Tennessee Workers Compensation - minimum and maximum payrolls,laws,rules,subrogation,statutes,state contacts,detailed policy information

State: Tennessee

Authority/Rating Bureau: NCCI, National Council on Compensation Insurance

Compulsory: Yes

Private Insurance: Allowed

Self-Insurance: Allowed

State Fund: None

Assigned Risk: Provided by Tennessee Workers’ Compensation Insurance Plan. Contact at:

Tennessee Workers’ Compensation Insurance Plan - AON

P.O. Box 681089

Franklin, TN 37068 (800) 471-6767

http://www.twcip.com/

Numerical Exceptions: There is an exemption for employers with fewer than 5 employees, but all subcontractors and anyone engaged in the construction industry is required to carry workers' compensation insurance, even if they have one employee.

Individual Waivers Allowed: Some are permitted.

Sole Proprietor: Excluded from coverage/may elect to be included - If included a workers compensation sole proprietor payroll of 39,800 will be used to calculate premium, as of 3-1-11. For Tennessee construction only risks rating payroll is banded from a minimum of $9,950 to a maximum of $58,300.

Partners: Excluded from coverage/may elect to be included - If included a workers compensation partner payroll of $39,800 will be used to calculate premium, as of 3-1-11. For Tennessee construction only risks rating payroll is banded from a minimum of $9,950 to a maximum of $58,300

Corporate Officers: Included in coverage/may elect to be exempt - If included a corporate officer payroll min/max of 23,400/161,200 will be used to calculate premium, as of 3-1-11. For Tennessee construction only risks a corporate rating payroll minimum of $9,880 to a maximum of $58,500 is used.

LLC Members: Treated same as partners - If included a LLC Member payroll of $39,800 will be used to calculate premium, as of 3-1-11. For Tennessee construction only risks rating payroll is banded from a minimum of $9,950 to a maximum of $58,300.

Contractors: Any person engaged in the construction industry, including principal contractors, or intermediate contractors, or subcontractors are required to carry workers' compensation insurance on their employees, even if they have less than five. Effective 3-1-11 Sole proprietors, partners, officers of a corp and members of a LLC engaged in the construction industry and including principal contractors and subcontractors are required to carry workers compensation coverage on themselves and must be included along with their employees even if they have less than 5 employees.

A sole proprietor or partner who is engaged in the construction industry is not required to carry workers compensation on themselves if they are doing work directly for the owner or the property but must provide coverage on any subcontractor, employee or worker not otherwise covered by a workers comp policy.

Statute now allows sole proprietors, partners, officers of a corp and LLC members to obtain an exemption for this requirement. The exemption must be listed on the Tennessee Secretary of States Registry.

The subcontractor acting as a self-employed individual is not an employee of the general contractor and has no coverage as long as he is not working as an employee. To determine whether an individual is an employee or subcontractor, the following factors should be considered:

The right to control the conduct of the work;
The right of termination;
The method of payment;
The freedom to select and hire helpers;
The furnishing of tools and equipment;
Self-scheduling of working hours; and
The freedom to offer services to other entities.

A subcontractor can elect to be covered by the general's workers' compensation insurance by filing Form I-15 with the Division of Workers' Compensation. This form allows the general contractor to withhold premiums from the sub's payroll to cover the subcontractor. Form I-15 must be signed and notarized by the general contractor and the subcontractor and filed with the Tennessee Department of Labor and Workforce Development. Failure of the general contractor to file with the Department of Labor and Workforce Development does not relieve the obligation of the insurance company to provide coverage to a subcontractor when the subcontractor can produce evidence of payment of premiums to the insurance company.

The law prohibits the employer from deducting any portion of the workers' compensation premium from the wage or salary of any employee. There is no form that will waive the rights of employees of subcontractors. The subcontractor must provide coverage for his employees.

A subcontractor can have his own workers' compensation coverage and furnish proof of this coverage to the general contractor. A general contractor can require the subcontractor to have workers' compensation insurance. NOTE TO SUBCONTRACTORS OBTAINING WORKERS' COMPENSATION COVERAGE: Most subcontractors are sole proprietors or partners. Sole proprietors and partners are not covered by their workers' compensation policy when it is written; only the employees are covered. The subcontractor who is a sole proprietor or partner may elect to be covered by his own workers' compensation policy by filing Form I-4 with the Tennessee Department of Labor and Workforce Development.

Special Notes: Corporate officers may be excluded by filing Form I-6, Corporate Officer Election Not to Accept provisions of workers' compensation. Note: The election of a corporate officer to be excluded does not reduce the number of employees for the purposes of determining the requirements of coverage.

Sole proprietors and partners are excluded from a workers' compensation policy, but may elect to be covered by filing Form I-4, Sole Proprietor/Partner Election to come within the provisions of the Tennessee Workers' Compensation Law. Note: Both the I-4 and the I-6 forms are effective 30 days after the Tennessee Department of Labor and Workforce Development's accepted stamp date. The original should be sent to the Division of Workers' Compensation with all parts filled out and properly sworn to before a notary public or other official.

Revisions to the Tennessee code regarding workers compensation coverage for those involved in the construction industry are somewhat confusing. As always you should only use our pages as a reference and consult with your local insurance professional or contact the State of Tennessee Department of Insurance for proper clearification of these new rules as they are developing. Thanks!

Tennessee Workers Compensation Subrogation: State statute 50-6-112 addresses the subrogation of workers compensation for the State of Tennessee. This statute is known as; Actions against third persons -- Attorney's fees -- Distribution of recovery -- Limitations period. You must follow a slight road map to be able to view this statute online. Here's directions: 1) Access the link we've provided below and when prompted click "I Agree"; 2) Go to Title 50, Employer and Employee and open that section; 3) Go to Chapter 6, Workers Compensation Law; 4) Go to Part 1, General Provisions and open that; 5) Scroll down to 50-6-112 and open that file. It's here where you will find this statute.

Tennessee Statute Of Subrogation

Regulated By:

Tennessee Department of Labor & Workforce Development

Workers' Compensation Division

710 James Robertson Pkwy 2nd Floor

Nashville, Tennessee 37243-0661

Phone: (615) 532-4812

Toll Free: 1-800-332-2667

http://www.state.tn.us/labor-wfd/wcomp.html

Workers Compensation Statute:

http://www.state.tn.us/sos/rules/0800/0800-02/0800-02.htm

Information on this page is provided only as a reference. While we strive to mantain accurate information on this site please realize workers compensation laws are complicated and subject to change at any time. If you need help with a workers compensation problem or have a specific situation or question please contact our office. Otherwise please consult your states governing authority or an attorney in your state of residency for assistance.

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Tennessee Workers Compensation Laws

Workers compensation policy information for the State of Tennessee