States Debtate Workers’ Comp Benefits for Undocumented Workers

A number of states - including Georgia, Montana, New Hampshire and South Carolina - are considering bills that would deny workers’ compensation benefits to illegal immigrants who are injured on the job.

The U.S. Supreme Court recently declined to hear a case that concerned an illegal immigrant in Louisiana who sought workers’ compensation benefits after a workplace accident, leaving it up to states to decide about coverage in their jurisdiction.

The issue is significant: the Pew Hispanic Center estimates there are about 8 million unauthorized immigrants in the nation's workforce. 

Although federal law prohibits knowingly hiring illegal immigrants, once hired, most states provide workers’ compensation benefits regardless of immigration status. Courts have generally held that such workers are entitled to benefits, according to the Insurance Information Institute.  

Meanwhile, the institute reports that most insurers favor sustaining coverage, stating that denial runs counter to public policy and that workers’ compensation laws serve a humanitarian purpose. They assert that unscrupulous employers could recruit illegal aliens, knowing they could avoid the cost of workers’ compensation coverage. In addition, denial of coverage could expose employers to civil suits by eliminating workers’ compensation exclusive remedy protections.

Opponents say undocumented workers should not be eligible for benefits, primarily because they are in the country illegally.

In Montana, legislators on Jan. 19 approved H.B. 71 by a 69-31 vote. The bill, sponsored by Rep. Gordon Vance, R-Bozeman, would prohibit illegal immigrant workers from collecting benefits when they are injured. Vance says the bill would help reduce costs. If passed, Montana would become the first state in the nation to completely ban illegal aliens from receiving workers’ compensation benefits.