Illinois House Votes to End Workers Comp

[Crabcake Johnny]

"Under the state's workers' compensation law, employees agree not to sue employers over workplace injuries. In return, employers pay into an insurance fund that distributes financial awards if an arbitrator rules in the employee's favor.

Business groups have pushed for the changes saying the cost of workers' compensation, combined with the state's recent income tax increase, was hurting their bottom line. The move gained steam after Peoria-based Caterpillar Inc., one of the state's largest private employers, said other states were trying to lure them out of state.

Under Bradley's measure, employees would be required to sue for damages in circuit court if they think a workplace injury has caused pain and suffering or loss of income"

Illinois House votes to kill workers' comp

 

[VolAgent]

Don't really see how that is a long-term win for employers. Unless the law is going to allow them to enforce mandatory abritration. Mandatory abritration is a huge loss for the employee.

 

[djs]

Lets see, the real problem was taxes, they deflected to making it workers comp. Good move.

Apparently lawyers don't make enough money with workers comp. Rather than having a system in place, lets run everything through court so the lawyer can get his billable hours up.

Dan

 

[Crabcake Johnny]

It's a great system where only the wealthy will be able to take it to court. And hopefully you'll win....18 months later. And can the company appeal?

 

[VolAgent]

It'll be just like auto PI claims. There will be a ton of ambulance chasers and the real winners will be the attorneys. Both the companies and the people will be the losers. What companies thought they saved in WC premiums will be destroyed by new legal bills. Plus, there is no guarantee the money will be there if the employee wins. Just imagine, some small 5 employee restaurant. Worker falls in the deep fat fryer and has six figures plus in medical bills, and would receive a huge settlement from WC. I can promise you the employer can't foot the medical bills or the settlement. Restaurant closes shop, and the owner loses everything.

 

[Crabcake Johnny]

Or....restaurant files for bankruptcy protection.

 

[VolAgent]

Good point. Again the real winners are the attorneys. They just moved from capped compensation to unlimited with deeper pockets to chase.

 

[Crabcake Johnny]

Right, so in the BK proceedings the judge rules to discharge that 1.5M judgement and the restaurant goes on just fine....or it doesn't and the restaurant goes BK...only to emerge under the owner's brother's name.

Mustang Ranch used this to avoid the IRS. IRS foreclosed on it and by law had to sell it at public auction. Guess who bought it. Very interesting story.

 

[djs]

Even the article said that this vote was basically for show. Again, the problem was the recent tax increase, not workers comp, but deflection is an art.....

Larger companies would still buy workers comp coverage, just the caps would have to be higher, the premiums would be higher and more companies would probably leave Illinois. But hey, this is better than realizing your tax rates are chasing businesses away.

Dan

 

[stuy119]

OK, but it still has to pass the Senate and get signed. The chances of that are roughly 2%.

And what happens to businesses that decide to purchase work comp? Are they going to be able to keep their employees from suing, or are they able to sue even with the purchase of work comp under this law?

Again, it's typical of lawyers writing laws that favor lawyers. Freakin' IL is as business-unfriendly of a state as there is.