Chicago Workers Comp System Reformed After Decades of Corruption Under Ed Burke
Chicago workers compensation program reformed after decades of corruption under convicted former Ald. Ed Burke, who operated the system without oversight while chairing the City Council Finance Committee.
Chicago's workers compensation program has been reformed more than five years after convicted former Ald. Ed Burke was forced to give up control, a new audit from the city watchdog confirmed.
The system now operates as intended after decades of running in what Inspector General Deborah Witzburg called a windowless room with no public transparency, no meaningful oversight, and no effective accountability.
The audit by the Office of the Inspector General found major improvement in the program that paid $73.5 million to resolve approximately 3,700 claims in 2022.
The program is now administered by Rolling Meadows based Gallagher Bassett under a three-year contract awarded by the city Department of Finance in August 2019. That contract has been extended through the end of 2024.
Ed Burke ran the city workers compensation program from his perch as the all-powerful chair of the City Councils Finance Committee. During that time the system that paid out tens of millions of dollars to injured city employees operated without oversight.
It was not until July 2019 that the City Council gave the inspector general the authority to audit the operations of the City Council and its committees.
Nearly immediately after being arrested on charges of attempted extortion in January 2019 Burke resigned as chair of the Finance Committee. The City Council unanimously voted to give control of the workers compensation program to the Department of Finance.
Burke was convicted in December 2023 of 13 charges of racketeering extortion and bribery. He is set to report to prison next month to start serving a two-year prison sentence.
An audit ordered by former Mayor Rahm Emanuel and released on his last day in office found that under Burke the workers compensation fund had significant control deficiencies and weaknesses that could allow fraud waste and abuse to flourish unchecked.
Officials in the city Department of Finance have substantially implemented the corrective actions recommended by that audit.
The city workers compensation program now has a process designed to identify fraudulent claims that is more consistent and repeatable. The Office of the Inspector General recommends that the city Finance Department work to standardize its policies and procedures while ensuring the program operates in a transparent manner.
The program pays out around $100 million a year and serves thousands of city employees who file claims when injured on the job.
Contact Heather Cherone at the Chicago Sun-Times for more information on this story.