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HB 2441

WORKERS COMP-REVIEW-COLLATERAL

104th Regular Session Introduced by Dan Ugaste

HB 2441 allows collateral or guarantees (like insurance, self-insurance certificates, or escrow funds) to replace bonds to stay IWCC monetary award appeals.

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Bill Summary · HB 2441

Bill Summary — HB 2441 (WORKERS COMP‑REVIEW‑COLLATERAL)

Sponsor: Rep. Dan Ugaste
Introduced: February 5, 2025
Statute amended: 820 ILCS 305/19 (Workers' Compensation Act)
Current status: Rule 19(a) / Re‑referred to Rules Committee (as of 2025)
Effective date: Effective immediately (per bill language)

Purpose / Intent

HB 2441 amends the Workers’ Compensation Act to broaden what constitutes acceptable security when a party ordered to pay by the Illinois Workers’ Compensation Commission (IWCC) seeks judicial review of that award. The change is intended to allow alternatives to the traditional surety bond used to suspend enforcement of a monetary award during appeal.

Key provisions

  • Amends 820 ILCS 305/19 to provide that, when a bond is required because a party against whom the Commission rendered an award for payment of money seeks judicial review, the bond requirement may be satisfied by posting "collateral or guarantee of payment."
  • Specifies examples of acceptable collateral/guarantee, including:
    • An insurance policy,
    • A certificate of self‑insurance, or
    • Funds held in an escrow account.
  • Retains the underlying procedure that a security is required when a party seeks review; the amendment simply expands the forms of acceptable security.
  • The bill states it is effective immediately upon enactment.

Who is affected

  • Primary: parties against whom IWCC has rendered monetary awards — typically employers, insurers, or self‑insured employers who wish to seek judicial review of an award.
  • Secondary: claimants/beneficiaries whose collection of an award may be stayed pending judicial review depending on the form and sufficiency of posted collateral.
  • Courts and clerks: will need to accept and evaluate alternative forms of security and may develop administrative practices to verify and manage such collateral.

Potential impacts and considerations

  • Practical effect: lowers barriers or provides flexibility for employers/insurers to obtain stays of enforcement by allowing alternatives to a commercial surety bond (which can be costly or difficult to obtain).
  • For claimants: alternative collateral may differ in liquidity or enforceability compared with traditional bonds; adequacy and monitoring of escrow or insurance guarantees will be important to preserve claimant protections.
  • Administrative implications: courts and the IWCC (or related administrators) may need procedures or standards to assess sufficiency, duration and enforcement remedies for non‑payment under substituted collateral forms.

Legal citation

Amends: 820 ILCS 305/19 (Workers’ Compensation Act).

Compiled from official sources — confirm details with the bill’s official record.

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