Although federal law prohibits knowingly hiring illegal immigrants, once they are hired, most states provide workers' compensation benefits regardless of their immigration status. Generally, courts have held that these workers are entitled to benefits, according to the Insurance Information Institute.
The Insurance Information Institute reports that most insurers favor keeping coverage, saying that denying those benefits runs counter to public policy and that workers compensation laws serve a humanitarian purpose. They also point out that unscrupulous employers could recruit illegal aliens, knowing that they could save the cost of workers' compensation coverage.
Opponents counter that undocumented workers should not be eligible for benefits, primarily because they are in this country illegally.
However, in Montana, legislators approved H.B. 71 which would prohibit illegal immigrant workers from collecting benefits when they are injured. If this bill is passed, Montana will become the first state in the nation to completely ban illegal aliens from receiving workers' compensation benefits.
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