Title 50 Employer And Employee

Chapter 1 Employment Relationship And Practices

§ 50-1-101. Memorandum of understanding with the department of homeland security for enforcement of federal immigration laws.

(a) For purposes of enforcing federal immigration laws, including, if applicable, federal laws relating to the employment of illegal aliens, the legislative body of a municipality or county, or the chief law enforcement officer of the county upon approval by the governing legislative body, may enter into a written agreement, in accordance with federal law, between the municipality or county and the United States department of homeland security concerning the enforcement of federal immigration laws, detention and removals, and investigations in the municipality or county.
(b) If a memorandum of understanding with the United States department of homeland security is executed pursuant to subsection (a), municipal and county law enforcement officers shall be designated from local law enforcement agencies who, by written designation and recommendation of a commanding officer, shall be trained pursuant to the memorandum of understanding. Funding for the training shall be provided pursuant to the federal Homeland Security Appropriation Act of 2006, Pub. L. No. 109-90, or subsequent federal funding sources.

§ 50-1-102. False or deceptive representations in procuring employees — Penalty — Hiring armed guards — Failure to have permit — Penalty.

(a)
1. (1) It is unlawful for any person to induce, influence, persuade or engage workers to change from one place to another in this state, or to bring workers of any class or calling into this state to work in any type of labor in this state through or by means of false or deceptive representations, false advertising or false pretenses, concerning the kind and character of the work to be done, or the amount and character of compensation to be paid for the work, or the sanitary or other conditions of the employment, or as to the existence or nonexistence of a strike or other trouble pending between employer and employees, at the time of or prior to the engagement.
2. (2) Failure to state in any advertisement, proposal or contract for the employment of workers that there is a strike, lockout or other labor trouble at the place of the proposed employment, when in fact the strike, lockout or other labor trouble then actually exists at the place of the proposed employment, is deemed false advertising and misrepresentation for the purposes of this section.
(b) A violation of subsection (a) is a Class B misdemeanor.
(c)
1. (1) Any worker who is influenced, induced or persuaded to engage with any persons mentioned in subsection (a), through or by means of any of the things prohibited in subsection (a), has a right of action for all damages that the worker has sustained in consequence of the false or deceptive representations, false advertising, and false pretenses used to induce the worker to change the worker's place of employment, against any person who, directly or indirectly, causes the damage.
2. (2) In addition to all actual damages the worker may have sustained, the worker is entitled to recover such reasonable attorney's fees as the court shall fix, to be taxed as costs.
(d)
1. (1) Any person who, in this or another state, hires, aids, abets, or assists in hiring, through agencies or otherwise, persons to guard with arms or deadly weapons of any kind for any such purpose, without a permit from the governor of this state, commits a Class E felony.
2. (2) Nothing contained in subdivision (d)(1) shall be construed to interfere with the right of any person, in guarding or protecting the person's private property or private interests, as is now provided by law.
(e) This section shall be construed only to apply in cases where workers are brought into this state, or induced to go from one place to another in this state by any false pretenses, false advertising or deceptive representations, or brought into this state under arms, or removed from one place to another in this state under arms.

§ 50-1-103. Employment of illegal aliens.

(a) As used in this section, unless the context otherwise requires:
1. (1) “Commissioner” means the commissioner of labor and workforce development;
2. (2) “Department” means the department of labor and workforce development;
3. (3) “Employ” or “employment” means any work engaged in for compensation in money or other valuable consideration and for which a person paying the compensation for the work performed is required to file a W-2 wage and tax statement with the federal internal revenue service;
4. (4) “Illegal alien” means a person who is, at the time of employment, neither an alien who is lawfully admitted for permanent residence in the United States pursuant to the federal Immigration and Naturalization Act (8 U.S.C. § 1101 et seq.), nor authorized to be employed by the federal Immigration and Naturalization Act or the United States attorney general;
5. (5) “Knowingly” means having actual knowledge that a person is an illegal alien or having a duty imposed by law to determine the immigration status of an illegal alien and failing to perform that duty;
6. (6) “Lawful resident alien” means a person who is entitled to lawful residence in the United States pursuant to the federal Immigration and Naturalization Act;
7. (7) “Lawful resident verification information” means the documentation that is required by the United States department of homeland security when completing the employment eligibility verification form commonly referred to as Form I-9. Documentation that later proves to be falsified, but that at the time of employment satisfies the requirements of Form I-9, is lawful resident verification information;
8. (8) “License” means any certificate, approval, registration or similar form of permission required by law; and
9. (9) “Person” means individual, corporation, partnership, association or any other legal entity.
(b) A person shall not knowingly employ, rehire, recruit, or refer for a fee for employment an illegal alien.
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- 50-1-703(a)(2)(A)
(c) [Deleted by 2022 amendment.]
(d) A person has not violated subsection (b) with respect to a particular employee if the person verified the work authorization status of the employee by using the federal electronic work authorization verification service provided by the United States department of homeland security pursuant to the federal Basic Pilot Program Extension and Expansion Act of 2003, Pub. L. No. 108-156, or any successor program thereto, and the verification service returned a confirmation showing that:
1. (1) Such employee was eligible to work;
2. (2) Such employee was ineligible to work, but the employee has appealed such confirmation and the appeal has not been resolved; or
3. (3) Such employee was ineligible to work, the employee has not appealed such confirmation and the time for such employee to appeal pursuant to federal law has not expired.
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- 50-1-703(a)(2)(A)
(e)
1. (1)
  1. (A) If any state or local governmental agency, officer, employee or entity has reason to believe that a violation of subsection (b) has occurred, the agency, officer, employee or entity shall file a complaint with the department. Upon receipt of a complaint by a federal, state or local governmental agency, officer, employee or entity, the commissioner shall conduct an investigation. If there is substantial evidence that a violation of subsection (b) has occurred, the commissioner shall conduct a contested case hearing pursuant to the Uniform Administrative Procedures Act, complied in title 4, chapter 5, on the question of whether the person has violated subsection (b). If the commissioner or the commissioner's designee determines that there is clear and convincing evidence that a person has violated subsection (b) and the violation occurred while the person was acting within the scope of practice of a license issued by the state or pursuant to title 67, chapter 4, the commissioner shall request an order consistent with § 4-5-320, requiring the appropriate regulatory board or local government with respect to business licensure pursuant to title 67, chapter 4, to revoke, suspend, or deny the person's license. The commissioner shall state in the commissioner's findings of fact and conclusions of law whether there have been previous violations of subsection (b).
  2. (B) For the first violation of subsection (b), the commissioner shall order that the regulatory board or local government suspend the person's license until the person shows to the satisfaction of the commissioner that the person is no longer in violation of subsection (b). The showing may be made by the person filing a sworn statement with the commissioner stating that the person is no longer employing illegal aliens.
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    50-1-703(f)(3)
  3. (C) For a second or subsequent violation of subsection (b) occurring within three (3) years from the issuance of the commissioner's first order, the commissioner shall order that the regulatory agency or local government suspend the license for one (1) year.
2. (2) Upon receiving a complaint pursuant to this section, consistent with this section, the commissioner or the commissioner's designee shall inform the person against whom the complaint is made that the person may request the name of the person filing the complaint, or if the complaint is filed by an agency or entity, the name of the person who caused the complaint to be filed. If the person requests the name, the commissioner or the commissioner's designee shall provide the name requested.
(f) The department shall notify the appropriate official making declarations pursuant to § 12-3-309 of a person's violation of this section.
(g) The department shall notify the department of homeland security of any person found in violation of this section.

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§ 50-1-104. State officials notified of plant closings or mass layoffs.

Upon being served with advance written notification of a plant closing or mass layoff pursuant to § 3(a)(2) of the Worker Adjustment and Retraining Notification Act (29 U.S.C. § 2102), the commissioner of labor and workforce development shall immediately advise the commissioners of economic and community development, education, health, human services, and mental health and substance abuse services, the executive director of the state board of education, and the chancellor of the state university and community college system concerning the circumstances of the plant closing or mass layoff, including the number of employees affected.

§ 50-1-105. Providing employee information to prospective employers — Good faith.

Any employer that, upon request by a prospective employer or a current or former employee, provides truthful, fair and unbiased information about a current or former employee's job performance is presumed to be acting in good faith and is granted a qualified immunity for the disclosure and the consequences of the disclosure. The presumption of good faith is rebuttable upon a showing by a preponderance of the evidence that the information disclosed was:
1. (1) Knowingly false;
2. (2) Deliberately misleading;
3. (3) Disclosed for a malicious purpose;
4. (4) Disclosed in reckless disregard for its falsity or defamatory nature; or
5. (5) Violative of the current or former employee's civil rights pursuant to current employment discrimination laws.

§ 50-1-106. Immigration status.

(a) As used in this section, unless the context otherwise requires:
1. (1) “Individual taxpayer identification number” means a tax processing number issued by the federal internal revenue service for the purpose of facilitating federal tax reporting by those individuals who are not eligible to obtain a federal social security number. An individual taxpayer identification number is a nine-digit number that has the appearance of a federal social security number (xxx-xx-xxxx), but that always begins with the number nine (9) and includes the number seven (7) or eight (8) as the fourth digit (9xx-7x-xxxx). An individual taxpayer identification number is issued regardless of immigration status and is not a valid form of identification for any purpose other than federal tax processing;
2. (2) “Lawful resident verification information” means the documentation that is required by the United States department of homeland security when completing the employment eligibility verification form commonly referred to as Form I-9; and
3. (3) “Person” includes any individual, partnership, association, company, business or corporation of any size regulated by, doing business in or using the services of employees in this state, including entering into a contract for the provision of the services.
(b) For purposes of an application or offer of employment, no person in this state shall accept an individual taxpayer identification number as a form of identification. Any person, including any contractor, in this state who is presented with an individual taxpayer identification number by a potential employee or subcontractor as a form of identification or to prove immigration status shall reject the number and shall request the lawful resident verification information that the person is required to obtain pursuant to federal law.
(c) The commissioner of labor and workforce development is authorized to promulgate rules and regulations to effectuate the purposes of this section. The rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.

§ 50-1-107. Veterans preference.

1. (a) A private employer may adopt an employment policy that gives preference in hiring to:
  1. (1) An honorably discharged veteran;
  2. (2) The spouse of a veteran with a service-connected disability;
  3. (3) The unremarried widow or widower of a veteran who died of a service-connected disability; or
  4. (4) The unremarried widow or widower of a member of the United States armed forces who died in the line of duty.
2. (b) A private employer adopting a veterans preference shall have the policy in writing and may require submission of a certificate of release or discharge from active duty, department of defense form 214 (DD 214), as proof of eligibility for the veterans preference employment policy.
3. (c) A policy adopted pursuant to subsection (a) must be applied uniformly to employment decisions regarding hiring and promotion.
4. (d) The preferences authorized by this section are not considered violations of any state or local equal employment opportunity law.
5. (e) Nothing in this section requires a private employer to provide a preference in hiring to any of the persons listed in subsection (a).

§ 50-1-108. Nondisclosure agreement with respect to sexual harassment in workplace as condition of employment prohibited.

(a) An employer, as defined in § 50-1-304, shall not require an employee, as defined in § 50-1-304, or a prospective employee to execute or renew a nondisclosure agreement with respect to sexual harassment in the workplace as a condition of employment.
(b) Any employee injured as a result of a violation of subsection (a) has the same rights and remedies available to employees under § 50-1-304.

Part 2 Right to Work

§ 50-1-201. Denial of employment because of affiliation or nonaffiliation with labor union or employee organization.

It is unlawful for any person, firm, corporation or association of any kind to deny or attempt to deny employment to any person by reason of the person's membership in, affiliation with, resignation from, or refusal to join or affiliate with any labor union or employee organization of any kind.

§ 50-1-202. Contracting for exclusion from employment because of affiliation or nonaffiliation with labor union or employee organization.

It is unlawful for any person, firm, corporation or association of any kind to enter into any contract, combination or agreement, written or oral, providing for exclusion from employment of any person because of membership in, affiliation with, resignation from, or refusal to join or affiliate with any labor union or employee organization of any kind.

§ 50-1-203. Exclusion from employment for payment of or failure to pay union or employee organization dues.

It is unlawful for any person, firm, corporation or association of any kind to exclude from employment any person by reason of the person's payment of or failure to pay dues, fees, assessments or other charges to any labor union or employee organization of any kind.

§ 50-1-204. Prohibition against execution of an agreement with union or employee organization that includes maintenance of membership clause.

It is unlawful for any person, firm, corporation or association of any kind operating in this state to execute an agreement with a union or employee organization of any kind that includes a maintenance of membership clause prohibiting employees from withdrawing from a union or employee organization prior to the agreement's expiration. This section shall not apply to a city, town, municipality or county, including a county having a metropolitan form of government.

§ 50-1-205. Penalty.

(a) Any person, firm, corporation or association of any kind violating any of the provisions of this part commits a Class A misdemeanor.
(b) Each day that any person, firm, corporation or association of any kind remains in violation of this part is deemed to be a separate and distinct offense, punishable in accordance with this section.

§ 50-1-206. Right to work.

(a) It is the public policy of this state that employees of this state have the right to:
1. (1) Employment without regard to any person’s refusal to join or affiliate with, or decision to withdraw from or cease membership in, any labor union or employee organization of any kind;
2. (2) Be employed free from the restraints of any contract, combination or agreement, written or oral, that provides for exclusion from employment of any person due to their refusal to join or affiliate with, or decision to withdraw from or cease membership in, any labor union or employee organization of any kind;
3. (3) Be employed without regard to any person’s refusal to pay dues, fees, assessments or other charges to any labor union or employee organization of any kind; and
4. (4) Decertify a union or other bargaining representative upon compliance with the applicable federal law.
(b) Private employers may physically post notice of the rights described in this section, at locations where notices are normally posted, informing employees about their rights under this section, or may physically disseminate such notice to employees if no such normal location for posting exists.
(c) To assist private employers in informing workers of their rights as described in this section, the commissioner of labor and workforce development shall create model notice language reiterating the public policies of this state espoused in this part, which may be used by private employers accordingly.
(d) The commissioner shall designate those persons in the department responsible for carrying out the commissioner’s power, duties and responsibilities under this part.

§ 50-1-207. Prohibition against requiring any employer or employee to waive their rights under the National Labor Relations Act or requiring acceptance or agreement to any provisions that are mandatory or nonmandatory subjects of collective bargaining under federal labor laws.

(a) For purposes of this section:
1. (1) “Employee” means a natural person who performs services for an employer for valuable consideration, and does not include a self-employed independent contractor;
2. (2) “Employer” means a person, association, or legal or commercial entity receiving services from an employee and, in return, giving compensation of any kind to such employee;
3. (3) “Federal labor laws” means the National Labor Relations Act (29 U.S.C. § 151 et seq.), and the Labor Management Relations Act (29 U.S.C. § 141 et seq.), as amended, presidential executive orders, and federal administrative regulations relating to labor and management or employee and employer issues, and the United States Constitution as amended;
4. (4) “Multi-employer association” means a bargaining unit composed of independent employers who associate together to negotiate jointly with one (1) or more labor organizations representing the employees of the independent employers within the bargaining unit;
5. (5) “Political subdivision” means any local governmental entity, including, but not limited to, any municipality, metropolitan government, county, utility district, school district, public building authority, and development district created and existing pursuant to the laws of this state, or any instrumentality of government created by any one (1) or more of the named local governmental entities; and
6. (6) “State” means the state of Tennessee and its political subdivisions, agencies and instrumentalities.
(b) No law, ordinance, or regulation shall impose any contractual, zoning, permitting, licensing, or other condition that requires any employer or employee to waive their rights under the National Labor Relations Act.
(c) No law, regulation, or ordinance shall require, in whole or in part, an employer or multi-employer association to accept or otherwise agree to any provisions that are mandatory or nonmandatory subjects of collective bargaining under federal labor laws, including but not limited to, any limitations on an employer or multi-employer association's rights to engage in collective bargaining with a labor organization, to lock out employees, or to operate during a work stoppage; provided, that this subsection (c) shall not invalidate or otherwise restrict the state from requiring the use of project labor agreements to the extent permissible under federal labor laws.
(d) This section shall be interpreted and enforced consistent with the National Labor Relations Act.
(e)
1. (1) Any agreement, contract, understanding, or practice, written or oral, implied or expressed, between any employer and any labor organization required in violation of this section is declared to be unlawful, null, and void, and of no legal effect.
2. (2) An employer or employee may seek injunctive relief in the chancery court of Davidson county to prevent the state from violating this section.

§ 50-1-208. Relationship between franchisee and franchisor.

(a) Notwithstanding any voluntary agreement entered into between the United States department of labor and a franchisee, neither a franchisee nor a franchisee's employee shall be deemed to be an employee of the franchisor for any purpose.
(b) For purposes of this section “franchisee” and “franchisor” have the same definitions as set out in 16 CFR 436.1.

§ 50-1-209. Designation of nonessential workers limited.

(a) This section shall be known as “The Essential Workers Act.”
(b) Notwithstanding any law to the contrary, a local governmental entity or the executive head of a local government shall not, by executive order, ordinance, or resolution, create categories or classes of nonessential businesses, trades, professions, or industries for the purpose of suspending lawful commerce, encumbering trade, or denying citizens the right to work if such activities are otherwise lawful in this state, unless an explicit order of the local fire marshal or a court of competent jurisdiction declares that the business operating poses a clear and present danger to the citizenry of this state.

Part 3 Working Conditions Generally

§ 50-1-301. Toilet facilities for female employees.

(a) All persons employing female employees in any manufacturing or mercantile establishment shall provide separate privies or water closets for the female employees.
(b) No male person shall enter the separate privies or water closets except for the purpose of repairing or cleaning the privies or water closets.
(c) A violation of this section is a Class C misdemeanor.

§ 50-1-302. Interference with choice of physician — Company doctors.

(a) It is unlawful for any employer, or agent, clerk or superintendent of the employer, to dictate or in any manner interfere with any employee or laborer in the employee's or laborer's rights to select the employee's or laborer's own family physician.
(b) It is unlawful for any employer, or agent, clerk or superintendent of the employer, to retain or withhold any part or portion of the wages due to the employee or laborer for the avowed purpose of paying the salary of any person claiming to be the company doctor without the full consent of the employee or laborer. The whole amount of any wages so retained by consent shall be paid to the company doctor or other physician employed by the employee.
(c) Any employer, or agent, clerk or superintendent of the employer, violating this section commits a Class C misdemeanor.

§ 50-1-303. Employees required to leave premises upon ceasing work — Penalty.

In all cases where an employee or employees ceases work for any employer, whether the severance is voluntary on the part of the employee or whether the employee is lawfully discharged, the employee or employees shall within a reasonable time thereafter withdraw from the premises of the employer in which they were employed. In the absence of other circumstances, twelve (12) hours from the date of the cessation of employment shall be a reasonable time. Any employee or employees failing and refusing to withdraw from the premises of the employer after the termination of employment commits a Class C misdemeanor.

§ 50-1-304. Discharge for refusal to participate in or remain silent about illegal activities, or for legal use of agricultural product — Damages — Frivolous lawsuits.

(a) As used in this section:
1. (1) “Employee” includes, but is not limited to:
  1. (A) A person employed by the state or any municipality, county, department, board, commission, agency, instrumentality, political subdivision or any other entity of the state;
  2. (B) A person employed by a private employer; or
  3. (C) A person who receives compensation from the federal government for services performed for the federal government, notwithstanding that the person is not a full-time employee of the federal government;
2. (2) “Employer” includes, but is not limited to:
  1. (A) The state or any municipality, county, department, board, commission, agency, instrumentality, political subdivision or any other entity of the state;
  2. (B) A private employer; or
  3. (C) The federal government as to an employee who receives compensation from the federal government for services performed for the federal government, notwithstanding that the person is not a full-time federal employee; and
3. (3) “Illegal activities”:
  1. (A) Means activities that are in violation of the criminal or civil code of this state or the United States or any regulation intended to protect the public health, safety, or welfare; and
  2. (B) Does not include activities prohibited under title 4, chapter 21, § 8-50-103, or federal laws prohibiting discrimination in employment.
(b) No employee shall be discharged or terminated solely for refusing to participate in, or for refusing to remain silent about, illegal activities.
(c)
1. (1) Any employee terminated in violation of subsection (b) shall have a cause of action against the employer for retaliatory discharge and any other damages to which the employee may be entitled, subject to the limitations set out in § 4-21-313.
2. (2) Any employee terminated in violation of subsection (b) solely for refusing to participate in, or for refusing to remain silent about, illegal activities who prevails in a cause of action against an employer for retaliatory discharge for the actions shall be entitled to recover reasonable attorney fees and costs.
(d)
1. (1) No employee shall be discharged or terminated solely for participating or engaging in the use of an agricultural product not regulated by the alcoholic beverage commission that is not otherwise proscribed by law, if the employee participates or engages in the use in a manner that complies with all applicable employer policies regarding the use during times at which the employee is working.
2. (2) No employee shall be discharged or terminated solely for participating or engaging in the use of the product not regulated by the alcoholic beverage commission that is not otherwise proscribed by law if the employee participates or engages in the activity during times when the employee is not working.
(e)
1. (1) This section shall not be used for frivolous lawsuits, and anyone trying to do so is subject to sanction as provided in subdivision (e)(2).
2. (2) If any employee files a cause of action for retaliatory discharge for any improper purpose, such as to harass or to cause needless increase in costs to the employer, the court, upon motion or upon its own initiative, shall impose upon the employee an appropriate sanction, which may include an order to pay the other party or parties the amount of reasonable expenses incurred, including reasonable attorney's fees.
(f) In any civil cause of action for retaliatory discharge brought pursuant to this section, or in any civil cause of action alleging retaliation for refusing to participate in or remain silent about illegal activities, the plaintiff shall have the burden of establishing a prima facie case of retaliatory discharge. If the plaintiff satisfies this burden, the burden shall then be on the defendant to produce evidence that one (1) or more legitimate, nondiscriminatory reasons existed for the plaintiff's discharge. The burden on the defendant is one of production and not persuasion. If the defendant produces such evidence, the presumption of discrimination raised by the plaintiff's prima facie case is rebutted, and the burden shifts to the plaintiff to demonstrate that the reason given by the defendant was not the true reason for the plaintiff's discharge and that the stated reason was a pretext for unlawful retaliation. The foregoing allocations of burdens of proof shall apply at all stages of the proceedings, including motions for summary judgment. The plaintiff at all times retains the burden of persuading the trier of fact that the plaintiff has been the victim of unlawful retaliation.
(g) This section abrogates and supersedes the common law with respect to any claim that could have been brought under this section.

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§ 50-1-305. Breast milk expressing by employees — Break time and place.

(a) As used in this section, “employer” means a person or entity that employs one (1) or more employees and includes the state and its political subdivisions.
(b) An employer shall provide reasonable unpaid break time each day to an employee who needs to express breast milk for that employee's infant child. The break time shall, if possible, run concurrently with any break time already provided to the employee. An employer shall not be required to provide break time under this section if to do so would unduly disrupt the operations of the employer.
(c) The employer shall make reasonable efforts to provide a room or other location in close proximity to the work area, other than a toilet stall, where the employee can express breast milk in privacy. The employer shall be held harmless if reasonable efforts have been made to comply with this subsection (c).

§ 50-1-306. Authorization of patient to market or sell medical information.

(a) As used in this section, “medical information” includes lists of employees or family members receiving health insurance. “Medical information” does not include information that does not identify the patient.
(b) It is unlawful for any employer, or an agent, contractor or employee of an employer, to market or sell medical information that directly identifies an employee, unless the patient has authorized the release in written, electronic or other form that indicates the patient's consent, including records for medical services provided or paid for by the employer for purposes unrelated to:
1. (1) The provision of health care to the employee or family members receiving health insurance;
2. (2) Payment for health care to the employee or family members receiving health insurance; or
3. (3) Administration of any health plan or program offered by the plan.
(c) A violation of this section shall be punished as a Class C misdemeanor.
(d) This section shall not apply to information for which the employee or family member has executed a voluntary waiver or release.

§ 50-1-307. Volunteer firefighters — Rights against termination.

(a) No employer shall terminate an employee who is a volunteer firefighter solely because the employee, when acting as a volunteer firefighter, is absent or late to the employee's employment in order to respond to an emergency prior to the time the employee is to report to employee's place of employment.
(b) An employer may charge against the employee's regular pay any time that an employee who is a volunteer firefighter loses from employment because of the employee's response to an emergency.
(c) An employer has the right to request an employee who loses time from the employee's employment to respond to an emergency to provide the employer with a written statement from the supervisor or acting supervisor of the volunteer fire department stating that the employee responded to an emergency and list the time and date of the emergency.
(d) Any employee who is absent or late to the employee's employment in order to respond to an emergency shall make a reasonable effort to notify the employee's employer that the employee may be absent or late.
(e) Any employee terminated in violation of this section may bring a civil action against the employee's employer. The employee may seek reinstatement to the employee's former position, payment of back wages, reinstatement of fringe benefits, and where seniority rights are granted, the reinstatement of seniority rights. The employee has one (1) year from the date of a violation of this section to file an action.

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50-1-309(a)(1)

§ 50-1-308. Payroll deductions for health insurance premiums.

Notwithstanding any other law, any employer, including, but not limited to, state and local government employers, that offers health insurance regulated under title 56 to its employees, may provide a payroll deduction for the employee portion of the health insurance premiums on the request of any employee who participates in the health insurance program.

§ 50-1-309. Volunteer firefighters — Permission to leave work — Allowance for time off following response to fire call.

(a)
1. (1) Notwithstanding § 50-1-307, any employee who is an active volunteer firefighter may be permitted to leave work in order to respond to fire calls during the employee's regular hours of employment without loss of pay, vacation time, sick leave or earned overtime accumulation. The employee may be permitted to take off the next scheduled work period within twelve (12) hours following the response as a vacation day or sick leave day without loss of pay, if the employee assisted in fighting the fire for more than four (4) hours. If the employee is not entitled to a vacation day or sick leave day, then the employee may be permitted to take off the work period without pay.
2. (2) In addition to subdivision (a)(1), any employee who is an active volunteer firefighter and who worked for more than four (4) hours the prior day or night as a volunteer firefighter in an emergency may be permitted to take off the next scheduled work period within twelve (12) hours following the emergency as a vacation day or sick leave day without the loss of pay. If the employee is not entitled to a vacation day or sick leave day then the employee may be permitted to take off the work period without pay.
(b) The employer may require the employee to submit a written statement from the chief of the volunteer fire department verifying that the employee responded to a fire or was on-call and specifying the date, time and duration of the response.

§ 50-1-310. Discharge of teacher for refusal to participate in or remain silent about illegal activities — Damages — Frivolous lawsuits.

(a) No teacher employed by a local education agency shall be discharged, terminated, or otherwise discriminated against with respect to compensation, terms, conditions or privileges of employment solely for refusing to participate in, or for refusing to remain silent about, illegal activities.
(b) As used in this section, “illegal activities” means activities that are in violation of the criminal or civil code of this state or the United States or any regulation intended to protect the public health, safety or welfare.
(c)
1. (1) Any teacher terminated or discriminated against in violation of subsection (a) shall have a cause of action against the employer for violation of this section and any other damages to which the employee may be entitled.
2. (2) Any teacher terminated or discriminated against in violation of subsection (a) solely for refusing to participate in, or for refusing to remain silent about, illegal activities who prevails in a cause of action against an employer for such prohibited actions shall be entitled to recover reasonable attorney fees and costs.
(d)
1. (1) This section shall not be used for frivolous lawsuits and anyone who files a frivolous lawsuit is subject to sanction as provided in subdivision (d)(2).
2. (2) If any teacher files a cause of action for retaliatory discharge for any improper purpose, such as to harass or to cause needless increase in costs to the employer, the court, upon motion or upon its own initiative, shall impose upon the teacher an appropriate sanction, which may include an order to pay the other party or parties the amount of reasonable expenses incurred, including reasonable attorney's fee.

§ 50-1-311. Employer prohibited from using results of voice stress analysis to prove misconduct by employee.

(a) As used in this section, “voice stress analysis” means the use of a device that has the ability to electronically analyze the responses of an individual to a specific set of questions and to record the analysis, both digitally and on a graph.
(b) At any hearing or other employment procedure in which an employee is entitled to due process, no employer shall introduce the results of a voice stress analysis performed on an employee to prove misconduct by the employee.

§ 50-1-312. Adverse employment action for transporting or storing firearm or ammunition in employer parking area prohibited — Cause of action.

