George L. Tamvakis Law Firm

Workers' Compensation General Overview

A. What is workers' compensation?

Workers' compensation is a system of benefits provided by Illinois law to most workers' who have been injured while at work. The amount of the benefits is subjected to limits as set forth by the law.

B. Who is covered?

Almost every employee who is injured and whose employment is localized in the State of Illinois is covered by workers' compensation. Coverage begins from the moment the employee starts work.

C. Who provides the benefits?

The employer is responsible for providing benefits. The employer may be self-insured or have contracted with an insurance company to provide workers' compensation insurance for their employees.

D. Who administers the law?

The Illinois Workers’ Compensation Commission is responsible for administering the law. It is responsible for resolving disputes regarding employees' entitlement to benefits and the amount of benefits.

E. Can an employee be fired because he or she has filed a workers' compensation claim?

It is against the law for an employer to fire an employee because he or she filed a workers' compensation claim. Such conduct by an employer may give rise to a right to file a separate claim for damages in Circuit Court. The Illinois Workers’ Compensation Commission does not have jurisdiction over such a claim.

F. Are workers ' compensation benefits subject to income tax?

No. Workers' compensation benefits are not subject to state or federal income tax and need not be reported on tax returns as income.