section.
| 23 | | Upon the failure or refusal of any employer, service or | 24 | | adjustment
company or insurance carrier to comply with the | 25 | | provisions of this Section
and with the orders of the | 26 | | Commission under this Section, or the order of
the court on |
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| 1 | | review after final adjudication, the Commission may bring a
| 2 | | civil action to recover the amount of the penalty in Cook | 3 | | County or in
Sangamon County in which litigation the | 4 | | Commission shall be represented by
the Attorney General. The | 5 | | Commission shall send notice of its finding of
non-compliance | 6 | | and assessment of the civil penalty to the Attorney General.
| 7 | | It shall be the duty of the Attorney General within 30 days | 8 | | after receipt
of the notice, to institute prosecutions and | 9 | | promptly prosecute all
reported violations of this Section.
| 10 | | Any individual employer, corporate officer or director of | 11 | | a corporate employer, partner of an employer partnership, or | 12 | | member of an employer limited liability company who, with the | 13 | | intent to avoid payment of compensation under this Act to an | 14 | | injured employee or the employee's dependents, knowingly | 15 | | transfers, sells, encumbers, assigns, or in any manner | 16 | | disposes of, conceals, secretes, or destroys any property | 17 | | belonging to the employer, officer, director, partner, or | 18 | | member is guilty of a Class 4 felony.
| 19 | | Penalties and fines collected pursuant to this paragraph | 20 | | (d) shall be deposited upon receipt into a special fund which | 21 | | shall be designated the Injured Workers' Benefit Fund, of | 22 | | which the State Treasurer is ex-officio custodian, such | 23 | | special fund to be held and disbursed in accordance with this | 24 | | paragraph (d) for the purposes hereinafter stated in this | 25 | | paragraph (d), upon the final order of the Commission. The | 26 | | Injured Workers' Benefit Fund shall be deposited the same as |
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| 1 | | are State funds and any interest accruing thereon shall be | 2 | | added thereto every 6 months. The Injured Workers' Benefit | 3 | | Fund is subject to audit the same as State funds and accounts | 4 | | and is protected by the general bond given by the State | 5 | | Treasurer. The Injured Workers' Benefit Fund is considered | 6 | | always appropriated for the purposes of disbursements as | 7 | | provided in this paragraph, and shall be paid out and | 8 | | disbursed as herein provided and shall not at any time be | 9 | | appropriated or diverted to any other use or purpose. Moneys | 10 | | in the Injured Workers' Benefit Fund shall be used only for | 11 | | payment of workers' compensation benefits for injured | 12 | | employees when the employer has failed to provide coverage as | 13 | | determined under this paragraph (d) and has failed to pay the | 14 | | benefits due to the injured employee. The Commission shall | 15 | | have the right to obtain reimbursement from the employer for | 16 | | compensation obligations paid by the Injured Workers' Benefit | 17 | | Fund. Any such amounts obtained shall be deposited by the | 18 | | Commission into the Injured Workers' Benefit Fund. If an | 19 | | injured employee or his or her personal representative | 20 | | receives payment from the Injured Workers' Benefit Fund, the | 21 | | State of Illinois has the same rights under paragraph (b) of | 22 | | Section 5 that the employer who failed to pay the benefits due | 23 | | to the injured employee would have had if the employer had paid | 24 | | those benefits, and any moneys recovered by the State as a | 25 | | result of the State's exercise of its rights under paragraph | 26 | | (b) of Section 5 shall be deposited into the Injured Workers' |
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| 1 | | Benefit Fund. The custodian of the Injured Workers' Benefit | 2 | | Fund shall be joined with the employer as a party respondent in | 3 | | the application for adjustment of claim. After July 1, 2006, | 4 | | the Commission shall make disbursements from the Fund once | 5 | | each year to each eligible claimant. An eligible claimant is | 6 | | an injured worker who has within the previous fiscal year | 7 | | obtained a final award for benefits from the Commission | 8 | | against the employer and the Injured Workers' Benefit Fund and | 9 | | has notified the Commission within 90 days of receipt of such | 10 | | award. Within a reasonable time after the end of each fiscal | 11 | | year, the Commission shall make a disbursement to each | 12 | | eligible claimant. At the time of disbursement, if there are | 13 | | insufficient moneys in the Fund to pay all claims, each | 14 | | eligible claimant shall receive a pro-rata share, as | 15 | | determined by the Commission, of the available moneys in the | 16 | | Fund for that year. Payment from the Injured Workers' Benefit | 17 | | Fund to an eligible claimant pursuant to this provision shall | 18 | | discharge the obligations of the Injured Workers' Benefit Fund | 19 | | regarding the award entered by the Commission.
| 20 | | (e) This Act shall not affect or disturb the continuance | 21 | | of any
existing insurance, mutual aid, benefit, or relief | 22 | | association or
department, whether maintained in whole or in | 23 | | part by the employer or
whether maintained by the employees, | 24 | | the payment of benefits of such
association or department | 25 | | being guaranteed by the employer or by some
person, firm or | 26 | | corporation for him or her: Provided, the employer contributes
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| 1 | | to such association or department an amount not less than the | 2 | | full
compensation herein provided, exclusive of the cost of | 3 | | the maintenance
of such association or department and without | 4 | | any expense to the
employee. This Act shall not prevent the | 5 | | organization and maintaining
under the insurance laws of this | 6 | | State of any benefit or insurance
company for the purpose of | 7 | | insuring against the compensation provided
for in this Act, | 8 | | the expense of which is maintained by the employer.