(a) For the purposes of this section:
1. (1) “Employee” means a natural person who performs services for an employer for valuable consideration and who possesses a valid handgun carry permit recognized in this state; and
2. (2) “Employer” means a person, association, or legal or commercial entity receiving services from an employee and, in return, giving compensation of any kind to the employee.
(b)
1. (1)
  1. (A) No employer shall discharge or take any adverse employment action against an employee solely for transporting or storing a firearm or firearm ammunition in an employer parking area in a manner consistent with § 39-17-1313(a).
  2. (B) An employee discharged, or subject to an adverse employment action, in violation of subdivision (b)(1)(A) shall have a cause of action against the employer to enjoin future acts in violation of this section and to recover economic damages plus reasonable attorney fees and costs.
  3. (C) Any action brought under this section shall be filed in the chancery or circuit court having jurisdiction in the county where the alleged violation of subdivision (b)(1)(A) occurred.
2. (2) In any action brought pursuant to this section, the employee shall have the burden of establishing a prima facie case of discharge, or adverse employment action, based solely on the employee's transporting or storing a firearm or firearm ammunition in the employer's parking area in a manner consistent with § 39-17-1313(a). If the employee satisfies this burden, the burden shall then be on the employer to produce evidence that one (1) or more legitimate reasons existed for the employee's discharge or adverse employment action. The burden on the employer is one of production and not persuasion. If the employer produces such evidence, the presumption of discharge, or adverse employment action, raised by the employee's prima facie case is rebutted, and the burden shifts to the employee to demonstrate that the reason given by the employer was not the true reason for the employee's discharge, or adverse employment action, and that the stated reason was a pretext for discharge or adverse employment action. The allocations of burdens of proof set out in this subdivision (b)(2) shall apply at all stages of the proceedings, including motions for summary judgment. The employee at all times retains the burden of persuading the trier of fact that the employee has been the victim of discharge, or adverse employment action, based solely on the employee's adherence with § 39-17-1313(a).
3. (3) The employee has one (1) year from the date of termination of employment, or the date of adverse employment action, to file an action pursuant to this section.
(c) The presence of a firearm or ammunition within an employer's parking area in accordance with § 39-17-1313 does not by itself constitute a failure by the employer to provide a safe workplace.
(d) Except as otherwise provided in § 39-17-1313 for parking areas, nothing in this section shall be construed as prohibiting an employer from prohibiting firearms or firearm ammunition on the premises of the employer.

§ 50-1-313. Policy not permitting wearing of employee's hair in braids, locs, twists, or another manner prohibited — Complaints.

(a) As used in this section:
1. (1) “Commissioner” means the commissioner of labor and workforce development or the commissioner's designee;
2. (2) “Employee” means an individual who performs services for an employer for valuable consideration, and does not include a self-employed independent contractor; and
3. (3) “Employer” means an individual or entity that employs one (1) or more employees and includes this state and political subdivisions of this state.
(b) An employer shall not adopt a policy that does not permit an employee to wear the employee's hair in braids, locs, twists, or another manner that is part of the cultural identification of the employee's ethnic group or that is a physical characteristic of the employee's ethnic group.
(c)
1. (1) A policy in violation of subsection (b) is deemed discriminatory and void as against the public policy of this state. A violation of this section does not form the basis for a violation of another provision of law.
2. (2) This section does not create a private cause of action.
(d) An employee may file a complaint for a violation of this section with the commissioner. The commissioner shall provide a warning to an employer in violation of this section.
(e) This section does not apply to:
1. (1) A public safety employee if it would prevent the employee from performing essential functions of the employee's job requirements during the course of employment; or
2. (2) A policy that an employer must adopt to adhere to common industry safety standards, to maintain reasonable safety measures, or to comply with federal or state laws, rules, or regulations relative to health or safety.

§ 50-1-314. Cause of action for unlawful discharge of employee who is public servant.

(a) A public servant who was terminated by the public servant's employer or agent of the employer in violation of § 39-16-506 may bring a cause of action against the employer for unlawful discharge and any other damages to which the employee may be entitled, subject to the limitations set out in § 4-21-313, and:
1. (1) Treble the amount of damages resulting from or incident to the unlawful discharge; and
2. (2) Reasonable attorney fees and costs.
(b) If a public servant files a cause of action under this section for any improper purpose, such as to harass or to cause needless increase in costs to an employer, the court, upon motion or upon its own initiative, shall impose upon the public servant an appropriate sanction, which may include an order to pay the other party or parties the amount of reasonable expenses incurred, including reasonable attorney's fees.
(c) In any cause of action for discharge brought pursuant to this section, the plaintiff shall have the burden of establishing a prima facie case of unlawful discharge. If the plaintiff satisfies this burden, the burden shall then be on the defendant to produce evidence that one (1) or more legitimate, nondiscriminatory reasons existed for the plaintiff's discharge. The burden on the defendant is one of production and not persuasion. If the defendant produces such evidence, the presumption of discrimination raised by the plaintiff's prima facie case is rebutted, and the burden shifts to the plaintiff to demonstrate that the reason given by the defendant was not the true reason for the plaintiff's discharge and that the stated reason was a pretext for unlawful discharge. The foregoing allocations of burdens of proof shall apply at all stages of the proceedings, including motions for summary judgment. The plaintiff at all times retains the burden of persuading the trier of fact that the plaintiff has been the victim of unlawful discharge.
(d) This section abrogates and supersedes the common law with respect to any claim that could have been brought under this section.

Part 4 Private Pensions and Retirement Plans

§ 50-1-401. “Private pension and retirement plan” defined — Separate trust account established for employee contributions.

(a) As used in this part, “private pension and retirement plan” means any plan not covered by the federal employee retirement income security program, the Tennessee consolidated retirement system, or any other governmentally regulated pension and retirement fund.
(b)
1. (1) Any person maintaining a private pension and retirement plan that receives its funding either partially or totally from the employees' pay shall deposit all money received for the plan in a separate trust account.
2. (2) The funds in this separate account can only be used for the costs of administering the plan and for providing the benefits that accrue to the members of the plan.

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50-1-402

§ 50-1-402. Violation — Penalty.

A violation of § 50-1-401, requiring all funds in a private pension and retirement fund to be deposited in a separate trust account, is a Class E felony.

Part 5 Healthy Workplace Act

§ 50-1-501. Short title.

This part shall be known and may be cited as the “Healthy Workplace Act.”

§ 50-1-502. Part definitions.

As used in this part:
1. (1) “Abusive conduct” means acts or omissions that would cause a reasonable person, based on the severity, nature, and frequency of the conduct, to believe that an employee was subject to an abusive work environment, such as:
  1. (A) Repeated verbal abuse in the workplace, including derogatory remarks, insults, and epithets;
  2. (B) Verbal, nonverbal, or physical conduct of a threatening, intimidating, or humiliating nature in the workplace; or
  3. (C) The sabotage or undermining of an employee's work performance in the workplace;
2. (2) “Agency” means any department, commission, board, office or other agency of the executive, legislative or judicial branch of state government;
3. (3) “Employee” means an employee of any county, metropolitan government, municipality, or other political subdivision of this state;
4. (4) “Employer” means a private employer and a state or local governmental entity;
5. (5) “Harassment” means two (2) or more instances of contact serving no legitimate purpose directed at an employee, in connection with that person's status as an employee, that a reasonable person would consider alarming, threatening, intimidating, abusive, or emotionally distressing and that does or reasonably could interfere with the performance of the employee's duties; and
6. (6) “Instance of contact” means a direct communication or physical touching.

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50-1-506(b)

§ 50-1-503. Development of model policy for employers to prevent abusive conduct in the workplace — Requirements of policy.

(a) No later than March 1, 2015, the Tennessee advisory commission on intergovernmental relations (TACIR) shall create a model policy for employers to prevent abusive conduct in the workplace. The model policy shall be developed in consultation with the department of human resources and interested municipal and county organizations including, but not limited to, the Tennessee municipal league, the Tennessee county services association, the municipal technical advisory service (MTAS), and the county technical assistance service (CTAS).
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(b) The model policy created pursuant to subsection (a) shall:
1. (1) Assist employers in recognizing and responding to abusive conduct in the workplace; and
2. (2) Prevent retaliation against any employee who has reported abusive conduct in the workplace.
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(c) Each employer may adopt the policy created pursuant to subsection (a) as a policy to address abusive conduct in the workplace.

§ 50-1-504. Immunity of employer when policy adopted — Cause of action against employer not created.

(a) Notwithstanding § 29-20-205, if an employer adopts the model policy created by TACIR pursuant to § 50-1-503(a) or adopts a policy that conforms to the requirements set out in § 50-1-503(b), then the employer is immune from suit for any employee's abusive conduct that results in negligent or intentional infliction of mental anguish. Nothing in this section limits the personal liability of an employee for any abusive conduct in the workplace.
(b) Nothing in this section creates a cause of action against an employer who does not adopt the model policy created by TACIR pursuant to § 50-1-503(a) or adopt a policy conforming to the requirements set out in § 50-1-503(b).

§ 50-1-505. Injunction against person who commits harassment against employee of county, municipal, or metropolitan government.

A county, municipal, or metropolitan government may, through its attorney, seek an injunction against a person who commits harassment against an employee. The injunction may be sought in any court of competent jurisdiction having the power to grant injunctions. Nothing in this section shall be construed to authorize any cause of action unrelated to a person's status as an employee.

§ 50-1-506. Injunction against person who commits harassment against state employee.

(a) The state may, through the office of the attorney general, seek an injunction against a person who commits harassment against a state employee. The injunction may be sought in any court of competent jurisdiction having the power to grant injunctions. This section does not authorize any cause of action unrelated to a person's status as a state employee. This section does not authorize a court to issue an injunction prohibiting activities that are protected by the constitutions of this state or the United States, including, but not limited to, political speech.
(b) Notwithstanding § 50-1-502, as used in this section, “state employee” has the same meaning as defined in § 8-42-101.

Part 6 Plant Closings and Reduction in Operations

§ 50-1-601. Part definitions.

As used in this part, unless the context otherwise requires:
1. (1) “Employer” means any person, corporation or other entity that employs at least fifty (50) but not more than ninety-nine (99) full-time employees at a workplace located within this state, and that is not excluded or exempt from the requirements of the Employment Security Law, compiled in chapter 7 of this title;
2. (2) “Reduction in operations” means:
  1. (A) The closure of a workplace, or a portion of the operations in the workplace, whereby the number of employees working within the workplace is permanently or indefinitely reduced by fifty (50) or more during any three-month period;
  2. (B) The modernization of a workplace, or a portion of the operations in the workplace, whereby the number of employees working within the workplace is permanently or indefinitely reduced by fifty (50) or more during any three-month period;
  3. (C) The relocation of a workplace, or a portion of the operations in the workplace, to another site located more than fifty (50) miles from the workplace, whereby the number of employees working within the workplace is permanently or indefinitely reduced by fifty (50) or more during any three-month period; or
  4. (D) The implementation or application of any management policy within a workplace, whereby the number of employees working within the workplace is permanently or indefinitely reduced by fifty (50) or more during any three-month period; and
3. (3) “Workplace” means a factory, plant, office or other facility where employees produce goods or provide services.

§ 50-1-602. Notification of employees and state.

(a) Upon notifying affected employees of a reduction in operations, the employer shall then notify state government by telephoning the commissioner of labor and workforce development and informing the commissioner of the circumstances of the reduction in operations, as well as the number of employees affected.
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(b)
1. (1) The commissioner of labor and workforce development shall obtain and operate a toll-free telephone line for the purpose of receiving and encouraging employer compliance with subsection (a).
2. (2) The commissioner shall regularly undertake appropriate activities to inform and remind employers of the existence of the toll-free telephone line and of the requirements contained in subsection (a).
(c) Upon receiving initial notification of a reduction in operations, the commissioner shall immediately advise the commissioners of economic and community development, education, health, human services, and mental health and substance abuse services, the executive director of the state board of education, and the chancellor of the board of regents of the state university and community college system, concerning the circumstances of the reduction in operations and the number of affected employees.

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§ 50-1-603. Provisions not applicable in certain situations.

Section 50-1-602(a) shall not apply to any reduction in operations that:
1. (1) Results solely from a labor dispute;
2. (2) Occurs at a construction site or other temporary workplace; or
3. (3) Results from seasonal factors, as determined by the rules of the commissioner of labor and workforce development to be customary within the business or industry.

§ 50-1-604. Rules.

The commissioner of labor and workforce development shall promulgate rules necessary to implement this part in an orderly and efficient manner, in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.

Part 7 Tennessee Lawful Employment Act

§ 50-1-701. Short title.

This part shall be known and may be cited as the “Tennessee Lawful Employment Act.”

§ 50-1-702. Part definitions.

As used in this part:
1. (1) “Commissioner” means the commissioner of labor and workforce development, or the commissioner's designee;
2. (2) “Department” means the department of labor and workforce development, unless the context provides otherwise;
3. (3) “Department of homeland security” means the United States department of homeland security, or the appropriate agency or division within such department, or any successor department, agency, or division thereto;
4. (4) “Economic development incentive” means any grant, loan or performance-based incentive from any governmental entity;
5. (5) “Employee” means any individual for whom an employer must complete a Form I-9 pursuant to federal law and regulations, and does not include an independent contractor as defined by 8 U.S.C. § 1324a and its regulations;
6. (6) “Employer” means private employers and governmental entities;
7. (7) “E-Verify program” means the federal electronic work authorization verification service provided by the department of homeland security pursuant to the federal Basic Pilot Program Extension and Expansion Act of 2003, Pub. L. No. 108-156, or any successor program thereto;
8. (8) “Governmental entity” means this state or any political subdivision which exercises governmental powers under the laws of this state and uses tax revenues;
9. (9) “Internet access” means internet service that is installed and accessible at an employer's place of business;
10. (10) “License” means any certificate, approval, registration, or similar form of permission issued by a local government with respect to business licensure as described in title 67, chapter 4;
11. (11) “Nonemployee” means any individual, other than an employee, paid directly by the employer in exchange for the individual's labor or services;
12. (12) “Person” means an individual, corporation, partnership, or other legal entity;
13. (13) “Private employer” means any person who is required by federal law and regulations to report, for any purpose, remuneration paid to at least six (6) employees; and
14. (14) “Tax form” means any form issued by the United States internal revenue service, including, but not limited to, Form W-2, Form-1099 or Form-1040.

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4-21-409

§ 50-1-703. Duties of employers — Office of employment verification assistance — Application — Complaints for violations — Commissioner's order on finding of violation — Penalties.

(a)
1. (1) Employers shall:
  1. (A) For nonemployees, request and maintain a copy, pursuant to subdivision (a)(4), of any one (1) of the following documents prior to the nonemployee providing labor or services:
    1. (i) A valid Tennessee driver license or photo identification license issued by the department of safety;
    2. (ii) A valid driver license or photo identification license issued by another state where the issuance requirements are at least as strict as those in this state, as determined by the department. The commissioner, in consultation with the department of safety, shall determine which states have issuance requirements that are at least as strict as this state, and shall develop, and periodically update, a publicly accessible list of such states on the department's website;
    3. (iii) An official birth certificate issued by a United States state, jurisdiction or territory;
    4. (iv) A United States government-issued certified birth certificate;
    5. (v) A valid, unexpired United States passport;
    6. (vi) A United States certificate of birth abroad (DS-1350 or FS-545);
    7. (vii) A report of birth abroad of a citizen of the United States (FS-240);
    8. (viii) A certificate of citizenship (N560 or N561);
    9. (ix) A certificate of naturalization (N550, N570 or N578);
    10. (x) A United States citizen identification card (I-197 or I-179); or
    11. (xi) Valid alien registration documentation or other proof of current immigration registration recognized by the United States department of homeland security that contains the individual's complete legal name and current alien admission number or alien file number (or numbers if the individual has more than one (1) number); and
  2. (B) For employees, either:
    1. (i) Request and maintain a copy, pursuant to subdivision (a)(4), of any one (1) of the documents described in (a)(1)(A)(i)-(xi) prior to the employee providing labor or services; or
    2. (ii)
      1. (a) Enroll in the E-Verify program prior to hiring an employee;
      2. (b) Verify the work authorization status of the employee hired by using the E-Verify program; and
      3. (c) Maintain an E-Verify case result for each employee that shows that the employee is authorized to work, whether on the E-Verify Quick Audit Report, the E-Verify User Audit Report, or the individual employee E-Verify case verification result. The E-Verify case result must be visible showing the work authorization status.
2. (2)
  1. (A) An employer who verifies the work authorization status of an employee pursuant to subdivision (a)(1)(B)(ii) has not violated § 50-1-103(b) with respect to the particular employee if the employer meets the requirements in § 50-1-103(d).
  2. (B) No employer shall prevail in any proceeding where a violation of § 50-1-103 is alleged if the sole evidence presented by the employer is evidence of compliance with subdivision (a)(1)(A) or (a)(1)(B)(i).
3. (3) No employer shall be in violation of subdivision (a)(1)(B) or subsection (b) if the employer has requested, but has not received, assistance pursuant to subdivision (a)(6).
4. (4) An employer shall maintain:
  1. (A) A record of results generated by the E-Verify program pursuant to (a)(1)(B)(ii) with respect to an employee for three (3) years after the date of the employee's hire or for one (1) year after the employee's employment is terminated, whichever is later; and
  2. (B) Documentation received pursuant to subdivisions (a)(1)(A) and (a)(1)(B)(i) for three (3) years after the documentation is received by the employer or for one (1) year after the employee or nonemployee ceases to provide labor or services for the employer, whichever is later.
5. (5) Nothing in this section shall be construed to prevent an employer from contracting with or otherwise obtaining the services of an E-Verify employer agent, or similar third party, for the purpose of complying with subdivision (a)(1)(B)(ii).
6. (6)
  1. (A) There is created within the department the office of employment verification assistance. The department is authorized to enter into a memorandum of understanding or other agreement required by the E-Verify program to operate this office.
  2. (B) If an employer does not have internet access or if an employer has less than thirty-five (35) full-time equivalent employees, then the office shall, at no charge to the employer, enroll the employer in the E-Verify program or conduct work authorization status checks of the employer's employees by using the E-Verify program as long as the employer signs a prescribed form, under penalty of perjury, attesting to the employer's qualification for assistance pursuant to this subdivision (a)(6)(B) and completes paperwork required by the E-Verify program to permit the office to provide the assistance.
7. (7) Except as otherwise provided in subsection (c), the department shall conduct an investigation concerning an employer's compliance with subdivision (a)(1) or subsection (b) in conjunction with any pending inquiry, investigation, or inspection of the employer by the department, or any successor agencies thereto. If the commissioner determines that the investigation report contains evidence of a violation of subdivision (a)(1) or subsection (b), then the commissioner shall issue a notice and initial order pursuant to subdivision (d)(1).
(b) Notwithstanding subdivision (a)(1)(B), private employers with thirty-five (35) or more full-time equivalent employees, on or after January 1, 2023, shall comply with the requirements in subdivision (a)(1)(B)(ii); provided, that those employers are only required to use the E-Verify program to verify the work authorization status of employees hired on or after January 1, 2023.
(c)
1. (1) Any lawful resident of this state or employee of a federal agency may file a complaint alleging a violation of subdivision (a)(1) or subsection (b) to the department. The complaint shall, at a minimum, include the name of the individual filing the complaint, and satisfactory evidence of a violation as determined by the commissioner.
2. (2) On receipt of a complaint, the commissioner shall determine if the complaint contains satisfactory evidence of a violation of subdivision (a)(1) or subsection (b); provided, that the commissioner shall inform the individual filing the complaint the basis for such determination. The commissioner shall not investigate complaints that are based solely on race, color or national origin.
3. (3) If the commissioner determines that the investigation report contains evidence of a violation of subdivision (a)(1) or subsection (b), then the commissioner shall issue a notice and initial order pursuant to subdivision (d)(1). Upon request by the employer, the department shall provide the employer with the name of the individual filing a complaint if a complaint is filed.
(d)
1. (1) If the commissioner determines that an employer has violated subdivision (a)(1) or subsection (b), pursuant to subdivision (a)(7) or (c)(3), or determines that an employer has violated § 50-1-704, then the commissioner shall issue a notice and initial order that shall include, at a minimum:
  1. (A) The commissioner's findings and determinations;
  2. (B) The penalties that will apply pursuant to subsections (f)-(j);
  3. (C) The process to request a contested case hearing; and
  4. (D) The process by which the commissioner shall waive all penalties for a first violation as provided in subdivision (d)(3).
2. (2) An employer shall have the right to appeal, pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, a notice and initial order issued by the commissioner pursuant to this section; provided, that the employer sends written notice to the commissioner within thirty (30) days of the date of the notice and initial order. If the employer fails to send such written notice, then the contested case hearing process is waived.
3. (3) The commissioner shall issue a warning in lieu of all penalties for a first violation of subdivision (a)(1) or subsection (b) if:
  1. (A) The employer complies with all remedial action requested by the department to remedy the violation of subdivision (a)(1) and subsection (b) within forty-five (45) days of the date of the notice and initial order; and
  2. (B) The commissioner determines that the violation of subdivision (a)(1) or subsection (b) was not a knowing violation.
(e) If the commissioner does not issue a warning in lieu of penalties pursuant to subdivision (d)(3), then the notice and initial order shall be deemed a final order not subject to further review. If there is a contested case hearing, the commissioner shall issue a final order. If the employer does not timely remedy the violations within forty-five (45) days of receipt of the notice and initial order, the notice and initial order shall be deemed a final order, not subject to further review. If a contested case hearing is conducted or a final order is otherwise required to be issued, then the commissioner shall issue a final order. The final order shall include, at a minimum, the types of evidence required from the private employer in order to avoid suspension of the private employer's license under subdivision (f)(3).
(f)
1. (1) If the commissioner issues a final order, or a notice and initial order is deemed a final order, not subject to further review, for a violation of subdivision (a)(1) by a private employer, or a violation of § 50-1-704, then the commissioner shall assess the following civil penalties:
  1. (A) Five hundred dollars ($500) for a first violation;
  2. (B) One thousand dollars ($1,000) for a second violation; or
  3. (C) Two thousand five hundred dollars ($2,500) for a third or subsequent violation.
2. (2)
  1. (A) In addition to the civil penalties provided in subdivision (f)(1), the commissioner shall also assess the following civil penalties:
    1. (i) For a first violation, five hundred dollars ($500) for each employee or nonemployee not verified pursuant to subdivisions (a)(1)(A) and (B);
    2. (ii) For a second violation, one thousand dollars ($1,000) for each employee or nonemployee not verified pursuant to subdivisions (a)(1)(A) and (B); or
    3. (iii) For a third or subsequent violation, two thousand five hundred dollars ($2,500) for each employee or nonemployee not verified pursuant to subdivisions (a)(1)(A) and (B).
  2. (B) In addition to the civil penalties provided in subdivisions (f)(1) and (f)(2)(A), the commissioner shall also assess a monetary penalty in the amount of five hundred dollars ($500) for any employer that knowingly violates subsection (b) and additional penalties in the amount of five hundred dollars ($500) per day for each day that such violation of subsection (b) continues to exist, beginning forty-five (45) days after the notice and initial order is received by the employer.
3. (3) The private employer shall submit to the commissioner evidence of compliance with subdivision (a)(1) and subsection (b) within forty-five (45) days of the final order. If the private employer fails to submit such documentation, then the commissioner shall request an order consistent with § 4-5-320, requiring the appropriate local government with respect to business licensure pursuant to title 67, chapter 4, to suspend the private employer's license until the employer remedies the violation; provided, however, if the private employer's license has also been suspended pursuant to § 50-1-103(e)(1)(B) or (e)(1)(C), then the license shall remain suspended until the expiration of the period provided for in § 50-1-103(e)(1)(B) or (e)(1)(C).
(g) A second or subsequent violation of subdivision (a)(1) or subsection (b) shall accrue from a separate inquiry conducted under subdivision (a)(7) or (c)(3).
(h) All moneys collected pursuant to this section shall be deposited into the lawful employment enforcement fund created by § 50-1-708.
(i) The penalties described in this section shall not be mutually exclusive, and may be imposed in conjunction with any applicable penalties as provided by law.
(j) If the commissioner issues a final order, or a notice and initial order is deemed a final order, not subject to further review, for a violation of subdivision (a)(1) or subsection (b) by a governmental entity, then the commissioner shall post the violation on the department's website as provided in § 50-1-705. If the employer does not timely remedy the violations within forty-five (45) days of receipt of the notice and initial order, the notice and initial order shall be deemed a final order, not subject to further review. If a contested case hearing is conducted or a final order is otherwise required to be issued, then the commissioner shall issue a final order.

§ 50-1-704. Employer's knowing misclassification to avoid requirements.

(a) If the department determines that an employer knowingly misclassified an individual in order to avoid the requirements of this part or chapters 1, 2, 6 or 7 of this title, then the department shall:
1. (1) Share the findings and information from its investigations with divisions within the department and with the department of commerce and insurance; and
2. (2) Pursue appropriate sanctions against the employer as provided by law including, but not limited to, sanctions provided in this part and chapters 1, 2, 6 and 7 of this title.
(b) The department and its divisions are hereby authorized to execute any necessary memorandums of understanding to allow the sharing of such findings and information as required by this section.

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§ 50-1-705. Posting of list of employers against whom final orders issued.

(a) Beginning February 1, 2012, and on a monthly basis thereafter, the department shall post a publicly accessible list on the department's website of any employer against whom a final order has been issued pursuant to this part.
(b) The list required to be posted pursuant to this section shall state, at a minimum, the employer's name, the place of business of a private employer where the violation occurred, a brief description of the violation, a designation of the violation as a first or subsequent violation, and any penalties that have been assessed against the employer.
(c) The list shall remain on the website for such time as determined by the commissioner.
(d) The department shall electronically transmit a report to each member of the general assembly of the total number of final orders issued pursuant to this part, and the total number of violations of § 12-3-309, by December 1, 2016, and each December 1 thereafter.

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50-1-703(j)

§ 50-1-706. Protection against retaliation.

Any individual alleging a violation of this part shall have all protections under §§ 8-50-116 and 50-1-304, and any other applicable protections as provided by law.

§ 50-1-707. Compliance deadline.

On or after January 1, 2012, in addition to any other requirement to receive an economic development incentive, a private employer shall be in compliance with this part.

§ 50-1-708. Lawful employment enforcement fund.

(a) There is created in the state treasury a fund to be known as the lawful employment enforcement fund. Moneys collected by the department pursuant to this part shall be deposited in this fund and shall only be used by the department to implement and administer the purposes set forth in this part, including, but not limited to, enforcement and education. Moneys in the fund shall not revert to the general fund of the state, but shall remain available to be used as provided for in this section.
(b) Interest accruing on investments and deposits of the lawful employment enforcement fund shall be credited to such account, shall not revert to the general fund, and shall be carried forward into each subsequent fiscal year.
(c) Moneys in the lawful employment enforcement fund account shall be invested by the state treasurer in accordance with § 9-4-603.

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50-1-703(h)

§ 50-1-709. Termination of employment of illegal aliens.

If an employer fails to terminate the employment of any individual for whom the employer receives a final nonconfirmation result from the E-Verify program, then the department may consider such fact when making a determination pursuant to § 50-1-103.

§ 50-1-710. Enforcement without prejudice.

This part shall be enforced without regard to race, color, or national origin.

§ 50-1-711. Compliance with federal immigration law.

Nothing in this part shall be construed to abrogate any obligations by an employer to comply with federal immigration law, including, but not limited to, the proper completing and maintaining of federal employment eligibility verification forms or documents.

§ 50-1-712. Interpretation as fully consistent with federal immigration and labor laws.

This part shall be interpreted so as to be fully consistent with all federal laws, including, but not limited to, federal laws regulating immigration and labor.

§ 50-1-713. Exemption when E-Verify program suspended or not operational — Exemption for false report generated by E-Verify program.

An employer is not in violation of this part:
1. (1) During a time period in which the E-Verify program is suspended or not operational; or
2. (2) If the employer acts upon false results generated by the E-Verify program concerning an employee's work authorization status.

§ 50-1-714. Rules and regulations.

The commissioners of labor and workforce development and safety are authorized to promulgate rules and regulations to effectuate the purposes of this part. All rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.

§ 50-1-715. Expiration of federal electronic work authorization verification system.

If the federal electronic work authorization verification service provided by the United States department of homeland security pursuant to the federal Basic Pilot Program Extension and Expansion Act of 2003, Pub. L. No. 108-156, or any successor program, expires and a successor program is not implemented prior to such expiration date, then this part shall cease to be effective as of such expiration date.

Part 8 Retaliatory Discharge

§ 50-1-801. Burden of proof in case of retaliatory discharge.

