HB5508

Illinois HB5508 amends the Workers' Compensation Act to set interest rates on awards for public employers.

HB5508 amends the Illinois Workers' Compensation Act to establish interest rates on awards for public employers. Effective July 1, 2026, if a public employer files a petition to review an arbitrator's award, the award will draw interest retroactively to the date of the injury. The interest rate will be either 10% or the yield on U.S. government debt with a 26-week maturity, whichever is greater. This interest rate is specified in the arbitrator's decision and applies to all accrued compensation up to the date of the decision.