Illinois Job Creators: State Needs Workers' Compensation Reform

Ahead of today's Committee of the Whole hearing on Workers' Compensation, Illinois job creators are speaking out on the need for true workers' compensation reform so Illinois can compete with our neighboring states.

Illinois currently has the 7th highest workers' compensation costs in the country, more than double neighboring Indiana:

Terry L. Denison, Chairman
Illinois Economic Development Association (IEDA)

"The Illinois Economic Development Association (IEDA) is pleased that Governor Rauner's Administration has focused on key issues that will directly affect economic development in Illinois. These are issues that must be addressed if Illinois is to remain competitive with our Midwest neighbors, as well as, the rest of the world. Our members are in the trenches, every day, working to retain, expand, create and recruit job opportunities for our Illinois residents. We know what it takes to make economic development successful. One key issue affecting economic development in Illinois is our Workman's Compensation Program and its rates. They are extremely uncompetitive! Because of this, Illinois is losing new business opportunities, losing existing companies and losing existing jobs. Illinois must improve the Workers Comp Program and lower its rates in order to be competitive, again! If everyone will work together for the greater good of our State, we will accomplish much."

Ryan McCrady, President,br> Economic Development Corp. of Decatur & Macon County

"We are constantly competing against other states for businesses that are looking to make new investments. We must also be sensitive to retaining the jobs and businesses that are currently in our communities. The current workers compensation laws and policies are uncompetitive and making it difficult to attract investment in Illinois. It is critical that adjustments be made to create a workers' compensation system that is competitive with other states, fairly compensates workers, and equitably funds service providers if we want to grow and retain jobs in Illinois. Workers compensation expense is one of the top factors considered by businesses making location and investment decisions. We need to make sure our workers compensation environment does not remove Illinois from consideration for these investments."

Reggie Greenwood, Executive Director
Chicago Southland Economic Development Corporation

"The State of Illinois passed changes to the Illinois Workers Compensation system in 2011 designed to decrease the costs of workers compensation insurance to Illinois businesses. Although these reforms were politically difficult to pass and they modified the complex worker compensation process to introduce new opportunities to control costs, they have not significantly made the Illinois systems more competitive compared to Indiana.

The Chicago Southland Economic Development Corporation supports the expansion of existing manufacturing companies and attraction of new companies to South Cook and East Will Counties. In this work, we constantly see evidence of the significantly lower workers compensation costs in Indiana which have been a major factor in the Chicago Southland losing manufacturing companies to Indiana.

We firmly believe in the value of workers compensation and safety regulations to provide a safe working environment for people working in the Chicago Southland. However, we believe there are significant additional reforms that can continue to lower the costs of workers compensation without damaging worker safety.

The Chicago Southland Economic Development Corporation strongly supports Governor Rauner's and the State of Illinois's efforts to increase our ability to promote development in the Chicago Southland by continuing to reform the Illinois Workers Compensation system to make it more cost effective."

Pam Cumpata, President
McHenry County Economic Development Corporation

Michael H. Stevens, President & CEO
Lake County Partners

"As we work together to fight for every job, the State's cost of doing business needs to be competitive with our neighbors and other States across the country. Illinois excessive workers' compensation costs, in particular, are a major barrier to our efforts. Reforming workers compensation to bring down costs is critical to creating a level playing field, on which Illinois will succeed due to our skilled workforce, strategic location, and leading global industries."

Ivan Baker
Director, Tinley Park Economic Development
Board Member, International Economic Development Council

"Businesses have to evaluate all costs in determining locations for expansion and growth. While Illinois companies emphasize training and safe working environments, they pay the 7th highest workers compensation index rate in the nation....higher than every other state in the Midwest. High workers comp rates definitely impact the business climate in our great state, and our ability to effectively compete for new jobs."

John Greuling
President & CEO, Will County Center for Economic Development

"From manufacturing, to construction, to food processing to energy production, industries across Will County tell us every day they are suffering from extreme workers compensation costs and looking to the borders where costs are drastically lower. Illinois cannot afford to drive these job creators away. We must act now to further reform workers compensation policies to prevent further job losses and to help us attract new investment to grow our economy. "

David Abshire, Vice President
LB STEEL, LLC

"There is an urgent need for litigation reform relative to Illinois Worker's Comp. Legal costs drive up Illinois Worker's Comp rates.

Illinois can quickly be much more business friendly by expediting the adoption of important elements of the Indiana Worker's Comp Model."

The Rockford Area Economic Development Corporation

"The Rockford Area EDC surveys a number of companies in the area each year to see what is on the minds of the owners or general managers.

In 2013 we surveyed 112 companies.

Some quotes from local employers:

· ‘The combination of workers compensation laws and unemployment insurance is a problem. We recently had an employee get fired for causing an accident on the job. The former employee denied there ever was an accident and was granted unemployment. The employee then filed for workers' comp.'

· ‘Currently, an employer can hire a new employee. Said employee has an existing injury or illness. If that employee aggravates the existing injury at work, even in the slightest and files a claim, the new employer has just bought that injury. Many States limit the financial liability of the employer in the case of an existing condition.'

· ‘I would like to see a limitation if an employee fails a post-accident drug screen. Many States go so far as to deny workers compensation benefits to an employee who is using drugs or alcohol in the workplace.'

· ‘If an employee is determined to be engaging in activities outside of assigned restrictions away from work, that employee's workers comp benefits should be reduced or suspended.'"

Macomb Area Economic Development Corporation

"Our concern in regards to worker's compensation reform has transitioned from business attraction to business retention. Simply stated, we cannot afford to lose our manufacturers to other communities outside of Illinois because our state judiciary bodies will not implement and enforce true reform."