All things considered, the economy is doing really well in America. But of course that doesn’t mean that every business is successful. Some go under because they are poorly run. Some go under because they are no longer relevant or weren’t a great idea to begin with. Others it’s because they were part of a trend that is no longer around (hello cupcake stores). It could be because they aren’t making enough money.
Whatever the reason, when it comes to Illinois workers’ compensation law, a recent caller wanted to know if he could still file a case even though his employer shut their doors. He worked for a restaurant that ended things with no notice to anyone. About a month prior to that happening, he had slipped on a wet floor and tore a muscle in his shoulder trying to catch himself on the fall. He was still able to work up until the day they let everyone go.
The answer is that your employer going out of business has no affect on you being able to file for workers comp benefits. You still have to do everything to prove a case such as report an accident within 45 days of it happening, get medical treatment, etc., but them being open or closed isn’t really an issue.
In fact, sometimes them going out of business can help you get benefits. In this case, the worker had restrictions of no lifting with his injured arm more than ten pounds. He was in a managerial role so he could do that job still. Now that no job is available, he is entitled to weekly TTD benefits until he no longer has his restrictions.
But how can he get paid if they are out of business? That’s because even though the claim is against them, payment is made by their insurance company and that insurance is based on your accident date, not the date that they close up their business.
For lawyers, sometimes when your employer goes under it actually makes our job easier. The insurance company loses leverage in saying a light duty job is available for you with the employer because there no longer is an employer. The insurance company also loses the ability to investigate some claims because tracking down witnesses becomes much harder for them. And even if they can find someone, those people might not volunteer to testify which means they’d have to be subpoenaed to do so. And it also means that the defense attorney can’t prepare them and don’t know what they will say. So it ends up often being your word versus nobody.
Beyond that, losing your job can make the case worth a lot more money. We also see that insurance companies are motivated to settle because it’s their goal to close out all of the claims related to a customer they no longer have. They might pay more than a case is worth just to get it done. They also don’t worry about you going back to work and getting re-injured since you are no longer with the employer they insured.
Bottom line is that unless your employer committed a felony and didn’t have insurance, them going under is nothing to worry about for most Illinois work comp cases. And in many of those claims it actually makes your case stronger. As long as you are honest and can prove your case, you’ll likely end up with more money in the long run.
Is any of this confusing? It can be. If you have any questions, please call us at 312-346-5578 to speak with a lawyer for free.
