Rumors and gossip abound—Did the Illinois Workers’ Compensation Commission’s former Manager of Insurance Compliance get quietly cut for doing her job?
Editor’s comment: As many business observers are aware, beginning in 2005, Illinois has a wildly hefty penalty for any company that does business in Illinois and doesn’t have workers’ compensation insurance. The minimum penalty is $10,000 and the fines can be $500 for every day a company is in operation without coverage. If you do the math, a company that doesn’t have coverage for a year can readily be fined enough money to force it to be quickly disbanded or bankrupted. In this rotten economy, hundreds of WC insurance coverage complaints are now pending against businesses all over the state.
In the situation of small or start-up businesses, the cost of workers’ compensation coverage can be a determining factor in corporate viability, representing a hefty anti-business penalty as the Illinois workers’ compensation system now imposes can be a death knell. As we tell all of our readers and everyone who will listen, Illinois WC needs to be made more business-friendly if business and jobs are going to survive and grow in this state. We are not only concerned about the anti-business penalties, we are deeply concerned about the spiraling cost that gave rise to them—Illinois’ workers’ compensation insurance premiums that have to be among the highest in the U.S.
We were advised these punitive anti-business insurance coverage penalties made it to the desk of an unknown legislator. The legislator probably found out what we have known since 2005—any Illinois business that made even an innocent mistake on insurance coverage can still be locked into a potential bind from which they may never recover. Some of the folks at the Commission don’t care if they “kill” such businesses—the mindset is force WC insurance coverage or get out. Obviously, the legislator may have wanted to create some quiet leeway or gap in the rules for the “right” people. We consider it a shame he or she didn’t get to the root of the problem—wildly high WC premiums. We will leave that issue for a later date.
Our sources indicate the legislator supposedly put in a call to the secret-powers-that-be who run the Illinois Commission. The word went out to the Commission staff involved to cut the lack-of-coverage penalties to more bearable levels in selected situations. The internal grapevine at the Commission advised us the former Manager of Insurance Compliance responded to the call to cut the penalties with a simple response—the statute doesn’t allow it. We have been advised this former Manager who is a licensed Illinois attorney and was a former Assistant States’ Attorney in Cook County clearly indicated she swore an oath to enforce the laws and Illinois Constitution and would continue to follow that oath. We are advised she was then told to do what she was being asked or hit the highway. Welcome to Illinois!
Commission observers can now look at the IWCC’s website and note someone has been quietly appointed a new Acting Manager of Insurance Compliance in our state. We again ask all of our readers if this is a solid way to run the joint—should things like this be kept on the QT? Should there be open meetings where the so-called “Commission” considers and votes on such issues and policies? Does everyone at the IWCC owe their jobs to the secret-powers-that-be who wield all-encompassing political power?
Our answer is consider reform, Illinois. The next statewide election is 351 days away, folks. If we are going to do something, it is going to happen between now and then. We will keep you posted if we see any candidate on either side of the political parties who is willing to work hard to open up the political labyrinth that is the Commission and bring Illinois back into the middle of the fold on WC costs—we consider it a gargantuan task. Please let us know if you have thoughts and comments on the process. Please also do not hesitate to put such thoughts on our award-winning blog at www.keefe-law.com/blog
