Here is one for Illinois employers . . .
Ok, so this is cherry picked from a defense firm I know, but in case any of my readers own their own company . . .
The Illinois State Chamber of Commerce filed suit on April 22, 2004 challenging the constitutionality of the Illinois Workers’ Compensation Commission Operations Fund Surcharge that was levied on employers who pay workers’ compensation insurance. Subsequently, Jack Gore d/b/a Sabra Management intervened as a plaintiff on behalf of a putative plaintiff class of employers require to pay the Surcharge and sought leave to file a class action complaint requesting certification of a plaintiff and defendant class.
In November of 2004, the Circuit Court of Cook County ruled the Surcharge was unconstitutional and that Surcharge monies paid during the pendency of the suit be placed in a separate escrow account. The Illinois Supreme Court reversed the judgment that was in favor of the Chamber and remanded the case to the Circuit Court for further proceedings.
The parties have now reached a tentative settlement where $3.3 million dollars will be placed in a settlement fund for employers to claim a refund. The amount of the refund is limited to 45% of the Surcharge paid between July 1, 2003 and June 30, 2004 and 10% of the Surcharge paid between July 1, 2004 and June 30, 2009. Please note, on June 16, 2010 at 11:00 A.M., the Court will hold a final fairness hearing to consider whether giving final approval to the settlement. Please note, this hearing is subsequent to the deadline for employers to file a claim for a refund.
To be eligible for a refund, the employer must have obtained workers’ compensation insurance and been charged an amount on the premium invoice related to the Surcharge between July 1, 2003 and June 30, 2009. The amount refunded will depend on how much and when it was paid as well as the number of claims made. If the settlement fund is insufficient to pay all claims made, each claim will be prorated.
ALL CLAIMS MUST BE POSTMARKED BY JUNE 1, 2010. To submit a claim for a refund, employers need to submit a:
1. Completed Refund Claim Worksheet
2. Completed Refund Claim Form
3. Signed Verification From
4. Completed Form W-9 (available at www.irs.gov). Refunds cannot be processed without a valid From W-9 on file.
The above-reference documents can be found on the Illinois Workers’ Compensation website located at:
http://www.state.il.us/agency/iic/settlement.htm.
With respect to the Refund Claim Worksheet, there are three methods in which the employer can compute the amount of its refund. Option 1 includes providing invoices for workers’ compensation insurance premiums billed to the employer from July 1, 2003 through June 30, 2009. Option 2 requires cancelled checks, bank statements, or other proofs of payment that establish the actual amount paid by the employer to obtain workers’ compensation insurance for the applicable periods. If the employer has neither type of documentation under options 1 or 2, Option 3 provides a formula to estimate the surcharge paid based upon the number of persons employed during each year of the applicable period. The formula is provided on the Refund Claim Worksheet.
The application materials can be submitted via regular mail or as a pdf file via email. If sent by regular mail, the materials are to be sent to:
Robert Langendorf
Claims Administrator
134 North LaSalle Street, Suite 1515
Chicago, IL 60602
Applications being submitted via email as a pdf file are to be sent to:
In conclusion, the amount received by each employer is contingent on how much and when payments were made and whether the settlement fund is sufficient to satisfy all claims. However, there is no detriment for employers submitting a claim for a refund in the event they were charged an amount on the premium invoice related to the Surcharge between July 1, 2003 and June 30, 2009.
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