Workers compensation law, rules and policy information for Tennessee
for its Work Comp
Rules and Information
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Updated: Rating Payroll 02-14-2021
Authority/State Rating Bureau: NCCI
National Council on Compensation Insurance (NCCI)
901 Peninsula Corporate Circle
Boca Raton, FL 33487-1362
Private Insurance: Allowed
State Fund: None
Assigned Risk: Effective July 1, 2015 Assigned Risk Workers Compensation is provided through the National Council on Compensation Insurance aka NCCI. Prior to this date Assigned Risk was provided by The Tennessee Workers compensation Insurance Plan.
Assigned Risk Contact Information: National Council on Compensation Insurance aka NCCI – contact at: NCCI
National Council on Compensation Insurance (NCCI)
901 Peninsula Corporate Circle
Boca Raton, FL 33487-1362
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.
Small Deductible Program Details:
Allowed: Yes – However it is optional that insurance carriers make available
Deductible Range: $100 – $2,500
Type: Medical and Indemnity
Effect on Experience Rating: Gross
Available In: Voluntary Markets
For More Information About How Deductible Programs Work
Sole Proprietor: Excluded from coverage/may elect to be included – If included a workers compensation sole proprietor payroll of $41,000 will be used to calculate premium, as of 3-1-12, $41,900 as of 3-1-2013, $43,400 as of 7-1-2014, $44,100 as of 3-1-2015. $46,200 as of 3-1-2017. $46,900 as of 3-1-2018. $48,300 as of 3-1-2019. $49,900 as of 3-1-2020. $51,700 as of 3-1-2021.
For Tennessee Sole Proprietor Construction Only Risks rating payroll is banded from a minimum of $15,600 (revised from $19,900) to a maximum of $60,300 as of 3-1-2012, $20,800 / $61,500 as of 3-1-13, $20,800 / $63,800 as of 7-1-2014, $20,800 / $64,800 as of 3-1-2015. $23,400 / $67,900 as of 3-1-2017. $23,400 / $68,900 as of 3-1-2018. $23,400 / $71,000 as of 3-1-2019. $26,000 / $73,400 as of 3-1-2020. $26,000 / $76,000 as of 3-1-2021.
Partners: Excluded from coverage/may elect to be included – If included a workers compensation partner payroll of $41,000 will be used to calculate premium, as of 3-1-12, $41,900 as of 3-1-2013, $43,400 as of 7-1-2014, $44,100 as of 3-1-2015. $46,200 as of 3-1-2017. $46,900 as of 3-1-2018. $48,300 as of 3-1-2019. $49,900 as of 3-1-2020. $51,700 as of 3-1-2021.
For Tennessee Partners Construction Only Risks rating payroll is banded from a minimum of $15,600 (revised from $19,900) to a maximum of $60,300 as of 3-1-2012, $20,800 / $61,500 as of 3-1-13, $20,800 / $63,800 as of 7-1-2014, $20,800 / $64,800 as of 3-1-2015. $23,400 / $67,900 as of 3-1-2017. $23,400 / $68,900 as of 3-1-2018. $23,400 / $71,000 as of 3-1-2019. $26,000 / $73,400 as of 3-1-2020. $26,000 / $76,000 as of 3-1-2021.
Corporate Officers: Included in coverage/may elect to be exempt – If included a corporate officer payroll min/max of 31,200/166,400 will be used to calculate premium, as of 3-1-12, $41,600 / $166,400 as of 3-1-2013, $44,200 / $171,600 as of 7-1-2014, $44,200 / $176,800 as of 3-1-2015. $900 min / $3,600 max per week as of 3-1-2017. $900 min / $3,600 max per week as of 3-1-2018. $950 / $3,700 as of 3-1-2019. $950 min / $3,800 max per week as of 3-1-2020. $1,000 / $4,000 as of 3-1-2021.
For Tennessee Corporate Officers Construction Only Risks a corporate rating payroll (revised) minimum of $15,600 to a maximum of $60,320 is used as of 3-1-12, $20,800 / $61,360 as of 3-1-2013, $20,800 / $63,960 as of 7-1-2014, $20,800 / $65,000 as of 3-1-2015. $450 min / $1,310 max per week as of 3-1-2017. $450 min / $1,330 max per week as of 3-1-2018. $450 / $1,370 as of 3-1-2019. $500 min / $1,410 max per week as of 3-1-2020. $500 / $1,460 as of 3-1-2021.
LLC Members: Treated same as partners.
Election or Rejection of Coverage Form:
- Form I-4 Sole Proprietor/Partner Inclusion Form
- Form I-5 Sole Proprietor/Partner Withdrawal of Election
- Form I-6 Corporate Officer Election Not To Accept
- Form I-7 Notice of Corporate Officer
Revocation of Exemption
- Form I-8 Exempt Employer Notice of Acceptance
- Form I-9 Exempt Employer Withdrawal of Election
Access to Other Tennessee Workers Compensation Forms: Tennessee Workers Compensation Forms. This link will take you to the Tennessee State Website forms page for access to other state workers compensation forms.
Notes About Forms: Be sure to check with your insurance company for additional forms they may use.
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.>/span>
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!
Experience Rating Eligibility: Tennessee employers will receive an experience modification rate or EMR once they meet one of these triggers:
- $9,000 in policy premium is generated during the last year or last two years.
- $4,500 is the average policy premium generated for more than two years.
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
Tennessee Workers Working In Other States; Other States Workers Working In Tennessee, Extraterritorial, Reciprocity and Non-Compliance: If Tennessee workers are working temporarily in another state, then workers compensation coverage for that worker is governed by the extraterritorial provisions found in Tenneessee statutes. When allowed, extraterritorial provisions allow benefits for an injured worker to apply as if the worker was in their primary state. Not all states provide Extraterritorial Provisions. It’s reciprocity that governs how coverage for a worker from another state who is working temporarily in Tennessee applies. Compliance of workers compensation laws varies from state to state and it is important for an employer with workers performing duties in other states to be aware of the specific state rules that govern their coverage. We’ve provided the below general information about extraterritorial and reciprocity as a basic guide. Please contact your state authority with your specific questions concerning this topic!
- Provisions: Yes
- Duration: Temporary – No more that 14 days in a row or a total of 25 days during a calendar year. There may be exceptions.
- Allowed: Yes with conditions.
- Specific Statute or Reference: Tennessee Code Ann. 50-6-115 – Extraterritorial application of chapter.
- For More Information Contact: Tennessee Department of Labor & Workforce Development shown below.
Regulated By: Tennessee Department of Labor & Workforce Development
Tennessee Department of Labor & Workforce Development
Workers’ Compensation Division
710 James Robertson Pkwy 2nd Floor
Nashville, Tennessee 37243-0661
615-532-4812 or 800-332-2667
Workers compensation statute can be found here:
Tennessee Workers Compensation Statute
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. No warranty as to the accuracy or completeness of this information is provided or to be implied. You must verify this data before use with the individual governing authority for this state. 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.
WORKERS COMPENSATION CONSULTANT
Voice: (573) 489-8323
Fax: (573) 447-4998