IL HB5228

Corporations, LLCs, and partnerships holding state licenses that require proof of workers' compensation insurance must comply with the Workers' Compensation Act's insurance requirements or face civil penalties.

Licensed businesses that fail to maintain proper workers' compensation coverage (through self-insurance, bonds, or insurance carriers) will be subject to penalties under Section 4(d) of the Act.

Businesses can avoid penalties only by demonstrating with clear and convincing evidence that they were not operating during the period their license was active.

The bill amends Section 4 of the Workers' Compensation Act (820 ILCS 305/4) by adding new subsection (a-3) to strengthen enforcement against licensed entities.

Introduced by Rep. Jay Hoffman in the 104th General Assembly (2025-2026 session).