In any civil cause of action alleging wrongful discharge in violation of Tennessee public policy, including, but not limited to a discharge in retaliation for the exercise of rights under the Tennessee workers' compensation law, the plaintiff shall have the burden of establishing a prima facie case of retaliatory discharge. If the plaintiff satisfies this burden, the burden shall then be on the defendant to produce evidence that one (1) or more legitimate, nondiscriminatory reasons existed for the plaintiff's discharge. The burden on the defendant is one of production and not persuasion. If the defendant produces such evidence, the presumption of discrimination raised by the plaintiff's prima facie case is rebutted, and the burden shifts to the plaintiff to demonstrate that the reason given by the defendant was not the true reason for the plaintiff's discharge and that the stated reason was a pretext for unlawful retaliation. The foregoing allocations of burdens of proof shall apply at all stages of the proceedings, including motions for summary judgment. The plaintiff at all times retains the burden of persuading the trier of fact that the plaintiff has been the victim of unlawful retaliation or wrongful discharge.

§ 50-1-802. No cause of action for certain employees.

An employee has no civil cause of action alleging wrongful or retaliatory discharge against the employee's employer if:
1. (1) The employee is not authorized to work in the United States under federal immigration laws; and
2. (2) The employer was not aware that the employee was not authorized to work in the United States under federal immigration laws.

Part 9 Exclusive Bargaining Representative

§ 50-1-901. Designating an exclusive bargaining representative.

(a) All employees and employers in this state, when seeking to designate an exclusive bargaining representative through an election permitted by state or federal law, have the right to make such designation by secret ballot, when secret ballot is permitted by such law; under such circumstances, no alternative means of designation shall be used in this state as convincing evidence of employee majority support.
(b) Any agreement, understanding, or practice, written or oral, implied or expressed, between any labor organization and an employer that violates the rights of employees as guaranteed by this section shall be null and void.
(c) This section shall not apply to employee representation agreements:
1. (1) Entered into prior to July 1, 2011; or
2. (2) Involving both employees within and without this state when the employer conducted business within this state prior to July 1, 2011.

Part 10 Employee Online Privacy Act of 2014

§ 50-1-1001. Short title.

This part shall be known and may be cited as the “Employee Online Privacy Act of 2014.”

§ 50-1-1002. Part definitions.

As used in this part:
1. (1) “Adverse action” means to discharge, threaten, or otherwise discriminate against an employee in any manner that affects the employee's employment, including compensation, terms, conditions, location, rights, immunities, promotions, or privileges;
2. (2) “Applicant” means an individual who has applied for employment with an employer;
3. (3) “Employer” means a person or entity that employs one (1) or more employees and includes the state and its political subdivisions and an agent, representative, or designee of the employer;
4. (4) “Law enforcement agency” has the same meaning as defined in § 39-17-314; and
5. (5) “Personal internet account”:
  1. (A) Means an online account that is used by an employee or applicant exclusively for personal communications unrelated to any business purpose of the employer; and includes any electronic medium or service where users may create, share or view content, including, emails, messages, instant messages, text messages, blogs, podcasts, photographs, videos or user-created profiles; and
  2. (B) Does not include an account created, maintained, used, or accessed by an employee or applicant for business-related communications or for a business purpose of the employer.

§ 50-1-1003. Prohibited actions by employers — Permissible actions.

(a) An employer shall not:
1. (1) Request or require an employee or an applicant to disclose a password that allows access to the employee's or applicant's personal internet account;
2. (2) Compel an employee or an applicant to add the employer or an employment agency to the employee's or applicant's list of contacts associated with a personal internet account;
3. (3) Compel an employee or an applicant to access a personal internet account in the presence of the employer in a manner that enables the employer to observe the contents of the employee's or applicant's personal internet account; or
4. (4) Take adverse action, fail to hire, or otherwise penalize an employee or applicant because of a failure to disclose information or take an action specified in subdivisions (a)(1)-(3).
(b) Unless otherwise provided by law, an employer is not prohibited from:
1. (1) Requesting or requiring an employee to disclose a username or password required only to gain access to:
  1. (A) An electronic communications device supplied by or paid for wholly or in part by the employer; or
  2. (B) An account or service provided by the employer that is obtained by virtue of the employee's employment relationship with the employer, or used for the employer's business purposes;
2. (2) Disciplining or discharging an employee for transferring the employer's proprietary or confidential information or financial data to an employee's personal internet account without the employer's authorization;
3. (3) Conducting an investigation or requiring an employee to cooperate in an investigation if:
  1. (A) There is specific information on the employee's personal internet account regarding compliance with applicable laws, regulatory requirements, or prohibitions against work-related employee misconduct; or
  2. (B) The employer has specific information about an unauthorized transfer of the employer's proprietary information, confidential information, or financial data to an employee's personal internet account;
4. (4) Restricting or prohibiting an employee's access to certain websites while using an electronic communications device supplied by or paid for wholly or in part by the employer or while using an employer's network or resources, in accordance with state and federal law;
5. (5) Monitoring, reviewing, accessing, or blocking electronic data stored on an electronic communications device supplied by or paid for wholly or in part by the employer, or stored on an employer's network, in accordance with state and federal law;
6. (6) Complying with a duty to screen employees or applicants before hiring or to monitor or retain employee communications:
  1. (A) That is established under federal law or by a “self-regulatory organization”, as defined in the Securities and Exchange Act of 1934 (15 U.S.C. § 78c(a));
  2. (B) For purposes of law enforcement employment; or
  3. (C) For purposes of an investigation into law enforcement officer conduct performed by a law enforcement agency; or
7. (7) Viewing, accessing, or using information about an employee or applicant that can be obtained without violating subsection (a) or information that is available in the public domain.
(c) Conducting an investigation or requiring an employee to cooperate in an investigation as specified in subdivision (b)(3) includes requiring the employee to share the reported content or information in order to make a factual determination.
(d)
1. (1) This part does not create a duty for an employer to search or monitor the activity of a personal internet account.
2. (2) An employer is not liable under this part for a failure to request or require that an employee or applicant grant access to, allow observation of, or disclose information that allows access to or observation of the employee's or applicant's personal internet account.

§ 50-1-1004. Severability.

If any provision of this part or the application of any provision of this part to any person or circumstance is held invalid, the invalidity shall not affect other provisions or applications of the part that can be given effect without the invalid provision or application, and to that end, the provisions of this part are declared to be severable.

Chapter 2 Wage Regulations

Part 1 General Provisions

§ 50-2-101. Prospective employee to be informed as to wages — Exceptions — Enforcement.

(a) As used in this section, “workshops and factories” includes manufacturing, mills, mechanical, electrical, mercantile, art, and laundering establishments, printing, telegraph, and telephone offices, department stores, or any kind of establishment where labor is employed or machinery is used; provided, that domestic service and agricultural pursuits are excluded.
(b) It is unlawful for any proprietor, foreman, owner or other person to employ, permit or suffer to work for hire, in, about, or in connection with any workshop or factory any person whatsoever without first informing the employee of the amount of wages to be paid for the labor. This shall not apply to farm labor. Nothing in this section shall apply to railroad companies engaged in interstate commerce and subject to the federal Railway Labor Act (45 U.S.C. § 151 et seq.).
(c)
1. (1) The failure on the part of any proprietor, foreman, owner or other person in charge of any industry named in subsection (a) to inform any employee of the wages to be paid as provided in this section is a Class C misdemeanor.
2. (2) Nothing in this section shall be so construed to preclude the employment of any person or persons on a piece-work basis or on a commission basis.
(d) The department of labor and workforce development shall enforce this section.

§ 50-2-102. Redemption of coupons or scrip.

(a) All persons, firms and corporations using coupons, scrip, punchouts, store orders or other evidence of indebtedness to pay their laborers and employees, for labor or otherwise, shall, if demanded, redeem the coupons, scrip, punchouts, store orders or other evidence of indebtedness in the hands of the laborer, employee or bona fide holder, in good and lawful money of the United States; provided, that the coupons, scrip, punchouts, store orders or other evidence of indebtedness is presented and redemption demanded of the person, firm or corporation issuing the coupons, scrip, punchouts, store orders or other evidence of indebtedness, as mentioned in this subsection (a), at a regular pay day of the person, firm or corporation to laborers or employees; or, if presented and redemption demanded by the laborers, employees or bona fide holders at any time not less than thirty (30) days from the issuance or delivery of the coupon or other evidence of indebtedness to the employees, laborers or bona fide holder. Redemption shall be at the face value of the coupon or other evidence of indebtedness; provided, that the face value shall be in cash the same as its purchasing power in goods, wares and merchandise at the commissary store or other repository of the company, firm, person or corporation.
(b) Any employee, laborer or bona fide holder, upon presentation and demand for redemption of the coupon or other evidence of indebtedness, and upon refusal of the person, firm or corporation to redeem the coupon or other evidence of indebtedness in good and lawful money of the United States, may maintain in the employee's, laborer's or bona fide holder's own name an action before any court of competent jurisdiction against the person, firm or corporation, issuing the coupon or other evidence of indebtedness, pursuant to subsection (a), for the recovery of the value of the coupon or other evidence of indebtedness; and, if the plaintiff recovers judgment in the case, it shall include a penalty of twenty-five percent (25%) of the amount due and a reasonable fee for the plaintiff's attorney for the attorney's services in the suit, all of which, as well as the costs, shall be taxed against the defendant.
(c) Nothing in this section is to be construed as to legalize the issuance or use of scrip.

§ 50-2-103. Payment of employees in private employments.

(a)
1. (1) All wages or compensation of employees in private employment shall be due and payable not less frequently than once per month.
2. (2) For each employer that makes wage payments once monthly to employees in private employments, all wages or compensation earned and unpaid prior to the first day of any month shall be due and payable not later than the fifth day of the succeeding month.
3. (3) For each employer that makes wage payments in two (2) or more periods per month, all wages and compensation of employees in private employments shall be due and payable as follows:
  1. (A) All wages or compensation earned and unpaid prior to the first day of any month shall be due and payable not later than the twentieth day of the month following the one in which the wages were earned; and
  2. (B) All wages or compensation earned and unpaid prior to the sixteenth day of any month shall be due and payable not later than the fifth day of the succeeding month.
4. (4) For the purposes of this subsection (a), the final wages of an employee who quits or is discharged shall include any vacation pay or other compensatory time that is owed to the employee by virtue of company policy or labor agreement. This subdivision (a)(4) does not mandate employers to provide vacations, either paid or unpaid, nor does it require that employers establish written vacation pay policies.
(b) “Private employment,” as used in subsection (a), means and includes all employments in concerns where five (5) or more employees are employed, except those under the direct management, supervision and control of the United States, this state, any county, incorporated city or town, or other municipal corporation or political subdivision of the state, or any office or department of the state or general government.
(c) Nothing contained in this section shall be construed as prohibiting the payment of wages at more frequent periods than required pursuant to subsection (a).
(d) Every employer shall establish and maintain regular pay days as provided in this section, and shall post and maintain notices, printed or written in plain type or script, in at least two (2) conspicuous places where the notices can be seen by the employees as they go to and from work, setting forth the regular pay day as prescribed in subsection (a).
(e)
1. (1) The payment of wages or compensation of employees in the employments defined in this section shall be made as follows:
  1. (A) In lawful money of the United States;
  2. (B) By a good and valid negotiable check or draft, payable on presentation of the check or draft at some bank or other established place of business without discount, exchange or cost of collection, in lawful money of the United States;
  3. (C) Electronic automated fund transfer in lawful money of the United States; or
  4. (D) Credit to a prepaid debit card issued through a network system from which the employee is able to withdraw or transfer funds, subject to the limitations contained in subdivisions (e)(2) and (3).
2. (2) An employer who chooses to compensate its employees using prepaid debit cards under subdivision (e)(1)(D) shall also give employees the choice of being paid by electronic transfer under subdivision (e)(1)(C). If after the employer has explained this system to an employee and provided full written disclosure of any applicable fees associated with the prepaid debit card and the employee does not designate an account at a financial institution in advance and as required by the employer for the payroll transfer to occur, then the employer may arrange to pay such employee by prepaid debit card pursuant to subdivision (e)(1)(D).
3. (3) If an employer pays its employees their wages on a prepaid debit card pursuant to subdivision (e)(1)(D), then such employer shall ensure that each employee shall have the ability to make at least one (1) withdrawal or transfer from the prepaid debit card per pay period without cost to the employee for any amount contained on the card.
(f) In case an employee in the employments defined in this section is absent from the usual place of employment at the time the payment of wages or compensation is due and payable, the employee shall be paid the wages or compensation within a reasonable time after making a demand for the wages or compensation.
(g) Any employee who leaves or is discharged from employment shall be paid in full all wages or salary earned by the employee no later than the next regular pay day following the date of dismissal or voluntary leaving, or twenty-one (21) days following the date of discharge or voluntary leaving, whichever occurs last. No employer shall, by any means, secure an exemption from this subsection (g).
(h)
1. (1)
  1. (A) Except as provided in subdivision (h)(2), each employee shall have a thirty-minute unpaid meal break if scheduled to work six (6) hours consecutively, except in workplace environments that by their nature of business provide ample opportunity to take an appropriate meal break. The meal break shall not be scheduled during or before the first hour of scheduled work activity.
  2. (B) For purposes of this subsection (h), “meal break” means a rest break or meal period.
2. (2)
  1. (A) At the discretion of an employer, an employee who is principally employed in the service of food or beverages to customers and who, in the course of such employment, receives tips and reports the tips to the employer may waive the employee's right to a thirty-minute unpaid meal break.
  2. (B) To waive the meal break, an employee shall submit a waiver request to the employer in writing on a form established by the employer as provided in subdivision (h)(C)(i). For the waiver to be effective:
    1. (i) The employee must submit the request knowingly and voluntarily; and
    2. (ii) The employer and employee must both consent to the waiver.
  3. (C) An employer who intends to enter into waiver agreements with employees subject to this subdivision (h)(2) shall establish a reasonable policy that permits employees to waive the meal break subject to the demands of the employees' work environment. This policy shall be in writing and posted in at least one (1) conspicuous place in the workplace. The policy shall include, but not be limited to, the following:
    1. (i) A waiver form that contains a statement that the employee acknowledges the employee's right, under state law, to receive an unpaid meal break of not less than thirty (30) minutes during a six-hour work period and that the employee is knowingly and voluntarily waiving this right;
    2. (ii) The length of time the waiver will be in effect; and
    3. (iii) Procedures for rescission of the waiver agreement by the employee or employer.
  4. (D) An employer or employee may rescind a waiver agreement after providing notice to the other party. Such notice must be provided at least seven (7) calendar days prior to the date that the waiver will no longer be in effect.
  5. (E) No employer shall coerce an employee into waiving a meal break.
(i) A violation of this section is a Class B misdemeanor, punishable by a fine of not less than one hundred dollars ($100) nor more than five hundred dollars ($500). Further, every employer, partnership or corporation willfully violating this section is subject to a civil penalty of not less than five hundred dollars ($500) nor more than one thousand dollars ($1,000) at the discretion of the commissioner or the commissioner's designated representative. Each and every infraction constitutes a separate and distinct offense. If the commissioner, or the commissioner's designated representative, determines that the violation was unintentional, there shall be a warning, in lieu of a penalty, on the first offense. On second or subsequent violations, the civil penalty is applicable and may be assessed at the discretion of the commissioner or the commissioner's designated representative. It shall be at the sole discretion of the commissioner to elect to proceed either civilly or criminally upon any violation of this part; however, the employer shall not be charged both civilly and criminally for the same violation.
(j) The department of labor and workforce development shall enforce this section. Each employer, during normal business hours, shall make available to inspectors of the department specific wage and payroll records of its employees maintained on the premises that are pertinent to a written complaint. Records that are maintained off the premises or inaccessible shall be made available to the inspectors on a timely basis as agreed upon by the inspector and the employer.

§ 50-2-104. Misrepresenting wages in new employment.

Any employer who misrepresents to any employee the amount of wages that the employee is to receive on entering into a new contract of employment commits a Class C misdemeanor. Further, any employer who misrepresents to any employee the amount of wages that the employee is to receive on entering into a new contract of employment shall be subject to a civil penalty of not less than five hundred dollars ($500) nor more than one thousand dollars ($1,000) at the discretion of the commissioner or the commissioner's designated representative. If the commissioner or the commissioner's designated representative determines that the violation was unintentional, there shall be a warning, in lieu of a penalty, on the first offense. On second or subsequent violations, the civil penalty is applicable and may be assessed at the discretion of the commissioner, or the commissioner's designated representative. It shall be at the sole discretion of the commissioner to elect to proceed either civilly or criminally upon any violation of this part; however, the employer shall not be charged both civilly and criminally for the same violation.

§ 50-2-105. Restrictions on assignment of income — Court orders.

(a) As used in this section:
1. (1) “Court” and “clerk” are defined as set out in § 26-2-201; and
2. (2) “Employer” includes the state and any political subdivision of the state.
(b)
1. (1) No action shall be brought to charge any employer upon any assignment by any clerk, servant or employee of the employer to any person of any wages or salaries unearned at the time of the assignment, unless the assignment at the time of the execution of the assignment has been assented to in writing by the employer, or unless the assignment is to enforce support orders as provided in title 36, chapter 5, part 5.
2. (2) “Support,” “order of support” or “child support” includes child support, and support for a spouse or ex-spouse if the obligor is legally responsible for the support of a child residing with the spouse or ex-spouse.
(c) Assignment of income by a court for child support or spousal support shall be made according to title 36, chapter 5. If an employer fails to comply with the order, a judgment may be entered against the employer in the same manner as set forth in title 26, chapter 2, part 2.
(d) An order for the assignment of income entered by a court under subsections (b) and (c) for child support entered before October 1, 1985, shall remain in full force and effect, and any new orders for assignment of income or for modification or termination of assignments of income shall be as provided in title 36, chapter 5.

6 Backlinks

§ 50-2-106. Company stores.

(a) It is not lawful for any employer, or agent, clerk or superintendent of the employer, who owns or controls a store for the sale of general merchandise in connection with the employer's manufacturing or other business, to attempt to control the employer's employees or laborers in the purchase of goods and supplies at the store, by withholding the payment of wages longer than the usual time of payment, whereby the employee would be compelled to purchase supplies at the employer's store.
(b) No employee shall be required, as a condition of employment, to trade at a store specified by the employer.
(c) Any person violating this section commits a Class C misdemeanor.

§ 50-2-107. Distribution of service charges or gratuities.

(a)
1. (1) If a business, including a private club, lounge, bar or restaurant, includes on the bill presented to and paid by a customer, member or patron an automatic percentage or specific dollar amount denominated as a service charge, tip, gratuity, or otherwise, which amount is customarily assumed to be intended for the employee or employees who have served the customer, member or patron, that amount shall be paid over to or distributed among the employee or employees who have rendered that service. The payment shall be made at the close of business on the day the amount is received or at the time the employee is regularly paid, or, in the case of a bill for which credit is extended to a customer, member or patron, payment shall be made at the close of business on the day the amount is collected or on the first day the employee is regularly paid occurring after the amount is collected.
2. (2) The payment shall not be reduced, docked or otherwise diminished to penalize an employee for any actions in connection with the employee's employment, if it is derived from a mandatory service charge or tip collected from customers, members or patrons.
3. (3)
  1. (A) This section does not apply to bills for food or beverage served in a banquet, convention or meeting facility segregated from the public-at-large, except banquet, convention or meeting facilities that are on the premises of a private club.
  2. (B)
    1. (i) This section does not apply to bills presented to or charges paid by guests for accommodations and activities at a guest ranch.
    2. (ii) For purposes of subdivision (a)(3)(B)(i), “guest ranch” means a facility segregated from the public-at-large:
      1. (a) Offering accommodations for overnight stays and activities typical of western ranching;
      2. (b) That may provide other recreational activities exclusively for guests in conjunction with the ranching activities, including, but not limited to, fishing, hiking, horseback riding, rafting and swimming; and
      3. (c) At which food services are incidental to the operation of the guest ranch, are only for the guests of the guest ranch and the cost of which are included in the fee to stay.
(b) A violation of this section is a Class C misdemeanor. Each failure to pay an employee constitutes a separate offense.

§ 50-2-108. Collection of claims and judgments for wages.

(a) In addition to the powers and duties of the commissioner of labor and workforce development specified elsewhere in this code, the commissioner is authorized and empowered to enter into reciprocal agreements with the labor department or corresponding agency of any other state or with the person, board, officer or commission authorized to act on behalf of the department or agency, for the collection in the other state of claims and judgments for wages based upon claims assigned to the commissioner.
(b) The commissioner may, to the extent provided for by any reciprocal agreement entered into by law or with any agency of another state as provided in this section, maintain actions in the courts of the other state for the collection of claims and judgments for wages, and may assign the claims and judgments to the labor department or agency of the other state for collection to the extent that the assignment may be permitted or provided for by the law of the state or by reciprocal agreement.
(c) The commissioner may, upon the written consent of the labor department or other corresponding agency of any other state or of any person, board, officer or commission of the state authorized to act on behalf of the labor department or corresponding agency, maintain actions in the courts of this state upon assigned claims and judgments for wages arising in the other state in the same manner and to the same extent that such actions by the commissioner are authorized when arising in this state. However, the actions may be maintained only in cases where the other state by law or reciprocal agreement extends a like comity to cases arising in this state.

§ 50-2-109. Assessment of penalties.

(a) If, within thirty (30) days from the receipt of written notification of penalties assessed pursuant to this part, an employer fails to notify the commissioner in writing of its intent to contest the imposition of the penalty, the assessment of a penalty as stated in the notification shall be deemed a final order of the commissioner and not subject to further review.
(b) All penalties owed under this part shall be paid to the commissioner.

§ 50-2-110. Offset of moneys owed by employee to employer.

(a) Except as provided in subsection (b), an employer may offset an employee's wages due and owing for an amount the employee owes the employer if:
1. (1) An employer enters into an agreement with an employee to advance the employee wages prior to the date the wages are due and owing, agrees to otherwise lend the employee money, or permits the employee to charge personal items on the business or corporate credit card issued to the employee;
2. (2) The employee signs a written agreement prior to any actions occurring pursuant to subdivision (a)(1) allowing the employer to offset the employee's wages for any amount the employee owes the employer, and the employer has in its possession at the time of the offset a copy of such signed agreement;
3. (3) The employer notifies the employee in writing fourteen (14) days prior to the payment of wages due and owing that:
  1. (A) There is an amount the employee owes the employer;
  2. (B) The employee's wages may be offset if the amount owed is not paid prior to the payment of wages due and owing; and
  3. (C) The employee may submit an affidavit as described in subsection (b); and
4. (4) The employee has not paid the amount owed the employer that was described in the notice sent pursuant to subdivision (a)(3).
(b) The employer shall not be entitled to offset an employee's wages due and owing if the employee sends a sworn affidavit to the employer, and a copy of such affidavit to the department of labor and workforce development, no later than seven (7) days after receiving notification pursuant to subdivision (a)(3), contesting the amount owed. If an employee contests an amount owed pursuant to this subsection (b), then the employer may commence an appropriate civil action to recover the amount the employer alleges that the employee owes the employer.
(c) For purposes of this section:
1. (1) “Amount the employee owes the employer” means any specific dollar amount the employer loaned or advanced the employee, including, but not limited to, any amount the employee charged for personal items to a business or corporate credit card issued to the employee; and
2. (2) “Wages” means any remuneration owed to an employee for services, including, but not limited to, commissions, bonuses, incentive program rewards and tips.

§ 50-2-111. Application of chapter.

(a) This chapter only applies to an individual if the individual performs services for an employer for wages and the services performed by the individual qualify as an employer-employee relationship with the employer based upon consideration of the following twenty (20) factors as described in the twenty-factor test of Internal Revenue Service Revenue Ruling 87-41, 1987-1 C.B. 296:
1. (1) Instructions. A worker who is required to comply with other persons' instructions about when, where, and how the worker is to work is ordinarily an employee. This control factor is present if the person or persons for whom the services are performed have the right to require compliance with instructions;
2. (2) Training. Training a worker by requiring an experienced employee to work with the worker, by corresponding with the worker, by requiring the worker to attend meetings, or by using other methods indicates that the person or persons for whom the services are performed want the services performed in a particular method or manner;
3. (3) Integration. Integration of the worker's services into the business operations generally shows that the worker is subject to direction and control. When the success or continuation of a business depends to an appreciable degree upon the performance of certain services, the workers who perform those services must necessarily be subject to a certain amount of control by the owner of the business;
4. (4) Services rendered personally. If the services must be rendered personally, then presumably the persons for whom the services are performed are interested in the methods used to accomplish the work as well as in the results;
5. (5) Hiring, supervising, and paying assistants. If the person or persons for whom the services are performed hire, supervise, and pay assistants, then that factor generally shows control over the workers on the job. However, if one (1) worker hires, supervises, and pays the other assistants pursuant to a contract under which the worker agrees to provide materials and labor and under which the worker is responsible only for the attainment of a result, then this factor indicates an independent contractor status;
6. (6) Continuing relationship. A continuing relationship between the worker and the person or persons for whom the services are performed indicates that an employer-employee relationship exists. A continuing relationship may exist where work is performed at frequently recurring although irregular intervals;
7. (7) Set hours of work. The establishment of set hours of work by the person or persons for whom the services are performed is a factor indicating control;
8. (8) Full time required. If the worker must devote substantially full time to the business of the person or persons for whom the services are performed, then the person or persons have control over the amount of time the worker spends working and impliedly restrict the worker from doing other gainful work. An independent contractor is free to work when and for whom the independent contractor chooses;
9. (9) Doing work on employer's premises. If the work is performed on the premises of the person or persons for whom the services are performed, then that factor suggests control over the worker, especially if the work could be done elsewhere. Work done off the premises of the person or persons receiving the services, such as at the office of the worker, indicates some freedom from control. However, this fact by itself does not mean that the worker is not an employee. The importance of this factor depends on the nature of the service involved and the extent to which an employer generally would require that employees perform those services on the employer's premises. Control over the place of work is indicated when the person or persons for whom the services are performed have the right to compel the worker to travel a designated route, to canvass territory within a certain time, or to work at specific places as required;
10. (10) Order or sequence set. If a worker must perform services in the order or sequence set by the person or persons for whom the services are performed, then that factor shows that the worker is not free to follow the worker's own pattern of work but instead must follow the established routines and schedules of the person or persons for whom the services are performed. Often, because of the nature of an occupation, the person or persons for whom the services are performed do not set the order of the services or set the order infrequently. It is sufficient to show control, however, if the person or persons retain the right to do so;
11. (11) Oral or written reports. A requirement that the worker submit regular or written reports to the person or persons for whom the services are performed indicates a degree of control;
12. (12) Payment by hour, week, month. Payment by the hour, week, or month generally points to an employer-employee relationship; provided, that this method of payment is not just a convenient way of paying a lump sum agreed upon as the cost of a job. Payment made by the job or on straight commission generally indicates the worker is an independent contractor;
13. (13) Payment of business or traveling expenses. If the person or persons for whom the services are performed ordinarily pay the worker's business or traveling expenses, then the worker is ordinarily an employee. An employer, to be able to control expenses, generally retains the right to regulate and direct the worker's business activities;
14. (14) Furnishing of tools and materials. The fact that the person or persons for whom the services are performed furnish significant tools, materials, and other equipment tends to show the existence of an employer-employee relationship;
15. (15) Significant investment. If the worker invests in facilities that are used by the worker in performing services and are not typically maintained by employees, such as the maintenance of an office rented at fair value from an unrelated party, then that factor tends to indicate that the worker is an independent contractor. However, lack of investment in facilities indicates dependence on the person or persons for whom the services are performed for the facilities and the existence of an employer-employee relationship;
16. (16) Realization of profit or loss. A worker who can realize a profit or suffer a loss as a result of the worker's services, in addition to the profit or loss ordinarily realized by employees, is generally an independent contractor but the worker who cannot is an employee. For example, if the worker is subject to a real risk of economic loss due to significant investments or a bona fide liability for expenses, such as salary payments to unrelated employees, then that factor indicates that the worker is an independent contractor. The risk that a worker will not receive payment for the worker's services is common to both independent contractors and employees and does not constitute sufficient economic risk to support treatment as an independent contractor;
17. (17) Working for more than one firm at a time. If a worker performs more than de minimis services for multiple unrelated persons or firms at the same time, then that factor generally indicates that the worker is an independent contractor. However, a worker who performs services for more than one (1) person may be an employee of each of the persons, especially where such persons are part of the same service arrangement;
18. (18) Making service available to general public. The fact that a worker makes the worker's services available to the general public on a regular and consistent basis indicates an independent contractor relationship;
19. (19) Right to discharge. The right to discharge a worker is a factor indicating that the worker is an employee and the person possessing the right is an employer. An employer exercises control through the threat of dismissal, which causes the worker to obey the employer's instructions. An independent contractor cannot be fired so long as the independent contractor produces a result that meets the contract specifications; and
20. (20) Right to terminate. If the worker has the right to end the worker's relationship with the person for whom the services are performed at any time the worker wishes without incurring liability, then that factor indicates an employer-employee relationship.
(b) Notwithstanding subsection (a), this chapter does not apply to an individual who provides services as a leased-operator or an owner-operator of a motor vehicle or vehicles under contract to a common carrier doing an interstate business while engaged in interstate commerce regardless of whether the common law relationship of master and servant exists.

