97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB1097

 

Introduced 02/07/11, by Rep. Chapin Rose

 

SYNOPSIS AS INTRODUCED:
 
820 ILCS 305/2  from Ch. 48, par. 138.2

    Amends the Workers' Compensation Act. Provides that a subcontractor under contract to a general contractor may elect to be covered under any policy of workers' compensation insurance insuring the contractor upon written agreement of the contractor, by filing written notice of the election, on a form prescribed by the Illinois Workers' Compensation Commission.


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A BILL FOR

 

HB1097LRB097 08011 AEK 48132 b

1    AN ACT concerning employment.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Workers' Compensation Act is amended by
5changing Section 2 as follows:
 
6    (820 ILCS 305/2)  (from Ch. 48, par. 138.2)
7    Sec. 2. An employer in this State, who does not come within
8the classes enumerated by Section 3 of this Act, may elect to
9provide and pay compensation for accidental injuries sustained
10by himself or any employee, arising out of and in the course of
11the employment according to the provisions of this Act, and
12thereby relieve himself from any liability for the recovery of
13damages, except as herein provided. The State of Illinois
14hereby elects to provide and pay compensation according to the
15provisions of this Act.
16    (a) Election by any employer to provide and pay
17compensation according to the provisions of this Act shall be
18made by the employer filing notice of such election with the
19Commission, or by insuring his liability to pay compensation
20under this Act in some insurance carrier authorized, licensed
21or permitted to do such insurance business in this State.
22    (b) Every employer within the provisions of this Act who
23has elected to provide and pay compensation according to the

 

 

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1provisions of this Act by filing notice of such election with
2the Commission, shall be bound thereby as to all his employees
3until January 1st of the next succeeding year and for terms of
4each year thereafter.
5    Any such employer who may have once elected, may elect not
6to provide and pay the compensation herein provided for
7accidents resulting in either injury or death and occurring
8after the expiration of any such calendar year by filing notice
9of such election with the Commission at least 60 days prior to
10the expiration of any such calendar year, and by posting such
11notice at a conspicuous place in the plant, shop, office, room
12or place where such employee is employed, or by personal
13service, in written or printed form, upon such employees, at
14least 60 days prior to the expiration of any such calendar
15year.
16    Every employer within the provisions of this Act who has
17elected to provide and pay compensation according to the
18provisions of this Act by insuring his liability to pay
19compensation under this Act, as above provided, shall be bound
20thereby as to all his employees until the date of expiration or
21cancellation of such policy of insurance, or any renewal
22thereof.
23    (c) In the event any employer mentioned in this section,
24elects to provide and pay the compensation provided in this
25Act, then every employee of such employer, as a part of his
26contract of hiring or who may be employed at the time of the

 

 

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1taking effect of this Act and the acceptance of its provisions
2by such employer, shall be deemed to have accepted all the
3provisions of this Act and shall be bound thereby unless within
430 days after such hiring or after the taking effect of this
5Act, and its acceptance by such employee, he shall file a
6notice to the contrary with the Commission, whose duty it shall
7be to immediately notify the employer, and until such notice to
8the contrary is given to the employer, the measure of liability
9of such employer shall be determined according to the
10compensation provisions of this Act.
11    However, any employee may withdraw from the operation of
12this Act, except those under Section 3, upon filing a written
13notice of withdrawal at least 10 days prior to January 1st of
14any year with the Commission, whose duty it shall be to
15immediately notify such employer by registered mail, and, until
16such notice to the contrary is given to such employer, the
17measure of liability of such employer shall be determined
18according to the compensation provisions of this Act.
19    (d) Any such employer or employee may, without prejudice to
20any existing right or claim withdraw his election to reject
21this Act by giving 30 days' written notice in such manner and
22form as may be provided by the Commission.
23    (e) A subcontractor under contract to a general contractor
24may elect to be covered under any policy of workers'
25compensation insurance insuring the contractor upon written
26agreement of the contractor, by filing written notice of the

 

 

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1election, on a form prescribed by the Commission. It is the
2responsibility of the general contractor to file the written
3notice with the Commission. Failure of the general contractor
4to file the written notice shall not operate to relieve or
5alter the obligation of an insurance company to provide
6coverage to a subcontractor when the subcontractor can produce
7evidence of payment of premiums to the insurance company for
8the coverage. The election shall in no way terminate or affect
9the independent contractor status of the subcontractor for any
10other purpose than to permit workers' compensation coverage.
11The election of coverage may be terminated by the subcontractor
12or general contractor by providing written notice of the
13termination to the Commission and to all other parties
14consenting to the prior election. The termination shall be
15effective 30 days from the date of the notice to all other
16parties consenting to the prior election and to the Commission.
17(Source: P.A. 83-190.)