Current through Register Vol. 48, No. 12, March 22, 2024
a) Employers to Insure Payment of
Compensation
Any employer that is subject to Section 3 of the Act or elects
to provide and pay the compensation provided for in the Workers' Compensation
Act (the Act) or the Workers' Occupational Diseases Act (WODA) shall insure
payment of that compensation as required by Section 4(a) of the Act/WODA by
obtaining approval from the Commission to operate as a self-insurer or by
insuring its entire liability to pay the compensation using an insurance
carrier authorized, licensed or permitted to do such insurance business in
Illinois.
b) Failure to
Insure Payment of Compensation Liability; Penalty
Penalties may be assessed by the Commission after reasonable
notice and hearing in accordance with Section 4 of the Act and Section 4 of
WODA.
c) Hearings
1) Notice of Hearing; Locations
A) A matter under this subsection (c) is
commenced by the Department of Insurance by service of a Notice of Hearing upon
the employer at least 30 days prior to the time fixed for hearing.
B) Service will be accomplished in accordance
with the following:
i) by personal service as
set forth in the Illinois Code of Civil Procedure [735 ILCS 5/Art.
II ];
ii)
by any method of United States registered or certified mail addressed to the
employer at the last known address or to the employer's representative;
or
iii) if service using the
methods in subsections (c)(1)(B)(i) and (ii) is unsuccessful, as otherwise
ordered by the Commission.
C) The Notice of Hearing shall be a written
statement setting forth, but not limited to, the following information:
i) the name and address of the
employer;
ii) the time, date, and
place of hearing;
iii) the name of
the Commissioner;
iv) a statement
of the section of the statute alleged to be violated, periods of
non-compliance, and the penalty that may be imposed; and
v) a statement that failure to appear at the
hearing, if no continuance has been obtained prior to the hearing, shall
constitute a default and shall result in a finding that there has been a
knowing and willful failure of the employer to insure the employer's liability
to pay compensation in accordance with Section 4(a) of the Act or to comply
with an Order of the Commission under Section 4(c) and an assessment of
penalties under Section 4(d).
D) The hearing shall be set at a site
designated by the assigned Commissioner.
2) Assignment
A) In all cases in which the employer is
principally located in Cook County, a matter to be scheduled for hearing under
this Section will be randomly assigned to a Commissioner.
B) In all other cases, a matter to be
scheduled for hearing under this Section will be assigned to the Commissioner
who serves the territory within which the employer is principally
located.
3) Conduct of
Hearings
A) At the hearing, a representative
of the Department of Insurance shall have the opportunity to introduce
evidence, to call and examine witnesses, and to cross-examine witnesses. The
employer or its attorney shall be given the opportunity to show that there has
been compliance with Section 4(a) of the Act or an Order of the Commission
under Section 4(c) or show cause why compliance has not been accomplished. The
employer or its attorney shall have the opportunity to introduce evidence, to
call and examine witnesses, and to cross-examine witnesses. The representative
of the Department of Insurance shall have the right of rebuttal.
B)
The Commission or any member of
the Commission shall have the power to administer oaths, to subpoena and
examine witnesses, and to issue subpoenas duces tecum requiring the production
of such books, papers, records, or documents as may be evidence to determine
the issue of non-compliance. (Section 16 of the Act)
C) The Illinois Rules of Evidence and Article
VIII of the Code of Civil Procedure [735 ILCS 5/Art.
VIII ] shall apply except to the extent they conflict
with the Workers' Compensation Act, the Workers' Occupational Diseases Act, or
the Rules Governing Practice Before the Workers' Compensation Commission (50
Ill. Adm. Code: Chapter VI).
D) A
certification from an employee of the National Council on Compensation
Insurance stating that no policy information page has been filed in accordance
with Section 9100.20 shall be deemed prima
facie evidence of that fact.
E) A
certification from an employee of the Commission stating that an employer has
not been approved as a self-insurer shall be deemed prima facie evidence of
that fact.
d)
Decision
The Commission, after the hearing is concluded, shall issue a
decision that includes:
1) the findings
of the Commission;
2) when
applicable, the dates of failure to insure and the amount of penalty assessed
for each day;
3) the payment
procedures provided in subsection (e); and
4) a statement of the conditions for a
judicial review of the Commission's decision in accordance with the
requirements of 50 Ill. Adm. Code 9060.
e) Payment Procedures
When the Commission assesses a penalty against an employer in
accordance with Section 4(d) of the Act or WODA, payment shall be made
according to the following procedure:
1) Payment of the penalty shall be made by
certified check or money order made payable to the Illinois Workers'
Compensation Commission or by an electronic format prescribed by the Commission
and accepted by the Illinois Office of the Comptroller.
