State of Illinois
90th General Assembly
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90_SB0581

      820 ILCS 305/Act title
      820 ILCS 305/1            from Ch. 48, par. 138.1
          Amends the Workers' Compensation Act.  Provides that  the
      Act shall be applied impartially to the employer and employee
      in cases arising under the Act.  Deletes, from the definition
      of  "employee",  persons whose employment is outside Illinois
      if the contract of hire is made within  Illinois.   Prohibits
      compensation  under the Act if the employee elects to receive
      compensation under the workers' compensation laws of  another
      state.   Provides that the Act does not apply under specified
      circumstances  if  the  employee  is  entitled   to   receive
      compensation  under the workers' compensation laws of another
      state.   Makes other changes.
                                                     LRB9002915WHmg
                                               LRB9002915WHmg
 1        AN ACT to amend the Workers' Compensation Act by changing
 2    the title of the Act and Section 1.
 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:
 5        Section  5.  The  Workers' Compensation Act is amended by
 6    changing the title of the Act and Section 1 as follows:
 7        (820 ILCS 305/Act title)
 8        An Act to promote the general welfare of  the  people  of
 9    this  State by providing compensation for accidental injuries
10    or death suffered in the course  of  employment  within  this
11    State,   and   without  this  State  where  the  contract  of
12    employment is principally localized made within  this  State;
13    providing  for the enforcement and administering thereof, and
14    penalties a penalty for its violation, and repealing  an  Act
15    therein named.
16        (820 ILCS 305/1) (from Ch. 48, par. 138.1)
17        Sec.   1.    This  Act  may  be  cited  as  the  Workers'
18    Compensation Act.
19        The provisions of this Act shall be  applied  impartially
20    to  both the employer and the employee in cases arising under
21    this Act.
22        (a)  The term "employer" as used in this Act means:
23        1.  The State and  each  county,  city,  town,  township,
24    incorporated  village,  school  district,  body  politic,  or
25    municipal corporation therein.
26        2.   Every  person,  firm, public or private corporation,
27    including hospitals, public service, eleemosynary,  religious
28    or charitable corporations or associations who has any person
29    in  service  or  under  any  contract  for  hire,  express or
30    implied, oral or written, and who is engaged in  any  of  the
                            -2-                LRB9002915WHmg
 1    enterprises  or  businesses  enumerated  in Section 3 of this
 2    Act, or who at or prior to the time of the  accident  to  the
 3    employee  for  which  compensation  under  this  Act  may  be
 4    claimed,  has  in  the manner provided in this Act elected to
 5    become subject to the provisions of this  Act,  and  who  has
 6    not,  prior  to  such accident, effected a withdrawal of such
 7    election in the manner provided in this Act.
 8        3.  Any  one  engaging  in  any  business  or  enterprise
 9    referred to in subsections 1 and 2 of Section 3 of  this  Act
10    who  undertakes  to do any work enumerated therein, is liable
11    to  pay  compensation  to  his  own  immediate  employees  in
12    accordance with the provisions of this Act, and  in  addition
13    thereto  if  he directly or indirectly engages any contractor
14    whether principal or sub-contractor to do any such  work,  he
15    is  liable  to  pay compensation to the employees of any such
16    contractor  or  sub-contractor  unless  such  contractor   or
17    sub-contractor  has  insured,  in  any company or association
18    authorized under  the  laws  of  this  State  to  insure  the
19    liability  to  pay compensation under this Act, or guaranteed
20    his liability to pay such compensation.  With respect to  any
21    time limitation on the filing of claims provided by this Act,
22    the  timely  filing  of  a  claim  against  a  contractor  or
23    subcontractor,  as  the  case may be, shall be deemed to be a
24    timely filing with respect to all persons upon whom liability
25    is imposed by this paragraph.
26        In the event any such person pays compensation under this
27    subsection  he  may  recover  the  amount  thereof  from  the
28    contractor or sub-contractor, if any, and in  the  event  the
29    contractor  pays  compensation  under  this subsection he may
30    recover the amount thereof from the sub-contractor, if any.
31        This subsection does not apply  in  any  case  where  the
32    accident  occurs elsewhere than on, in or about the immediate
33    premises on which the principal has contracted that the  work
34    be done.
                            -3-                LRB9002915WHmg
 1        4.  Where  an employer operating under and subject to the
 2    provisions of this Act loans  an  employee  to  another  such
 3    employer  and  such  loaned  employee  sustains a compensable
 4    accidental  injury  in  the  employment  of  such   borrowing
 5    employer  and  where such borrowing employer does not provide
 6    or pay the benefits or payments due  such  injured  employee,
 7    such  loaning  employer  is  liable  to  provide  or  pay all
 8    benefits or payments due such employee under this Act and  as
 9    to  such employee the liability of such loaning and borrowing
10    employers is joint and several, provided  that  such  loaning
11    employer  is  in  the  absence  of  agreement to the contrary
12    entitled  to  receive  from  such  borrowing  employer   full
13    reimbursement  for all sums paid or incurred pursuant to this
14    paragraph  together  with  reasonable  attorneys'  fees   and
15    expenses  in any hearings before the Industrial Commission or
16    in any  action  to  secure  such  reimbursement.   Where  any
17    benefit  is  provided  or  paid  by such loaning employer the
18    employee has the duty of rendering reasonable cooperation  in
19    any  hearings,  trials  or proceedings in the case, including
20    such proceedings for reimbursement.