§ 50-2-112. Restrictions on local government authority regarding requiring private employers to pay wages in excess of federal and state minimum hourly wage laws.

(a)
1. (1)
  1. (A) Unless required by state or federal law, all additional wage or employment benefit mandates imposed on private employers by a local government are hereby preempted.
  2. (B) Notwithstanding a charter, ordinance, or resolution to the contrary, a local government shall not require, as a condition to doing business within the jurisdictional boundaries of the local government or contracting with the local government, a private employer to pay its employees an hourly wage in excess of the minimum hourly wage required to be paid by such employer under applicable federal or state law, nor does a local government have the authority to impose a wage or employment benefit mandate on a private employer.
  3. (C) A local government entity shall not, through its purchasing or contracting procedures, seek to control or affect the wages or employment benefits provided by its vendors, contractors, service providers, or other parties doing business with the local government. A local government shall not, through the use of evaluation factors, qualifications of bidders, or otherwise award preferences on the basis of wages or employment benefits provided by its vendors, contractors, service providers, or other parties doing business with the local government.
  4. (D) A local government may offer its own employees wage and employment benefits.
2. (2) With respect to construction contracts, a local government has no authority to require a prevailing wage be paid in excess of the wages established by the prevailing wage commission for state highway construction projects in accordance with title 12, chapter 4, part 4 or the Tennessee occupational wages prepared annually by the department of labor and workforce development, employment security division, labor market information for state building projects.
(b) As used in this section:
1. (1) “Employment benefits” means anything of value that an employee may receive from an employer in addition to wages and salary, including, but not limited to, health benefits; disability benefits; death benefits; group accidental death and dismemberment benefits; paid days off for holidays, sick leave, vacation, and personal necessity; additional pay based on schedule changes; retirement benefits; and profit-sharing benefits;
2. (2) “Local government” means a county, incorporated city or town, metropolitan government, or an agency or unit thereof, or other political subdivision of this state; and
3. (3) “Wage or employment benefit mandate” means a requirement adopted by a local government which requires a private employer to pay any or all of its employees a wage rate or provide employment benefits not otherwise required under state or federal law.
(c) If compliance with this section by a local government relative to a specific contract, project, or program would result in the denial of federal funds that would otherwise be available to the local government, then the local government may require a private employer to pay its employees a wage necessary to meet the federal requirements to obtain the federal funds, but only relative to such contract, project, or program.

§ 50-2-113. State preemption of wage theft laws, ordinances or rules.

(a) This section shall be known and may be cited as the “Tennessee Wage Protection Act.”
(b) The general assembly finds as a matter of public policy that it is necessary to declare the theft of wages and the denial of fair compensation for work completed to be against the laws and policies of this state.
(c) Employers and employees alike benefit from consistent and established standards of wage theft regulation. Existing federal and state laws, including, but not limited to, the Fair Labor Standards Act (29 U.S.C. § 201 et seq.), the Davis-Bacon Act (40 U.S.C. § 3141 et seq.), the McNamara-O’Hara Service Contract Act (41 U.S.C. § 6701 et seq.), the Migrant and Seasonal Agricultural Protection Act (29 U.S.C. § 1801 et seq.), the Contract Work Hours and Safety Standards Act (29 CFR 5.1 et seq.), the Copeland Anti-Kickback Act (18 U.S.C. § 874 and 40 U.S.C. § 3145), and this chapter, seek to protect employees from predatory and unfair wage practices while also providing appropriate due process to employers.
(d) A county, municipality, or political subdivision of the state shall not adopt or maintain in effect any law, ordinance, or rule that creates requirements, regulations, or processes for the purpose of addressing wage theft. Any additional wage theft ordinance or regulation that exceeds the designated state and federal laws in subsection (c) shall be explicitly preempted by the state.

§ 50-2-114. Payment of federal minimum wage.

(a) An employer shall pay an employee no less than the federal minimum wage under 29 U.S.C. § 206, regardless of the subminimum wage authorized pursuant to 29 U.S.C. § 214(c).
(b) As used in this section:
1. (1) “Employee” means a person born or naturalized in the United States and subject to the jurisdiction thereof, or a person legally present in this country, either of whom is employed by an employer; and
2. (2) “Employer” includes an individual, partnership, association, corporation, business trust, legal representative, or organized group of persons, not involved in interstate commerce, acting directly or indirectly in the interest of an employer in relation to an employee.

Part 2 Sex Discrimination

§ 50-2-201. Part definitions.

As used in this part, unless the context otherwise requires:
1. (1) “Commissioner” means the commissioner of labor and workforce development;
2. (2) “Employ” includes to suffer or permit to work;
3. (3) “Employee” means any individual employed by any employer within the state, including individuals employed by the state but not by its political subdivisions, but does not include any individual who is entitled to the equal pay provisions of the Fair Labor Standards Act of 1938 (29 U.S.C. § 201 et seq.);
4. (4) “Employer” includes any person acting in the interest of any employer, directly or indirectly, and includes the state but not its political subdivisions; and
5. (5) “Wage rate” means all compensation for employment, including payments in kind and amounts paid by employers for employee benefits as defined by the commissioner in regulations issued under this part.

§ 50-2-202. Prohibited acts.

(a) No employer shall discriminate between employees in the same establishment on the basis of sex by paying any employee salary or wage rates less than the rates the employer pays to any employee of the opposite sex for comparable work on jobs the performance of which require comparable skill, effort and responsibility, and that are performed under similar working conditions; however, nothing in this part shall prohibit wage differentials based on a seniority system, a merit system, a system that measures earnings by quality or quantity of production, or any other reasonable differential that is based on a factor other than sex.
(b) An employer who is paying a wage differential in violation of this part shall not, in order to comply with this part, reduce the wage rate of any employee.
(c) No employer may discharge or discriminate against any employee by reason of any action taken by the employee to invoke or assist in any manner the enforcement of this part.

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§ 50-2-203. Commissioner to administer law.

(a) The commissioner has the power and duty to carry out and administer this part, including the power to issue regulations, not inconsistent with the purpose of this part, that the commissioner considers necessary or appropriate to carry out this part.
(b) The commissioner is authorized to endeavor to eliminate pay practices unlawful under this part by informal methods of conference, conciliation and persuasion, and to supervise the payment of wages owing to any employee under this part.

§ 50-2-204. Employee remedies.

(a)
1. (1) Any employer who violates § 50-2-202 shall be liable to the employee or employees affected in the amount of their unpaid wages, and in instances of an employer knowingly violating § 50-2-202 in employee suits under subsection (b), up to an additional equal amount of unpaid wages as liquidated damages.
2. (2) For the second established violation of this part in a separate judicial proceeding distinct from the first, any employer who violates § 50-2-202 shall be liable to the employee or employees affected in the amount of their unpaid wages, and instances of an employer knowingly violating § 50-2-202 in employee suits under subsection (b), up to an additional two (2) times the amount of unpaid wages as liquidated damages.
3. (3) For the third established violation of this part in a separate judicial proceeding distinct from the first and second, any employer who violates § 50-2-202 shall be liable to the employee or employees affected in the amount of their unpaid wages, and instances of an employer knowingly violating § 50-2-202 in employee suits under subsection (b), up to an additional three (3) times the amount of unpaid wages as liquidated damages.
(b) Action to recover wages may be maintained in any court of competent jurisdiction by any one (1) or more employees. The court shall, in cases of violation, in addition to any judgment awarded to the plaintiff or plaintiffs, allow a reasonable attorney's fee and cost of the action to be paid by the defendant.
(c) No agreement by any employee to work for less than the wages to which the employee is entitled under this part shall be a bar to an action to recover wages, or to a voluntary wage restitution of the full amount due under this part.
(d) At the written request of any employee claiming to have been paid less than the wage to which the employee is entitled under this part, the commissioner may bring any legal action necessary on behalf of the employee to collect the claim for unpaid wages. The commissioner shall not be required to pay any filing fee, or other cost in connection with the action. The commissioner shall have the power to join various claims against the employer in one (1) cause of action.

§ 50-2-205. Limitation of actions.

Court action under this part may be commenced no later than two (2) years after the cause of action occurs.

§ 50-2-206. Penalty.

Any employer who violates this part, or who discharges or in any other manner discriminates against any employee because the employee has made a complaint to that employee's employer, the commissioner, or any other person, or instituted or caused to be instituted any proceedings under or related to this part, or has testified or is about to testify in any such proceeding, commits a Class A misdemeanor.

Chapter 3 Occupational Safety and Health Act of 1972

Part 1 General Provisions

§ 50-3-101. Short title.

This chapter shall be known and may be cited as the “Occupational Safety and Health Act of 1972.”

§ 50-3-102. Purpose.

(a) The general assembly finds that:
1. (1) The burden on employers and employees of this state resulting from personal injuries and illnesses arising out of work situations is substantial;
2. (2) The prevention of these injuries and illnesses is an important objective of the government of this state;
3. (3) The greatest hope of attaining this objective lies in programs of research and education, and in the earnest cooperation of government, employers and employees; and
4. (4) A program of regulation and enforcement is a necessary supplement to these more basic programs.
(b) The general assembly declares it to be its purpose and policy through the exercise of its powers to assure so far as possible every working man and woman in the state safe and healthful working conditions and to preserve our human resources by:
1. (1) Encouraging employers and employees in their efforts to reduce the number of occupational safety and health hazards at their places of employment, and to stimulate employers and employees to institute new, and to perfect existing, programs for providing safe and healthful working conditions;
2. (2) Providing that employers and employees have separate but dependent responsibilities and rights with respect to achieving safe and healthful working conditions;
3. (3) Authorizing the commissioner of labor and workforce development to develop occupational safety and health standards applicable to business, giving consideration to the needs of employees and employers and to standards promulgated from time to time by the secretary of labor under the Occupational Safety and Health Act of 1970 (29 U.S.C. § 651 et seq.), and by creating an occupational safety and health review commission for carrying out adjudicatory functions under this chapter;
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4. (4) Building upon advances already made by federal laws and regulations and state laws and regulations for providing safe and healthful working conditions;
5. (5) Providing criteria that will assure, insofar as practicable, that no employee will suffer diminished health, functional capacity or life expectancy as a result of the employee's work experience;
6. (6) Providing for education and training of personnel for the fair and efficient administration of occupational safety and health standards;
7. (7) Providing for education and training of employers and employees in occupational safety and health;
8. (8) Providing an effective enforcement program, which shall include a prohibition against giving advance notice of an inspection and sanctions for any individual violating this prohibition;
9. (9) Providing for appropriate reporting procedures with respect to occupational safety and health, which procedures will help achieve the objectives of this chapter and accurately describe the nature of the occupational safety and health problem; and
10. (10) Encouraging joint labor-management efforts to reduce injuries and diseases arising out of employment.

§ 50-3-103. Chapter definitions.

As used in this chapter, unless the context otherwise requires:
1. (1) “Administrator” means the chief administrative officer of the division of occupational safety and health of the department of labor and workforce development. For the purposes of all sections of this chapter other than §§ 50-3-902 and 50-3-903, “administrator” includes any person appointed, designated or deputized to perform any duties under this chapter or to exercise the powers assigned to the administrator of the division of occupational safety and health under this chapter;
2. (2) “Commission” means the occupational safety and health review commission established pursuant to § 50-3-801;
3. (3) “Commissioner” or “commissioner of labor and workforce development” means the chief executive officer of the department of labor and workforce development. For the purposes of all sections of this chapter other than §§ 50-3-902 and 50-3-903, it includes any person appointed, designated or deputized to perform the duties or to exercise the powers assigned to the commissioner of labor and workforce development under this chapter, but does not include the person appointed as administrator;
4. (4) “Committee” means the occupational safety and health advisory committee established pursuant to § 50-3-204;
5. (5) “Department” means the department of labor and workforce development;
6. (6) “Division” or “division of occupational safety and health” means the division of occupational safety and health of the department;
7. (7) “Employee”:
  1. (A) Means an individual who performs services for an employer for wages under a contract of hire if the services performed by the individual qualify as an employer-employee relationship with the employer based upon consideration of the following twenty (20) factors as described in the twenty-factor test of Internal Revenue Service Revenue Ruling 87-41, 1987-1 C.B. 296:
    1. (i) Instructions. A worker who is required to comply with other persons' instructions about when, where, and how the worker is to work is ordinarily an employee. This control factor is present if the person or persons for whom the services are performed have the right to require compliance with instructions;
    2. (ii) Training. Training a worker by requiring an experienced employee to work with the worker, by corresponding with the worker, by requiring the worker to attend meetings, or by using other methods indicates that the person or persons for whom the services are performed want the services performed in a particular method or manner;
    3. (iii) Integration. Integration of the worker's services into the business operations generally shows that the worker is subject to direction and control. When the success or continuation of a business depends to an appreciable degree upon the performance of certain services, the workers who perform those services must necessarily be subject to a certain amount of control by the owner of the business;
    4. (iv) Services rendered personally. If the services must be rendered personally, then presumably the persons for whom the services are performed are interested in the methods used to accomplish the work as well as in the results;
    5. (v) Hiring, supervising, and paying assistants. If the person or persons for whom the services are performed hire, supervise, and pay assistants, then that factor generally shows control over the workers on the job. However, if one (1) worker hires, supervises, and pays the other assistants pursuant to a contract under which the worker agrees to provide materials and labor and under which the worker is responsible only for the attainment of a result, then this factor indicates an independent contractor status;
    6. (vi) Continuing relationship. A continuing relationship between the worker and the person or persons for whom the services are performed indicates that an employer-employee relationship exists. A continuing relationship may exist where work is performed at frequently recurring although irregular intervals;
    7. (vii) Set hours of work. The establishment of set hours of work by the person or persons for whom the services are performed is a factor indicating control;
    8. (viii) Full time required. If the worker must devote substantially full time to the business of the person or persons for whom the services are performed, then the person or persons have control over the amount of time the worker spends working and impliedly restrict the worker from doing other gainful work. An independent contractor is free to work when and for whom the independent contractor chooses;
    9. (ix) Doing work on employer's premises. If the work is performed on the premises of the person or persons for whom the services are performed, then that factor suggests control over the worker, especially if the work could be done elsewhere. Work done off the premises of the person or persons receiving the services, such as at the office of the worker, indicates some freedom from control. However, this fact by itself does not mean that the worker is not an employee. The importance of this factor depends on the nature of the service involved and the extent to which an employer generally would require that employees perform those services on the employer's premises. Control over the place of work is indicated when the person or persons for whom the services are performed have the right to compel the worker to travel a designated route, to canvass territory within a certain time, or to work at specific places as required;
    10. (x) Order or sequence set. If a worker must perform services in the order or sequence set by the person or persons for whom the services are performed, then that factor shows that the worker is not free to follow the worker's own pattern of work but instead must follow the established routines and schedules of the person or persons for whom the services are performed. Often, because of the nature of an occupation, the person or persons for whom the services are performed do not set the order of the services or set the order infrequently. It is sufficient to show control, however, if the person or persons retain the right to do so;
    11. (xi) Oral or written reports. A requirement that the worker submit regular or written reports to the person or persons for whom the services are performed indicates a degree of control;
    12. (xii) Payment by hour, week, month. Payment by the hour, week, or month generally points to an employer-employee relationship; provided, that this method of payment is not just a convenient way of paying a lump sum agreed upon as the cost of a job. Payment made by the job or on straight commission generally indicates the worker is an independent contractor;
    13. (xiii) Payment of business or traveling expenses. If the person or persons for whom the services are performed ordinarily pay the worker's business or traveling expenses, then the worker is ordinarily an employee. An employer, to be able to control expenses, generally retains the right to regulate and direct the worker's business activities;
    14. (xiv) Furnishing of tools and materials. The fact that the person or persons for whom the services are performed furnish significant tools, materials, and other equipment tends to show the existence of an employer-employee relationship;
    15. (xv) Significant investment. If the worker invests in facilities that are used by the worker in performing services and are not typically maintained by employees, such as the maintenance of an office rented at fair value from an unrelated party, then that factor tends to indicate that the worker is an independent contractor. However, lack of investment in facilities indicates dependence on the person or persons for whom the services are performed for the facilities and the existence of an employer-employee relationship;
    16. (xvi) Realization of profit or loss. A worker who can realize a profit or suffer a loss as a result of the worker's services, in addition to the profit or loss ordinarily realized by employees, is generally an independent contractor but the worker who cannot is an employee. For example, if the worker is subject to a real risk of economic loss due to significant investments or a bona fide liability for expenses, such as salary payments to unrelated employees, then that factor indicates that the worker is an independent contractor. The risk that a worker will not receive payment for the worker's services is common to both independent contractors and employees and does not constitute sufficient economic risk to support treatment as an independent contractor;
    17. (xvii) Working for more than one firm at a time. If a worker performs more than de minimis services for multiple unrelated persons or firms at the same time, then that factor generally indicates that the worker is an independent contractor. However, a worker who performs services for more than one (1) person may be an employee of each of the persons, especially where such persons are part of the same service arrangement;
    18. (xviii) Making service available to general public. The fact that a worker makes the worker's services available to the general public on a regular and consistent basis indicates an independent contractor relationship;
    19. (xix) Right to discharge. The right to discharge a worker is a factor indicating that the worker is an employee and the person possessing the right is an employer. An employer exercises control through the threat of dismissal, which causes the worker to obey the employer's instructions. An independent contractor cannot be fired so long as the independent contractor produces a result that meets the contract specifications; and
    20. (xx) Right to terminate. If the worker has the right to end the worker's relationship with the person for whom the services are performed at any time the worker wishes without incurring liability, then that factor indicates an employer-employee relationship; and
  2. (B) Includes minors, whether lawfully or unlawfully employed; persons in executive positions; and county, metropolitan, and municipal government employees;
8. (8) “Employer” means a person engaged in a business who has one (1) or more employees and includes county, metropolitan and municipal governments;
9. (9) “Federal standard” means a standard adopted by a rule promulgated under § 6 of the federal Occupational Safety and Health Act of 1970 (29 U.S.C. § 655);
10. (10) “Issue” means a category of like industrial, occupational or hazard groupings that affects the safety and health of employment or place of employment and is suggested by the groupings in the Code of Federal Regulations, title 29, chapter XVII, part 1910;
11. (11) “Person” means one (1) or more individuals, partnerships, associations, corporations, business trusts, legal representatives or any organized group of persons; and
12. (12) “Standard” means an occupational safety and health standard promulgated by the commissioner that requires conditions or the adoption or the use of one (1) or more practices, means, methods, operations or processes reasonably necessary or appropriate to provide safe and healthful employment and places of employment.

§ 50-3-104. Scope of chapter.

This chapter or any standard or regulation promulgated pursuant to this chapter shall apply to all employers and employees except:
1. (1) The federal government, including its departments, agencies and instrumentalities;
2. (2) Employees whose safety and health are subject to protection under the Atomic Energy Act of 1954 (42 U.S.C. §§ 2011-2296);
3. (3) Employees whose safety and health are subject to protection under the federal Coal Mine Health and Safety Act of 1969 (30 U.S.C. § 801 et seq.), the federal Metal and Nonmetallic Mine Safety Act (30 U.S.C. § 725 [repealed]), or title 59 of this code;
4. (4) Railroad employees whose safety and health are subject to protection under the federal Safety Appliances Act (45 U.S.C. § 1 et seq. [repealed]), or the federal Railroad Safety Act of 1970 (45 U.S.C. §§ 431-441 [repealed]);
5. (5) Domestic workers; and
6. (6) Any employee engaged in agriculture who is employed on a farm, each of the employees of which is related to the employer as spouse, child, parent, grandparent or grandchild.

§ 50-3-105. Employers' rights and duties.

Rights and duties of employers include, but are not limited to, the following:
1. (1) Each employer shall furnish to each of its employees conditions of employment and a place of employment free from recognized hazards that are causing or are likely to cause death or serious injury or harm to its employees;
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2. (2) Each employer shall comply with occupational safety and health standards or regulations promulgated pursuant to this chapter;
3. (3) Each employer shall refrain from any unreasonable restraint on the right of the commissioner to inspect the employer's place of business. Each employer shall assist the commissioner in the performance of the commissioner's inspection duties by supplying or by making available information, personnel or inspection aids reasonably necessary to the effective conduct of the inspection;
4. (4) Any employer, or association of employers, is entitled to participate in the development of standards by submission of comments on proposed standards, participation in hearings on proposed standards, or by requesting the development of standards on a given issue, under § 50-3-201;
5. (5) Any employer is entitled, under § 50-3-307, to a review of any citation issued because of the employer's alleged violation of any standard promulgated under this chapter;
6. (6) Any employer is entitled, under §§ 50-3-402 — 50-3-408, to a review of any penalty in the form of civil damages assessed against the employer because of the employer's alleged violation of this chapter;
7. (7) Any employer is entitled, under part 6 of this chapter, to seek an order granting a variance from an occupational safety or health standard; and
8. (8) Any employer is entitled, under § 50-3-914, to protection of the employer's trade secrets and other legally privileged communications.

§ 50-3-106. Employees' rights and duties.

Rights and duties of employees include, but are not limited to, the following:
1. (1) Each employee shall comply with occupational safety and health standards and all rules, regulations and orders issued pursuant to this chapter that are applicable to the employee's own actions and conduct;
2. (2) Each employee shall be notified by the employee's employer of any application for a temporary order granting the employer a variance from this chapter or standard or regulation promulgated pursuant to this chapter;
3. (3) Each employee shall be given the opportunity to participate in any hearing that concerns an application by the employee's employer for a variance from a standard promulgated under this chapter;
4. (4) Any employee who may be adversely affected by a standard or variance issued pursuant to this chapter may file a petition with the commissioner;
5. (5) Any employee who has been exposed or is being exposed to toxic materials or harmful physical agents in concentrations or at levels in excess of that provided for by any applicable standard shall be provided by the employee's employer with the opportunities provided in § 50-3-203;
6. (6) Subject to regulations issued pursuant to this chapter, any employee or authorized representative of employees shall be given the right to request an inspection and to consult with the commissioner at the time of the physical inspection of any workplace, as provided in part 3 of this chapter;
7. (7) No employee shall be discharged or discriminated against because the employee has filed a complaint, instituted, or caused to be instituted a proceeding or inspection under or related to this chapter, or testified, or is about to testify, in a proceeding or because of the exercise by the employee on behalf of the employee or others of any right afforded by this chapter;
8. (8) Any employee who believes that the employee has been discriminated against or discharged in violation of subdivision (7) may, within thirty (30) days after the violation occurs, file a complaint with the commissioner alleging the discrimination. The commissioner shall act promptly on the complaint to determine whether to seek imposition of the sanction provided in § 50-3-409;
9. (9) Any employee or representative of employees who believes that any period of time fixed in the citation given to the employee's employer by the commissioner for correction of a violation is unreasonable has the right to contest the time for correction by filing a notice with the commissioner within twenty (20) days of the date the citation was issued;
10. (10) Nothing in this chapter or this section shall be deemed to authorize or require medical examination, immunization or treatment for those who object to the medical examination, immunization or treatment on religious grounds, except where the medical examination, immunization or treatment is necessary for the protection of the health or safety of others; and
11. (11) Any affected employee shall be notified by the employee's employer and shall be given the opportunity to participate in negotiations on alleged violations of occupational safety and health standards.

§ 50-3-107. Unpaid fines and penalties — Interest — Additional penalties for late payment.

(a) The commissioner shall refer any fine or penalty assessed under this chapter that remains unpaid for more than six (6) months from the date the order against the violator becomes final to the attorney general and reporter for enforcement. The attorney general and reporter is authorized to contract with one (1) or more private entities or individuals for the collection of these fines and penalties.
(b) When any person or entity is assessed a fine or penalty under this chapter, and the fines or penalties are not paid on or before the date they are due, as established in the final order or otherwise, interest shall be added to the amount due, in addition to any further penalty provided by law, at the rate established pursuant to § 67-1-801(a)(1).
(c) In addition to the interest assessed pursuant to subsection (b), there shall be imposed a penalty in the amount of ten percent (10%) of the unpaid fine or penalty amount for each thirty (30) days or fraction of the thirty-day period that the fine or penalty remains unpaid after becoming due, up to a maximum of thirty percent (30%) of the unpaid amount.
(d) Any interest or penalty imposed due to failure to pay a fine or penalty assessed under this chapter shall be considered a part of the delinquent fine or penalty and shall be collectible in the same manner as the fine or penalty.
(e) Any interest or penalty imposed and collected pursuant to this section shall be used to offset the cost of collection of the fines and penalties assessed under this chapter.
(f) The commissioner shall include within the department's annual report to the general assembly and the governor a listing of employers whose penalties remain unpaid more than one (1) year after a final order has been entered. The listing shall include the amount of any unpaid penalty for each employer.

§ 50-3-108. Full payment required except in case of compromise and settlement.

The commissioner shall require the full amount of any penalty assessed by a final order of the department to be paid, unless the commissioner receives approval to compromise and settle the amount to be paid pursuant to § 20-13-103.

§ 50-3-109. Local governmental entities prohibited from mandating certain disclosures in contracts for improvements to real property.

(a) A county, municipality, or other local government entity, or department, board, or agency thereof, including a school or board of education, shall not require a prime contractor or remote contractor, as part of an improvement of real property, or a bid, proposal, or agreement relating to an improvement of real property, to:
1. (1) Obtain, gather, or disclose personnel information or data of the prime or remote contractor's employees, except to the extent required under federal or state law;
2. (2) Provide personnel information or data of the prime contractor or remote contractor's employees to a person or entity, except to the extent required by federal or state law;
3. (3) Adhere to safety and health standards in excess of that required under federal occupational health and safety act (OSHA) and Tennessee occupational health and safety act (TOSHA) rules and regulations;
4. (4) Provide access to a worksite to anyone who would not otherwise have a legal right to access the worksite under federal or state law;
5. (5) Provide access to personnel information or data of anyone furnishing labor or materials on a worksite to a third party, including a nonemployee designee, unless:
  1. (A) Otherwise required by federal or state law; or
  2. (B) The third party is a certified public accountant retained by the government entity to conduct an overall audit of the prime contract for the improvement;
6. (6) Require written contracts or agreements for the provision of labor or materials furnished in furtherance of the improvement, unless otherwise required by federal or state law;
7. (7) Be responsible for another party's compliance with a written agreement relating to the improvement, except as otherwise required by federal or state law; or
8. (8) Offer direct employment to a temporary laborer or an employee regardless of the temporary laborer's or temporary employee's length of service.
(b) Unless otherwise required by federal or state law, an ordinance, rule, or policy adopted by a government entity listed in subsection (a) that attempts to prevent or restrict a prime contractor or remote contractor from bidding on or accepting a contract for the improvement of real property based on the contractor's failure or refusal to perform an act described in subsection (a), or that attempts to provide a preference to a contractor that is willing to perform such act, is void as against the public policy of this state.
(c) A government entity listed in subsection (a) shall only restrict a prime contractor or remote contractor from bidding, proposing, or accepting a contract or furnishing labor or material for an improvement to real property based upon a final finding or order that the prime contractor or remote contractor committed a willful violation of federal or state law.

Part 2 Standards

§ 50-3-201. Regulations authorized.

(a) It is the responsibility of the commissioner of labor and workforce development to develop and promulgate regulations that adopt occupational safety and health standards.
(b) The commissioner may adopt as an occupational safety or health standard the federal standard relating to the same issue.
(c) The commissioner may, by regulation, promulgate, modify or revoke any occupational safety and health standard in the manner provided in the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
(d) The decision of an individual, corporation, business entity or local, state or federal government entity, or agent thereof, not to post property pursuant to § 39-17-1359, thereby allowing persons with handgun permits to carry a handgun on such property, does not constitute an occupational safety and health hazard within the jurisdiction of this chapter.

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§ 50-3-202. Criteria for standards.

(a) Regulations issued under § 50-3-201 shall provide, insofar as possible, the highest degree of health and safety protection for the employee; other considerations shall be the latest available scientific data in the field, the feasibility of the standard and experience gained under this and other health and safety laws.
(b) Whenever practical, the standard promulgated shall be expressed in terms of objective criteria and of the performance desired.
(c) In promulgating standards dealing with toxic materials or harmful physical agents, the commissioner shall set a standard that most adequately assures, to the extent possible, on the basis of the best available evidence, that no employee will suffer material impairment of health or functional capacity even if the employee has regular exposure to the hazard dealt with by the standard for the period of the employee's working life.

§ 50-3-203. Protective measures.

