Protecting Employers Since 1985

Legislative Update: Illinois Employers Using an Employee Leasing Company Can Now Get Workers’ Compensation Insurance For The Leased Employees

Today, a number of small Illinois businesses use employee leasing companies to handle payroll, human resource matters, and workers’ compensation insurance on their workers for the convenience and cost savings.

Previously, under the Illinois Leasing Company Act, the lessor (leasing Company) would be the party responsible for the workers’ compensation insurance coverage of the workers/employees under the leasing agreement with the business/lessee.

Now, effective January 1, 2017, an amendment to the Illinois Leasing Company Act, allows the business/lessee to provide workers’ compensation insurance coverage for leased employees under an employee leasing arrangement.

Why is this a good change for Illinois businesses? This change in the law allows either the leasing company or the business/lessee to pick the coverage with the best rate as to the premiums on the workers’ compensation insurance.

Questions? Contact Attorney Anthony Caruso at Wessels Sherman St. Charles office at (630) 377-1554 or by email at

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