October 29, 2025 | Personal Injury
In Illinois, there are no specific state laws that mandate employers to hold an employee’s job while they are receiving workers’ compensation benefits. However, an employer cannot fire you solely for filing a workers’ compensation claim.
Understanding your rights after a workplace accident or occupational illness helps you protect yourself from illegal acts by your employer or the workers’ comp insurance provider.
Overview of Illinois Workers’ Compensation
Roughly 91% of Illinois workers are covered under the Illinois Workers’ Compensation Act. The system provides financial and medical benefits for employees injured on the job or diagnosed with an occupational illness.
Workers’ comp pays for medical treatment and part of your lost wages while you’re unable to work. It’s a no-fault system, meaning you don’t have to prove negligence — and you can still receive benefits even if the injury was your fault, as long as it wasn’t intentional.
Job Protection While on Workers’ Compensation
Illinois is an at-will employment state, meaning employers can generally terminate employees at any time. However, they cannot fire you in retaliation for filing a workers’ comp claim. Doing so could lead to a retaliatory discharge lawsuit.
Employers may still terminate employment for legitimate, non-retaliatory reasons, such as:
- Company downsizing or restructuring
- Documented misconduct or violation of company policy
- Consistent poor performance unrelated to your injury
- Elimination of your position due to business needs
In these cases, termination is allowed as long as it’s unrelated to your workers’ compensation claim.
If you’re cleared to return to work, your employer should make a reasonable effort to provide a comparable position. Some federal laws may also protect your job:
- The Family and Medical Leave Act (FMLA) applies to companies with 50 or more employees and offers up to 12 weeks of job-protected leave.
- The Americans with Disabilities Act (ADA) may require employers to make reasonable accommodations for employees recovering from an injury.
Together, these federal protections can help bridge the gap while you recover and prepare to return to work.
Consequences of Non-Compliance With Workers’ Compensation Insurance
Under Illinois law, nearly all employers are required to maintain workers’ compensation insurance for their employees. When an employer fails to provide this coverage, it jeopardizes the financial security of injured workers and exposes the company to serious penalties.
The Illinois Workers’ Compensation Commission (IWCC) actively enforces compliance, and violations can lead to costly and damaging consequences, including:
- Fines of up to $500 per day, with a minimum penalty of $10,000
- A work-stop order issued by the IWCC requiring the business to cease operations until it obtains proper coverage
- Criminal penalties for knowingly operating without insurance
Additionally, corporate officers may be held personally liable for unpaid claims, and employers without coverage risk civil lawsuits from employees seeking compensation for their injuries.
What to Do If You’re Fired While on Workers’ Comp
Being fired while receiving benefits does not automatically end your payments. You should continue receiving workers’ comp until you reach maximum medical improvement (MMI) or your doctor releases you to return to work.
If your employer disputes your benefits or terminates you unfairly, you can file a complaint with the Illinois Workers’ Compensation Commission. To protect yourself:
- Keep records of all communication with your employer
- Save copies of emails, letters, and texts
- Retain past performance reviews to counter false claims
Detailed documentation strengthens your case and helps prove retaliation or wrongful termination if your employer acts unlawfully.
Get Help From a Workers’ Compensation Lawyer in Chicago, IL
While Illinois law does not require employers to retain employees on workers’ compensation, federal laws and anti-retaliation protections offer some safeguards. Understanding these rights and seeking legal advice if necessary are crucial for employees navigating the workers’ compensation system in Illinois.
For more detailed information or to discuss specific circumstances, it is recommended that you consult a legal professional. Call Powell and Pisman Injury Lawyers for a free consultation with a Chicago workers’ compensation lawyer.
If you’ve been injured in an accident in Chicago, IL, don’t navigate the legal process alone. Our dedicated team is here to provide the expert guidance you need to secure the compensation you deserve. Contact our experienced attorneys at Powell and Pisman Injury Lawyers for a free consultation.
We serve Cook County and its surrounding areas:
Powell and Pisman Injury Lawyers
5351 West Belmont Avenue
Chicago, IL 60641
(312) 635-5400
Open 24/7