Tennessee's workers compensation law is Tenn. Code Ann. Title 50, Chapter 6. The current law governs injuries on or after July 1, 2014 (50-6-101). The Bureau of Workers' Compensation, part of the Department of Labor and Workforce Development, administers the system. Insurers and rates are regulated by the Department of Commerce and Insurance. The policy itself (statutory coverage, employers liability, payroll-based premium, experience rating) is in the national workers compensation guide.

Who must be covered

• Employer: anyone using 5 or more persons for pay (50-6-102).
  • Construction service providers must carry coverage even with fewer than 5 employees, with limited exemptions (50-6-902).
  • Coal mining also has a lower threshold.
• Employee includes every person, including a minor, whether lawfully or unlawfully employed (50-6-102).
• A sole proprietor, partner or LLC member working full time in the business can elect coverage by filing written notice on the Bureau's form.
• Excluded (50-6-106), although these employers may elect coverage:
  • farm and agricultural laborers
  • domestic servants
  • casual employees, meaning those not employed in the usual course of the business
  • employers regularly employing fewer than 5
• A subcontractor may be covered under the general contractor's policy, with the contractor's written agreement and a notice filed with the Bureau (50-6-902).

Securing payment (50-6-405)

• Ways to secure payment:
  • insure with an insurer authorized in Tennessee, or
  • get a certificate to self-insure from the Commissioner of Commerce and Insurance
• Self-insurers post security of at least $500,000.
• Group self-insurance is allowed for 10 or more employers in the same trade group, through an association at least 5 years old.
• An employer can't make employees pay any part of the premium. Doing so is a Class C misdemeanor.
• Construction: proof of coverage must be produced within one business day. Penalties run $50–$500 for a first violation and up to $5,000 after that.

The market

• Private insurers write coverage. There's no state fund.
• A rate service organization files advisory loss costs. Each insurer files its own multiplier within 15 days after its effective date, certified by a Casualty Actuarial Society member (56-5-106).
• Assigned risk plan (56-5-114): for employers that can't get coverage normally. All workers comp insurers participate.

Surcharges for mods above 1.10 are graduated, up to 50% for mods above 2.00.

Covered injuries

• Benefits are paid without regard to fault. Workers compensation is the employee's exclusive remedy against the employer (50-6-103).
• An injury is covered only if employment contributed more than 50% to causing it, considering all causes (50-6-102).
• No compensation for injury due to (50-6-110):
  • willful misconduct
  • an intentional self-inflicted injury
  • intoxication or illegal drug use
  • willful failure to use a provided safety device
  • willful failure to perform a duty required by law
• The employer has the burden of proving these defenses.
• Drug-free workplace presumption: applies at 0.08% blood alcohol for most jobs and 0.04% for safety-sensitive jobs. Clear and convincing evidence can rebut it.
• Voluntary recreational, social or athletic activities aren't covered, with some exceptions.

Guaranty protection

If a workers compensation insurer becomes insolvent, the Tennessee Insurance Guaranty Association pays covered workers compensation claims in full. They're outside the $100,000 per-claim cap (56-12-107).

Common exam traps

• Coverage is required at 5 employees. Construction employers must carry it with fewer.
• Farm laborers, domestic servants and casual employees are excluded.
• Employment must be more than 50% of the cause.
• Employees can never be charged for the premium.
• There's no state fund. Hard-to-place employers go to the assigned risk plan.