2) Payment shall be mailed or presented
within 30 days after the final Order of the Commission or the order of the
court on review after final adjudication. Payments submitted by mail shall be
sent to:
Workers' Compensation Commission
Fiscal Department
69 West Washington Street
Suite 900
Chicago, Illinois 60602.
f) Work-Stop Order
1) Failure to Insure Payment of Compensation
Liability; Work-Stop Order
When the panel has issued a decision under subsection (f)(5),
the Commission may issue a Work-Stop Order on an employer requiring the
cessation of all business operations at the employer's places of employment or
job sites.
2) Hearings,
Notice, Locations
A) A matter under this
subsection (f) is commenced by the Department of Insurance's Insurance
Compliance Division by service of a Notice of Work-Stop Hearing upon an
employer at least 5 days prior to the time fixed for hearing.
B) Service shall be accomplished in
accordance with the following:
i) by personal
service as set forth in the Illinois Code of Civil Procedure [735 ILCS 5/Art.
II ];
ii)
by any method of United States registered or certified mail addressed to the
employer at the last known address or to the employer's
representative;
iii) by posting a
copy of the Notice of Work-Stop Hearing at the entrance of the employer's
places of employment or in a prominent place at the job sites; or
iv) if service using the methods in
subsections (f)(2)(B)(i) through (iii) is unsuccessful, as otherwise ordered by
the Commission.
C) The
Notice of Work-Stop Hearing shall set forth the following information:
i) The name and address of the
employer;
ii) The time, date, and
place of hearing;
iii) A statement
of the Section of the statute alleged to be violated, periods of
non-compliance, and that a Work-Stop Order may be issued;
iv) A statement that failure to appear at the
hearing shall constitute a default and shall result in a finding that:
* there has been a knowing failure of the employer to provide
coverage required by Section 4(a) of the Act;
* the failure to insure is deemed an immediate serious danger
to public health, safety and welfare; and
* a Work-Stop Order shall be issued by the Commission hearing
panel at the close of evidence.
3) Assignments
A) A matter to be scheduled for a Work-Stop
Order hearing in Chicago shall be randomly assigned to any available
Commissioner.
B) A matter to be
scheduled for a Work-Stop Order hearing in Springfield shall be assigned to a
Commissioner and scheduled at the Commissioner's next available review
date.
C) The hearing shall be held
within 7 days after the date of the Notice of Work-Stop Hearing.
4) Hearings under this subsection
(f) shall be conducted in accordance with subsection (c)(3).
5) Decision
A) A panel of 3 Commissioners (one member
representing the employing class, one member representing the employee class,
and one member representing neither the employing or employee class) shall
issue a decision at the close of the hearing that shall include:
i) The findings of the Commission;
ii) The dates of failure to insure;
iii) A statement of the conditions for a
judicial review of the Commission's decision in accordance with the
requirements of 50 Ill. Adm. Code 9060.
B) If the panel's decision finds that the
employer has knowingly failed to provide the workers'
compensation coverage required by Section (4)(a) of the Act, that
failure is statutorily deemed an immediate serious danger to
public health, safety and welfare justifying service by the Commission of a
Work-Stop Order under subsection (f)(1). (Section 4(d) of the
Act)
6) Issuance and
Posting of Work-Stop Order
A) A Work-Stop
Order shall take effect immediately upon issuance by the Commission.
