Illinois Workers Compensation Laws: 2025 Guide

Understanding your rights after a workplace injury can make all the difference in your recovery. The Illinois Workers Compensation Act protects employees injured on the job—whether you work full-time, part time, or on a temporary basis—and ensures access to medical care, wage replacement, and vocational rehabilitation without needing to prove fault.

At OnderLaw, we support injured workers across the state by guiding them through complicated workers compensation cases. This 2025 guide will walk you through Illinois’ key requirements, how to file a claim, the role of the Illinois Workers Compensation Commission, and what benefits you’re entitled to.

Who Must Carry Workers Compensation Coverage?

Illinois law requires employers to provide workers compensation coverage for nearly every worker from the moment they are hired—even if the hire was made in Illinois but the work is performed elsewhere.

Covered Workers Include:

• Full-time and part time employees
• Seasonal and temporary workers
• Workers hired under any contract, verbal or written
• Any member of a limited liability company who performs work-related duties

This applies to all business types: corporations, partnerships, sole proprietors, and limited liability companies. Employers must purchase Illinois workers compensation insurance through a licensed insurance company or obtain approval to self-insure from the Illinois Workers Compensation Commission.

Who Is Exempt from Workers Compensation Coverage?

While coverage is extensive, some individuals fall outside the scope of the Workers Compensation Act.

Common Exemptions:

• Certain family members working on farms with fewer than 400 labor days in the preceding calendar year exclusive of working hours of the immediate family
• Federal employees covered by federal systems
• Real estate brokers paid entirely by commission
• Sole proprietors and corporate officers who opt out
• Persons whose employment results in injury while working under another jurisdiction’s coverage

If a contract of a limited liability company involves hazardous work, coverage may still be mandatory—even if the LLC member opts out. Workers in extra hazardous jobs must notify their insurance company in writing if they choose not to be covered.

What Happens If Employers Don’t Insure?

Failing to carry workers compensation coverage has serious consequences for employers.

Penalties for Non-Compliance:

• Civil fines of up to $500 per day (minimum $10,000)
• Potential criminal charges if found guilty of a limited liability company violation
• Cease-and-desist orders to halt business operations
• Personal liability for unpaid benefits

The Illinois Department of Insurance and Illinois Workers Compensation Commission investigate noncompliant businesses. Uninsured employers forfeit the legal protections offered by the Act and may be sued directly in civil court.

To protect employees in these situations, Illinois created the Injured Workers Benefit Fund, which compensates workers whose employers failed to maintain valid workers compensation coverage.

Benefits Provided Under Illinois Workers Compensation

1. Medical Treatment

Injured workers are entitled to 100% coverage for all necessary and reasonable care. This includes:

• Emergency room visits
• Surgeries and hospital stays
• Physical therapy and rehabilitation
• Prescription medications and assistive devices
• Mileage reimbursement for travel to medical appointments

Employees may select two treating physicians and follow-up referrals. All care must be provided at no cost to the worker; the insurance company pays the provider directly.

2. Wage Replacement Benefits

If an injury prevents you from working, you may qualify for:

• Temporary Total Disability (TTD) – You can’t work at all during recovery
• Temporary Partial Disability (TPD) – You return to work but earn less
• Permanent Partial Disability (PPD) – You can work, but with limitations
• Permanent Total Disability (PTD) – You’re no longer able to work in any capacity

These benefits are based on a percentage of your average weekly wage. Typically, the amount is 66 2/3%, subject to minimum and maximum limits.

3. Vocational Rehabilitation

If your injury prevents you from resuming your old job, you may be eligible for vocational services such as:

• Skills training or certification
• Resume support and job placement
• Tuition assistance for retraining
• Career counseling

Employers and their insurance company must cover reasonable vocational rehabilitation costs. These services help injured employees return to the workforce in a suitable role.

