SB0035 amends Section 3 of the Illinois Workers’ Compensation Act to expand and clarify automatic coverage in extra-hazardous industries. The bill states that the Act applies automatically and without election to all employers and employees in covered hazardous enterprises, and it expressly adds sole proprietors, general contractors, and subcontractors to that language. It also removes existing language that allowed a sole proprietor, partner, or LLC member to opt out of coverage for injuries sustained in the course of employment.
The bill further changes the definition of “corporate officer” so that it does not include a sole proprietor. In practical terms, the measure would narrow the ability of certain business owners to exclude themselves from workers’ compensation coverage and would make coverage more uniformly mandatory in the listed hazardous occupations, including construction, mining, transportation, manufacturing, food service, and other regulated or dangerous businesses.
Impact
If enacted, SB0035 would amend 820 ILCS 305/3 of the Workers’ Compensation Act and alter who is automatically covered under the Act in extra-hazardous enterprises. It would remove an opt-out path for sole proprietors, partners, and LLC members, and would prevent sole proprietors from being treated as corporate officers for purposes of the Act. The change would affect employers, small business owners, contractors, subcontractors, and their insurers by expanding mandatory coverage obligations and reducing individual election-based exclusions.
Sentiment
The available record shows the bill as introduced, with no committee transcripts or recorded votes provided. As a result, there is no documented legislative debate or voting pattern to indicate broad support or opposition. Based on the bill’s caption and text, the measure appears to be a targeted workers’ compensation reform focused on coverage rules for business owners in hazardous industries.
Contention
The main point of contention is likely the removal of the opt-out option for sole proprietors, partners, and LLC members, since that would require some business owners to carry workers’ compensation coverage for themselves even if they previously chose not to. Another likely issue is the treatment of sole proprietors under the corporate officer provision, which could affect how small businesses structure coverage and premiums. Supporters would likely emphasize broader worker protection and consistency in hazardous workplaces, while opponents would likely focus on increased costs and reduced flexibility for small businesses and independent contractors.