Would Reform Illinois Workers Comp, Unemployment
Illinois Governor Bruce Rauner (R) is touting what he casts as his pro-business agenda that will improve the state economy and help stabilize the budget in the Land of Lincoln. “If we make those kinds of changes, we’ll increase our competitiveness, we’ll grow more jobs,” Rauner pledged during a recent swing through Chicagoland. He announced specific plans for reforming workers compensation, unemployment insurance, and the Illinois legal system.
Illinois business’ pay some of the highest workers compensation rates in the country. Rauner wants to change the eligibility requirements so employees must demonstrate that injuries are at least 50 percent related to their work. He would also limit claims arising from injuries that occur while commuting. Regarding unemployment insurance, where the state also ranks in the top ten for employer costs, Rauner wants to increase enforcement and penalties for fraud. The Governor also wants to take steps to stop venue shopping in litigation and implement reforms to the state Supreme Court, which he recently panned as a group of “activist judges who want to be legislators.”
What Happens Next
The Governor has expressed a willingness to engage state Democrats in making his plans a reality, but his plans face stiff opposition from entrenched interests, including big labor and the Illinois Trial Lawyers Association. Rauner says he is open to compromises, including raising the minimum wage and increasing payments for unemployment insurance to deserving individuals. Meanwhile, Democrat lawmakers are pushing for increases to the state income tax for high-income individuals, which Rauner opposes.
What It Means For Small Business
Rauner’s proposals represent a mixed bag for small business in Illinois. While improving financial controls on unemployment insurance and other social programs could have benefits for businesses’ bottom lines, increasing the state minimum wage and unemployment payments would be a drag on countless small businesses throughout the state.
Additional Reading
Other news media outlets covering the Governor’s plan include the AP, the Chicago Tribune, and the Springfield (IL) State Journal-Register.
