100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB1571

 

Introduced 2/9/2017, by Sen. Iris Y. Martinez

 

SYNOPSIS AS INTRODUCED:
 
820 ILCS 305/1  from Ch. 48, par. 138.1

    Amends the Workers' Compensation Act. Provides that a borrowing employer that has entered into an agreement with a loaning employer may not avail itself of the exclusive remedy protection under the Act. Provides that any agreement between a loaning employer and a borrowing employer by which the loaning employer is entitled to receive certain reimbursements relating to fees and costs in hearings before the Illinois Workers' Compensation Commission is prohibited, is against public policy, and shall be wholly void.


LRB100 04730 HEP 14736 b

 

 

A BILL FOR

 

SB1571LRB100 04730 HEP 14736 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 1 as follows:
 
6    (820 ILCS 305/1)  (from Ch. 48, par. 138.1)
7    Sec. 1. This Act may be cited as the Workers' Compensation
8Act.
9    (a) The term "employer" as used in this Act means:
10    1. The State and each county, city, town, township,
11incorporated village, school district, body politic, or
12municipal corporation therein.
13    2. Every person, firm, public or private corporation,
14including hospitals, public service, eleemosynary, religious
15or charitable corporations or associations who has any person
16in service or under any contract for hire, express or implied,
17oral or written, and who is engaged in any of the enterprises
18or businesses enumerated in Section 3 of this Act, or who at or
19prior to the time of the accident to the employee for which
20compensation under this Act may be claimed, has in the manner
21provided in this Act elected to become subject to the
22provisions of this Act, and who has not, prior to such
23accident, effected a withdrawal of such election in the manner

 

 

SB1571- 2 -LRB100 04730 HEP 14736 b

1provided in this Act.
2    3. Any one engaging in any business or enterprise referred
3to in subsections 1 and 2 of Section 3 of this Act who
4undertakes to do any work enumerated therein, is liable to pay
5compensation to his own immediate employees in accordance with
6the provisions of this Act, and in addition thereto if he
7directly or indirectly engages any contractor whether
8principal or sub-contractor to do any such work, he is liable
9to pay compensation to the employees of any such contractor or
10sub-contractor unless such contractor or sub-contractor has
11insured, in any company or association authorized under the
12laws of this State to insure the liability to pay compensation
13under this Act, or guaranteed his liability to pay such
14compensation. With respect to any time limitation on the filing
15of claims provided by this Act, the timely filing of a claim
16against a contractor or subcontractor, as the case may be,
17shall be deemed to be a timely filing with respect to all
18persons upon whom liability is imposed by this paragraph.
19    In the event any such person pays compensation under this
20subsection he may recover the amount thereof from the
21contractor or sub-contractor, if any, and in the event the
22contractor pays compensation under this subsection he may
23recover the amount thereof from the sub-contractor, if any.
24    This subsection does not apply in any case where the
25accident occurs elsewhere than on, in or about the immediate
26premises on which the principal has contracted that the work be

 

 

SB1571- 3 -LRB100 04730 HEP 14736 b

1done.
2    4. Where an employer operating under and subject to the
3provisions of this Act loans an employee to another such
4employer and such loaned employee sustains a compensable
5accidental injury in the employment of such borrowing employer
6and where such borrowing employer does not provide or pay the
7benefits or payments due such injured employee, such loaning
8employer is liable to provide or pay all benefits or payments
9due such employee under this Act and as to such employee the
10liability of such loaning and borrowing employers is joint and
11several, provided that such loaning employer is in the absence
12of agreement to the contrary entitled to receive from such
13borrowing employer full reimbursement for all sums paid or
14incurred pursuant to this paragraph together with reasonable
15attorneys' fees and expenses in any hearings before the
16Illinois Workers' Compensation Commission or in any action to
17secure such reimbursement. Where any benefit is provided or
18paid by such loaning employer the employee has the duty of
19rendering reasonable cooperation in any hearings, trials or
20proceedings in the case, including such proceedings for
21reimbursement.
22    Where an employee files an Application for Adjustment of
23Claim with the Illinois Workers' Compensation Commission
24alleging that his claim is covered by the provisions of the
25preceding paragraph, and joining both the alleged loaning and
26borrowing employers, they and each of them, upon written demand

 

 

