Workers' Comp Reform Defeated in Illinois Senate

Date: May 29, 2015

Governor Rauner
unveiled several bills last week, including a key worker’s compensation reform
bill that NFIB strongly supports.

An amendment to SB
997 filed by Senate GOP Leader Christine Radogno would finally address
Illinois’ causation standard under our worker’s compensation law.  Currently, the workplace could be less than
1% the cause of a worker’s injury yet the employer is on the hook for all
costs. Under Governor Rauner’s plan, the
workplace would have to be the primary cause, or 50% at fault, for the
employees’ injury. 

This has long been
an issue for employers in Illinois, as 29 other states have passed a higher
causation standard than that we currently have. 
In the 2011 work comp bill that passed, NFIB fought to include a change to
the standard but in the end it was left on the cutting room floor due to strong
opposition by organized labor.

The bill was heard
in the Senate Judiciary Committee this week, with employers, local government
unit and a site selector testifying as well as organized labor.

The owner of a
trucking firm located near the Indiana border testified that his work comp
costs are $325,000 higher in Illinois than Indiana.  The owner of a steel fabricator said he would
save $106,000 in work comp costs if he moved to Indiana. A site selector, who works with businesses
who want to either move or expand, said due to our work comp costs Illinois is
always being cut from the short list of places to look at.

Despite these
compelling arguments, Democrat members of the Judiciary committee vote against
the bill mostly citing their concerns about the process and lack of vetting of
the legislation.

Senate Democrats
also defeated Governor Rauner’s legislation to freeze property taxes, reform
lawsuit abuse and exempt local governments from prevailing wage.

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