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Workers' Comp Settlements in Illinois

Whether a workers' comp claim can be settled in Illinois, who must approve the settlement, and how long benefits can last.

Short answer: Yes. Most cases are resolved through a settlement contract, an agreement between the employee and employer to close the claim. Illinois Workers' Compensation Commission, Handbook on Workers' Compensation and Occupational Diseases (June 2024), Section 4

SettlementsYes. Most cases are resolved through a settlement contract, an agreement between the employee and employer to close the claim. The terms are written on the Commission's Settlement Contract form and submitted through CompFile for approval by the arbitrator assigned to the case; a settlement is not legally binding unless the Commission approves it. An employee without a lawyer must appear in person before the arbitrator, who reviews the settlement to make sure it is fair and the employee understands its effect. An approved settlement generally ends the employee's rights to any future cash or medical benefits, even if the condition worsens, unless the contract clearly keeps a benefit open. Settlements can be paid as a single lump sum. A settlement made without Commission approval does not close out the employee's rights, and any settlement made within seven days of the injury is presumed fraudulent.
How long benefits lastTemporary total disability (TTD) is paid until the employee returns to work or reaches maximum medical improvement; temporary partial disability is paid until the employee returns to the regular job or reaches maximum medical improvement. There is no set maximum number of weeks for either. Permanent partial disability is paid for a set number of weeks: scheduled body parts have a fixed number of weeks each, injuries to the person as a whole are a percentage of 500 weeks, and serious disfigurement is up to 162 weeks. Wage-differential benefits for injuries on or after September 1, 2011 are paid for five years after the award or until age 67, whichever is later (for life for earlier injuries). Permanent total disability is paid for life.
Lawyer fees in comp casesIllinois limits a claimant attorney's fee in workers' comp cases to 20% of compensation recovered, up to 20% of 364 weeks of the maximum TTD benefit, unless a hearing is held and the Commission approves additional fees. No fee may be charged on payments the employer made voluntarily and on time; if the employer made a written offer, the fee applies only to the amount recovered above the offer and may never exceed 20% of the total award. The fee must be stated on the Attorney Representation Agreement form, signed by the employee and approved by the Commission.

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FAQ

How do workers' comp settlements work in Illinois?
Yes. Most cases are resolved through a settlement contract, an agreement between the employee and employer to close the claim. The terms are written on the Commission's Settlement Contract form and submitted through CompFile for approval by the arbitrator assigned to the case; a settlement is not legally binding unless the Commission approves it. An employee without a lawyer must appear in person before the arbitrator, who reviews the settlement to make sure it is fair and the employee understands its effect. An approved settlement generally ends the employee's rights to any future cash or medical benefits, even if the condition worsens, unless the contract clearly keeps a benefit open. Settlements can be paid as a single lump sum. A settlement made without Commission approval does not close out the employee's rights, and any settlement made within seven days of the injury is presumed fraudulent.
How long can you receive workers' comp in Illinois?
Temporary total disability (TTD) is paid until the employee returns to work or reaches maximum medical improvement; temporary partial disability is paid until the employee returns to the regular job or reaches maximum medical improvement. There is no set maximum number of weeks for either. Permanent partial disability is paid for a set number of weeks: scheduled body parts have a fixed number of weeks each, injuries to the person as a whole are a percentage of 500 weeks, and serious disfigurement is up to 162 weeks. Wage-differential benefits for injuries on or after September 1, 2011 are paid for five years after the award or until age 67, whichever is later (for life for earlier injuries). Permanent total disability is paid for life.
How much can a workers' comp lawyer charge in Illinois?
Illinois limits a claimant attorney's fee in workers' comp cases to 20% of compensation recovered, up to 20% of 364 weeks of the maximum TTD benefit, unless a hearing is held and the Commission approves additional fees. No fee may be charged on payments the employer made voluntarily and on time; if the employer made a written offer, the fee applies only to the amount recovered above the offer and may never exceed 20% of the total award. The fee must be stated on the Attorney Representation Agreement form, signed by the employee and approved by the Commission.

General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.