(a) Where appropriate, any standard promulgated under § 50-3-201 may prescribe the use of labels or other appropriate forms of warning to the extent necessary to ensure that employees are informed of any significant hazards to which they are exposed, relevant symptoms and proper conditions for safe use or exposure.
(b) Where appropriate, the standards may also prescribe suitable protective equipment, but not as a substitute for appropriate control techniques, as well as control or technological procedures to be used in connection with the hazards.
(c)
1. (1) Where appropriate, the administrator shall require the monitoring or measuring of employee exposure at the locations and intervals, and in the manner, necessary for the protection of the employees.
2. (2) Any employee who has been or is being exposed in a biologically significant manner to harmful agents or materials in excess of the applicable standard shall be promptly notified by the employee's employer, and informed of corrective action being taken.
(d) In addition, where appropriate, the standard shall prescribe the type and frequency of medical examinations or other tests that shall be made available, by the employer or at the employer's cost, to employees exposed to the hazards, in order to most effectively determine whether the health of the employees is adversely affected by the exposure.
(e)
1. (1) Where appropriate, the standards shall reduce the transmission of bloodborne pathogens through needles. The commissioners of labor and workforce development and health shall jointly review sharps injury prevention technology to include needleless systems and needles with engineered sharps injury protection.
2. (2) The commissioners shall jointly determine those environments where standards require that sharps injury prevention technology be employed. Sharps injury prevention technology shall not be required wherever the employer or other appropriate party demonstrates that the technology is medically contraindicated or is not more effective than alternative measures used by an employer to prevent exposure incidents.
3. (3) The standard shall require written exposure control plans be adopted by employers. Written exposure control plans shall be revised to reflect improvements in sharps injury prevention technology. Written exposure control plans shall include the type and brand of device used in an incident of exposure.
4. (4) The departments of labor and workforce development and health shall jointly compile and maintain a list of existing needleless systems and sharps with engineered sharps injury protection, that shall be available to assist employers in complying with the requirements of the bloodborne pathogen standards promulgated pursuant to this section. The list may be developed from existing sources of information, including, but not limited to, the federal food and drug administration, the federal centers for disease control, the national institute for occupational safety and health, and the United States department of veterans affairs.

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50-3-106(5)

§ 50-3-204. Advisory committee.

(a) The commissioner may appoint an advisory committee to assist the commissioner in the development and review of regulations prescribing standards under § 50-3-201.
(b)
1. (1) The committee shall consist of an uneven number of persons, not to exceed seven (7), appointed by the commissioner, engaged in the development of the regulation.
2. (2) Membership on the committee shall include representatives qualified by experience and affiliation to present the diverse viewpoint of persons and groups most likely to be affected by the standards, and may include representatives of employers, employees, the insurance industry, the health professions and the safety professions.
3. (3) In the selection of members, the commissioner shall consider such criteria as special expertise in the health and safety fields, geographical distribution of members within the three (3) grand divisions of the state, the interests of state and local government and the interests of the public.
(c) Members of the advisory committee shall be reimbursed for their expenses and shall be paid on a per diem basis for days actually and necessarily employed in the discharge of official duties of the committee at a rate to be determined by the commissioner and approved by the department of finance and administration.
(d)
1. (1) Administrative and technical assistance reasonably required by the advisory committee shall be provided by the commissioner.
2. (2) The committee may seek advice and information from interested and knowledgeable parties and governmental agencies to assist it in the determination of its recommended standards.

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50-3-103(4)

Part 3 Inspections

§ 50-3-301. Inspections authorized.

In order to carry out the purposes of this chapter, the commissioner of labor and workforce development, upon presenting appropriate credentials to the owner, operator or agent in charge, is authorized to:
1. (1) Enter without delay and at any reasonable time any factory, plant, establishment, construction site, or other area, workplace or environment where work is performed by an employee of an employer; and
2. (2) Inspect and investigate during regular working hours and at other reasonable times, and within reasonable limits and in a reasonable manner, the places of employment and all pertinent conditions, processes, structures, machines, apparatus, devices, equipment and materials in the places of employment, and question privately any employer, owner, operator, agent or employee.

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§ 50-3-302. Witnesses.

(a) In making inspections and investigations under this chapter, the commissioner may issue subpoenas to require the attendance and testimony of witnesses and the production of evidence under oath.
(b) Witnesses shall be reimbursed for all travel and other necessary expenses that shall be claimed and paid in accordance with the prevailing travel regulations of the state.
(c) In case of a failure or refusal of any person to obey a subpoena issued under §§ 50-3-301 — 50-3-306, the chancery court of the county in which the inspection or investigation is conducted shall have jurisdiction, upon application of the commissioner, to issue an order requiring the person to appear and testify or produce evidence as the case may require, and any failure to obey the order of the court may be punished by the court as contempt of the order.
(d) The name, job title and other information that may be used to identify a witness who is interviewed during the course of an investigation shall be considered confidential and shall not be a public record pursuant to title 10, chapter 7.

§ 50-3-303. Representation of employers and employees during inspection.

(a) Subject to regulations issued by the commissioner of labor and workforce development, a representative of the employer and a representative authorized by the employer's employees shall be given an opportunity to accompany the commissioner or the commissioner's authorized representative during the physical inspection of any workplace under § 50-3-301 for the purpose of aiding the inspection.
(b) Where there is no authorized employee representative, the commissioner or the commissioner's authorized representative shall consult with a reasonable number of employees concerning matters of health and safety in the workplace.

§ 50-3-304. Notice by employees of dangerous conditions or violations.

(a)
1. (1) Any employees or representative of employees who believes that a violation of a safety or health standard exists that threatens physical harm, or that an imminent danger exists, may request an inspection by giving notice of the violation or danger to the commissioner.
2. (2) The notice shall be in writing, shall set forth with reasonable particularity the grounds for the notice, and shall be signed by employees or representative of employees, and a copy shall be provided the employer or the employer's agent no later than at the time of inspection.
3. (3) Upon the request of the person giving the notice, the person's name and the names of individual employees referred to in the notice shall not appear in the copy or on any record published, released or made available pursuant to § 50-3-305.
4. (4) If upon receipt of the notification the commissioner determines there are reasonable grounds to believe that the violation or danger exists, the commissioner shall make a special investigation in accordance with §§ 50-3-301 — 50-3-306 as soon as practicable, to determine if a violation or danger exists.
5. (5) If the commissioner determines there are not reasonable grounds to believe that a violation or danger exists, the commissioner shall notify the employees or representative of the employees in writing of the determination.
(b) Prior to or during any inspection of a workplace, any employees or representative of employees employed in the workplace may notify the commissioner, in writing, of any violation of this chapter that they have reason to believe exists in the workplace. The commissioner shall, by regulation, establish procedures for informal review of any refusal by a representative of the commissioner to issue a citation with respect to the alleged violation and shall furnish the employees or representative of employees requesting the review a written statement of the reasons for the commissioner's final disposition of the case.

§ 50-3-305. Reports of inspections and investigations.

The commissioner of labor and workforce development is authorized to compile, analyze and publish, either in summary or detailed form, all reports or information obtained under §§ 50-3-301 — 50-3-306, subject to the restriction of § 50-3-915.

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50-3-304(a)(3)

§ 50-3-306. Advance notice of inspections prohibited — Exceptions.

(a) Inspections conducted under §§ 50-3-301 — 50-3-306 shall be accomplished without advance notice, subject to the exceptions in subsection (b).
(b) The commissioner may authorize the giving to any employer or employee advance notice of an inspection only when the giving of notice is essential to the effectiveness of the inspection, and in keeping with regulations issued by the commissioner.

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§ 50-3-307. Citation of violations.

(a)
1. (1) If, upon an inspection or investigation, the commissioner believes that an employer is not in compliance with any standard or regulation promulgated by the commissioner pursuant to this chapter, the commissioner shall, with reasonable promptness and in no event later than six (6) months following the inspection, issue to the employer by certified mail, by delivery service with delivery receipt, or via hand delivery, a written citation that states the nature and location of the violation, including a reference to the chapter, standard or regulation alleged to have been violated.
2. (2) In addition, the citation shall fix a reasonable time for abatement of the violation.
3. (3) If the commissioner has reason to believe that the violation, or the failure to abate the violation, should result in the assessment of a penalty under §§ 50-3-402 — 50-3-408, the citation may so state.
4. (4) A copy of each citation shall immediately be posted by the employer at or near each location referred to in the citation.
5. (5) Whenever the abatement or correction requirements of this chapter conflict with any local zoning ordinance, this chapter shall govern.
6. (6) A citation issued pursuant to this chapter shall become a final order of the department twenty (20) days after its receipt by the employer.
(b)
1. (1) At any time within twenty (20) days after receipt of the citation, an employer or affected employee, or group of employees or their representative, may advise the commissioner of objections to the terms and conditions of the citation.
2. (2) Upon receipt of the objections, the commissioner shall notify the occupational safety and health review commission of the receipt of the objections, and the commission shall afford an opportunity for a hearing.
3. (3) The commission shall thereafter issue an order affirming, modifying or vacating the citation.
4. (4) The order shall become final thirty (30) days after its issuance, unless within that period judicial review of the order has been sought pursuant to § 50-3-806.

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Part 4 Civil Remedies

§ 50-3-401. Injunctive relief.

(a)
1. (1) Where the commissioner of labor and workforce development has reason to believe that any condition or practice in any place of employment could reasonably be expected to cause death or serious physical harm immediately or before the imminence of the danger can be eliminated through the enforcement procedures otherwise provided by this chapter, the commissioner may institute proceedings to prevent, correct or remove the conditions or practice in any court having statutory power to enjoin or restrain in the county in which the condition or practice exists.
2. (2) Injunctive relief granted under this subsection (a) may require the removal of all individuals from the place of employment except those individuals required to prevent, correct or remove the imminent danger.
3. (3) In the event that cessation of employment operations is necessary, the injunctive relief may require the cessation to be accomplished in a safe and orderly manner.
(b) For the purpose of Rule 65.03 of the Tennessee Rules of Civil Procedure, the commissioner, when seeking relief under subsection (a), shall be considered to represent the interest of any employee affected by the condition or practice referred to by subsection (a).
(c) Institution of a proceeding for injunctive relief under this section shall not in any way bar the institution or continuation of proceedings for the imposition of monetary penalties under §§ 50-3-402 — 50-3-408.
(d) Any employee or group of employees affected by a condition or practice referred to in subsection (a) may be permitted to intervene in an action brought by the commissioner pursuant to this section; provided, that the intervention is subject to the discretion of the court in which the action is brought.

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§ 50-3-402. Authority of commissioner.

(a) The commissioner has the authority to assess monetary penalties as provided in this section and §§ 50-3-403 — 50-3-408 for any violation of this chapter or of any standard, rule or order adopted by regulation promulgated by the commissioner pursuant to this chapter.
(b) In making the assessment, the commissioner shall give due consideration to the appropriateness of the penalty with respect to the size of the business of the employer charged, the gravity of the violation, the good faith of the employer and the employer's history of previous violations.

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§ 50-3-403. Knowledge of conditions endangering health or safety — Penalty.

If an employer knows or has reason to know that an employment condition or practice in the employer's business seriously endangers the health or safety of the employer's employees, and if the condition or practice is not in compliance with any standard promulgated pursuant to this chapter, a penalty of up to seven thousand dollars ($7,000) shall be assessed for each violation.

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50-3-402(a)

§ 50-3-404. Failure to correct violation of standard or regulation — Penalty.

(a) Any employer who has received a citation for a violation of this chapter or standard or regulation promulgated pursuant to this chapter, and has failed to correct the violation within the period of correction of the citation, shall be assessed a penalty of up to seven thousand dollars ($7,000) for each day the violation exists.
(b) The period of correction may be suspended or lengthened by the commissioner upon a showing by the employer of a good faith effort to comply with the correction requirements, and that failure to comply with the correction requirements is due to factors beyond the employer's reasonable control.

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50-3-913

§ 50-3-405. Violation of standard or regulation — Nonserious violation — Willful or repeat violations — Penalties.

(a) Any employer who has received a citation for a violation of this chapter or standard or regulation promulgated pursuant to this chapter, and the violation is specifically determined not to be of a serious nature, may be assessed a penalty of up to seven thousand dollars ($7,000) for each violation.
(b) Any employer who willfully or repeatedly violates the requirements of this chapter or standard or regulation promulgated pursuant to this chapter may be assessed a penalty of up to seventy thousand dollars ($70,000) for each violation.

§ 50-3-406. Violation of posting requirements.

Any employer who violates any of the posting requirements, as prescribed in this chapter, shall be assessed a penalty of up to seven thousand dollars ($7,000) for each violation.

§ 50-3-407. Manner of imposing penalties.

(a) Penalties provided for by §§ 50-3-402 — 50-3-408 shall be imposed in the following manner: whenever the commissioner has determined that a penalty should be assessed against an employer, the commissioner shall issue a written notification to the employer by certified mail, stating the amount of the penalty to be assessed, the reason for the assessment, which may be done by reference to citations issued prior to or simultaneously with the notification, and informing the employer of the employer's right to appeal to the occupational safety and health review commission.
(b) If, within twenty (20) days from the receipt of notification, the employer fails to notify the commissioner that the employer intends to contest the imposition of the penalty, the assessment of a penalty as stated in the notification shall be deemed a final order of the commissioner, and shall not be subject to further review.
(c)
1. (1) If an employer notifies the commissioner within twenty (20) days of receipt of notification of a penalty that the employer intends to contest the penalty, the commissioner shall advise the commission of the notification, and the commission shall afford an opportunity for a hearing.
2. (2) The commission shall thereafter issue an order, based on findings of fact, affirming, modifying or vacating the commissioner's citation or assessment of penalty.
3. (3) The order shall become final thirty (30) days after its issuance, unless within that period judicial review of the order has been sought pursuant to § 50-3-806.

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50-3-913

§ 50-3-408. Payment of penalties — Action to recover.

All penalties owed under this chapter shall be paid to the commissioner for deposit into the state treasury in the general fund and shall be earmarked for expenditure solely for use in the division of occupational safety and health equally between enforcement activities and the safety consulting service conducted under this chapter, and may be recovered in a civil action in the name of the state, in the county where the violation is alleged to have occurred or where the employer has its principal office.

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§ 50-3-409. Discrimination against employee.

(a) No person shall discharge or in any manner discriminate against any employee because the employee has filed any complaint or instituted or caused to be instituted any proceeding under or related to this chapter, or has testified or is about to testify in any such proceeding, or because of the exercise by the employee on behalf of the employee or others of any rights afforded by this chapter.
(b)
1. (1) Any employee who believes that the employee has been discharged or otherwise discriminated against by any person in violation of this section may, within thirty (30) days after the violation occurs, file a complaint with the commissioner of labor and workforce development alleging the discrimination.
2. (2) Upon receipt of the complaint, the commissioner shall cause an investigation to be made that the commissioner deems appropriate.
3. (3)
  1. (A) If, upon investigation, the commissioner determines that this section has been violated, the commissioner shall bring an action in any appropriate chancery court against the person.
  2. (B) In any such action, the chancery courts shall have jurisdiction, for cause shown, to restrain violations of subsection (a) and order all appropriate relief, including rehiring or reinstatement of the employee to the employee's former position with back pay.
(c) Within ninety (90) days of the receipt of a complaint filed under this section, the commissioner shall notify the complainant of the commissioner's determination under subsection (b).

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Part 5 Criminal Offenses and Penalties

§ 50-3-501. Unauthorized advance notice of inspection.

Any person who, without proper authorization, gives advance notice of any inspection to be conducted under this chapter commits a Class C misdemeanor.

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50-3-913

§ 50-3-502. False statements or representations in applications, records, reports or documents.

Any person who knowingly makes any false statement, representation or certification in any application, record, report or other document filed or required to be filed or maintained pursuant to this chapter commits a Class C misdemeanor.

§ 50-3-503. Death of employee caused by willful violation of standard.

Any employer who willfully violates any standard adopted by regulation promulgated pursuant to § 50-3-201, which violation causes the death of any employee, commits a Class A misdemeanor.

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50-3-913

§ 50-3-504. Disclosure of trade secrets or privileged information.

A representative of the commissioner of labor and workforce development who publishes, divulges, discloses, or makes known in any manner or to any extent not authorized by law any information coming to the representative in the course of the representative's employment or official duties or by reason of any examination or investigation made by, or return, report, or record made to or filed with the representative, which information contains or might reveal a trade secret or is otherwise privileged, commits a Class A misdemeanor.

§ 50-3-505. Enforcement of part and criminal penalties.

The commissioner of labor and workforce development may seek enforcement of this part, and may offer to any district attorney general assistance that may be appropriate and feasible for the purpose of giving effect to this part, including the services of staff attorneys.

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50-3-913

§ 50-3-506. Grand jury — Enforcement duties.

The grand jury of each county is given inquisitorial power for the purpose of the enforcement of this part, and shall inquire promptly into any alleged violation brought to the attention of the grand jury by the commissioner of labor and workforce development.

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50-3-913

Part 6 Variances

§ 50-3-601. Temporary variances authorized.

(a) The commissioner of labor and workforce development may, upon written application by an employer, issue an order granting the employer a temporary variance from standards promulgated under this chapter.
(b) The order shall prescribe the practices, means, methods, operations and processes that the employer must adopt or use while the variance is in effect and state in detail a program for coming into compliance with the standard.

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50-3-602(a)

§ 50-3-602. Temporary variances — Notice — Duration — Renewals.

(a) The temporary variance provided for in § 50-3-601 may be granted only after notice to employees and interested parties and opportunity for hearing.
(b) The variance may be for a period of no longer than required to achieve compliance or one (1) year, whichever is shorter.
(c) The variance may be renewed only once; provided, that longer variances may be granted in the case of employers who undertake experimental programs in safety and health that are either in cooperation with state or federal agencies or approved by the commissioner.
(d) Application for renewal of a variance must be filed in accordance with provisions in the initial grant of the variance.

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50-3-603(2)

§ 50-3-603. Temporary variances — Grounds.

An order granting a temporary variance shall be issued only if the employer establishes that:
1. (1)
  1. (A) The employer is unable to comply with the standard by the effective date because of the unavailability of professional or technical personnel or materials and equipment required or necessary construction or alteration of facilities or technology;
  2. (B) All available steps have been taken to safeguard the employer's employees against the hazards covered by the standard; and
  3. (C) The employer has an effective program for coming into compliance with the standard as quickly as practicable; or
2. (2) The employer is engaged in an experimental program as described in § 50-3-602.

§ 50-3-604. Temporary variances — Applications.

An application for a temporary variance shall contain:
1. (1) A specification of the standard or portion of the standard from which the employer seeks a variance;
2. (2) A detailed statement of the reasons why the employer is unable to comply with the standard, supported by representations by qualified personnel having firsthand knowledge of the facts represented;
3. (3) A statement of the steps the employer has taken and will take with specified dates, to protect employees against the hazard covered by the standard;
4. (4) A statement of when the employer expects to comply and what steps the employer has taken or will take with specified dates to come into compliance with the standard; and
5. (5) A certification that the employer has informed the employer's employees of the application by giving a copy of it to their authorized representatives, posting a statement summarizing the application, to include the location of a copy available for examination, at the places where employee notices are normally posted and by other appropriate means. The certification shall contain a description of the means actually employed to inform employees and that employees have been informed of their right to petition the commissioner for a hearing.

§ 50-3-605. Permanent variances.

(a)
1. (1) Any affected employer may apply to the commissioner for a rule or order for a variance from a standard.
2. (2) Affected employees shall be given notice of each application and an opportunity to participate in a hearing.
(b) The commissioner shall issue the rule or order if the commissioner determines on the record, after opportunity for an inspection where appropriate and a hearing, that the proponent of the variance has demonstrated by a preponderance of the evidence that the conditions, practices, means, methods, operations or processes used or proposed to be used by an employer will provide employment and places of employment to the employer's employees that are as safe and healthful as those that would prevail if the employer complied with the standard.
(c) The rule or order issued shall prescribe the conditions the employer must maintain, and the practices, means, methods, operations and processes that the employer must adopt and utilize, to the extent they differ from the standard in question.
(d) The rule or order may be modified or revoked upon application by an employer, employees, or by the commissioner on the commissioner's own motion, in the manner prescribed for its issuance under this section at any time after six (6) months from its issuance.

§ 50-3-606. Interim variances.

(a) Upon receipt of an application for an order granting a variance, the commissioner may issue an interim order granting the variance for the purpose of permitting time for an orderly consideration of the application.
(b) No interim order may be effective for longer than one hundred eighty (180) days.

Part 7 Records and Reports

§ 50-3-701. Records and reports generally.

Each employer shall make available to the commissioner of labor and workforce development, in the manner the commissioner requires, copies of the same records and reports regarding the employer's activities relating to this chapter as are required to be made, kept or preserved by 29 U.S.C. § 657(c) and regulations made pursuant to 29 U.S.C. § 657(c).

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§ 50-3-702. Accident reports.

(a)
1. (1) Each employer shall, in addition to making available to the commissioner the records and reports required by § 50-3-701, report each and every accident resulting in a work-related death or personal injury as defined in § 50-6-102.
2. (2) Reports of accidents that result in death or personal injury of a nature that the injured person does not return to the person's employment within seven (7) days after the occurrence of the accident shall be submitted to the bureau of workers' compensation as soon as possible, but not later than fourteen (14) days after the accident. Reports of all accidents causing seven (7) days of disability or fewer shall be submitted to the bureau of workers' compensation on or before the fifteenth day of the month following the month covered by the report.
3. (3) The information required in the reports provided for in subdivision (a)(1) shall be prescribed by the commissioner and forms for making the reports shall be available on request.
4. (4) Special or additional reports shall be furnished, on written request of the commissioner, to provide any other necessary information.
5. (5) No report required by § 50-3-701 and this section shall be used in any judicial proceeding.
(b) The employer's first report of work injury records that are maintained by the bureau are confidential. After completing a standard authorization form, which shall be provided by the bureau, an employee or an employee's attorney may obtain a copy of any report that concerns the employee's work injury. An employer may inquire in writing of the bureau to determine whether a job applicant has responded truthfully concerning any prior work injury. Nothing contained in this subsection (b) shall be construed or implemented to alter or amend existing law pertaining to Occupational Safety and Health Administration (OSHA) Form 300 reports. This section does not apply to a collective bargaining agent as certified by the national labor relations board (NLRB).

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Part 8 Occupational Safety and Health Review Commission

§ 50-3-801. Creation — Members.

(a) There is created the occupational safety and health review commission, consisting of three (3) members to be appointed by the governor, each member to serve for a period of three (3) years.
(b) The governor shall designate one (1) member to serve as chair.
(c) The members shall be chosen from persons qualified by education, training or experience to carry out the functions of the commission.
(d) Service on the commission for a term shall not render a person ineligible for reappointment.
(e) Each member shall be reimbursed for travel in accordance with the comprehensive travel regulations as approved by the attorney general and reporter and the commissioner of finance and administration.
(f) A per diem allowance of fifty dollars ($50.00) shall only be paid to members for meetings at which a quorum is present.
(g) In the event a member is unable to complete the member's term, the member's replacement shall serve only the remainder of the term of the member the replacement replaces, unless reappointed.

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§ 50-3-802. Functions.

(a) The function of the commission shall be to review citations issued under § 50-3-307 and monetary penalties assessed under §§ 50-3-402 — 50-3-408.
(b) The commission may affirm, modify or revoke a citation or a monetary penalty.

§ 50-3-803. Hearings.

(a) The commission or its appointed hearing examiners may hold hearings at places of convenience to the parties concerned.
(b) The powers of the commission in the conduct of hearings, including the power to administer oaths and subpoena persons, may be exercised on its behalf by a member, members or a hearing examiner appointed by the chair of the commission.
(c) Hearings may be conducted on the basis of oral or written evidence.
(d) The commission may administer oaths and subpoena persons, including parties, as witnesses and may compel them to produce documentary evidence for hearings.
(e) Timely notice of the hearing and its time and place, as well as the future storage place for the hearing record, shall be given to the parties, and copies of the notice of the hearing shall be posted by the employer at places the commission shall require.
(f) The hearings shall be open to the public and the records of hearings shall be maintained and available for examination.
(g) For the orderly transaction of the hearings, the Tennessee Rules of Civil Procedure shall be used unless a different rule is adopted by the commission.
(h) The rules of the commission shall provide affected employees or their representatives an opportunity to participate as parties.

§ 50-3-804. Quorum.

For the purpose of carrying out its functions under this chapter, two (2) members of the commission shall constitute a quorum, and official action can be taken only on the affirmative vote of at least two (2) members.

§ 50-3-805. Facilities.

It is the duty of the department of labor and workforce development to provide equipment, supplies, clerical assistance, and the like, that the commission reasonably requires.

§ 50-3-806. Appeals.

(a) An appeal may be taken from any final order or other final determination of the commission by any person, including the commissioner, who is or may be adversely affected by the final order or other final determination.
(b) The appeal shall be processed in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.

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Part 9 Miscellaneous Administrative and Enforcement Provisions

§ 50-3-901. Delegation of powers and duties by the commissioner.

(a) The commissioner shall designate those persons in the commissioner's department responsible for carrying out the commissioner's powers, duties and responsibilities under this chapter.
(b) The persons designated shall be qualified by education, training and experience to ensure the effectiveness of this chapter.

§ 50-3-902. Delegation of power of inspection.

The commissioner of labor and workforce development may delegate the power to conduct inspections under §§ 50-3-301 — 50-3-306 to any other department of state government or to any local or regional health agency; provided, that the procedures employed by the department or agency are as effective as those employed by the commissioner.

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§ 50-3-903. Limitation on delegation of powers.

(a) The commissioner of labor and workforce development shall not designate any person of a rank below division administrator to:
1. (1) Determine to institute an action under § 50-3-401;
2. (2) Seek judicial review under § 50-3-806;
3. (3) Recommend to a district attorney general the institution of a criminal proceeding under § 50-3-409 or part 5 of this chapter; or
4. (4) Permit the giving of advance notice of an inspection under §§ 50-3-301 — 50-3-306.
(b) The commissioner shall not designate any person of a rank below division director to assess penalties under §§ 50-3-402 — 50-3-408.

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§ 50-3-904. Educational programs authorized.

The commissioner of labor and workforce development may engage in educational programs to provide an adequate supply of qualified personnel to carry out the purposes of this chapter, and is authorized to conduct, directly or by grants or contracts, training of personnel engaged in work related to the commissioner's responsibilities under this chapter. In carrying out the commissioner's responsibilities under this chapter, the commissioner is authorized to:
1. (1) Use, with the consent of any state agency or agency of county or municipal government, the services, facilities and personnel of the agency, with or without reimbursement in accordance with existing regulations and procedures;
2. (2) Employ experts and consultants or organizations of experts and consultants; and compensate the individuals employed at rates determined by the commissioner and approved by the department of finance and administration, including travel time, and allow them travel expenses while employed;
3. (3) Engage in programs of research, demonstrations and experiments, directly, or by grant or contract, relating to occupational safety and health; and
4. (4) Provide to employers or employees, to the extent feasible, advice and assistance to enable them to improve occupational safety and health in their work places.

§ 50-3-905. Duties of attorney general and reporter and district attorneys general.

It is the duty of the attorney general and reporter and of the district attorneys general in the various districts of the state to assist the commissioner of labor and workforce development, upon the commissioner's request, and to act promptly upon the commissioner's recommendations for the prosecution of persons alleged to be subject to sanctions under § 50-3-409 or part 5 of this chapter.

§ 50-3-906. State departments and agencies — Responsibilities.

It is the responsibility of each administrative department, commission, board, division or other agency of the state to establish and maintain an effective and comprehensive occupational safety and health program consistent with the standards promulgated under this chapter. The head of each agency shall, in consultation with employees or representatives of employees of the agency:
1. (1) Provide a safe and healthful place and conditions of employment;
2. (2) Acquire, maintain and require the use of safety equipment, personal protective equipment and devices reasonably necessary to protect employees;
3. (3) Make, keep, preserve and make available to the commissioner of labor and workforce development, the commissioner's designated representative or persons within the agency to whom the responsibilities have been delegated, adequate records of all occupational accidents and personal injuries for proper evaluation and necessary corrective action as required under §§ 50-3-701 and 50-3-702;
4. (4) Consult with the commissioner with regard to the adequacy of the form and content of records kept pursuant to subdivision (3);
5. (5) By agreement with the commissioner, devise a program of inspection and sanctions required to carry out the purposes of the chapter;
6. (6) Consult with the commissioner regarding health and safety problems of the agency that are considered to be unusual or peculiar to its activities, or responsibilities that cannot be achieved under a standard required under this chapter;
7. (7) Make an annual report to the commissioner with respect to accidents and personal injuries and the agency's program under the chapter; and
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  - 50-3-907
8. (8) Provide reasonable opportunity for the participation of employees in the effectuation of the objectives of this section, including the opportunity to make anonymous complaints concerning conditions or practices injurious to employee safety and health.

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50-3-908(a)

§ 50-3-907. Annual report of state department and agency programs.

