Illinois requires employers to carry Workers' Compensation in nearly all cases, including for businesses with only one employee and even if that employee is only part-time. In most cases, sole proprietors or partners in high-risk occupations are also required to carry Workers’ Compensation coverage in Illinois.
A sole proprietor, partner, or corporate officer, may opt out of Workers' Compensation coverage in Illinois in some cases. However, special rules may apply for construction businesses, trucking businesses that visit construction sites, and other hazardous occupations.
Illinois employers are required to post a notice in the workplace that explains basic coverages provided by Workers’ Compensation. Employers are also required to keep records of any work-related injuries and to report any work-related injuries involving more than 3 lost work days.
Illinois can impose penalties upon employers that do not comply with Workers' Compensation requirements, including felony charges with fines of up to $25,000 and possible imprisonment. Civil penalties may also be imposed for every day the business lacked required coverage, with a minimum $10,000 fine for non-compliance.