The case of Chicago & Eastern Illinois Railroad Co. v. Industrial Commission of Illinois, 1931, revolved around the issue of workers' compensation for an employee who was injured while working in another state but employed by a company based in Illinois. The plaintiff, Mr. Cavanaugh, was a resident and employee in Indiana under the Chicago & Eastern Illinois Railroad Company which is incorporated and headquartered in Illinois. He sustained injuries during his work hours within Indiana's jurisdiction and sought to claim compensation from his employer through the Industrial Commission of Illinois. The Supreme Court had to decide whether or not it was constitutional for an out-of-state worker to seek benefits from their home-state employer via that state’s industrial commission despite being injured elsewhere.The court ruled against the railroad company stating that it did not violate due process rights as per Fourteenth Amendment because there existed sufficient contacts between the parties involved (the worker and his employer) with respect to employment relationship within State boundaries.

In the dissenting opinion for Chicago & Eastern Illinois Railroad Co. v. Industrial Commission of Illinois, it was argued that the majority's decision to uphold a state law requiring railroads to compensate employees injured while working out-of-state violated the Commerce Clause of the U.S. Constitution. The dissenting justices believed that such regulation should be left up to Congress and not individual states, as it interfered with interstate commerce by imposing additional costs on railroad companies operating across state lines. They also expressed concern about potential inconsistencies in worker compensation laws between different states, which could create confusion and legal challenges for businesses engaged in interstate commerce.