The commissioner shall submit annually to the governor and the general assembly a summary or digest of reports submitted to the commissioner under § 50-3-906(7), together with the commissioner's evaluations of the progress toward achievement of the purposes of this chapter, the needs and requirements in the field of occupational safety and health, any other relevant information, and the commissioner's recommendations derived from these reports.

§ 50-3-908. Violations by state departments or agencies — Notice.

(a) Whenever the commissioner has reason to believe that an agency or department is failing reasonably to abide by §§ 50-3-906 — 50-3-913, the commissioner may issue to the head of the agency or department a written notification stating in what respects the agency or department has not adequately met its responsibilities.
(b) If the agency or department does not advise the commissioner within twenty (20) days of its intention to contest the notification, the commissioner shall submit a copy of the notification to the governor, together with a request that action be taken to bring the agency or department into compliance with this chapter.
(c) If, within twenty (20) days of receipt of notification, the agency or department advises the commissioner of its intention to contest the notification, the commissioner shall promptly notify the commission, which shall afford an opportunity for a hearing and shall thereafter issue to the governor its findings of fact and recommendations for action.

§ 50-3-909. Conditions or practices by state departments or agencies endangering health — Abatement.

Whenever the commissioner of labor and workforce development has reason to believe that failure of an agency or department to meet its responsibilities under this chapter creates imminent danger of death or serious physical injury to any employee of this state, the commissioner shall immediately submit to the governor a statement of the reasons for the commissioner's belief, together with recommendations for the immediate abatement of the hazard.

§ 50-3-910. Local governments' duty to employees — Treatment as private employer.

(a) It is the duty of county, municipal and other local governments to provide their employees with conditions of employment consistent with the objectives of this chapter, and to comply with standards developed under § 50-3-201.
(b) On or before July 1, 2006, or in the case of local governments created after July 1, 2004, within two (2) years following the creation of the local government, each local government shall elect whether to:
1. (1) Be treated as a private employer; or
2. (2) Develop its own program of compliance.
(c) If a local government elects to develop its own program of compliance, it shall prepare a statement in writing of the program, including a description of methods of inspection, and shall register the program with the commissioner of labor and workforce development, by sending to the commissioner by certified mail a written notification that includes:
1. (1) A statement that the local government elects to develop its own program of compliance;
2. (2) A statement that the program has been developed and has been reduced to writing;
3. (3) A statement of where the writing may be inspected;
4. (4) A statement that employees of the local government have been informed of the program and have access to the writing;
5. (5) An assurance that the program incorporates standards developed under § 50-3-201; and
6. (6) An assurance that the program includes provisions for inspection and record keeping as effective as the provisions of this chapter.
(d) If a local government does not file the notification, it shall be considered to have elected to be treated as a private employer.
(e) On or before July 1, 2016, each utility district created by private act shall elect to either:
1. (1) Be treated as a private employer; or
2. (2) Develop its own program of compliance.

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50-3-911

§ 50-3-911. Inspection and enforcement of local government programs.

No action shall be taken with reference to an employer that is a local government, other than the performance of inspections under §§ 50-3-301 — 50-3-306 performed for the purpose of determining the effectiveness of programs developed and registered by the employers under § 50-3-910, and other than investigation and enforcement actions under § 50-3-409, unless the local government has elected to be treated as a private employer.

§ 50-3-912. Report of failure of government programs.

If the commissioner has reason to believe that any local government program of compliance is ineffective, the commissioner shall, after unsuccessfully seeking by negotiation to abate the failure, include this fact in the commissioner's annual report to the governor and the general assembly, together with the reasons for the belief that the local government program of compliance is ineffective, and may recommend legislation intended to correct the condition.

§ 50-3-913. Local governments as private employers — Enforcement not affected by notice to develop own program.

If proceedings under §§ 50-3-307, 50-3-401 — 50-3-404, 50-3-407 and 50-3-408 or 50-3-409, 50-3-501 — 50-3-503, 50-3-505 and 50-3-506 have been commenced with reference to a local government that has elected to be treated as a private employer, the proceedings, including subsequent review, shall not be terminated by the filing of a notification of an election to develop its own program of compliance.

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50-3-908(a)

§ 50-3-914. Trade secrets confidential.

(a) All information obtained by or reported to the commissioner pursuant to any section of this chapter that contains or might reveal a trade secret or is otherwise privileged shall be considered confidential for the purpose of that section. The information may be disclosed to other officers or employees concerned with carrying out this chapter or when relevant in any proceeding under this chapter.
(b) A violation of this section is a Class A misdemeanor.

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50-3-105(8)

§ 50-3-915. Compliance with chapter — Relation of chapter to other laws.

(a) Compliance with any other state law that regulates safety and health in employment and places of employment shall not excuse any employer or employee or any other person from compliance with this chapter or any standard or regulation promulgated pursuant to this chapter.
(b) Compliance with this chapter or any standard or regulation promulgated pursuant to this chapter shall not excuse any employer or employee or any other person from compliance with any state law regulating and promoting safety and health unless the state law is specifically repealed by this chapter or is repealed by subsequent legislation pursuant to this chapter.

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50-3-305

§ 50-3-916. Minimizing report burden.

(a) Records and reports required by this chapter shall be obtained with a minimum burden on employers, especially those operating small businesses.
(b) Unnecessary duplication will be avoided by encouraging and approving the use of existing substitute records for those required under §§ 50-3-701 and 50-3-702 to the maximum extent possible.

§ 50-3-917. Cooperation with federal government.

The commissioner of labor and workforce development, subject to the direction and designation of the governor under § 4-4-116, is authorized, in accordance with § 18 of the federal Occupational Safety and Health Act of 1970 (29 U.S.C. § 667) to:
1. (1) Submit a state plan for the state that provides for safe and healthful employment by the adoption of standards and means for enforcement of the standards that are at least as effective as those standards and means for enforcement of the standards as are provided by the federal Occupational Safety and Health Act of 1970 (29 U.S.C. §§ 651-678);
2. (2) Accept funds made available under that act and similar or related acts;
3. (3) Enter into agreements and make reports necessary to the acceptance of the funds; and
4. (4) Cooperate with the federal government in ways that are reasonably designed to carry out the purposes of the act.

§ 50-3-918. Hazardous condition — Action by commissioner — Emergency stop orders.

(a) If the commissioner of labor and workforce development, upon inspection or investigation, finds a hazardous condition at a place of employment that presents an imminent threat to life or limb of an employee, the commissioner may issue an emergency stop order requiring the immediate alleviation of the condition. This may require the discontinuation of a practice or the removal of all individuals from the threatened area. The stop order shall be in writing and is effective from the time it is posted in the place where the condition exists. Immediately after the order is posted, a copy shall be given to the employer. The commissioner shall fix a place and time, not later than twenty-four (24) hours thereafter, for a hearing to be held before the commissioner. Not more than twenty-four (24) hours after the start of the hearing, and without adjournment of the hearing, the commissioner shall affirm, modify or set aside the commissioner's previous order. The commissioner shall cause a transcript to be made of the proceedings in the hearing, copies of which shall be made available to all parties affected, at a reasonable cost.
(b) The action taken by the commissioner shall be subject to review by the chancery or circuit court of the county in which the condition is found to exist, upon petition for certiorari in the manner now provided for review of actions of boards and commissions in title 27, chapter 9. The review shall take precedence over all other matters on the docket except application for extraordinary process. Upon petition for certiorari, the stop order may be vacated by the reviewing court upon the giving of a bond as the court may find appropriate in the circumstances by the party seeking review.
(c) Should the commissioner fail to abide by the provision for affirming, modifying or setting aside of the commissioner's order, any work or project halted by the stop order may resume, it being the legislative intent that the stop order shall not serve to be a device to be used arbitrarily.

§ 50-3-919. No regulation and enforcement of changes in federal regulations relating to child labor performed on farms.

On or after April 16, 2012, no public funds of this state or any political subdivision of this state shall be allocated to the regulation or enforcement of any change made after December 1, 2011, to the United States department of labor's Hazardous Occupations Orders for Agricultural Employment relating to children, compiled in 29 CFR part 570.

Part 10 High-Voltage Lines

§ 50-3-1001. Part definitions.

As used in this part, unless the context otherwise requires:
1. (1) “Approved” means approved by the commissioner;
2. (2) “Commissioner” means the commissioner of labor and workforce development or any of the commissioner's authorized representatives;
3. (3) “Department” means the department of labor and workforce development;
4. (4) “High-voltage” means a voltage in excess of seven hundred fifty (750) volts between conductors or from any conductor to ground; and
5. (5) “Overhead lines” means all bare or insulated electrical conductors installed above ground, except those conductors that are enclosed in approved metal covering.

§ 50-3-1002. Guarding against accidental contact by employee.

No person, firm, or corporation, or agent of a person, firm or corporation, shall require or permit any employee to perform any function in proximity to high-voltage overhead lines; to enter upon any land, building, or other premises and engage in any excavation, demolition, construction, repair or other operation; or to erect, install, operate, or store in or upon such premises any tools, machinery, equipment, materials, or structures, including house moving, well drilling, pile driving or hoisting equipment, unless and until danger from accidental contact with such high-voltage overhead lines has been effectively guarded against in the manner prescribed in this part.

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§ 50-3-1003. Clearance or safeguard required.

(a) The operation, erection or transportation of any tools, machinery, or equipment, or any part of any tools, machinery, or equipment, capable of vertical, lateral or swinging motion, the handling, transportation or storage of any supplies, materials or apparatus, or the moving of any house or other building, or any part of any house or building, under, over, by or near high-voltage overhead lines, is expressly prohibited, if at any time during such operation, transportation or other manipulation it is possible to bring the equipment, tools, materials, building, or any part of the equipment, tools, materials or building, within ten feet (10′) of the high-voltage overhead lines, or the distance required by an applicable standard of the Tennessee occupational health administration, except where the high-voltage overhead lines have been effectively guarded against danger from accidental contact, by either:
1. (1) The erection of mechanical barriers to prevent physical contact with high-voltage conductors;
2. (2) De-energizing the high-voltage conductors and grounding where necessary; or
3. (3) By insulating the lines.
(b) Only in the case of an exception referenced in subdivision (a)(1), (a)(2) or (a)(3) may the clearance required by subsection (a) be reduced. The clearance required by subsection (a) shall not be provided by movement of the conductors through strains impressed, by attachments or otherwise, upon the structures supporting the high-voltage overhead line nor upon any equipment, fixtures or attachments on the structures.
(c) If temporary relocation of the high-voltage conductors is necessary, appropriate arrangements shall be made with the owner or operator of the overhead line for such temporary relocation.

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50-3-1005

§ 50-3-1004. [Reserved.]

§ 50-3-1005. Notification to power company and responsibility for safeguards.

When any operations are to be performed, tools or materials are to be handled, or equipment is to be moved or operated, within ten feet (10′), or the distance required by an applicable standard of the Tennessee occupational health administration, of any high-voltage overhead line, the person or persons responsible for the work to be done shall promptly notify the operator of the high-voltage overhead line of the work to be performed, and such person shall be responsible for the completion of the safety measures that are required by §§ 50-3-1002 and 50-3-1003, before proceeding with any work that would impair the clearance.

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50-3-1008

§ 50-3-1006. Enforcement.

The commissioner shall administer and enforce this part and the commissioner is empowered to prescribe and promulgate rules and regulations consistent with this part.

§ 50-3-1007. Violation of part.

A violation of this part is a violation of § 50-3-105(1).

§ 50-3-1008. Operations exempt.

This part shall not be construed as applying to, shall not apply to, and is not intended to apply to, the construction, reconstruction, operation, and maintenance of overhead electrical conductors and their supporting structures and associated equipment by authorized and qualified electrical workers; nor to the authorized and qualified employees of any person, firm or corporation engaged in the construction, reconstruction, operation, and maintenance of overhead electrical circuits or conductors and their supporting structures and associated equipment of rail transportation systems, or electrical generating, transmission, distribution, and communication systems. This exception, when applied to railway systems, shall be construed as permitting operation of standard rail equipment that is normally used in the transportation of freight or passengers or both and the operation of relief trains, or other equipment in emergencies, or in maintenance of way service, at a distance of less than ten feet (10′), or the distance required by an applicable standard of the Tennessee occupational health administration, from any high-voltage overhead conductor of such railway system; but this part shall be construed as prohibiting normal repair or construction operations at a distance of less than ten feet (10′), or the distance required by an applicable standard of the Tennessee occupational health administration, from any high-voltage overhead conductor by other than properly qualified and authorized persons or employees under the direct supervision of an authorized person who is familiar with the hazards involved, unless there has been compliance with the safety provisions of §§ 50-3-1002 — 50-3-1005.

Part 20 Hazard Communication

§ 50-3-2001. Employer compliance with the federal hazard communication standard for chemicals and other compliance requirements.

Each employer shall comply with all of the requirements of the federal hazard communication standard codified in 29 CFR 1910.1200. In addition to the requirements set forth in 29 CFR 1910.1200 each employer must also comply with the following:
1. (1)
  1. (A) Employers shall keep a record of the dates of training sessions given to their employees;
  2. (B) The hazard communication program and employee information and training required of employers pursuant to 29 CFR 1910.1200 and the education and training program pursuant to subdivision (1) shall require annual refresher training after the initial training pursuant to 29 CFR 1910.1200 is conducted, unless the commissioner grants an exemption from annual refresher training. The exemption may be granted if the commissioner determines that the nature of the work assignment, the level of exposure or the nature of the hazardous chemical involved would not reasonably require annual refresher training;
2. (2)
  1. (A) For the purposes of this section only, “workplace” means any workplace as defined in 29 CFR 1910.1200(c) that is located within the fire chief's actual jurisdiction or that is located in a jurisdiction to which the fire chief responds pursuant to a mutual aid pact;
  2. (B) Employers and distributors who normally store a hazardous chemical in excess of fifty-five gallons (55 gal.) or five hundred pounds (500 lbs.) shall provide the fire chief, in writing, the names and telephone numbers of knowledgeable representatives of the manufacturing employer, non-manufacturing employer or distributor who can be contacted for further information or in the event of an emergency;
  3. (C) Each employer and distributor shall provide a copy of the workplace chemical list to the fire chief and shall thereafter notify the fire chief of any significant changes that occur in the workplace chemical list;
  4. (D) The fire chief or the fire chief's representative, upon request, shall be permitted on-site inspections of the hazardous chemicals on the workplace chemical list during normal business hours for the sole purpose of preplanning emergency fire department activities;
  5. (E) Employers and distributors, upon written request, shall provide the fire chief a copy of the safety data sheet (SDS) for any chemical on their workplace chemical list;
  6. (F) The fire chief shall, upon request, make the workplace chemical list and SDSs available to members of the fire chief's fire company having jurisdiction over the workplace, or their designated representatives, but shall not otherwise distribute the information without written approval of the manufacturing employer, nonmanufacturing employer or distributor who provided the workplace chemical list or SDSs; except that approval shall not be required in an emergency situation in which human life is at stake. In the event the workplace chemical list or SDSs are released under an emergency situation, the fire chief shall promptly notify the supplier of the workplace chemical list or SDSs, in writing, as to whom the information was released and the circumstances of the emergency. Persons receiving workplace chemical lists or SDSs from the fire chief shall hold the information contained in the workplace chemical lists or SDSs in confidence;
  7. (G)
    1. (i) Employers and distributors shall place one (1) sign in accordance with the NFPA 704M series on the outside of any building that contains a class A explosive, class B explosive, poison gas (poison A), water-reactive flammable solid (flammable solid W), or radioactive material as listed in Table 1 of the federal department of transportation (DOT) regulations at 49 CFR, Part 172, and further defined in federal DOT regulations at 49 CFR, Part 173, or any other hazardous chemical in excess of the amounts listed in subdivision (2)(B);
    2. (ii) The commissioner shall promulgate rules in accordance with § 50-3-102(b)(3) to establish specifications on the size, color, lettering and posting requirements pursuant to the series. The regulations shall provide that the number used shall be determined by the hazardous chemical that presents the greatest danger;
    3. (iii) The commissioner shall exempt an employer from this subdivision (2)(G) who can satisfactorily demonstrate that:
      1. (a) The employer maintains a trained fire or emergency preparedness team considered capable of handling workplace chemical or fire emergencies without external assistance; or
      2. (b) The employer maintains twenty-four (24) hour security personnel who maintain accurate records of the location of chemicals and who can readily direct emergency personnel from outside sources to affected company facilities;
  8. (H) The department of labor and workforce development shall assist employers and fire personnel to effectuate the purposes of this section;
3. (3)
  1. (A)
    1. (i) Manufacturing employers shall compile and maintain a list of the hazardous chemicals known to be present using a product identifier that is referenced on the appropriate safety data sheet and the work area or workplace in which the hazardous chemical is normally used or stored;
    2. (ii) The manufacturing employer shall maintain the workplace chemical list for no less than thirty (30) years. The manufacturing employer shall send complete records pertinent to the workplace chemical list to the commissioner if the manufacturing employer generating the list ceases to operate a business within the state;
    3. (iii) The workplace chemical list shall be filed with the commissioner within ninety-six (96) hours of a request by an authorized representative of the commissioner;
  2. (B)
    1. (i) Nonmanufacturing employers shall compile and maintain a list of the hazardous chemicals known to be present using a product identifier that is referenced on the appropriate safety data sheet and the work area or workplace in which the hazardous chemical is normally used or stored. This subdivision (3)(B)(i) shall apply to employers who store such chemicals in excess of fifty-five gallons (55 gal.) or five hundred pounds (500 lbs.);
    2. (ii) The nonmanufacturing employer shall maintain the workplace chemical list for no less than thirty (30) years. The nonmanufacturing employer shall send complete records pertinent to the workplace chemical list to the commissioner if the nonmanufacturing employer generating the list ceases to operate a business within the state;
    3. (iii) The nonmanufacturing employer shall notify new or newly assigned employees about the workplace chemical list and its contents before working in a work area containing hazardous chemicals; and
    4. (iv) The nonmanufacturing employer shall file the workplace chemical list with the commissioner within ninety-six (96) hours of a request by an authorized representative of the commissioner.
  3. (C) The workplace chemical list may consist of either a single listing prepared for the workplace as a whole or a collection of lists prepared for each work area individually;
  4. (D) The department of labor and workforce development shall provide the following information and services:
    1. (i) The CAS number for any hazardous chemical on the workplace chemical list that is not included by the manufacturing or nonmanufacturing employer pursuant to subdivision (3)(D)(i)(a) or (3)(D)(i)(b), if:
      1. (a) The chemical is not a mixture; and
      2. (b) A CAS number exists for the chemical;
    2. (ii) The employer shall make available a copy of the workplace chemical list for inspection by the public during regular office hours at the division's central office or any division field office. The copy must be requested by the public and received by the division as specified by this section;
    3. (iii) Copies of any workplace chemical list may be obtained from the division of occupational safety and health upon written request and payment of a reasonable copying and mailing fee. The division shall provide the list within ten (10) business days of receipt of the written request;
  5. (E) It is the intention of the general assembly, pursuant to this section, to provide access to information concerning hazardous chemicals used and stored in this state to the citizens of this state who live and work in proximity to the chemicals to enable the citizens to make informed decisions concerning their health, safety and welfare.

Chapter 4 Administrative Inspections

§ 50-4-101. Administrative inspection warrant available to department of labor and workforce development.

In the event that an employee or official of the department of labor and workforce development authorized to conduct inspections is denied permission to make that inspection, and a warrant is required by the constitution of the United States or the state of Tennessee, the employee or official may obtain an administrative inspection warrant in accordance with the procedures outlined in this chapter. Section 39-16-402 and title 40, chapter 6, part 1, do not apply to warrants issued pursuant to this chapter.

§ 50-4-102. “Issuing officer” defined.

As used in this chapter, “issuing officer,” means either:
1. (1) Any official authorized by law to issue search warrants; or
2. (2) Any court of record in the county of residence of the agency making application for an administrative inspection warrant.

§ 50-4-103. Grounds for issuing administrative inspection warrants — Probable cause.

The issuing officer is authorized to issue administrative inspection warrants authorizing an employee or official of the department of labor and workforce development to inspect named premises and seize certain items. In so doing, the issuing officer must determine from the affidavits filed by the agency requesting the warrant that:
1. (1) The agency and employee or official has the statutory authority to conduct the inspection;
2. (2) Probable cause exists to believe that a violation of law has occurred or is occurring. Probable cause in these cases is not the same standard as used in obtaining criminal search warrants. In addition to a showing of specific evidence of an existing violation, probable cause can be found upon a showing of facts justifying further inquiry, by inspection, to determine whether a violation of law is occurring. This finding can be based upon a showing that:
  1. (A) The inspection of the premises in question was to be made pursuant to an administrative plan containing neutral criteria supporting the need for the inspection;
  2. (B) Previous inspections have shown violations of law and the present inspection is necessary to determine whether those violations have been abated;
  3. (C) The business, occupation, product, equipment, materials, wastes or other characteristics of a particular enterprise or class of enterprises, including the named premises, present a probability of violation of the law in excess of the general business community;
  4. (D) Complaints have been received by the agency and presented to the issuing officer from persons who, by status or position, have personal knowledge of violations of law occurring on the named premises; or
  5. (E) Any other showing consistent with constitutional standards for probable cause in administrative inspections;
3. (3) The inspection is reasonable and not intended to arbitrarily harass the persons or business involved;
4. (4) The areas and items to be inspected or seized are accurately described and are consistent with the statutory inspection authority; and
5. (5) The purpose of the inspection is not criminal in nature and the agency is not seeking sanctions against the person or business for refusing entry.

§ 50-4-104. Issuance of warrant — Notice not required.

(a) The issuing officer shall immediately make a finding as to whether an administrative inspection warrant should be issued and if the issuing officer so determines, issue the warrant.
(b) No notice shall be required prior to the issuance of the warrant.

§ 50-4-105. Contents of warrant.

All warrants shall include at least the following:
1. (1) The name of the agency and employee or official requesting the warrant;
2. (2) The statutory authority for the inspection;
3. (3) The name of the person or persons submitting affidavits in support of the issuance of the warrants;
4. (4) The names of the persons who will conduct the inspection;
5. (5) A reasonable description of the property and items to be inspected and seized;
6. (6) A brief description of the purposes of the inspection; and
7. (7) Any other requirements or particularity required by the constitutions of the United States and the state of Tennessee, regarding administrative inspections.

§ 50-4-106. Assistance of department of labor and workforce development representative — Execution of warrant.

(a) It is the duty of any representative of the department of labor and workforce development charged with the enforcement of the Occupational Safety and Health Act, compiled in chapter 3 of this title, upon the request of the inspecting person or persons, to accompany the person or persons and assist in the service and execution of an administrative inspection warrant issued pursuant to this chapter.
(b) All warrants shall be executed within ten (10) days of issuance.

§ 50-4-107. Obstruction of inspection — Misdemeanor.

Any person who willfully refuses to permit inspection, obstructs inspection or aids in the obstruction of an inspection of property described in an administrative inspection warrant commits a Class C misdemeanor.

§ 50-4-108. Suppression of evidence seized during unlawful inspection.

(a) Any person aggrieved by an unlawful inspection of premises named in an administrative inspection warrant may in any judicial or administrative proceeding move to suppress any evidence or information received, or move for the return of any item seized, by the agency pursuant to the inspection.
(b) If the court or the administrative agency finds that the inspection was unlawful, the evidence and information shall be suppressed and any item seized returned and not considered in the proceeding.

Chapter 5 Child Labor

Part 1 Child Labor Act of 1976

§ 50-5-101. Short title.

This part shall be known and may be cited as the “Child Labor Act of 1976.”

§ 50-5-102. Part definitions.

As used in this part, unless the context otherwise requires:
1. (1) “Agricultural work” includes farming in all its branches, and, among other things, includes the cultivation and tillage of the soil, dairying, the production, cultivation, growing and harvesting of any agricultural or horticultural commodities, the raising of livestock or poultry, and any practices performed by a farmer or on a farm as an incident to or in conjunction with the farming operations, including preparation for market, delivery to storage or to market or to carriers for transportation to market;
2. (2) “Commissioner” means the commissioner of labor and workforce development or the commissioner's designated representative;
3. (3) “Department” means the department of labor and workforce development;
4. (4) “Director of schools” means the director of schools, or the director's designee, in the county, city, town or special school district in which a minor seeking employment resides or is to be employed; provided, that, with respect to a home school, as defined in § 49-6-3050, “director of schools” means the director of the local education agency (LEA) where the child who has been registered as a home schooled child would otherwise attend; and with respect to a home school that teaches kindergarten through grade twelve (K-12) where the parents are associated with an organization that conducts church-related schools, as defined in § 49-50-801, the “director of schools” means the director of the church-related school;
5. (5) “Employ” means to permit or suffer to work in employment or a gainful occupation;
6. (6) “Employer” includes, but is not limited to, any individual, partnership, association, corporation, business trust, legal representative or any organized group of persons, acting directly or indirectly in the interest of an employer in relation to an employee;
7. (7) “Employment or gainful occupation” means any work engaged in for compensation in money or other valuable consideration, whether paid to the minor or some other person, including, but not limited to, work as a servant, agent, subagent or independent contractor;
8. (8) “Minor” means a person of either sex under eighteen (18) years of age, unless otherwise provided;
9. (9) “School days” means any day when normal classes are in session during the regular school year in the school district;
10. (10) “School hours” means that period of time during a school day when school is in session and students are required to attend classes;
11. (11) “Self-employed” means earning income directly from one's own business, trade or profession rather than as a specified salary or wages from an employer;
12. (12) “Sexual conduct” means actual or simulated sexual intercourse, sodomy, sexual bestiality, masturbation, sadomasochistic abuse, excretion, or the exhibition of the male or female genitals;
13. (13) “Week” means a fixed and regularly recurring period of seven (7) consecutive days; and
14. (14) “Youth peddling” means the selling of merchandise by a minor under sixteen (16) years of age to customers at the customer's residence, at a customer's place of business, or in public places such as street corners or public transportation stations. “Youth peddling” does not include the activities of individuals who are self-employed or who volunteer to sell goods or services on behalf of not-for-profit organizations or governmental entities or for school functions.

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50-5-105(c)

§ 50-5-103. Employment of minor under 14 years of age — Penalty.

(a) A minor under fourteen (14) years of age may not be employed in any gainful occupation except as otherwise provided in § 50-5-107.
(b) Any person who violates subsection (a) commits a Class D felony.

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§ 50-5-104. Employment of minors fourteen or fifteen years of age.

(a) A minor who is either fourteen (14) or fifteen (15) years of age may be employed in connection with any gainful occupation that:
1. (1) Does not interfere with the minor's schooling, health or well-being;
2. (2) Is not prohibited by subsection (b); or
3. (3) Is not prohibited by § 50-5-106.
(b) A minor who is either fourteen (14) or fifteen (15) years of age may not be employed:
1. (1) During school hours;
2. (2) Between the hours of seven o'clock p.m. (7:00 p.m.) and seven o'clock a.m. (7:00 a.m.), if the next day is a school day;
3. (3) Between the hours of nine o'clock p.m. (9:00 p.m.) and six o'clock a.m. (6:00 a.m.);
4. (4) More than three (3) hours a day on school days;
5. (5) More than eighteen (18) hours a week during a school week;
6. (6) More than eight (8) hours a day on nonschool days; or
7. (7) More than forty (40) hours a week during nonschool weeks.

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50-5-111(1)(C)

§ 50-5-105. Employment of minors sixteen or seventeen years of age.

(a) A minor who is sixteen (16) or seventeen (17) years of age may be employed in connection with any gainful occupation that:
1. (1) Does not interfere with the minor's health or well-being;
2. (2) Is not prohibited by subsection (b); or
3. (3) Is not prohibited by § 50-5-106.
(b) A minor who is sixteen (16) or seventeen (17) years of age and is enrolled in school may not be employed:
1. (1) During those hours when the minor is required to attend classes; or
2. (2)
  1. (A) Between the hours of ten o'clock p.m. (10:00 p.m.) and six o'clock a.m. (6:00 a.m.), Sunday through Thursday evenings preceding a school day.
  2. (B) If the parents or guardians of the minor submit to the employer a signed and notarized statement of consent, then the minor may be employed between the hours of ten o'clock p.m. (10:00 p.m.) and twelve o'clock midnight (12:00 a.m.), Sunday through Thursday evenings preceding a school day; provided, that under no circumstances shall the minor be employed between those hours on those evenings on more than three (3) occasions during any week.
  3. (C) Each statement of consent shall be submitted to the employer on a carbonized form provided for the purpose by the department. Upon accepting the form, the employer shall promptly mail the carbon copy of the form to the commissioner.
  4. (D) The form shall remain valid until the end of the school year during which it is submitted or until termination of the minor's employment, or until the minor reaches the age of majority, whichever occurs first; and the original copy of the form shall be maintained for the period of its effectiveness by the employer at the location of the minor's employment.
  5. (E) At any time, consent may be rescinded by submission to the employer of a statement of rescission, signed by the parents or guardians of the minor.
(c) With respect to a student enrolled with a church-related school as defined in § 49-50-801, or who is home schooled in accordance with § 49-6-3050 and has the consent of the parent conducting the home school, subdivision (b)(1) shall not apply. However, to work during the hours identified in subdivision (b)(1), the student shall also present to the employer a letter signed by the director, as defined in § 50-5-102, confirming the student's enrollment and the authorization to work. The director of the church-related school shall send a copy of the letter to the director of the LEA of the school district in which the child resides.
(d) If the department discovers that an employer has violated this section or has violated § 50-5-111, by failing to maintain the required file record, including an accurate time record showing the hours of a minor's beginning and ending of work each day, then the department shall promptly take appropriate actions to ensure imposition of the sanctions prescribed by § 50-5-112.

