Workers’ compensation costs are one of the key issues in determining a state’s business climate.  A system that is fair to employers and employees and provides reasonable compensation for true workplace injuries is regarded as an asset by companies looking at new or expanded operations.

Unfortunately, Illinois is viewed as a high-cost WC state generally for multiple reasons.  Additionally, the Illinois system provides ripe opportunities for abuse by those who are willing to game the system. 

How much more proof is needed than the fact that there are approximately 25,000 open workers’ compensation claims filed by State employees and worse, some 389 employees at the Menard Correctional Center in southern Illinois have collected some $10 million in WC claims since 2008!

The current system is so stacked against employers that even a legitimate claim for an injured employee in Illinois can be multiple times what it would be for the same injury in other states.  That’s due in part to a higher than normal fee schedule and the fact that arbitrators base awards on their own experience and judgment rather than objective medical guidelines. 

The cumulative effect on Illinois employers is taking its toll.  It impacts both business expansion and business retention in the State   Employers with multi-state operations – and their workers’ comp experience bears out Illinois’ high cost ranking – are slow to add workers in their Illinois operations.

If policymakers are serious about sending a signal that Illinois wants to be business friendly, there’s no better way to do so than pass substantive, business-supported workers’ compensation reform.

What employers want:

Require the workplace to be the principle cause of injury;

Use AMA guidelines for determining permanent impairment from an injury;

Acknowledge workers have a responsibility to be alcohol and drug-free in the workplace;

Fully implement the 2005 Fraud Provisions;

Give employers choice of physician to reduce “shopping” for a more friendly physician