IllinoisIllinois adds an insurer surcharge and raises workers’ burial payments
Insurers with reported gains on Illinois workers’ compensation coverage must collect an additional yearly surcharge from insured employers for the state operations fund.
What it does
Insurers with reported gains on Illinois workers’ compensation coverage must collect an additional yearly surcharge from insured employers to support the state workers’ compensation operations fund.
Businesses that need a state license and must show workers’ compensation coverage are subject to civil penalties if they fail to meet coverage requirements. They may avoid penalties by proving they were not operating while their license was active.
When a worker dies from an accidental injury, the employer must pay $10,000 for burial expenses to the worker’s family or whoever paid for the burial.
Argument forThe surcharge could help fund workers’ compensation operations by directing money from insurers with reported gains into the state fund.
Argument againstInsured employers could face higher bills because insurers collect an additional surcharge based on their reported workers’ compensation gains.
More detail
The Director of Insurance must calculate an additional annual surcharge for eligible insurers. Insurers collect the surcharge from insured employers. Employers that self-insure and have paid the separate fund fee are exempt from the surcharge. The additional amount applies to insurers that reported a gain on their Illinois workers’ compensation lines for the previous year. The annual funding target is $7 million for 2026 and rises by 3.5% each year afterward. Before collection, the Department must publish the calculation and provide or link to the underlying data. The first additional amount is due by July 1, 2026, or 15 days after the law takes effect, whichever is later. The Director calculates it each year afterward using the previous year’s reported gains.
Certain licensed businesses that fail to meet workers’ compensation coverage requirements are subject to civil penalties. This applies to corporations, limited liability companies, and partnerships doing work that requires a state license when proof of workers’ compensation coverage is required for that license. A business may avoid these penalties by showing with clear and convincing evidence that it was not operating while its license was active.
The employer must pay $10,000 for burial expenses when a worker dies from an accidental injury. Payment goes to the worker’s surviving spouse, another dependent, next of kin, or the person or people who paid for the burial.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Aug 7Public Act . . . . . . . . . 104-0792Latest
- Aug 7Effective Date August 7, 2026
- Aug 7Governor J. B. Pritzker ApprovedBecame Law
- Jun 26Sent to the GovernorTo Governor
- May 31Added Co-Sponsor Rep. Matt Hanson
- Vote recorded Concurrence, Amendment 2. Result: pass.Lower
- Vote recorded Do Pass, Amendment 2. Result: pass.Lower
- May 31Passed Both Houses
- May 31House Concurs
- May 31Senate Floor Amendment No. 2 House Concurs 089-027-000
- May 31Senate Floor Amendment No. 2 Motion to Concur Recommends Be Adopted Labor & Commerce Committee; 018-010-000
- May 30Senate Floor Amendment No. 2 Motion to Concur Rules Referred to Labor & Commerce Committee
- Vote recorded Third Reading. Result: pass.Upper
- May 30Senate Floor Amendment No. 2 Motion to Concur Referred to Rules Committee
- May 30Senate Floor Amendment No. 2 Motion Filed Concur Rep. Jay Hoffman
- May 30Placed on Calendar Order of Concurrence Senate Amendment(s) 2
- May 30Arrived in HouseMinor
- May 30Senate Committee Amendment No. 1 Tabled Pursuant to Rule 5-4(a)Minor
- May 30Third Reading - Passed; 039-019-000Passed Senate
- May 30Placed on Calendar Order of 3rd Reading
- May 30Senate Floor Amendment No. 2 Adopted; CunninghamMajor
- May 30Recalled to Second ReadingMinor
- May 29Senate Floor Amendment No. 2 Recommend Do Adopt Executive; 009-004-000
- Vote recorded Do Pass, Amendment 2. Result: pass.Upper
- May 29Senate Floor Amendment No. 2 Assignments Refers to Executive
- May 29Senate Floor Amendment No. 2 Referred to Assignments
- May 29Senate Floor Amendment No. 2 Filed with Secretary by Sen. Bill CunninghamMinor
- May 29Placed on Calendar Order of 3rd Reading May 30, 2026
- May 29Second ReadingMinor
- May 28Placed on Calendar Order of 2nd Reading May 29, 2026Minor
- May 28Approved for Consideration Assignments
- May 28Re-referred to Assignments
- May 22Rule 2-10 Committee/3rd Reading Deadline Established As May 31, 2026
- May 20Postponed - Judiciary
- May 20Senate Committee Amendment No. 1 Postponed - Judiciary
- May 15Rule 2-10 Committee Deadline Established As May 22, 2026
- May 8Rule 2-10 Committee Deadline Established As May 15, 2026
- May 6Postponed - Judiciary
- May 6Senate Committee Amendment No. 1 Postponed - Judiciary
- May 5Senate Committee Amendment No. 1 Assignments Refers to Judiciary
- Apr 28Senate Committee Amendment No. 1 Referred to Assignments
- Apr 28Senate Committee Amendment No. 1 Filed with Secretary by Sen. Bill CunninghamMinor
- Apr 28Assigned to JudiciaryMinor
- Apr 21Referred to Assignments
- Apr 21First ReadingMinor
- Apr 21Chief Senate Sponsor Sen. Bill Cunningham
- Apr 21Placed on Calendar Order of First ReadingMinor
- Apr 21Arrive in SenateMinor
- Apr 17Third Reading - Standard Debate - Passed 076-024-000Passed House
- Vote recorded Third Reading. Result: pass.Lower
- Apr 17Placed on Calendar Order of 3rd Reading - Standard Debate
- Apr 17Chair Rules Standard Debate
- Apr 17Placed on Calendar Order of 3rd Reading - Short Debate
- Apr 10Held on Calendar Order of Second Reading - Short DebateMinor
- Apr 10Second Reading - Short DebateMinor
- Mar 27Placed on Calendar 2nd Reading - Short DebateMinor
- Mar 26Do Pass / Short Debate Labor & Commerce Committee; 018-010-000
- Vote recorded Do Pass. Result: pass.Lower
- Mar 18Assigned to Labor & Commerce CommitteeMinor
- Feb 10Referred to Rules Committee
- Feb 10First ReadingMinor
- Feb 5Filed with the Clerk by Rep. Jay HoffmanIntroduced
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