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50-5-111(1)(C)

§ 50-5-106. Prohibited employment for minors.

(a) A minor may not be employed in connection with the following:
1. (1) Occupations in or about plants or establishments manufacturing or storing explosives or articles containing explosive components;
2. (2) Motor vehicle driving occupations;
3. (3) Coal mine occupations;
4. (4) Logging occupations and occupations in the operation of any sawmill, lath mill, shingle mill or cooperage-stock mill;
5. (5) Occupations involved in the operation of power-driven woodworking machines;
6. (6) Occupations involving exposure to radioactive substances and to ionizing radiations;
7. (7) Occupations involved in the operation of elevator and other power-driven hoisting apparatus;
8. (8) Occupations involved in the operation of power-driven metal-forming, punching and shearing machines;
9. (9) Occupations in connection with mining elements other than coal;
10. (10) Occupations involving slaughtering, meat-packing, processing or rendering;
11. (11) Occupations involved in the operation of hazardous power-driven bakery machines;
12. (12) Occupations involved in the operation of hazardous power-driven paper products machines;
13. (13) Occupations involved in the manufacture of brick, tile and kindred products;
14. (14) Occupations involved in the operation of circular saws, band saws and guillotine shears;
15. (15) Occupations involved in wrecking, demolition and ship-breaking operations;
16. (16) Occupations involved in roofing operations;
17. (17) Occupations in excavation operations;
18. (18) [Deleted by 2023 amendment.]
19. (19) Occupations that the commissioner shall by regulation, pursuant to this part, declare to be hazardous or injurious to the life, health, safety and welfare of minors;
20. (20)
  1. (A) Occupations involving posing or modeling, alone or with others, while engaged in sexual conduct for the purpose of preparing a film, photograph, negative, slide or motion picture;
  2. (B) As used in (20)(A), “sexual conduct” means actual or simulated conduct, sexual intercourse, sodomy, sexual bestiality, masturbation, sadomasochistic abuse, excretion, or the exhibition of the male or female genitals; and
21. (21) Occupations involved in youth peddling.
(b)
1. (1) If a minor is fifteen (15) years of age or younger, the minor must not be employed in a place of employment where the average monthly gross receipts from the sale of intoxicating beverages exceed twenty-five percent (25%) of the total gross receipts of the place of employment or where a minor will be permitted to take orders for or serve intoxicating beverages, regardless of the amount of intoxicating beverages sold in the place of employment.
2. (2) If a minor is sixteen (16) or seventeen (17) years of age, the minor may be employed in a place of employment where the average monthly gross receipts from the sale of intoxicating beverages exceed twenty-five percent (25%) of the total gross receipts of the place of employment if the minor is not permitted to take orders for or serve intoxicating beverages.
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  - 57-3-704(h)

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§ 50-5-107. Exempt minors.

This part shall not apply to any minor who:
1. (1) Is employed in housework in the minor's home;
2. (2) Is employed by a parent or guardian in a nonhazardous occupation, as defined by § 50-5-106;
3. (3) Is employed in agricultural work;
4. (4) Is employed in the distribution or sale of newspapers;
5. (5) Is employed in errand and delivery work by foot, bicycle or public transportation;
6. (6) Is self-employed;
7. (7) Is a musician or entertainer, except in cases covered by § 50-5-106(20);
8. (8) Has graduated from high school or has the equivalent of a high school diploma, but only if a copy of the minor's high school diploma or its equivalent is retained by the employer in the employer's personnel records;
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  - 50-5-111(1)(D)
9. (9) Is or has been lawfully married or is a parent, but only if a copy of either the minor's marriage license or the birth certificate of the minor's child is retained by the employer in the employer's personnel records;
10. (10) Is sixteen (16) or seventeen (17) years of age and is an apprentice employed in a craft recognized as an apprenticable trade and is registered by the bureau of apprenticeship and training of the United States department of labor and is employed in accordance with the standards established by that bureau;
11. (11) Is sixteen (16) or seventeen (17) years of age and is a student learner enrolled in a course of study and training in a cooperative vocational training program under a recognized state or local educational authority or in a course of study in a substantially similar program conducted by a private school. The student learner must be employed under a written agreement, a copy of which must be retained by the employer in the employer's personnel records;
12. (12) Is an enrollee in a public employment program that is conducted or funded by the federal government; provided, that the employer has on file in the employer's personnel records an unrevoked written statement from a representative of the federal agency administering that program certifying the enrollment of the minor in the program;
13. (13) Is sixteen (16) or seventeen (17) years of age and not enrolled in school, but only if the employer has on file in the employer's personnel records a written statement signed by the director of schools stating that the particular minor is not enrolled in school; or is lawfully excused from compulsory school attendance under § 49-6-3005, but only if the employer has on file in the employer's personnel records a written statement signed by the director of schools stating that the particular minor has been excused under § 49-6-3005; or
14. (14) Is fourteen (14) years of age or older and who is a student enrolled in a course of study and training in a cooperative career and technical training program, including a work experience and career exploration program, that is approved and authorized by the department of education and that complies with all applicable federal laws. The student learner must be employed under a written agreement, a copy of which must be retained by the employer in the employer's personnel records.

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50-5-103(a)

§ 50-5-108. Special exemptions.

(a) The commissioner may consider and grant special exemptions submitted in writing by the minor and the minor's parents or guardian from this part if it is found that to do so would be in the best interest of the minor involved, and present no danger to the life, health or safety, or schooling of the minor.
(b)
1. (1) Before granting a special exemption, the commissioner shall investigate and determine from all pertinent data available that there is reasonable cause to believe that the exemption is in the best interests of the minor.
2. (2) If the commissioner finds that the minor is entitled to a special exemption, the commissioner will immediately report, in writing, the commissioner's findings and reasons for granting the special exemption, to the director of schools in the county in which the minor resides.
(c) Failure by the commissioner to grant a special exemption within ten (10) days of submission shall be considered a refusal.
(d)
1. (1) When a special exemption has been refused, the commissioner shall, upon demand made within five (5) days after the refusal, furnish the minor and the minor's parents or guardian with a written statement of the reasons for the refusal.
2. (2) This written statement shall be furnished by the commissioner within ten (10) days of the commissioner's receipt of the demand by the minor and the minor's parents or guardian.
(e)
1. (1) Within ten (10) days after the receipt of the statement by the commissioner, the minor and the minor's parents or guardian may petition the court having jurisdiction over juvenile matters in the county in which the minor resides for an order directing the commissioner to grant a special exemption.
2. (2) The petition shall state the reasons why the court should issue an order, and the petitioner shall attach to the petition the statement of the commissioner obtained pursuant to subsection (d).
(f)
1. (1) The court shall hold a hearing and receive further testimony and evidence it deems necessary.
2. (2) If the court finds that the issuance or reissuance of a permit is in the best interest of the minor, it shall grant the petition.

§ 50-5-109. Proof of age required for employment or continued employment — Oath by parent or guardian if evidence unavailable.

Before any minor may be employed or continue to be employed in connection with any gainful occupation, the employer shall require proof of the age of the minor employee or prospective employee by requiring the minor to provide the employer with a copy of the minor's birth certificate, passport, driver's license or state issued identification. If the evidence is not available, the parents or guardian shall appear with the minor before the judge or other officer of the juvenile court of the county in which the minor resides and shall make an oath as to the age of the minor.

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50-5-111(1)(B)

§ 50-5-110. Duties of department.

The department shall administer and enforce this part. In addition, the department shall:
1. (1) Supply employers of minors with printed copies of the regulations governing the employment and hours of work of minors and occupations prohibited to minors under this part;
2. (2) Inspect all places where minors may be employed and all pertinent records of employment, at any reasonable time, and as often as necessary to effectively enforce this part;
3. (3) Notify in writing any person charged with a violation of this part as to the nature of the violation;
4. (4) Bring a complaint before any court of competent jurisdiction against persons violating this part and prosecute these violations; and
5. (5) Make, keep and preserve a file record of all places where minors may be employed.

§ 50-5-111. Duties of employers of minors.

Employers of minors subject to regulation under this part shall:
1. (1) Make, keep and preserve a separate and independent file record for each minor employed, which shall be kept at the location of the minor's employment and shall include:
  1. (A) An employment application;
  2. (B) A copy of the minor's birth certificate or other evidence of the minor's age as provided in § 50-5-109;
  3. (C) An accurate time record showing the hours of the minor's beginning and ending of work each day if the minor is one subject to § 50-5-104 or § 50-5-105; and
  4. (D) Any records required under § 50-5-107(8)-(14);
2. (2) Allow the department to inspect, during regular working hours, any and all premises where minors are or could be employed and the contents of the individual file records specified in subdivision (1);
3. (3) Post and maintain in a conspicuous place on the business premises a printed notice, furnished by the department, stating the regulations governing the employment and hours of work of minors and employment prohibited to minors under this part; and
4. (4) Furnish to the department records relative to the employment of minors.

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§ 50-5-112. Violations — Penalties.

(a)
1. (1) Except as provided in § 50-5-103, any employer, who violates this part, or hinders or obstructs the department in administering or enforcing this part, or any parent or guardian who permits a child under the parent's or guardian's control or custody to work in violation of this part, commits a Class A misdemeanor.
2. (2) At the discretion of the commissioner, the employer shall be subject to a civil penalty of not less than one hundred fifty dollars ($150) nor more than one thousand dollars ($1,000) for each instance of an employer's violation of this part. In determining the amount of the penalty, the appropriateness of the penalty to the size of the business of the person charged and the gravity of the violation shall be considered. If the commissioner determines that the violation was unintentional, there shall be a warning in lieu of a penalty on the first offense.
3. (3) On second or subsequent violations, the civil penalty is applicable and may be assessed at the discretion of the commissioner, or the commissioner's designated representative.
4. (4) It shall be at the sole discretion of the commissioner to elect to proceed either civilly or criminally upon any violation of this part; however, the employer shall not be charged both civilly and criminally for the same violation.
(b) Each day during which any violation of subsection (a) continues after notification by the department that a violation exists constitutes a separate punishable offense.
(c) Any person who engages a minor under sixteen (16) years of age in youth peddling and transports the minor more than five (5) miles from the minor's residence shall, at the discretion of the commissioner, be subject to a penalty of not less than one thousand dollars ($1,000) nor more than ten thousand dollars ($10,000) if evidence of two (2) or more of the following factors is present:
1. (1) The minor is working more than three (3) hours a day on school days;
2. (2) The minor is working more than eighteen (18) hours a week during a school week;
3. (3) The minor is working more than eight (8) hours a day on nonschool days;
4. (4) The minor is working more than forty (40) hours a week during nonschool weeks;
5. (5) The minor is working after seven o'clock p.m. (7:00 p.m.) if the next day is a school day; or
6. (6) The employer fails to comply with the recordkeeping requirements of § 50-5-111.
(d) Any person who violates § 50-5-103 shall, at the discretion of the commissioner, be subject to a penalty of not less than one thousand dollars ($1,000) nor more than ten thousand dollars ($10,000). Each instance of a minor working in violation of § 50-5-103 shall constitute a separate violation.
(e) Each instance of a minor under sixteen (16) years of age working in violation of the youth peddling provisions of this part shall be considered a separate violation.
(f) Any person who violates the youth peddling provisions of this part commits a Class D felony.
(g) If, within thirty (30) days from the receipt of written notification of penalties assessed pursuant to this part, an employer fails to notify the commissioner in writing of its intent to contest the imposition of the penalty, the assessment of a penalty as stated in the notification shall be deemed a final order of the commissioner, and not subject to further review.
(h) All penalties owed under this part shall be paid to the commissioner.

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50-5-105(d)

§ 50-5-113. Using children in pornography — Class C felony.

Any person who violates § 50-5-106(20) or who violates § 50-5-103 by employing a child in an occupation that would violate § 50-5-106(20) if the child were over fourteen (14) years of age commits a Class C felony.

§ 50-5-114. Rules and regulations.

The commissioner may issue, amend and rescind all rules, regulations and procedures necessary to effectuate the purpose of this part.

§ 50-5-115. Breaks and meal periods for working minors.

A minor must have a thirty-minute unpaid break or meal period if scheduled to work six (6) hours consecutively. This break shall not be scheduled during or before the first hour of scheduled work activity.

Part 2 Tennessee Protection of Minor Performers Act

§ 50-5-201. Short title.

This part shall be known and may be cited as the “Tennessee Protection of Minor Performers Act.”

§ 50-5-202. Power to amend or repeal.

The general assembly shall have power to amend or repeal all or part of this part at any time and all persons subject to this part shall be governed by the amendment or repeal.

§ 50-5-203. Part definitions.

As used in this part, unless the context otherwise requires:
1. (1) “Artistic or creative services” means, but is not limited to, services as an actor, actress, dancer, musician, comedian, vocalist, including demonstration recordings, stunt-person, voice-over artist, model, or other performer or entertainer, or as a songwriter, musical producer or arranger, writer, director, producer, production executive, choreographer, composer, conductor, or designer, or other performing artist; and
2. (2) “Minor” means any person who has not attained eighteen (18) years of age and has not had the disability of minority removed so as to make this part inapplicable.

§ 50-5-204. Construction.

This part does not repeal or affect the rights or powers under title 29, chapter 31, regarding the removal of disability of minors, and all provisions of that chapter shall remain in force and effect and applicable to the appropriate circumstances addressed in that chapter.

§ 50-5-205. Approval not exemption from other law — Disability of non-age not removed generally.

Approval of a contract pursuant to this part shall not:
1. (1) Exempt any person from any other law with respect to licenses, consents, or authorizations required for any conduct, employment, use, or exhibition of the minor in this state, nor limit in any manner the discretion of the licensing authority or other persons charged with the administration of the requirements, nor dispense with any other requirement of law relating to the minor;
2. (2) Unless specifically so provided in the order, remove the disability of non-age for any other contract with the same minor that is not approved by the court pursuant to this section, nor, unless specifically so provided in the order, is the disability of non-age of the minor removed generally for the minor, nor is the minor emancipated for any other purpose or contract other than the performance of contracts approved pursuant to this section; and
3. (3) Be granted for a contract that provides for an employment, use, or exhibition of the minor, within or without the state, that is prohibited by law and in particular by any federal or state minor labor law, and could not be licensed to take place in this state.

§ 50-5-206. Applicability.

The chapters of this title shall apply to every minor person who desires to perform artistic or creative services in the state, including minor persons who reside in the state and minor persons not residing in the state, as long as some or all of the services are to be provided or delivered in the state, or at least one (1) of the other parties are doing business in the state.

§ 50-5-207. Disaffirmance of approved contract on ground of minority.

If a contract is approved by the appropriate court pursuant to this part, then the minor may not, either during minority or after reaching majority, disaffirm the contract on the ground of minority, nor may the minor assert that the minor's parent or guardian lacked the authority to make the contract personally as an adult.

§ 50-5-208. Who may apply for court order.

Application for an order pursuant to this part may be made by the minor, or the minor's parent, or legal guardian, or guardian ad litem appointed pursuant to this part. For the purposes of any proceeding under this part, a parent or legal guardian, as the case may be, entitled to the physical custody, care, and control of the minor at the time of the proceeding shall be considered the minor's guardian ad litem for the proceeding, unless the court determines that appointment of a different individual as guardian ad litem is required in the best interests of the minor.

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50-5-211

§ 50-5-209. Approval for contract that is executed, in existence or being performed — Effective date — Earnings.

(a) Approval under this part may be sought for a contract or agreement that is fully executed, is already in existence or under which the parties are currently performing. Approval may be effective as of the date upon which the contract has been executed, or the date when services were first performed by the minor, if specifically so ordered by the court. The parties may petition the court for approval to be effective within one (1) year of the contract's ratification by the court. The parties may also petition the court for approval of a contract effective date more than one (1) year after the ratification of the contract by the court, if good cause for the delayed effective date is shown by the petitioners.
(b) If a contract is approved pursuant to this part, all earnings, royalties, or other compensation earned or received by the minor pursuant to the approved contract shall become the sole property of the minor who will be authorized to execute any contracts relating to administration or investments of the earnings.

§ 50-5-210. Where to file petition.

Petition for contract approval under this part shall be filed with and, when granted, approved by the court handling probate matters for the county in which the minor resides, where the minor is employed or where the minor performs or renders the minor's services, or intends to do so; or the county in this state where performance of the contract shall be conducted, if the minor is not a resident of the state where the majority of the services are performed and the non-minor party to the contract is either a resident of this state or has been qualified or licensed to do business in the state.

§ 50-5-211. Notice and hearing.

After a petition is filed pursuant to § 50-5-208, and following reasonable notice to all parties to the contract as is fixed by the court, the court will provide all parties to the contract with the opportunity to appear and be heard. The court may approve the contract following the hearing.

§ 50-5-212. Effect of court approval — Revocation of approval.

Court approval of a valid contract shall serve to bind the minor as if the minor executed the contract personally as an adult; and the minor shall be bound to all provisions including the permanent sale of intellectual property rights; provided, however, that the revocation of approval of the contract by the court shall not include the transfer back to the minor of intellectual property rights unless there has been a showing of fraud or misrepresentation by the employer; and, further, that the court approving the contract shall retain the authority to revoke approval of the contract, or modify its terms if assented to by both parties, if the court finds that the well being of the minor requires the disapproval.

§ 50-5-213. Scope.

Contracts eligible for approval under this part shall include contracts pursuant to which a minor person is employed, employs, or agrees to perform or render artistic or creative services, either directly or through a third party including, without limitation, a personal services corporation, manager, booking agent, or producer. For purposes of this part, when a minor renders services as an extra, background performer, or in a similar capacity, through an agency or service that provides one (1) or more performers for a fee, the agency or service shall be considered the minor's employer.

§ 50-5-214. Effect of modifications, amendments, or assignments of contracts.

(a) Modifications, amendments, or assignments of contracts previously approved by the court are deemed a new contract and require separate approval under this part.
(b) Notwithstanding subsection (a), this section does not require court approval if the employing company assigns its rights in the contract to a successor or affiliate entity.

§ 50-5-215. Appointment of guardian ad litem — Court discretion — Criteria — Compensation.

(a) At any time after the filing of the petition, the court in its discretion may appoint a guardian ad litem to represent the interests of the minor or to oversee the minor's earnings related to the contract approved under this part. The court shall appoint a guardian ad litem as to any contract where the parent or guardian will receive remuneration or financial gain from the performance of the contract or if the court deems that the persons have any other conflict of interest with the minor. The court, in determining whether a guardian ad litem should be appointed, may consider the following criteria:
1. (1) The length of time the exclusive services of the minor are required;
2. (2) Whether the gross earnings of the minor under the contract are either contingent or unknown;
3. (3) The amount of gross earnings of the minor under the contract; and
4. (4) The age of the minor.
(b) The guardian ad litem shall be entitled to reasonable compensation. The court shall have the power to determine which party shall be responsible for the fee, whether the fee and any required bond shall be paid from the earnings of the minor pursuant to the contract sought to be approved, or may apportion the fee between the parties to the proceedings.

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50-5-220(a)(3)

§ 50-5-216. Custody of minor — Contents of petition.

(a) A parent, guardian, or legal custodian entitled to the physical custody, care, and control of a minor who enters into a contract of a type described in this part shall provide a certified copy of the minor's birth certificate indicating the minor's minority to the other party or parties to the contract.
(b) A guardian or a person with temporary legal custody must provide a certified copy of the court document appointing the person as the minor's legal guardian.
(c) A complete copy of the contract or proposed contract shall be attached to the petition. The petition shall also include the following information:
1. (1) The full name, residence, and date of birth of the minor;
2. (2) The name and residence of any living parent of the minor, the name and residence of the person who has care and custody of the minor, and the name and residence of the person with whom the minor resides;
3. (3) A statement that the minor is a resident of the state. If the minor is not a Tennessee resident, a statement that the petition is for approval of a contract for performance or rendering of services by the minor in the state, specifying the place in the state where the services are to be performed or rendered;
4. (4) A brief description of the minor's employment and compensation under the contract, including where services of the minor are to be performed, accompanied by a plan for the protection of the minor's earnings under the contract;
5. (5) The full name and residence of the petitioner, and the interest of the petitioner in the contract or proposed contract or in the minor's performance under the contract; and
6. (6) Other facts known by the petitioner regarding the minor and the minor's family and property that will show that the contract is reasonable, prudent, and in the best interests of the minor. The information shall include whether the minor has had at any time a guardian ad litem appointed by a court of any jurisdiction and an explanation of the facts regarding the previous appointment. Information regarding whether relief similar to the current petition has been sought on behalf of the minor, including whether a guardian ad litem was appointed for the previous application for court approval.
(d) Upon application by any party or by order of the court, the petition or any portion of the petition, including attachments, may be filed under seal.

§ 50-5-217. Persons to be served with petition.

The following persons, other than one who is the petitioner or who joins in the petition, shall be served with the petition by formal notice, as prescribed by Rule 4 of the Tennessee Rules of Civil Procedure:
1. (1) The minor;
2. (2) The minor's legal custodian or guardian ad litem, if any, whether or not appointed or qualified in this state;
3. (3) Each party to the contract;
4. (4) The parent or parents of the minor;
5. (5) Any person having the care and custody of the minor;
6. (6) The person with whom the minor resides, if other than a parent or guardian; and
7. (7) If it appears that the minor is married, the minor's spouse.

§ 50-5-218. Court's discretion for hearing in chambers or courtroom — Of record — Sealed.

At the court's discretion, the hearing may be held in the court's chambers or courtroom. The proceeding shall be of record and may be sealed, if the court determines that sealing the record will be in the best interests of the minor.

§ 50-5-219. Minor's personal appearance.

The minor, unless excused by the court for good cause shown, shall attend personally before the court upon the hearing of the petition.

§ 50-5-220. Options of the court.

(a) The court at the hearing or on an adjournment of the hearing, may by its order do any of the following:
1. (1) Approve or disapprove the contract or proposed contract;
2. (2) Approve the contract upon such conditions, with respect to modification of the terms of the contract or otherwise, as it shall determine;
3. (3) Appoint a guardian ad litem as provided by § 50-5-215;
4. (4) Appoint a trustee to administer the trust for earnings as provided by § 50-5-222; or
5. (5) Award reasonable attorney's fees and other expenses paid or to be paid by or on behalf of the minor in connection with the proceeding, approval of the contract, and its performance.
(b) The court shall consider the following factors in making its final determination:
1. (1) The best interest of the minor;
2. (2) Whether the minor is represented by a lawyer;
3. (3) The length of the contract;
4. (4) The age of the minor; and
5. (5) Any other matter that the court deems appropriate.

§ 50-5-221. Court's review of contract — Protection of earnings.

(a) The court shall ensure that any contract it approves contains all the requirements for the rendering of services of the minor and that the petition includes a plan for the protection of earnings under the contract.
(b) The court shall consider the following when determining the protection of earnings:
1. (1) The interest of the petitioner in the contract or proposed contract or in the minor's performance under the contract;
2. (2) The parties who are entitled to the minor's earnings, and, if the minor is not so entitled, facts regarding the property and financial circumstances of the parent or parents, or legal custodian or guardian ad litem, or other third party;
3. (3) A bank or trust account used expressly for the deposit of fees generated under the contract and the relationship of any proposed trustee of the minor's funds;
4. (4) The percentage of fees generated that are intended for deposit; and
5. (5) The minor's financial advisor or other third party who will render investment advice and administer the bank or trust account.
(c) Notwithstanding any provision to the contrary, the creditors of any person, other than the minor, shall not be entitled to the earnings of the minor.

§ 50-5-222. Requirement that portion of earnings be set aside in trust.

Notwithstanding any law to the contrary, in an order approving a minor's contract as described in this part, the court shall require that fifteen percent (15%) of the minor's gross earnings pursuant to the contract be set aside by the minor's employer in trust and shall be paid to the trustee appointed by the court so that it may be invested in an account or other savings plan, and preserved for the benefit of the minor until the minor reaches the age of majority. The court may also require that more than fifteen percent (15%) of the minor's gross earnings be set aside in trust, in an account or other savings plan, and preserved for the benefit of the minor, upon request of the minor's parent or legal guardian, or the minor, through the minor's guardian ad litem. Gross earnings for the purpose of this section refers to those funds earned and received by the minor pursuant to the terms of the contract and does not include those funds applied towards recoupment pursuant to the contract.

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50-5-220(a)(4)

Chapter 6 Workers' Compensation Law

Part 1 General Provisions

§ 50-6-101. Short title — Controlling law.

This chapter shall be cited to as the “Workers' Compensation Law” and shall be controlling for any claim for workers' compensation benefits for an injury, as defined in this chapter, when the date of injury is on or after July 1, 2014. All claims having a date of injury prior to July 1, 2014, shall be governed by prior law.

§ 50-6-102. Chapter definitions.