4. Death and Survivor Benefits

If a worker dies due to a job-related injury or illness, their family members may receive:

• Funeral and burial costs (up to $8,000)
• Weekly death benefits to spouses, children, or other dependents
• A lump sum payment to surviving spouses upon remarriage

If the employer lacked proper insurance, the Injured Workers Benefit Fund may step in to provide compensation.

How to File a Claim in Illinois

To file a claim, follow these steps:

Step 1: Report the injury to your employer within 45 days
Step 2: Seek care from an approved medical provider
Step 3: Submit an Application for Adjustment of Claim to the Illinois Workers Compensation Commission
Step 4: Keep all medical records and documentation
Step 5: Follow up on deadlines and appeals

Claims must be filed within three years of the accident or two years from the last benefit payment—whichever is later.

What to Do if Your Claim Is Denied

Unfortunately, valid workers compensation claims are sometimes denied. Common reasons include:

• Disputes over whether the injury is work-related
• Missed reporting deadlines
• Conflicting medical opinions
• Employer or insurance company disputes

Appeals Process:

1. A hearing before an arbitrator
2. Review by a panel at the Illinois Workers Compensation Commission
3. Further appeals to the Circuit Court
4. Higher-level appeals to the Illinois Appellate or Supreme Court

Because workers compensation cases often involve complex evidence, legal representation improves your chance of success.

Legal Rights and Anti-Retaliation Protections

Workers are protected from retaliation under Illinois law. Employers cannot:

• Fire, demote, or harass you for filing a claim
• Threaten your job for testifying in another worker’s case
• Deny accommodations after your injury

If retaliation occurs, you may be eligible for additional damages or reinstatement. Document all interactions with your employer and contact an attorney promptly.

Employer Responsibilities Under the Law

Maintaining Coverage

Employers must:

• Obtain Illinois workers compensation insurance
• Renew their coverage annually or maintain approved self-insurance
• Register with the Illinois Workers Compensation Commission

They must also write workers compensation notices and post them at job sites so employees understand their rights.

Reporting and Records

Employers are required to:

• File injury reports with their insurance company
• Submit records to the Commission
• Maintain detailed documentation of workplace incidents for at least five years

Neglecting these responsibilities opens employers to significant liability under the Act.

Multi-State Employment and Illinois Jurisdiction

Illinois extends coverage to persons whose employment results in injury under the following circumstances:

• They were hired in Illinois (even if working elsewhere)
• Their job is primarily localized in Illinois
• The injury occurred within Illinois’ borders

If any of these apply, the worker can file a claim through the Illinois system—even if another state also has jurisdiction.

Special Note on Limited Liability Companies (LLCs)

The role of a member of a limited liability company is unique under the law. Some may opt out of coverage, while others are considered employees based on their duties. A contract of a limited liability company must clearly define roles, especially in hazardous industries.

Employers can be found guilty of a limited liability company violation if they misclassify workers to avoid paying for insurance. In these situations, courts may allow the injured worker to pursue civil action, and the business owner may face personal financial liability.

Why Legal Support Matters

From filing paperwork to handling appeals, legal guidance can be critical. Workers’ comp laws are technical, and even small mistakes may jeopardize your claim. An experienced attorney can:

• Ensure your claim is filed correctly
• Challenge denied benefits
• Help you access additional compensation (e.g., Social Security Disability)
• Negotiate settlements and protect your future income

At OnderLaw, we’ve helped hundreds of clients receive their rightful benefits under Illinois workers compensation laws.

Illinois Workers Compensation Frequently Asked Questions

Conclusion

Whether you’re a warehouse worker, health care employee, or a member of a limited liability company, you have the right to compensation after a job injury. The Illinois Workers Compensation Act ensures that injured workers receive medical treatment, wage replacement, and vocational support—without needing to prove employer negligence.

If your hire was made in Illinois, or your job is based here, you’re likely covered. Don’t let missed deadlines, uncooperative employers, or a reluctant insurance company keep you from the care and benefits you deserve.