When employees are injured on the job in Illinois, they expect that workers’ compensation insurance will cover medical bills, lost wages, and other related costs. Unfortunately, not every employer follows the law. Some businesses try to cut corners by failing to carry workers’ compensation insurance, leaving injured workers unsure of where to turn. As attorneys, we see firsthand how stressful and overwhelming this can be. Employees often worry about how they will support their families, pay for medical treatment, or protect their jobs. That is why it is essential to understand what Illinois law requires, what options you have if your employer is uninsured, and the consequences that employers face when they fail to comply.
Under the Illinois Workers’ Compensation Act, codified at 820 ILCS 305/1 et seq., nearly every employer is required to provide workers’ compensation insurance. This coverage ensures that injured employees receive necessary medical care and partial wage replacement when an injury or illness is work-related. The Illinois Workers’ Compensation Commission (IWCC) is the agency responsible for overseeing claims and enforcing compliance.
Employers must either purchase workers’ compensation insurance from a licensed insurer or, in limited cases, obtain permission from the Illinois Division of Insurance to self-insure. Failure to do either is a direct violation of Illinois law. Importantly, even if your employer has no insurance, your right to benefits does not simply disappear.
Employers who fail to carry required coverage face severe consequences under Illinois law. According to 820 ILCS 305/4(d), an employer without workers’ compensation insurance may be fined up to $500 for each day of noncompliance, with a minimum fine of $10,000. Additionally, corporate officers, partners, or members of a limited liability company can be held personally liable for injuries suffered by employees.
Beyond financial penalties, uninsured employers may also face criminal charges. Under 820 ILCS 305/4(d), willful failure to obtain workers’ compensation insurance is classified as a Class A misdemeanor for a first offense and a Class 4 felony for subsequent offenses. This demonstrates how seriously Illinois takes compliance with the Act.
When your employer does not carry workers’ compensation insurance, you still have important rights. Illinois law provides several avenues to pursue compensation:
The IWBF was created under 820 ILCS 305/4(d) to provide benefits to injured employees whose employers failed to carry insurance. The Fund is financed through fines collected from noncompliant employers. While payments may not be as immediate as those from an insured employer, this safety net ensures that injured workers are not left without recourse.
Under 820 ILCS 305/4(d), employees can bring a civil lawsuit directly against an uninsured employer. Unlike a typical workers’ compensation claim, which limits recovery to medical care and partial wages, a civil lawsuit can allow recovery for pain and suffering, emotional distress, and other damages normally barred under workers’ comp exclusivity provisions.
If the employer is incorporated, Illinois law allows injured workers to pursue claims against corporate officers, directors, or members personally. This provides another way to secure financial recovery when the business entity itself lacks sufficient resources.
An uninsured employer complicates the claims process, but it does not erase your rights. Instead of submitting a claim directly to an insurance company, your case may be handled through the IWCC and potentially through the IWBF. This can involve more procedural steps, including hearings before the Commission.
For workers, this means the process may take longer and require careful legal strategy. Employers who are uninsured often try to deny responsibility, and without legal representation, workers may struggle to prove the connection between their job and their injury. As attorneys, we know how to present medical records, employment records, and witness testimony to build a strong case before the Commission or in court.
If your employer lacks workers’ compensation coverage, your situation is complex but far from hopeless. Illinois law is designed to protect workers, not shield employers who break the law. The most important step is to report the injury promptly and seek medical treatment. Then, filing a claim with the IWCC or considering a lawsuit with legal representation will help protect your financial and medical recovery.
At our law firm, we represent workers in Antioch, Waukegan, Woodstock, and throughout Illinois who face these very challenges. We ensure that employers are held accountable and that injured workers receive the compensation they are entitled to under the law.
If you are injured and discover your employer is uninsured, you should still report the injury in writing as soon as possible, seek medical treatment, and then file a claim with the Illinois Workers’ Compensation Commission. You may also be eligible for compensation through the Injured Workers’ Benefit Fund. Speaking with an attorney will help you determine whether to pursue additional claims directly against your employer.
Yes. Under 820 ILCS 305/4(d), you may file a civil lawsuit against your employer if they failed to maintain coverage. This can allow recovery of damages not typically available in workers’ compensation, such as pain and suffering. However, lawsuits can be more time-consuming, so it is important to weigh the benefits with an attorney.
You should still receive medical benefits, either through a claim with the Injured Workers’ Benefit Fund or through a direct claim against your employer. In many cases, the IWCC ensures that injured workers get medical treatment covered, even when the employer fails to follow the law. Delays may occur, but your right to medical care is protected.
The IWBF is a fund established by Illinois law to provide benefits to workers whose employers failed to carry insurance. It is funded by penalties collected from noncompliant employers. While payments may take time, the Fund exists to ensure workers are not left completely unprotected.
Yes. Willfully failing to obtain workers’ compensation insurance is a Class A misdemeanor for a first offense and a Class 4 felony for repeat violations under 820 ILCS 305/4(d). Employers may face both financial and criminal penalties in addition to being held civilly liable for employee injuries.
The general statute of limitations for filing a workers’ compensation claim in Illinois is three years from the date of injury or two years from the last payment of compensation, whichever is later, as outlined in 820 ILCS 305/6(d). This deadline applies regardless of whether the employer carried insurance. Acting quickly protects your rights.
Retaliation against employees for filing a workers’ compensation claim is strictly prohibited under 820 ILCS 305/4(h). If your employer threatens your job, reduces your hours, or terminates you for seeking benefits, you may have additional legal claims.
If your employer does not have workers’ compensation insurance and you were injured on the job, you still have rights under Illinois law. At The Law Offices of Robert T. Edens, P.C., we help injured workers in Antioch, Waukegan, Woodstock, and across Illinois hold employers accountable and recover the benefits they deserve.
Contact our Illinois workers’ comp lawyers at The Law Offices of Robert T. Edens by calling us at 847-395-2200 to receive your free consultation. Our offices are located at 392 Lake St., Antioch, IL 60002, 325 Washington St., Waukegan, IL 60085, and 1212 North Seminary Unit 1, Woodstock, IL 60098. We are ready to protect your rights and help you secure the compensation you need for your recovery.
The Law Offices of Robert T. Edens, Personal Injury and Workers' Compensation Law Office, have offices in Antioch, Waukegan, Grayslake, Woodstock and Barrington. We represent clients throughout the communities of Antioch, Waukegan, Grayslake, Barrington, Woodstock, Buffalo Grove, Deer Park, Gurnee, Lake Zurich, Round Lake, McHenry, Cary, Crystal Lake, Libertyville, Lincolnshire, Mundelein, Vernon Hills, Wheeling, North Chicago, Zion, Inverness, Palatine, Wauconda, Island Lake, Fox Lake, Barrington Hills, Spring Grove, Lake Bluff, Lakemoor, Long Grove, Lake Villa, Kildeer, Wadsworth, Indian Creek, Fox River Grove, Lindenhurst and other cities within Lake and McHenry Counties Illinois.
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