B) Posting of Work-Stop Order
i) Upon taking effect, the Commission shall
direct the Department of Insurance to post a Notice of Work-Stop Order at the
employer's places of employment or job sites reflecting the decision of the
Commission.
ii) The Notice of
Work-Stop Order shall be in the form of a sign of sufficient size and
visibility to serve as notice to the public or persons at or entering the
employer's places of employment or job sites that a Work-Stop Order is in
effect. The notice shall be affixed to the employer's places of employment or
job sites in any manner possible, including, but not limited to, windows,
doors, and fencing.
iii)
Upon request by the Commission, any law enforcement agency in the State
shall render assistance to the Commission to carry out the provision of Section
4(d) of the Act, including, but not limited to, preventing any employee from
remaining at the employer's place of employment after a Work-Stop Order has
taken effect. (Section 4(d) of the Act)
7) Release of Work-Stop Order
A) A Work-Stop Order shall remain in effect
until the Commission issues a Release of the Work-Stop Order upon a finding
that the employer is in compliance with the workers' compensation insurance
coverage requirements of Section 4(a) of the Act. An employer may request a
Release of the Work-Stop Order by demonstrating compliance by submitting a copy
of the policy information page issued by an insurance carrier (see Section
9100.20) and proof of payment of premium for at least 90 days. The
documentation provided must be to the Commission's satisfaction.
B) Release of a Work-Stop Order does not
relieve the employer or officers of any fines, penalties or decision that may
be assessed for prior noncompliance periods.
g) Emergency Work-Stop Order
1)
If a business is declared to be
extra hazardous, as defined in Section 3 of the Act, a Commissioner may issue
an Emergency Work-Stop Order requiring the cessation of all business operations
of such employer at the place of employment or job site while awaiting the
ruling of the Commission.
2)
A Commissioner may issue an
Emergency Work-Stop Order ex parte, prior to holding a hearing.
(Section 4(d) of the Act)
3) The
Notice of Emergency Work-Stop Hearing shall set forth the following
information:
A) The name and address of the
employer;
B) The time, date, and
place of hearing;
C) A statement of
the Section of the statute alleged to be violated, periods of non-compliance,
and that an Emergency Work-Stop Order has been issued;
D) A statement that failure to appear at the
hearing shall constitute a default and shall result in a finding that:
i) there has been a knowing failure of the
employer to provide coverage required by Section 4(a) of the Act;
ii) the failure to insure is deemed an
immediate serious danger to public health, safety, and welfare; and
iii) a Work-Stop Order shall be issued by the
Commission hearing panel at the close of evidence.
4) Assignments
A) A matter to be scheduled for an Emergency
Work-Stop Order hearing in Chicago shall be randomly assigned to any available
Commissioner.
B) A matter to be
scheduled for an Emergency Work-Stop Order hearing in Springfield shall be
assigned to a Commissioner at the Commissioner's next available review date or
any other time at the discretion of the Commissioner.
C) The hearing shall be held within 7 days
after the date of the Notice of Emergency Work-Stop Hearing.
5) Hearings under this subsection
(g) shall be conducted in accordance with subsection (c)(3).
6) Issuance and Posting of Emergency
Work-Stop Order
A) An Emergency Work-Stop
Order shall take effect immediately upon issuance by the Commission.
B) Posting of Emergency Work-Stop Order
i) Upon issuing an Emergency Work-Stop Order,
the Commission shall issue a Notice of Emergency Work-Stop Hearing to be posted
by the Department of Insurance at the employer's places of employment and job
sites.
ii) The Notice of Emergency
Work-Stop Order shall be in the form of a sign of sufficient size and
visibility to serve as notice to the public or persons at or entering the
employer's places of employment or job sites that an Emergency Work-Stop Order
is in effect. The notice shall be affixed to the employer's places of
employment or job sites in any manner possible, including, but not limited to,
windows, doors and fencing.
iii)
Upon request by the Commission, any law enforcement agency in the State
shall render assistance to the Commission to carry out the provision of Section
4(d) of the Act, including, but not limited to, preventing any employee from
remaining at the employer's place of employment after an Emergency Work-Stop
Order has taken effect. (Section 4(d) of the Act)
7) Release of Emergency Work-Stop
Order
A) An Emergency Work-Stop Order shall
remain in effect until the close of the Emergency Work-Stop Hearing or when the
Commission issues a Release of the Emergency Work-Stop Order upon a finding
that the employer is in compliance with the workers' compensation insurance
coverage requirements of Section 4(a) of the Act. An employer may request a
Release of the Emergency Work-Stop Order by demonstrating compliance by
submitting a copy of the policy information page issued by an insurance carrier
(see Section 9100.20) and proof of payment of premium for at least 90 days. The
documentation provided must be to the Commission's satisfaction.
B) Release of an Emergency Work-Stop Order
does not relieve the employer or officers of the terms or mandates of any
decisions of the Commission or any fines or penalties that may be assessed for
prior noncompliance periods.