Workers’ comp law could raise employer costs

(The Center Square) – A civil justice watchdog says a new Illinois law could reverse the state’s gains in workers’ compensation reform.

House Bill 5228 to amend workers’ comp provisions took effect immediately upon being signed by Gov. J.B. Pritzker on Aug. 7.

Phil Melin, executive director of Illinois Citizens Against Lawsuit Abuse, pointed to two issues with the legislation.

“It adds a new surcharge on successful, profitable workers' compensation insurance companies, and then it adds new restrictions on potential liability on employers,” Melin told The Center Square.

Melin said the surcharge would be $7 million in total and would increase 3.5% each year.

Melin said more profitable companies would pay a higher portion of the sum.

“So profitability is not like, oh, you’re screwing the workers. It means that you're running a good business,” Melin said.

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Melin said charging a profit penalty could disincentivize companies from doing business in Illinois.

Melin said the state became more competitive after then-Gov. Pat Quinn signed successful workers’ comp reform in 2011.

“And so, [House Bill] 5228, we're a little concerned that it's going to reverse some of those gains that made Illinois a more competitive place to do business,” Melin said.

Melin said the new law disincentivizes one of the ways for employers to question challenge expensive or unnecessary treatments.

“It creates more procedural hurdles for the employers to challenge questionable determinations by the workers,” Melin said.

Illinois AFL-CIO and the Illinois Trial Lawyers Association filed witness slips supporting HB 5228.