To Avoid Fines Small Business Owners Must Be Aware of Illinois Workers’ Compensation Laws

Over the past year, the Illinois Workers’ Compensation Commission (“IWCC”) has greatly increased the prosecution of those small business owners who have not obtained workers’ compensation insurance for their employees. Those employers who do not obtain workers’ compensation insurance are doing themselves, and their business, a grave disservice. The small business law attorneys here at Gierach Law Firm are here to help you understand and maneuver the complicated issues that come with adhering to Illinois small business laws.

Illinois Workers’ Compensation LawsSmall business owners in Illinois are required to obtain workers compensation insurance just like larger businesses. This is because under Illinois law, employers must provide workers’ compensation for all individuals they hired, employed at locations in Illinois, or are injured at a business in Illinois. The only small business owners that are not required to provide workers’ compensation insurance are corporate officers, limited liability companies, business partner, and sole proprietors. As a result small business owners help make up the estimated 91 percent of total Illinois employers who are required to provide workers’ compensation insurance.

In 2013 alone, the IWCC has punished numerous small business owners with fines in the upwards of $10,000. In fact since 2006, the IWCC has received over $7 million in fines from employers who have admitted to violating the Act. These fines has been applied to the Illinois Injured Workers’ Benefit Fund. In these situations the employers refused to obtain workers’ compensation insurance for their employees after multiple demands by the IWCC. Under Illinois law, for every day an employer does not obtain workers’ compensation insurance, that employer can be fined up to $500.

Truthfully ,the requirement that employers obtain workers’ compensation insurance for their employees is beneficial to both the employer and the employee. The purpose of workers’ compensation insurance is to provide medical benefits and a wage replacement mechanism for those employees who are injured on the job. Those employers who obtain workers’ compensation insurance can gain immunity against tort litigation brought by employees who require financial and medical assistance after being injured on the job. This is because those employers who obtain workers’ compensation insurance are protected from employee suits based on negligence, and the medical and financial assistance required will be covered under worker’s compensation insurance.

Workers’ compensation insurance is mutually beneficial to both employers and employees alike. If you have any issues regarding this business law issue you should contact the Gierach Law Firm small business law attorneys here in Naperville, Illinois.