7-17-2021; The New World of Wage Loss Diff Claims in IL WC--We Can't Ignore Rising Minimum Wage; Three New IL WC Arbitrators! I Didn’t Know The IWCC Was Looking!
/Synopsis: The New World of Wage Loss Diff Claims in IL Work Comp—We Can’t Ignore Rising Minimum Wage.
Editor’s comment: In my view, one of the biggest changes in IL Work Comp Law and claims practice is happening and very few people noticed. What is happening is easy to understand—the IL state-wide minimum wage is now on an escalator that won’t slow until it reaches $15 per hour in what I believe is less than 3-1/2 years on January 1, 2025. Please note the increases aren’t tentative—the changes/increases are part of IL law which has already been inked by our wildly liberal legislature and Governor.
What this means to me is any IL worker in Mt. Vernon or Carbondale or anywhere “downstate” (or away from Chicago) who has any job will be making $11 per hour for the next six months, then $12 for next year, $13 for the year after, then $14 per hour, topping out at $15 per hour on 1/1/2025. Wage loss differential claims, for both sides of the IL WC matrix, have to take these increases into account when reserving, settling, trying or handling all such claims.
Increase to City of Chicago Minimum Wage is Already In Full Effect.
Effective July 1, 2021, the Chicago Minimum Wage was increased for all covered employees. The Minimum Wage has increased to either $14.00 or $15.00 per hour, depending on the number of workers at a business. For qualifying employers with 21 or more workers, the new Minimum Wage is now $15.00 per hour. For employers with four to 20 workers, the new Minimum Wage is $14.00.
Additionally, please note that there are also increased Minimum Wages for youth workers and tipped workers. When tipped workers’ wages plus tips do not equal at least the Minimum Wage, their employer must make up the difference. Further, all Domestic Workers are guaranteed Chicago’s new Minimum Wage, even those working for employers with fewer than four workers. Domestic Workers are given a Minimum Wage of $15.00 per hour from large employers and $14.00 per hour from employers with 0-20 employees. In addition to the Minimum Wage increase that comes into effect today, please be advised that effective August 1, 2021, all Domestic Workers, no matter the business size, will be guaranteed a $15.00 Minimum Wage.
Chicago businesses are required to post a notice with information for their employees on their rights under the Chicago Minimum Wage Ordinance – the notice is available in multiple languages on the Office of Labor Standards website.
It is the view of the defense team at KCB&A that anyone living within 50 miles of Chicago is included in “a reasonably stable labor market” for such jobs and should be treated as if they can make at least $15 per hour.
Why Am I Bringing This Up?
Well, the IL WC industry has to adapt to these changes that I am again confirming are the law—they aren’t proposals. If you are seeking wage loss differential benefits under Section 8(d-1) of the IL WC Act, and the worker has returned to a job paying the $11 per hour minimum wage when they are claiming they could have been making $20 per hour in the pre-injury job, I feel it would be a mistake to set wage loss benefits until age 67 at a gross loss of $9 per hour and a net loss of $6 per hour when they are certain to be making $15 per hour in a couple of years.
Please also note if an IL employer violates the law and tries to secretly pay less than minimum wage, all sorts of bad things are certain to happen. In my view, for IL employees, if you are managing and reserving and settling an IL WC wage loss differential claim, you have to use the numbers above, if you are going to get things right. Yes, it is going to be challenging and take more time. Yes, the “new math” is going to apply to settlements or awards for claimants, attorneys on both sides, hearing officers, Commissioners, Circuit and Appellate Court Judges/Justices.
To be blunt, someone who was injured and has permanent restrictions and returns to a minimum wage job paying $11 per hour right now isn’t going to be making $11 per hour in less than six months—they are certain to be making at least $12 per hour. Barring something unforeseen, their annual pay is certain to rise $2,080 dollars in the next year and every year after that until peaking under current law on January 1, 2025. If you need the math on what I am outlining, send a reply and I will help in every way possible.
Please Note IL is a One-Party State and This May Get Worse!
Our wildly liberal and unchecked IL legislature and Governor may again increase the minimum wage to $17, $18, $20 per hour! Both houses of our single-party IL State legislature have super-majorities and can’t be blocked. There is only public opinion to slow their roll. In my view, “democracy” failed in both Chicago and now Illinois and it won’t be coming back any time soon.
What is good about a higher minimum wage is some workers make more money. What is bad about a higher minimum wage is fewer jobs for humans—private employers have a strong incentive to mechanize, robotize and automate processes to get rid of expensive extra workers if and where possible. Government employers at many levels in this nutty State almost never adapt or cut back and the higher minimum wage will insure higher taxes and fees. I am sure the debate will continue.
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Synopsis: Three New IL WC Arbitrators! I Didn’t Know The IWCC Was Looking!
Editor’s comment: IL WC hiring remains a government secret on the level of nuclear armament. Okay, that might be overdoing it a bit but it remains amazing to me how the IL WC system decides they need to hire and add new staff and how the selection process works. You may note the secret-powers-that-be are working hard to tie Arbitrator compensation to a percentage of a sitting IL Circuit Court judge’s pay—this is going to insure IL WC Arbitrators will get a solid increase and make a tidy salary in the years to come. I am mildly surprised to see the IL State Chamber of Commerce supporting the new and increased hearing officer compensation recommendations, as their members will be paying the bill.
How Many IL WC Arbitrators/Hearing Officers Are Enough?
At present, it feels like the IL WC Commission has about a zillion hearing officers if you include all the Arbitrators and Commissioners and the 18 lawyers who support the Commissioners. To my understanding, Illinois citizens are leaving for lower-tax states, job recovery is slow due to Covid and lots of folks are working from home. It is hard to imagine the number of new IL WC claims is rising.
I am sure the new Arbitrator appointments are following an inclusion and diversity approach. I salute that as a solid idea I have written about and encouraged in the past. I also want to confirm all IL WC hearing officers—Arbitrators and Commissioners are honest, professional and well-versed in the law and practice of work comp. Please note this was not always the case in years past. I feel kudos need to be extended to Chairperson Brennan and the powers-that-be that run the IWCC for their hard work.
Three Newby Arbitrators Named
In short, Illinois Gov. J.B. Pritzker appointed three new Arbitrators to our IL Workers’ Compensation Commission. The new appointees are attorneys Roma Parikh Dalal, Antara Nath Rivera and Ana Vazquez.
We learned Arbitrator Dalal recently worked as a partner at a solid defense firm, which like KCB&A has operations in a number of states. While at the defense firm, Arbitrator Dalal offered legal assistance, advice and counsel on workers’ comp matters.
New Arbitrator Antara Nath Rivera was the current chief of general prosecutions at the Illinois Department of Financial and Professional Regulation’s Enforcement Unit. She supervised licensure cases for a “wide variety of professions” and previously worked as an administrative law judge for the Arizona Office of Administrative Hearings, according to the announcement. She has presided over cases involving the Arizona Medical Board as well as Social Security and Medicaid benefits. Rivera also previously worked as an investigator in the Workers’ Compensation Fraud Unit for the Illinois Department of Insurance, according to the announcement.
Arbitrator Vazquez worked as the assistant attorney general in the Government Representation Division of the Workers’ Compensation Bureau within the Illinois Attorney General’s office. She represented the State in workers’ comp litigation. Before that, she worked as an attorney at a criminal defense firm, according to the announcement.
We assume the Arbitrators will be given calls and replace the TBA1 currently listed on the IWCC website. We look forward to working with them.