Thursday, July 22, 2010 by
From the Illinois Workers' Compensation Commission's Handbook on Workers' Compensation and Occupational Diseases:
An employer that negligently fails to provide coverage is guilty of a
Class A misdemeanor for each day without coverage, punishable by
up to 12 months imprisonment and a $2,500 fine.
An employer that knowingly fails to provide coverage is guilty of a
Class 4 felony for each day without coverage, punishable by 1-3
years imprisonment and a $25,000 fine.
An uninsured employer may be also fined up to $500 for every day it
lacked insurance, with a minimum $10,000 fine.
An uninsured employer loses the protections of the Workers’
Compensation Act for the period of noncompliance. That means an
employee who was injured during the period of noncompliance may
choose to sue in civil court, where there are no limits to awards.
In addition, if the Commission finds that an employer knowingly
failed to provide insurance coverage, it may issue a stop-work order
and shut the company down until it obtains insurance.