Sole Proprietor: Excluded from coverage/may elect to be included/see special notes. If included in coverage the rating payroll used is $48,400 as of 1-1-2012, $50,500 as of 1-1-2013, $51,900 as of 1-1-2014.
Partners: Excluded from coverage/may elect to be included/see special notes. If included in coverage the rating payroll used is $48,400 as of 1-1-2012, $50,500 as of 1-1-2-13, $51,900 as of 1-1-2014.
Corporate Officers: Included in coverage/may elect to be exempt/see special notes. If included in coverage the rating payroll used is a minimum of $950 and a maximum of $3,700 per week is used as of 1-1-2012, $950 / $3,900 as of 1-1-2013. $1,000 / $4,000 as of 1-1-2014.
LLC Members: Excluded from coverage/may elect to be included/see special notes. If included in coverage the rating payroll treated as partners and the rating payroll of $50,500 is used as of 1-1-2013, $51,900 as of 1-1-2014.
Special Notes: Section 1(b)3 of the Act provides that sole proprietors and business partners may elect to come under the Act or they may choose not to. There is a twist, though, in Section 3. It provides that employees who engage in extra hazardous* occupations must be covered under the law--but then subsections 3(17) and 3(20) allow sole proprietors, corporate officers, business partners, and members of limited liability companies to opt out.
In summary, if you are a sole proprietor, business partner, corporate officer, or member of a limited liability company, and 1)you want to come under the Act, you must purchase insurance for yourself to be covered for a work-related injury or illness.
2)you don't want to be covered, you must choose to opt out, following the instructions in Section 3(17)(b). The Commission does not have an opt-out form. An insurance representative should provide a form if one is desired.
If your company is in the CONSTRUCTION business, TRUCKING business operating at a construction site, or other EXTRA HAZARDOUS occupations, you should be aware that new law (see 820 ILCS 185, Employee Classification Act) requires that, in almost all instances, you must obtain insurance.
Also, a recent decision by the Illinois Supreme Court, Roberson v. Industrial Commission, states that referring to a trucker as an independent contractor, even in a written lease agreement, does not remove the trucking company's obligation to provide workers’ compensation insurance for those drivers.
Do employees who are family members have to be insured? Yes, unless 1) they are bona fide corporate officers (see Section 3(17)(b)); or
2) they work for an agricultural enterprise that employs less than 400 working days of labor per year or they are immediate family members who reside with the employer (see Section 3(19)).
Illinois Workers Compensation Subrogation: Illinois statute 820 ILCS 305/5 (b) is where you will find information about workers comp subrogation for the State of Illinois. You can view this information online by going to the link we provide below. Once there scrol down until you find ILCS 305/5 (b). Remember you have to look for this section. Be sure you're on the right one when researching this topic for Illinois.
Illinois Subrogation Statute
Illinois Workers Working In Other States; Other States Workers Working In Illinois, Extraterritorial, Reciprocity and Non-Compliance: If Illinois workers are working temporarily in another state, then workers compensation coverage for that worker is governed by the extraterritorial provisions found in Illinois statutes. When allowed, extraterritorial provisions allow benefits for an injured worker to apply as if the worker was in their primary state. Not all states provide Extraterritorial Provisions. It's reciprocity that governs coverage for a worker from another state who is working temporarily in Illinois. Compliance of workers compensation laws varies from state to state and it is important for an employer with workers performing duties in other states to be aware of the specific state rules that govern their coverage. We've provided the below general information about extraterritorial and reciprocity as a basic guide. Please contact your state authority with your specific questions concerning this topic!
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Information on this page is provided only as a reference. While we strive to mantain accurate information on this site please realize workers compensation laws are complicated and subject to change at any time. No warranty as to the accuracy or completeness of this information is provided or to be implied. You must verify this data before use with the individual governing authority for this state. If you need help with a workers compensation problem or have a specific situation or question please contact our office. Otherwise please consult your states governing authority or an attorney in your state of residency for assistance.