Settlement of Surcharge Litigation

The Circuit Court of Cook County has given preliminary approval to a settlement of the lawsuit filed by the Illinois State Chamber of Commerce that challenged the constitutionality of the Workers' Compensation Commission Operations Fund Surcharge enacted in 2003.

The lawsuit alleged that the surcharge had been deliberately set to raise amounts in excess of the money needed to pay for the operations of the Commission and to thus generate revenue for the State's General Revenue Fund. The Chamber of Commerce alleged that the surcharge thereby violated the federal and State constitutions. The Commission and the State have disputed the Chamber of Commerce's claims of unconstitutionality.

All employers that paid a Workers' Compensation Operations Fund Surcharge from July 1, 2003 to June 30, 2009 may be entitled to a partial refund of that surcharge payment pursuant to the Class Action Settlement entered in the case captioned Illinois State Chamber of Commerce v. Filan, No. 04 CH 6750; (Circuit Court of Cook County).

All claims must be submitted to the Claims Administrator at the address below by June 1, 2010.

The Claims Administrator shall determine which claimants are eligible for partial refunds. The Claim Form and other Class Action Settlement documents are accessible below, and must be completed along with the Claim Form Worksheet, which explains how to determine the potential amount of refund based on previous workers' compensation insurance invoices showing the amount of surcharge billed, proof of the amount of previous workers' compensation insurance premium payments, or certification of the number of employees employed during the settlement period. Pursuant to the Class Action Settlement, all claims will be reduced pro rata if the aggregate amount of claims received exceeds the settlement amount.

The Class Action Settlement establishes the exclusive process by which an applicant may apply for refund. The Illinois Workers' Compensation Commission is not involved in the determination of refunds. Further inquiries should be directed to the Claims Administrator.

Click on the links below to see the Settlement Agreement, the Court's order giving its preliminary approval and other documents pertaining to the settlement.

• Chamber-Settlement Agreement
• Preliminary approval order
• Claim form worksheet
• Claim form
• Publication notice