Restaurant Workers' Comp in Illinois
What Illinois requires of restaurants and bars for workers' compensation — when it kicks in, who's exempt, and what it costs.
Reviewed by J. Robert Smith, Licensed Insurance Agent (NPN 10378680). Last updated .
Yes. Illinois requires workers' compensation for virtually every employer from the first employee, including part-time staff, so essentially any restaurant with workers must carry it. Sole proprietors, partners, corporate officers, and LLC members may elect out in writing. Penalties are steep: up to $500 per day, a $10,000 minimum fine, and possible business shutdown.
- Required?
- Yes
- Kicks in at
- Any employee / 1 or more — if you have even one employee, including a part-time employee, coverage is mandatory from the moment they are hired.
- Restaurant rate
- Illinois uses NCCI class codes: 9082 (Restaurant NOC, full-service with wait staff) and 9083 (fast food, no wait service). Approximate rate is around $1.06 per $100 of payroll for 9082 and about $1.03 per $100 for 9083 (illustrative averages; Illinois advisory rates come from NCCI filings). Approximate, industry tier.
- Market
- Illinois has no state fund; coverage is obtained through a competitive private insurance market or an approved self-insurance program.
Is workers’ comp required for a restaurant in Illinois?
Illinois requires workers' compensation once you reach Any employee / 1 or more — if you have even one employee, including a part-time employee, coverage is mandatory from the moment they are hired.. Sole proprietors, business partners, corporate officers, and members of limited liability companies may exempt themselves from coverage, but must notify their insurance carrier in writing if they choose not to be covered.
What restaurant workers’ comp costs in Illinois
The restaurant class-code rate in Illinois is Illinois uses NCCI class codes: 9082 (Restaurant NOC, full-service with wait staff) and 9083 (fast food, no wait service). Approximate rate is around $1.06 per $100 of payroll for 9082 and about $1.03 per $100 for 9083 (illustrative averages; Illinois advisory rates come from NCCI filings). Approximate, industry tier.. Your premium is that rate applied per $100 of payroll and adjusted by your experience modifier, so it scales with how many people you employ and your claims history. Illinois has no state fund; coverage is obtained through a competitive private insurance market or an approved self-insurance program.
What owners in Illinois miss
- Illinois imposes some of the harshest noncompliance penalties in the country: a knowing and willful failure to insure can be fined up to $500 for every day of noncompliance, with a statutory minimum fine of $10,000.
- The Illinois Workers' Compensation Commission can issue a work-stop order shutting down an employer found to have knowingly failed to provide insurance, halting the business until coverage is obtained.
- Corporate officers who negligently fail to obtain coverage are guilty of a Class A misdemeanor, and those who knowingly fail are guilty of a Class 4 felony, with officers held personally liable for unpaid penalties.
- Unlike Pennsylvania, Illinois uses NCCI classifications and has no competitive state fund, so every restaurant must secure coverage in the private market or qualify for self-insurance.
Sources
- Illinois Workers' Compensation Commission: Insurance — About the IWCC (employer coverage requirements and penalties)primaryretrieved 2026-07-27
- Illinois Workers' Compensation Commission: Handbook on Workers' Compensation and Occupational Diseasesprimaryretrieved 2026-07-27
- WorkersCompCost.com: Restaurant NOC 9082 rates by state / Illinois class code rates (2026)industryretrieved 2026-07-27
Cost examples are illustrative national figures gathered from public filings and industry surveys. They are not quotes. Your actual premium depends on your state, carrier, revenue, payroll, location, and coverage selections. Restaurant Insurance Authority is an insurance marketing and referral service, not an insurer or licensed agency. We connect business owners with licensed independent commercial-lines agents who specialize in food and beverage. Questions? Call (855) 480-1410.
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