7-7-25; WC Settlement Fair at the IWCC July 16th & 17th; New Math on IL Wage Loss Differential Claims and more

/

NOTICE TO ILLINOIS EMPLOYERS, INSURANCE CARRIERS, THIRD PARTY CLAIMS ADMINISTRATORS, AND THEIR COUNSELS

Synopsis: Please be advised that the Illinois Workers’ Compensation Commission (IWCC), in collaboration with the Illinois Workers’ Compensation Lawyers Association (WCLA), will co-host a Settlement Fair on July 16 and 17, 2025, at the IWCC Hearing Rooms located in the Richard J. Daley Center, Chicago.

Those EMPLOYERS, INSURANCE CARRIERS, and THIRD PARTY CLAIMS ADMINISTRATORS who wish to participate are encouraged to contact IWCC Chief of Staff Annette Roti (annette.roti@illinois.gov ) to schedule a time, a date, and a Hearing Room for their settlement meetings. Attorneys on both sides of the IL WC matrix may likewise schedule a settlement time with Ms. Roti.

The IL WC Settlement Fair will take place each day from 9:00 a.m. to 4:00 p.m. in the IWCC Hearing Rooms at the Daley Center.

We hope members of the Bar will take advantage of this opportunity to help move multiple IL WC cases forward efficiently.

The Defense Firm of Keefe, Campbell, Biery & Associates remains focused on reasonably and rapidly closing IL WC claims that our clients are nice enough to direct to us for handling. If you want help closing tough IL WC claims, send a reply.

Synopsis: What Changes/Increases to the Chicago and IL Minimum Wage mean to IL WC claims.

Editor’s comment: Please note these changes are now the law in Chicago and our State. They aren’t suggestions or guidelines.

  • Chicago Minimum Wage – Effective starting on July 1, 2025

The City of Chicago adjusts its minimum wage every July 1, based on the Consumer Price Index or a 2.5% cap, per city ordinance.

Starting July 1, 2025, the new minimum wage rates in Chicago will be:

  • $16.60/hour for employers with 4 or more employees

  • $12.62/hour for tipped employees

This means a worker who can work sedentary/light or medium work will make no less than $664.00 a week for non-tipped workers.

In contrast, the federal minimum wage is $7.25 per hour or $290 a week.

Wage loss differential values for such workers would be dramatically higher. Happy to explain—sent an email.

Please also note the new law provides that starting in the 2025 tax year, reported tips up to $25,000 per person annually are exempt from federal income tax.

The exemption phases out above $150,000 income ($300,000 for couples).

The new law only applies to tips reported on W-2 forms.

Payroll and state/local taxes still apply. This rule is in effect through 2028, unless renewed.

Be sure your teams and clients are prepared for these changes and compliant with the updated rates.

  • Illinois Statewide Minimum Wage

As a reminder, the statewide minimum wage increased to $15.00/hour on January 1, 2025. This minimum wage rate applies across Illinois, outside of municipalities like Chicago that set their own higher thresholds.

Please note the minimum wage increase dramatically changes the math on IL WC wage loss differential claims.

You need to look at your reserves to insure they are accurate.

A worker who has the City of Chicago “within a reasonably stable labor market” around their home can make at least $664 each week at sedentary/light and other jobs for folks with asserted restrictions.

I would suggest that applies to any worker that lives within 50 miles of Chicago because lots of folks travel that far to get to work. You may have to litigate/fight to make that happen.

If you seek the case law on that concept, send a reply.

As we indicate above, the current minimum wage in Chicago calculates to $664 a week.

This new math started on July 1, 2025. The amount a worker with restrictions is “able to earn” will continue to increase in and around the City of Chicago every year they are in the workforce.

If you aren’t sure how this works, please reply to me to discuss.