Injured in the Line of Duty: PEDA and Workers’ Compensation for Illinois Police Officers and Firefighters

Police officers, firefighters, and paramedics face risks most people never encounter during the workday. When a line-of-duty injury leaves a first responder unable to work, the immediate concern may be recovery. Questions about pay, medical bills, benefits, and job security often follow close behind. In Illinois, eligible public safety employees may be protected by both the Public Employee Disability Act, commonly called PEDA, and the Illinois Workers’ Compensation Act. These laws serve different purposes. Understanding how they work together can help injured first responders protect their income, medical care, and long-term benefits.

What Is the Illinois Public Employee Disability Act?

PEDA provides salary continuation for certain public employees who are injured in the line of duty and cannot perform their job duties because of the injury. For an eligible employee, PEDA generally requires the employing public entity to continue paying the employee on the same basis as before the injury for up to one year in connection with the same injury. This is different from standard temporary total disability benefits under workers’ compensation. Those benefits are generally two-thirds of the employee’s average weekly wage, subject to minimum and maximum benefit limits. PEDA can provide a significant measure of financial stability by continuing an eligible employee’s regular salary while the employee is unable to work.

Who May Qualify for PEDA?

For public safety employees, PEDA generally covers:

• Full-time law enforcement officers
• Full-time firefighters
• Certain full-time paramedics and firefighter-paramedics
• Eligible employees working for the State of Illinois, qualifying local governments, state-supported colleges or universities, and certain other public entities

Eligibility depends on more than a person’s job title. The identity of the employer, the employee’s duties, the circumstances of the injury, and the medical reason the employee cannot work may all matter.

Does PEDA Cover City of Chicago Police Officers and Firefighters?

Generally, no. PEDA does not apply to a home-rule unit with a population over 1 million. This exclusion applies to the City of Chicago. However, police officers, firefighters, and qualifying paramedics employed by many suburban municipalities and smaller Illinois jurisdictions may be eligible. The location where the injury occurred is not the only consideration. The employing public entity matters. A first responder should not assume that PEDA applies, or does not apply, without reviewing the specific facts.  

What Benefits Does PEDA Provide?

When an eligible employee suffers a qualifying line-of-duty injury, PEDA may provide several important protections.

Continued Salary for Up to One Year

The employee must continue to be paid on the same basis as before the injury while unable to perform their duties, for up to one year in relation to the same injury. After one year, if the employee remains temporarily and totally disabled, they would then be entitled to temporary total disability benefits under the Illinois Workers’ Compensation Act.  

Protection of Accrued Leave

PEDA payments should not be deducted from the employee’s:

• Sick leave
• Vacation time
• Compensatory time accumulated for overtime

If an employer is reducing these balances while an eligible employee is receiving PEDA benefits, the deductions should be reviewed.

Continued Pension Service Credits

PEDA also protects service credits in a public employee pension fund during the covered period. A line-of-duty injury should not cause the employee to lose pension service credit while receiving qualifying PEDA benefits. PEDA does, however, place limits on receiving disability-related pension benefits during the same period. Questions involving a disability pension should be reviewed separately.

Are PEDA Payments Tax-Free?

PEDA benefits have frequently been described as tax-free disability payments, but that description is now too broad. In the 2025 case Bitner v. City of Pekin, the Illinois Supreme Court held that PEDA does not prohibit a public employer from withholding employment taxes from these payments. The Court explained that an employer may continue paying an injured employee through its regular payroll and may withhold taxes as it did before the injury. That decision does not necessarily determine every employee’s ultimate tax liability. It does mean an injured employee should not assume that the full gross salary will be deposited without withholding. Employees with questions about the tax treatment of their benefits should consult an attorney and a qualified tax professional.

How Do PEDA and Workers’ Compensation Work Together?

PEDA does not replace an injured employee’s workers’ compensation claim but, rather works in conjunction with the workers’ compensation claim. While PEDA focuses primarily on salary continuation, workers’ compensation may provide additional benefits, including:

• Reasonable and necessary medical treatment
• Temporary disability benefits, after PEDA benefits have expired
• Compensation for a permanent injury or disfigurement
• Wage-differential benefits when an injury reduces earning capacity
• Vocational rehabilitation when an employee cannot return to the previous position

During the PEDA period, an employee cannot receive both full PEDA salary and separate temporary total disability payments as a double recovery. 

Additional Rules During PEDA Leave

The employing public entity may require the injured employee to attend a physical or medical examination at the entity’s expense to evaluate the disability. The statute also prohibits an employee from working elsewhere while receiving PEDA salary continuation, even if the other work is unpaid. Violating this provision may result in the loss of PEDA compensation from the time the other employment begins. Because these rules can have serious financial consequences, employees should obtain advice before taking another job, performing side work, or making decisions that could affect their claim.

What Should an Injured First Responder Do?

After an on-the-job injury:

1. Report the injury immediately. Illinois workers must notify their employer no later than 45 days after a workplace accident. Earlier notice can help prevent disputes and delays.
2. Seek appropriate medical care. Tell every medical provider that the injury happened at work and accurately describe how it occurred.
3. Follow medical restrictions. Keep copies of work-status reports, treatment recommendations, test results, and referrals.
4. Document your pay and benefits. Review pay stubs and records of sick leave, vacation, compensatory time, and pension service credit.
5. Do not assume PEDA replaces a workers’ compensation claim. Medical benefits and compensation for a permanent injury may depend on properly preserving the workers’ compensation case.
6. Be careful about returning to work or accepting other employment. These decisions may affect both PEDA and workers’ compensation benefits.
7. Speak with an attorney early. PEDA claims can involve multiple laws, benefit programs, medical opinions, and filing deadlines.

When Benefits Are Disputed

Disagreements can arise over:

• Whether the injury occurred in the line of duty
• Whether the employee is medically unable to perform their duties
• Whether PEDA applies to the employee or public entity
• Improper deductions from accrued leave
• The employee’s salary calculation
• Medical treatment under workers’ compensation
• A proposed return to work or light-duty assignment
• The extent of a permanent injury

A workers’ compensation claim is not automatically filed simply because the employer knows about the accident or pays initial benefits. In most cases, an Application for Adjustment of Claim must be filed with the Illinois Workers’ Compensation Commission within three years of the injury or two years after the last payment of certain benefits, whichever is later. Different deadlines may apply in some cases.

We Are Here to Answer Your Questions

First responders dedicate their careers to protecting their communities. When they are injured in the line of duty, they deserve clear information about the benefits available to them. If you are an Illinois police officer, firefighter, or qualifying paramedic who has been injured at work, Strom Yen Injury Attorneys can help you understand how PEDA and workers’ compensation may apply to your situation. Contact us to discuss your injury, benefits, and available options. This article provides general information and is not legal or tax advice. Every case depends on its specific facts.