This Act | 9 | | shall not prevent the organization or maintaining under the
| 10 | | insurance laws of this State of any voluntary mutual aid, | 11 | | benefit or
relief association among employees for the payment | 12 | | of additional
accident or sick benefits.
| 13 | | (f) No existing insurance, mutual aid, benefit or relief | 14 | | association
or department shall, by reason of anything herein | 15 | | contained, be
authorized to discontinue its operation without | 16 | | first discharging its
obligations to any and all persons | 17 | | carrying insurance in the same or
entitled to relief or | 18 | | benefits therein.
| 19 | | (g) Any contract, oral, written or implied, of employment | 20 | | providing
for relief benefit, or insurance or any other device | 21 | | whereby the
employee is required to pay any premium or | 22 | | premiums for insurance
against the compensation provided for | 23 | | in this Act shall be null and
void. Any employer withholding | 24 | | from the wages of any employee any
amount for the purpose of | 25 | | paying any such premium shall be guilty of a
Class B | 26 | | misdemeanor.
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| 1 | | In the event the employer does not pay the compensation | 2 | | for which he or
she is liable, then an insurance company, | 3 | | association or insurer which may
have insured such employer | 4 | | against such liability shall become primarily
liable to pay to | 5 | | the employee, his or her personal representative or
| 6 | | beneficiary the compensation required by the provisions of | 7 | | this Act to
be paid by such employer. The insurance carrier may | 8 | | be made a party to
the proceedings in which the employer is a | 9 | | party and an award may be
entered jointly against the employer | 10 | | and the insurance carrier.
| 11 | | (h) It shall be unlawful for any employer, insurance | 12 | | company , or
service or adjustment company to interfere with, | 13 | | demote, restrain , or coerce an
employee in any manner | 14 | | whatsoever in the exercise of the rights or
remedies granted | 15 | | to him or her by this Act or to discriminate, attempt to
| 16 | | discriminate, or threaten to discriminate against an employee | 17 | | in any way
because of his or her exercise of the rights or | 18 | | remedies granted to
him or her by this Act.
| 19 | | It shall be unlawful for any employer, individually or | 20 | | through any
insurance company or service or adjustment | 21 | | company, to demote, to discharge or to
threaten to discharge, | 22 | | or to refuse to rehire or recall to active
service in a | 23 | | suitable capacity an employee because of the exercise of
his | 24 | | or her rights or remedies granted to him or her by this Act.
| 25 | | (i) If an employer elects to obtain a life insurance | 26 | | policy on his
employees, he may also elect to apply such |
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| 1 | | benefits in satisfaction of all
or a portion of the death | 2 | | benefits payable under this Act, in which case,
the employer's | 3 | | compensation premium shall be reduced accordingly.
| 4 | | (j) Within 45 days of receipt of an initial application or | 5 | | application
to renew self-insurance privileges the | 6 | | Self-Insurers Advisory Board shall
review and submit for | 7 | | approval by the Chairman of the Commission
recommendations of | 8 | | disposition of all initial applications to self-insure
and all | 9 | | applications to renew self-insurance privileges filed by | 10 | | private
self-insurers pursuant to the provisions of this | 11 | | Section and Section 4a-9
of this Act. Each private | 12 | | self-insurer shall submit with its initial and
renewal | 13 | | applications the application fee required by Section 4a-4 of | 14 | | this Act.
| 15 | | The Chairman of the Commission shall promptly act upon all | 16 | | initial
applications and applications for renewal in full | 17 | | accordance with the
recommendations of the Board or, should | 18 | | the Chairman disagree with any
recommendation of disposition | 19 | | of the Self-Insurer's Advisory Board, he
shall within 30 days | 20 | | of receipt of such recommendation provide to the Board
in | 21 | | writing the reasons supporting his decision. The Chairman | 22 | | shall also
promptly notify the employer of his decision within | 23 | | 15 days of receipt of
the recommendation of the Board.
| 24 | | If an employer is denied a renewal of self-insurance | 25 | | privileges pursuant
to application it shall retain said | 26 | | privilege for 120 days after receipt of
a notice of |
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| 1 | | cancellation of the privilege from the Chairman of the | 2 | | Commission.
| 3 | | All orders made by the Chairman under this Section shall | 4 | | be subject to
review by the courts, such review to be taken in | 5 | | the same manner and within
the same time as provided by | 6 | | subsection (f) of Section 19 of this Act for
review of awards | 7 | | and decisions of the Commission, upon the party seeking
the | 8 | | review filing with the clerk of the court to which such review | 9 | | is taken
a bond in an amount to be fixed and approved by the | 10 | | court to which the
review is taken, conditioned upon the | 11 | | payment of all compensation awarded
against the person taking | 12 | | such review pending a decision thereof and
further conditioned | 13 | | upon such other obligations as the court may impose.
Upon the | 14 | | review the Circuit Court shall have power to review all | 15 | | questions
of fact as well as of law.
| 16 | | (Source: P.A. 101-384, eff. 1-1-20 .)
| 17 | | Section 99. Effective date. This Act takes effect upon | 18 | | becoming law.".
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