21        Where an employee files an Application for Adjustment  of
22    Claim  with the Industrial Commission alleging that his claim
23    is covered by the provisions of the preceding paragraph,  and
24    joining  both  the  alleged  loaning and borrowing employers,
25    they and each of them, upon written demand  by  the  employee
26    and  within  7  days after receipt of such demand, shall have
27    the duty of filing with the Industrial Commission  a  written
28    admission  or  denial  of  the  allegation  that the claim is
29    covered by the provisions of the preceding paragraph  and  in
30    default  of  such  filing or if any such denial be ultimately
31    determined not to have been bona fide then the provisions  of
32    Paragraph K of Section 19 of this Act shall apply.
33        An employer whose business or enterprise or a substantial
34    part  thereof  consists  of  hiring,  procuring or furnishing
                            -4-                LRB9002915WHmg
 1    employees to or  for  other  employers  operating  under  and
 2    subject  to the provisions of this Act for the performance of
 3    the work of such other employers and who pays such  employees
 4    their salary or wages notwithstanding that they are doing the
 5    work  of  such  other  employers  shall  be  deemed a loaning
 6    employer within the meaning and provisions of this Section.
 7        (b)  The term "employee" as used in this Act means:
 8        1.  Every person in the service of the  State,  including
 9    members  of  the  General  Assembly,  members of the Commerce
10    Commission, members of the  Industrial  Commission,  and  all
11    persons in the service of the University of Illinois, county,
12    including  deputy  sheriffs  and assistant state's attorneys,
13    city,  town,  township,  incorporated   village   or   school
14    district,  body  politic,  or  municipal corporation therein,
15    whether by election, under appointment or contract  of  hire,
16    express or implied, oral or written, including all members of
17    the  Illinois  National  Guard  while  on  active duty in the
18    service of the State, and  all  probation  personnel  of  the
19    Juvenile  Court  appointed  pursuant  to  Article  VI  of the
20    Juvenile Court Act of 1987, and including any official of the
21    State,  any  county,  city,  town,   township,   incorporated
22    village,   school   district,   body   politic  or  municipal
23    corporation therein except any duly  appointed  member  of  a
24    police  department   in  any  city  whose  population exceeds
25    200,000 according to the last Federal or  State  census,  and
26    except  any member of a fire insurance patrol maintained by a
27    board of underwriters in this State. A duly appointed  member
28    of  a  fire  department  in any city, the population of which
29    exceeds 200,000  according  to  the  last  federal  or  State
30    census,  is  an  employee under this Act only with respect to
31    claims brought under paragraph (c) of Section 8.
32        One employed by a contractor who has contracted with  the
33    State,  or  a  county,  city,  town,  township,  incorporated
34    village,   school   district,   body   politic  or  municipal
                            -5-                LRB9002915WHmg
 1    corporation therein,  through  its  representatives,  is  not
 2    considered  as  an employee of the State, county, city, town,
 3    township, incorporated village, school district, body politic
 4    or municipal corporation which made the contract.
 5        2.  Every person in the  service  of  another  under  any
 6    contract  of  hire,  express  or  implied,  oral  or written,
 7    including persons whose employment is outside of the State of
 8    Illinois where the contract of hire is made within the  State
 9    of  Illinois,  persons  whose  employment results in fatal or
10    non-fatal injuries within the State  of  Illinois  where  the
11    contract  of  hire  is made outside of the State of Illinois,
12    and persons whose employment is principally localized  within
13    the  State  of  Illinois,  regardless  of  the  place  of the
14    accident or the place where the contract of  hire  was  made,
15    and including aliens, and minors who, for the purpose of this
16    Act  are  considered  the  same  and  have  the same power to
17    contract, receive payments and give quittances  therefor,  as
18    adult employees.
19        3.  Every sole proprietor and every partner of a business
20    may elect to be covered by this Act.
21        Except as otherwise provided in this Section, an employee
22    or  his  dependents  under this Act who shall have a cause of
23    action by reason of any injury, disablement or death  arising
24    out  of  and  in  the  course  of his employment may elect to
25    pursue his remedy in the State where injured or disabled,  or
26    in  the  State  where the contract of hire is made, or in the
27    State where the employment is principally localized; however,
28    no compensation or other benefits under  this  Act  shall  be
29    allowed  if  the  employee elects to receive compensation for
30    the same injury, disablement, or  death  under  the  workers'
31    compensation   or   similar   laws  of  any  other  state  or
32    jurisdiction.
33        This Act does not apply to a  non-resident  employee  and
34    employer  if  the  contract  of hire was made outside of this
                            -6-                LRB9002915WHmg
 1    State, if an accidental injury occurs within this State while
 2    the employee is performing temporary or intermittent services
 3    for  the  non-resident  employer,  or  while  the  employee's
 4    presence within Illinois is  transitory,  provided  that  the
 5    employee  is  entitled to receive compensation as a result of
 6    that accidental injury under  the  workers'  compensation  or
 7    similar  laws  of  any  other state or jurisdiction, in which
 8    case the entitlement to compensation under those laws is  the
 9    employee's  exclusive  remedy  against  the  employer for the
10    injury.
11        However, Any  employer  may  elect  to  provide  and  pay
12    compensation  to any employee other than those engaged in the
13    usual course of the trade, business, profession or occupation
14    of the employer by complying with Sections 2 and  4  of  this
15    Act.   Employees  are  not  included within the provisions of
16    this Act when excluded by  the  laws  of  the  United  States
17    relating  to  liability  of  employers to their employees for
18    personal injuries where such laws are held to be exclusive.
19        The term "employee" does not include  persons  performing
20    services  as real estate broker, broker-salesman, or salesman
21    when such persons are paid by commission only.
22        (c)  "Commission" means the Industrial Commission created
23    by Section 5 of "The Civil Administrative Code of  Illinois",
24    approved  March  7,  1917,  as  amended,  or  the  Industrial
25    Commission created by Section 13 of this Act.
26    (Source: P.A. 85-1209.)

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