SB1571- 4 -LRB100 04730 HEP 14736 b

1by the employee and within 7 days after receipt of such demand,
2shall have the duty of filing with the Illinois Workers'
3Compensation Commission a written admission or denial of the
4allegation that the claim is covered by the provisions of the
5preceding paragraph and in default of such filing or if any
6such denial be ultimately determined not to have been bona fide
7then the provisions of Paragraph K of Section 19 of this Act
8shall apply.
9    An employer whose business or enterprise or a substantial
10part thereof consists of hiring, procuring or furnishing
11employees to or for other employers operating under and subject
12to the provisions of this Act for the performance of the work
13of such other employers and who pays such employees their
14salary or wages notwithstanding that they are doing the work of
15such other employers shall be deemed a loaning employer within
16the meaning and provisions of this Section.
17    Notwithstanding any other provision of this Act to the
18contrary, any borrowing employer that has entered into an
19agreement with any loaning employer may not and shall not avail
20itself of the exclusive remedy protection under subsection (a)
21of Section 5 of this Act in any suit for a common law or
22statutory right to recover damages from any such borrowing
23employer.
24    Notwithstanding any other provision of this Act to the
25contrary, any agreement between a loaning employer and any
26borrowing employer by which the loaning employer is entitled to

 

 

SB1571- 5 -LRB100 04730 HEP 14736 b

1receive from the borrowing employer full reimbursement for all
2sums paid or incurred pursuant to this paragraph and reasonable
3attorney's fees and expenses in any hearings before the
4Illinois Workers' Compensation Commission or in any action to
5secure such reimbursement is prohibited, is against public
6policy, and is wholly void.
7    (b) The term "employee" as used in this Act means:
8    1. Every person in the service of the State, including
9members of the General Assembly, members of the Commerce
10Commission, members of the Illinois Workers' Compensation
11Commission, and all persons in the service of the University of
12Illinois, county, including deputy sheriffs and assistant
13state's attorneys, city, town, township, incorporated village
14or school district, body politic, or municipal corporation
15therein, whether by election, under appointment or contract of
16hire, express or implied, oral or written, including all
17members of the Illinois National Guard while on active duty in
18the service of the State, and all probation personnel of the
19Juvenile Court appointed pursuant to Article VI of the Juvenile
20Court Act of 1987, and including any official of the State, any
21county, city, town, township, incorporated village, school
22district, body politic or municipal corporation therein except
23any duly appointed member of a police department in any city
24whose population exceeds 500,000 according to the last Federal
25or State census, and except any member of a fire insurance
26patrol maintained by a board of underwriters in this State. A

 

 

SB1571- 6 -LRB100 04730 HEP 14736 b

1duly appointed member of a fire department in any city, the
2population of which exceeds 500,000 according to the last
3federal or State census, is an employee under this Act only
4with respect to claims brought under paragraph (c) of Section
58.
6    One employed by a contractor who has contracted with the
7State, or a county, city, town, township, incorporated village,
8school district, body politic or municipal corporation
9therein, through its representatives, is not considered as an
10employee of the State, county, city, town, township,
11incorporated village, school district, body politic or
12municipal corporation which made the contract.
13    2. Every person in the service of another under any
14contract of hire, express or implied, oral or written,
15including persons whose employment is outside of the State of
16Illinois where the contract of hire is made within the State of
17Illinois, persons whose employment results in fatal or
18non-fatal injuries within the State of Illinois where the
19contract of hire is made outside of the State of Illinois, and
20persons whose employment is principally localized within the
21State of Illinois, regardless of the place of the accident or
22the place where the contract of hire was made, and including
23aliens, and minors who, for the purpose of this Act are
24considered the same and have the same power to contract,
25receive payments and give quittances therefor, as adult
26employees.

 

 

SB1571- 7 -LRB100 04730 HEP 14736 b

1    3. Every sole proprietor and every partner of a business
2may elect to be covered by this Act.
3    An employee or his dependents under this Act who shall have
4a cause of action by reason of any injury, disablement or death
5arising out of and in the course of his employment may elect to
6pursue his remedy in the State where injured or disabled, or in
7the State where the contract of hire is made, or in the State
8where the employment is principally localized.
9    However, any employer may elect to provide and pay
10compensation to any employee other than those engaged in the
11usual course of the trade, business, profession or occupation
12of the employer by complying with Sections 2 and 4 of this Act.
13Employees are not included within the provisions of this Act
14when excluded by the laws of the United States relating to
15liability of employers to their employees for personal injuries
16where such laws are held to be exclusive.
17    The term "employee" does not include persons performing
18services as real estate broker, broker-salesman, or salesman
19when such persons are paid by commission only.
20    (c) "Commission" means the Industrial Commission created
21by Section 5 of "The Civil Administrative Code of Illinois",
22approved March 7, 1917, as amended, or the Illinois Workers'
23Compensation Commission created by Section 13 of this Act.
24    (d) To obtain compensation under this Act, an employee
25bears the burden of showing, by a preponderance of the
26evidence, that he or she has sustained accidental injuries

 

 

SB1571- 8 -LRB100 04730 HEP 14736 b

1arising out of and in the course of the employment.
2(Source: P.A. 97-18, eff. 6-28-11; 97-268, eff. 8-8-11; 97-813,
3eff. 7-13-12.)