As used in this chapter, unless the context otherwise requires:
1. (1) “Administrator” means the chief administrative officer of the bureau of workers' compensation of the department of labor and workforce development;
2. (2) “AMA guides” means the 6th edition of the American Medical Association Guides to the Evaluation of Permanent Impairment, American Medical Association, until a new edition is designated by the general assembly in accordance with § 50-6-204(k)(2)(A). The edition that is in effect on the date the employee is injured is the edition that shall be applicable to the claim;
3. (3)
  1. (A) “Average weekly wages” means the earnings of the injured employee in the employment in which the injured employee was working at the time of the injury during the period of fifty-two (52) weeks immediately preceding the date of the injury divided by fifty-two (52); but if the injured employee lost more than seven (7) days during the period when the injured employee did not work, although not in the same week, then the earnings for the remainder of the fifty-two (52) weeks shall be divided by the number of weeks remaining after the time so lost has been deducted;
  2. (B) Where the employment prior to the injury extended over a period of less than fifty-two (52) weeks, the method of dividing the earnings during that period by the number of weeks and parts of weeks during which the employee earned wages shall be followed; provided, that results just and fair to both parties will be obtained;
  3. (C) Where, by reason of the shortness of the time during which the employee has been in the employment of the employer, it is impracticable to compute the average weekly wages as defined in this subdivision (3), regard shall be had to the average weekly amount that, during the first fifty-two (52) weeks prior to the injury or death, was being earned by a person in the same grade, employed at the same work by the same employer, and if there is no such person so employed, by a person in the same grade employed in the same class of employment in the same district;
  4. (D) Wherever allowances of any character made to any employee in lieu of wages are specified as part of the wage contract, they shall be deemed a part of the employee's earnings;
4. (4) “Bureau” or “bureau of workers' compensation” means the bureau of workers' compensation of the department of labor and workforce development;
5. (5) “Case management” means medical case management or the ongoing coordination of medical care services provided to an injured or disabled employee on all cases where medical care expenses are expected to exceed a threshold;
6. (6) “Commissioner” means the commissioner of labor and workforce development;
7. (7) “Construction design professional” means:
  1. (A) Any person possessing a valid registration or license entitling that person to practice the technical profession of architecture, engineering, landscape architecture or land surveying in this state;
  2. (B) Any corporation, partnership, firm or other legal entity authorized by law to engage in the technical profession of architecture, engineering, landscape architecture or land surveying in this state; or
  3. (C) Any person, firm or corporation providing interior space planning or design in this state;
8. (8) “Court of workers' compensation claims” means the adjudicative function within the bureau of workers' compensation;
9. (9) “Department” means the department of labor and workforce development;
10. (10)
  1. (A) “Employee” includes every person, including a minor, whether lawfully or unlawfully employed, the president, any vice president, secretary, treasurer or other executive officer of a corporate employer without regard to the nature of the duties of the corporate officials, in the service of an employer, as employer is defined in subdivision (11), under any contract of hire or apprenticeship, written or implied. Any reference in this chapter to an employee who has been injured shall, where the employee is dead, also include the employee's legal representatives, dependents and other persons to whom compensation may be payable under this chapter;
  2. (B) “Employee” includes a sole proprietor, a partner, or a member of a limited liability company who devotes full time to the proprietorship, partnership, or limited liability company, respectively, and who elects to be included in the definition of “employee” by filing written notice of the election on a form prescribed by the bureau with the insurer or, if there is no insurer, with the partnership, proprietorship, or limited liability company at least thirty (30) days before the occurrence of any injury or death. Such a proprietor, partner, or member may at any time withdraw the election by giving notice of the withdrawal to the insurer or, if there is no insurer, with the partnership, proprietorship, or limited liability company. Such a partner, proprietor, or limited liability company may at any time revoke the election for the term of the policy by giving notice in the same manner. Notification given pursuant to this subdivision (10)(B) does not become effective until it is filed with the proper entity;
  3. (C) The provisions of this subdivision (10) allowing a sole proprietor or a partner to elect to come under this chapter shall not be construed to deny coverage of the sole proprietor or partner under any individual or group accident and sickness policy the sole proprietor or partner may have in effect, in cases where the sole proprietor or partner has elected not to be covered by this chapter, for injuries sustained by the sole proprietor or partner that would have been covered by this chapter had the election been made, notwithstanding any provision of the accident and sickness policy to the contrary. Nothing in this section shall require coverage of occupational injuries or sicknesses, if occupational injuries or sicknesses are not covered under the terms of the policy without reference to eligibility for workers' compensation benefits;
  4. (D)
    1. (i) In a work relationship, in order to determine whether an individual is an “employee,” or whether an individual is a “subcontractor” or an “independent contractor,” the following factors shall be considered:
      1. (a) The right to control the conduct of the work;
      2. (b) The right of termination;
      3. (c) The method of payment;
      4. (d) The freedom to select and hire helpers;
      5. (e) The furnishing of tools and equipment;
      6. (f) Self-scheduling of working hours; and
      7. (g) The freedom to offer services to other entities; and
    2. (ii) A premium shall not be charged by an insurance company for any individual determined to be an independent contractor pursuant to this subdivision (10)(D);
  5. (E) “Employee” does not include a construction services provider, as defined in § 50-6-901, if the construction services provider is:
    1. (i) Listed on the registry established pursuant to part 9 of this chapter as having a workers' compensation exemption and is working in the service of the business entity through which the provider obtained such an exemption;
    2. (ii) Not covered under a policy of workers' compensation insurance maintained by the person or entity for whom the provider is providing services; and
    3. (iii) Rendering services on a construction project that:
      1. (a) Is not a commercial construction project, as defined in § 50-6-901; or
      2. (b) Is a commercial construction project, as defined in § 50-6-901, and the general contractor for whom the construction services provider renders construction services complies with § 50-6-914(b)(2);
11. (11) “Employer” includes any individual, firm, association or corporation, the receiver or trustee of the individual, firm, association or corporation, or the legal representative of a deceased employer, using the services of not less than five (5) persons for pay, except as provided in § 50-6-902, and, in the case of an employer engaged in the mining and production of coal, one (1) employee for pay. If the employer is insured, it shall include the employer's insurer, unless otherwise provided in this chapter;
12. (12) “Injury” and “personal injury” mean an injury by accident, a mental injury, occupational disease including diseases of the heart, lung and hypertension, or cumulative trauma conditions including hearing loss, carpal tunnel syndrome or any other repetitive motion conditions, arising primarily out of and in the course and scope of employment, that causes death, disablement or the need for medical treatment of the employee; provided, that:
  1. (A) An injury is “accidental” only if the injury is caused by a specific incident, or set of incidents, arising primarily out of and in the course and scope of employment, and is identifiable by time and place of occurrence, and shall not include the aggravation of a preexisting disease, condition or ailment unless it can be shown to a reasonable degree of medical certainty that the aggravation arose primarily out of and in the course and scope of employment;
  2. (B) An injury “arises primarily out of and in the course and scope of employment” only if it has been shown by a preponderance of the evidence that the employment contributed more than fifty percent (50%) in causing the injury, considering all causes;
  3. (C) An injury causes death, disablement or the need for medical treatment only if it has been shown to a reasonable degree of medical certainty that it contributed more than fifty percent (50%) in causing the death, disablement or need for medical treatment, considering all causes;
  4. (D) “Shown to a reasonable degree of medical certainty” means that, in the opinion of the physician, it is more likely than not considering all causes, as opposed to speculation or possibility;
  5. (E) The opinion of the treating physician, selected by the employee from the employer's designated panel of physicians pursuant to § 50-6-204(a)(3), shall be presumed correct on the issue of causation but this presumption shall be rebuttable by a preponderance of the evidence;
13. (13)
  1. (A) “Maximum total benefit” means the sum of all weekly benefits to which a worker may be entitled;
  2. (B) For injuries occurring on or after July 1, 1992, but before July 1, 2009, the maximum total benefit shall be four hundred (400) weeks times the maximum weekly benefit, except in instances of permanent total disability;
  3. (C) For injuries occurring on or after July 1, 2009, but before July 1, 2014, the maximum total benefit shall be four hundred (400) weeks times one hundred percent (100%) of the state's average weekly wage, as determined pursuant to subdivision (14)(B), except in instances of permanent total disability. Temporary total disability benefits paid to the injured worker shall not be included in calculating the maximum total benefit;
  4. (D) For injuries occurring on or after July 1, 2014, the maximum total benefit shall be four hundred fifty (450) weeks times one hundred percent (100%) of the state's average weekly wage, as determined pursuant to subdivision (14)(B), except in instances of permanent total disability. Temporary total disability benefits paid to the injured worker before the employee attains maximum medical improvement shall not be included in calculating the maximum total benefit;
14. (14)
  1. (A)
    1. (i) “Maximum weekly benefit” means the maximum compensation payable to the worker per week;
    2. (ii) For injuries occurring between July 1, 1990, and June 30, 1991, the maximum weekly benefit shall be two hundred seventy-three dollars ($273) per week;
    3. (iii) For injuries occurring on or after July 1, 1991, and before August 1, 1992, the maximum weekly benefit shall be two hundred ninety-four dollars ($294) per week;
    4. (iv) For injuries occurring on or after August 1, 1992, and through June 30, 1993, the maximum weekly benefit shall be sixty-six and two-thirds percent (66 ⅔%) of the employee's average weekly wage up to seventy-eight percent (78%) of the state's average weekly wage, as determined by the department;
    5. (v) For injuries occurring on or after July 1, 1993, and through June 30, 1994, the maximum weekly benefit shall be sixty-six and two-thirds percent (66 ⅔%) of the employee's average weekly wage up to eighty-two and four-tenths percent (82.4%) of the state's average weekly wage, as determined by the department;
    6. (vi) For injuries occurring on or after July 1, 1994, and through June 30, 1995, the maximum weekly benefit shall be sixty-six and two-thirds percent (66 ⅔%) of the employee's average weekly wage up to eighty-six and eight-tenths percent (86.8%) of the state's average weekly wage, as determined by the department;
    7. (vii) For injuries occurring on or after July 1, 1995, and through June 30, 1996, the maximum weekly benefit shall be sixty-six and two-thirds percent (66 ⅔%) of the employee's average weekly wage up to ninety-one and two-tenths percent (91.2%) of the state's average weekly wage, as determined by the department;
    8. (viii) For injuries occurring on or after July 1, 1996, and through June 30, 1997, the maximum weekly benefit shall be sixty-six and two-thirds percent (66 ⅔%) of the employee's average weekly wage up to ninety-five and six-tenths percent (95.6%) of the state's average weekly wage as determined by the department;
    9. (ix) For injuries occurring on or after July 1, 1997, and through June 30, 2004, the maximum weekly benefit shall be sixty-six and two-thirds percent (66 ⅔%) of the employee's average weekly wage up to one hundred percent (100%) of the state's average weekly wage as determined by the department;
    10. (x) For injuries occurring on or after July 1, 2004, the maximum weekly benefit for permanent disability benefits shall be sixty-six and two-thirds percent (66 ⅔%) of the employee's average weekly wage up to one hundred percent (100%) of the state's average weekly wage, as determined by the department; and
    11. (xi)
      1. (a) For injuries occurring on or after July 1, 2004, through June 30, 2005, the maximum weekly benefit for temporary disability benefits shall be sixty-six and two-thirds percent (66 ⅔%) of the employee's average weekly wage up to one hundred five percent (105%) of the state's average weekly wage, as determined by the department; and
      2. (b) For injuries occurring on or after July 1, 2005, the maximum weekly benefit for temporary disability benefits shall be sixty-six and two-thirds percent (66 ⅔%) of the employee's average weekly wage up to one hundred ten percent (110%) of the state's average weekly wage, as determined by the department;
  2. (B) As used in subdivision (15), the state average weekly wage shall be determined as of the preceding January 1, and shall be adjusted annually using the data from the bureau and shall be effective on July 1 of each year;
15. (15) “Mental injury” means a loss of mental faculties or a mental or behavioral disorder, arising primarily out of a compensable physical injury or an identifiable work related event resulting in a sudden or unusual stimulus, and shall not include a psychological or psychiatric response due to the loss of employment or employment opportunities;
16. (16) “Minimum weekly benefit” means the minimum compensation per week payable to the worker, which shall be fifteen percent (15%) of the state's average weekly wage, as determined by the department;
17. (17) “Specialty practice group” means a group of Tennessee licensed physicians, surgeons, or chiropractors providing medical care services of the same or similar medical specialty as each other and operating out of the same physical location; and
18. (18) “Utilization review” means evaluation of the necessity, appropriateness, efficiency and quality of medical care services, including the prescribing of one (1) or more Schedule II, III, or IV controlled substances for pain management for a period of time exceeding ninety (90) days from the initial prescription of such controlled substances, provided to an injured or disabled employee based on medically accepted standards and an objective evaluation of those services provided; provided, that “utilization review” does not include the establishment of approved payment levels, a review of medical charges or fees, or an initial evaluation of an injured or disabled employee by a physician specializing in pain management.

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§ 50-6-103. Scope of chapter.

Every employer and employee subject to this chapter, shall, respectively, pay and accept compensation for personal injury or death by accident arising primarily out of and in the course and scope of employment without regard to fault as a cause of the injury or death; provided, that any person who has an exemption pursuant to § 50-6-104 or part 9 of this chapter shall not be bound if the employee has given, prior to any accident resulting in injury or death, notice to be exempted from this chapter as provided in this part.

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9-8-307(a)(1)(K)(ii)

§ 50-6-104. Election of corporate officer to be exempt from chapter.

(a) Any officer of a corporation may elect to be exempt from the operation of this chapter.
(b) An officer who elects exemption from this chapter shall give written notice to the corporation of the officer's intent not to be covered by this chapter on a form prescribed by the bureau. Notice of the officer's election not to be bound by this chapter must include an affidavit of the officer that the action of the officer in rejecting this chapter was not advised, counseled, nor encouraged by the employer or by anyone acting on the employer's behalf. The election by any employee, who is a corporate officer of the employer, to be exempt from this chapter, does not reduce the number of employees of the employer for the purposes of determining the requirements of coverage of the employer under this chapter.
(c) Every employee who is a corporate officer and who elects not to operate under this chapter, in any action to recover damages for personal injury or death by accident brought against an employer who has elected to operate under this chapter, shall proceed as at common law, and the employer may make use of all common law defenses.
(d) Notification given pursuant to this section does not become effective until it is filed with the proper entity. Any officer who elects exemption and who, after electing exemption then revokes that exemption, shall give written notice of the revocation to the employer and its insurer at least thirty (30) days before the occurrence of any injury or death.
(e) This section does not apply to any officer of a corporation, member of a limited liability company, partner, or sole proprietor who is engaged in the construction industry, as defined by § 50-6-901; instead, part 9 of this chapter applies to such officer, member, partner, or sole proprietor.

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§ 50-6-105. Relief associations or funds for benefit of employees, spouses and dependents unaffected.

Nothing in this chapter shall be construed as amending or repealing any statute or municipal ordinance relating to associations or funds for the relief, pensioning, retirement or other benefit of any employees of the municipal employer, or of the surviving spouses, children or dependents of the employees of the municipal employer, or as in any manner interfering with any statute or municipal ordinance as now or hereafter established.

§ 50-6-106. Employments not covered.

This chapter shall not apply to:
1. (1)
  1. (A) Any common carrier doing an interstate business while engaged in interstate commerce, which common carrier and the interstate business are already regulated as to employer's liability or workers' compensation by act of congress, it being the purpose of this law to regulate all such business that the congress has not regulated in the exercise of its jurisdiction to regulate interstate commerce; provided, that this chapter shall apply to those employees of the common carriers with respect to whom a rule of liability is not provided by act of congress; provided, further, that no common carrier by motor vehicle operating pursuant to a certificate of public convenience and necessity shall be deemed the employer of a leased-operator or owner-operator of a motor vehicle or vehicles under a contract to such a common carrier;
  2. (B) Notwithstanding subdivision (1)(A), a leased operator or a leased owner/operator of a motor vehicle under contract to a common carrier may elect to be covered under any policy of workers' compensation insurance insuring the common carrier upon written agreement of the common carrier, by filing written notice of the contract, on a form prescribed by the administrator, with the bureau; provided, that the election shall in no way terminate or affect the independent contractor status of the leased operator or leased owner/operator for any other purpose than to permit workers' compensation coverage. The leased operator or leased owner/operator electing coverage as provided in this section shall establish the validity of and satisfy the terms and conditions of all contractual agreements between the parties prior to the payment of any claim for workers' compensation. The election of coverage may be terminated by the leased operator, leased owner/operator, or common carrier by providing written notice of the termination to the bureau and to all other parties consenting to the prior election. The termination shall be effective thirty (30) days from the date of the notice to all other parties consenting to the prior election and to the bureau;
  3. (C) The venue of any dispute arising out of or connected with the validity of the contractual relationship or terms of the written agreement upon which the workers' compensation benefits are extended between the common carrier and a leased operator or leased owner/operator shall be the chancery court of the county where the contract was entered or the county of the principal place of business of the common carrier;
  4. (D) Whenever the leased operator, the leased owner/operator or the carrier files a suit to resolve a contract dispute pursuant to subdivision (C), the statute of limitations for filing a petition for benefit determination with the bureau shall be tolled for ninety (90) days after final judgment has been entered in the suit including all appeals. In cases where a leased operator or leased owner/operator has filed a petition for benefit determination before the leased operator, leased owner/operator or the carrier has filed a suit pursuant to subdivision (C) to resolve a contract dispute, the petition for benefit determination shall be held in abeyance by the bureau until final judgment, including all appeals, has been entered in the suit filed pursuant to subdivision (C);
2. (2) Any person whose employment at the time of injury is casual, that is, one who is not employed in the usual course of trade, business, profession or occupation of the employer;
3. (3) Domestic servants and employers of domestic servants;
4. (4) Farm or agricultural laborers and employers of those laborers. Employers of farm or agricultural laborers may accept this chapter by purchasing a workers' compensation insurance policy, and may at any time withdraw that acceptance by canceling or not renewing the policy and providing notice to the employees;
5. (5) Cases where fewer than five (5) persons are regularly employed, except as provided in § 50-6-902. In cases with fewer than five (5) regularly employed persons, the employer may accept this chapter by purchasing a workers' compensation insurance policy, and may at any time withdraw that acceptance by canceling or not renewing the policy and providing notice to the employees;
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  - 29-20-401(c)(2)
  - 9-8-307(a)(1)(K)(ii)
6. (6) The state, counties of the state and municipal corporations; provided, that the state, any county or municipal corporation may accept this chapter by filing written notice of the acceptance with the bureau under the administrator, at least thirty (30) days before the happening of any accident or death, and may at any time withdraw the acceptance by giving like notice of the withdrawal. The state, any county or municipal corporation may accept this chapter as to any department or division of the state, county or municipal corporation by filing written notice of acceptance with the bureau under the administrator, at least thirty (30) days before the happening of any accident or death and may, at any time, withdraw acceptance for the division or department by giving like notice of the withdrawal, and the acceptance by the state, county or municipal corporation for any department or division of the state, county or municipal corporation shall have effect only of making the department or division designated subject to the terms of this chapter; or
7. (7) Any person performing voluntary service as a ski patrolperson who receives no compensation for the services other than meals, lodging or the use of ski tow or ski lift facilities or any combination of meals, lodging and the use of ski tow or ski lift facilities.

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50-6-902(b)(6)

§ 50-6-107. Application to coal mine operators and employees.

This chapter shall apply to coal mine operators and to their employees.

§ 50-6-108. Right to compensation exclusive.

(a) The rights and remedies granted to an employee subject to this chapter, on account of personal injury or death by accident, including a minor whether lawfully or unlawfully employed, shall exclude all other rights and remedies of the employee, the employee's personal representative, dependents or next of kin, at common law or otherwise, on account of the injury or death.
(b) No employer who fails to secure payment of compensation as required by this chapter, shall be permitted to defend the suit upon any of the following grounds, in any suit brought against the employer by an employee covered by this chapter or by the dependent or dependents of the employee, to recover damages for personal injury or death arising from an accident:
1. (1) The employee was negligent;
2. (2) The injury was caused by the negligence of a fellow servant or fellow employee; or
3. (3) The employee had assumed the risk of the injury.
(c) This section shall not be construed to preclude third party indemnity actions against an employer who has expressly contracted to indemnify the third party.

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50-6-411(b)

§ 50-6-109. Nonperformance of statutory duty not relieved.

Nothing in this chapter shall be construed to relieve any employer or employee from penalty for failure or neglect to perform any statutory duty.

§ 50-6-110. Injuries not covered — Drug and alcohol testing.

(a) No compensation shall be allowed for an injury or death due to:
1. (1) The employee's willful misconduct;
2. (2) The employee's intentional self-inflicted injury;
3. (3) The employee's intoxication or illegal drug usage;
4. (4) The employee's willful failure or refusal to use a safety device;
5. (5) The employee's willful failure to perform a duty required by law; or
6. (6) The employee's voluntary participation in recreational, social, athletic or exercise activities, including, but not limited to, athletic events, competitions, parties, picnics, or exercise programs, whether or not the employer pays some or all of the costs of the activities unless:
  1. (A) Participation was expressly or impliedly required by the employer;
  2. (B) Participation produced a direct benefit to the employer beyond improvement in employee health and morale;
  3. (C) Participation was during employee's work hours and was part of the employee's work-related duties; or
  4. (D) The injury occurred due to an unsafe condition during voluntary participation using facilities designated by, furnished by or maintained by the employer on or off the employer's premises and the employer had actual knowledge of the unsafe condition and failed to curtail the activity or program or cure the unsafe condition.
(b) If the employer defends on the ground that the injury arose in any or all of the ways stated in subsection (a), the burden of proof shall be on the employer to establish the defense.
(c)
1. (1) In cases where the employer has implemented a drug-free workplace pursuant to chapter 9 of this title, if the injured employee has, at the time of the injury, a blood alcohol concentration level equal to or greater than eight-hundredths of one percent (0.08%) for non-safety sensitive positions, or four-hundredths of one percent (0.04%) for safety-sensitive positions, as determined by blood or breath testing, or if the injured employee has a positive confirmation of a drug as defined in § 50-9-103, then it is presumed that the drug or alcohol was the proximate cause of the injury. This presumption may be rebutted by clear and convincing evidence that the drug or alcohol was not the proximate cause of injury. Percent by weight of alcohol in the blood must be based upon grams of alcohol per one hundred milliliters (100 mL) of blood. If the results are positive, the testing facility must maintain the specimen for a minimum of three hundred sixty-five (365) days at minus twenty degrees celsius (-20° C.). Blood serum may be used for testing purposes under this chapter; provided, however, that if this test is used, the presumptions under this section do not arise unless the blood alcohol level is proved to be medically and scientifically equivalent to or greater than the comparable blood alcohol level that would have been obtained if the test were based on percent by weight of alcohol in the blood. However, if, before the accident, the employer had actual knowledge of and acquiesced in the employee's presence at the workplace while under the influence of alcohol or drugs, the employer retains the burden of proof in asserting any defense under subsections (a) and (b), and this subsection (c) does not apply.
2. (2) If the injured worker refuses to submit to a drug test, it shall be presumed, in the absence of clear and convincing evidence to the contrary, that the proximate cause of the injury was the influence of drugs, as defined in § 50-9-103.
3. (3) The administrator of the bureau of workers' compensation shall provide, by rule, for the authorization and regulation of drug testing policies, procedures and methods. Testing of injured employees pursuant to a drug-free workplace program under chapter 9 of this title shall not commence until the rules are adopted.
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§ 50-6-111. Section definitions — Grant program, funding, and administration — Awarding of grants — Annual reports. [Effective on January 1, 2024.]

(a) As used in this section:
1. (1) “Department” means the department of labor and workforce development;
2. (2) “Employer” means a municipality, county, metropolitan form of government, or other political subdivision of this state that employs firefighters;
3. (3) “Fire department”:
  1. (A) Means a department of a municipality, county, or political subdivision, or an organization, agency, or entity that offers its services, for or without pay, for the purpose of suppressing fires, performing rescue services, or for other emergency response purposes; and
  2. (B) Does not include law enforcement agencies, emergency medical agencies licensed by the Tennessee emergency medical services board, and rescue squads that do not provide fire protection;
4. (4) “Firefighter”:
  1. (A) Means a regular or full-time, paid employee of the fire department of a municipality, county, municipal form of government, or other political subdivision of this state and whose duties require the employee to actively engage in fire suppression, rescue services, or other emergency response tasks; and
  2. (B) Includes employees whose previous duties required the employee to respond to and be actively engaged in fire suppression, rescue services, or other emergency response tasks;
5. (5) “Mental health professional” means an individual professionally licensed in this state to diagnose and treat post-traumatic stress disorders; and
6. (6) “Post-traumatic stress disorder” has the same meaning as defined in the most recent publication of the Diagnostic and Statistical Manual of Mental Disorders (DSM) of the American Psychiatric Association.
(b) The department shall establish and administer a grant program to mitigate the costs to an employer of providing workers' compensation for firefighters diagnosed with post-traumatic stress disorder by a mental health professional.
(c) The department shall utilize existing staff to assist in the implementation of the program and provide grant funding from whatever funding sources are available, including available department funds and funds from the federal and state governments.
(d) The department shall administer the program pursuant to rules promulgated by the department. The rules must provide for the awarding of grants to employers, or to the workers' compensation benefits provider of employers, who apply for a grant and meet the requirements described in subdivision (e)(1), which must be verified by the state fire marshal's office.
(e)
1. (1) The department may award an employer a grant if the employer provides mental health awareness training for its personnel, which must include:
  1. (A) Understanding the signs and symptoms of stress, depression, anxiety, psychological trauma, complex trauma, and addiction;
  2. (B) Understanding, navigating, and reducing mental health stigma;
  3. (C) Utilizing appropriate de-escalation strategies; and
  4. (D) Managing stress, using self-care techniques, developing coping skills, and promoting resiliency.
2. (2) An employer may develop the mental health awareness training described in subdivision (e)(1), or may use a training program developed by another entity that satisfies the criteria set forth in subdivision (e)(1).
(f) The employer shall grant a firefighter who receives mental health awareness training in accordance with subsection (e) appropriate continuing education credits.
(g) The department shall annually provide a report, on or before February 1 each year, to the chairs of the state and local government committee of the senate and the local government committee of the house of representatives. The report must include an analysis of the number of claims brought under Section 1, the portion of those claims that resulted in a settlement or award of benefits, the effect of this section on costs to this state and its political subdivisions, and the balance of funds available for future claims.
(h) This section is repealed December 31, 2028.

§ 50-6-112. Actions against third persons — Attorney's fees — Distribution of recovery — Limitations period.

(a) When the injury or death for which compensation is payable under this chapter was caused under circumstances creating a legal liability against some person other than the employer to pay damages, the injured worker, or the injured worker's dependents, shall have the right to take compensation under this chapter, and the injured worker, or those to whom the injured worker's right of action survives at law, may pursue the injured worker's or their remedy by proper action in a court of competent jurisdiction against the other person.
(b) In the event of a recovery from the other person by the worker, or those to whom the worker's right of action survives, by judgment, settlement or otherwise, the attorney representing the injured worker, or those to whom the injured worker's right of action survives, and effecting the recovery, shall be entitled to a reasonable fee for the attorney's services, and the attorney shall have a first lien for the fees against the recovery; provided, that if the employer has engaged other counsel to represent the employer in effecting recovery against the other person, then a court of competent jurisdiction shall, upon application, apportion the reasonable fee between the attorney for the worker and the attorney for the employer, in proportion to the services rendered.
(c)
1. (1) In the event of a recovery against the third person by the worker, or by those to whom the worker's right of action survives, by judgment, settlement or otherwise, and the employer's maximum liability for workers' compensation under this chapter has been fully or partially paid and discharged, the employer shall have a subrogation lien against the recovery, and the employer may intervene in any action to protect and enforce the lien.
2. (2) In the event the net recovery by the worker, or by those to whom the worker's right of action survives, exceeds the amount paid by the employer, and the employer has not, at the time, paid and discharged the employer's full maximum liability for workers' compensation under this chapter, the employer shall be entitled to a credit on the employer's future liability, as it accrues, to the extent the net recovery collected exceeds the amount paid by the employer.
3. (3) In the event the worker, or those to whom the worker's right of action survives, effects a recovery, and collection of that recovery, from the other person, by judgment, settlement or otherwise, without intervention by the employer, the employer shall nevertheless be entitled to a credit on the employer's future liability for workers' compensation, as it accrues under this chapter, to the extent of the net recovery.
(d)
1. (1) The action against the other person by the injured worker, or those to whom the injured worker's right of action survives, must be instituted in all cases within one (1) year from the date of injury.
2. (2) Failure on the part of the injured worker, or those to whom the injured worker's right of action survives, to bring the action within the one-year period shall operate as an assignment to the employer of any cause of action in tort that the worker, or those to whom the worker's right of action survives, may have against any other person for the injury or death, and the employer may enforce the cause of action in the employer's own name or in the name of the worker, or those to whom the worker's right of action survives, for the employer's benefit, as the employer's interest may appear, and the employer shall have six (6) months after the assignment within which to commence the suit.
3. (3) If the cause of action described in subsection (a) arises in a jurisdiction other than this state and the other jurisdiction has a statute of limitations for personal injury and wrongful death greater than the one-year statute of limitations provided in this state, the court hearing the cause of action shall apply the statute of limitations that provides the injured worker, or those to whom the injured worker's right of action survives, the greatest amount of time in which to institute an action.
4. (4) Under no circumstances shall the negligent party described in subsection (a) benefit from this subsection (d).

§ 50-6-113. Liability of principal contractor, intermediate contractor or subcontractor.

(a) A principal contractor, intermediate contractor or subcontractor shall be liable for compensation to any employee injured while in the employ of any of the subcontractors of the principal contractor, intermediate contractor or subcontractor and engaged upon the subject matter of the contract to the same extent as the immediate employer.
(b) Any principal contractor, intermediate contractor or subcontractor who pays compensation under subsection (a) may recover the amount paid from any person who, independently of this section, would have been liable to pay compensation to the injured employee, or from any intermediate contractor.
(c) Every claim for compensation under this section shall be in the first instance presented to and instituted against the immediate employer, but the proceedings shall not constitute a waiver of the employee's rights to recover compensation under this chapter from the principal contractor or intermediate contractor; provided, that the collection of full compensation from one (1) employer shall bar recovery by the employee against any others, nor shall the employee collect from all a total compensation in excess of the amount for which any of the contractors is liable.
(d) This section applies only in cases where the injury occurred on, in, or about the premises on which the principal contractor has undertaken to execute work or that are otherwise under the principal contractor's control or management.
(e) A subcontractor under contract to a general contractor may elect to be covered under any policy of workers' compensation insurance insuring the contractor upon written agreement of the contractor, by filing written notice of the election, on a form prescribed by the administrator, with the bureau. It is the responsibility of the general contractor to file the written notice with the bureau. Failure of the general contractor to file the written notice shall not operate to relieve or alter the obligation of an insurance company to provide coverage to a subcontractor when the subcontractor can produce evidence of payment of premiums to the insurance company for the coverage. The election shall in no way terminate or affect the independent contractor status of the subcontractor for any other purpose than to permit workers' compensation coverage. The election of coverage may be terminated by the subcontractor or general contractor by providing written notice of the termination to the bureau and to all other parties consenting to the prior election. The termination shall be effective thirty (30) days from the date of the notice to all other parties consenting to the prior election and to the bureau.
(f) This section shall not apply to a construction services provider, as defined by § 50-6-901.

§ 50-6-114. Supremacy of chapter — Setoffs for payments by disability plan.

(a) No contract or agreement, written or implied, or rule, regulation or other device, shall in any manner operate to relieve any employer, in whole or in part, of any obligation created by this chapter, except as provided in subsection (b).
(b) Any employer may set off from temporary total, temporary partial, permanent partial and permanent total disability benefits any payment made to an employee under an employer funded disability plan for the same injury; provided, that the disability plan permits such an offset. The offset from a disability plan may not result in an employee's receiving less than the employee would otherwise receive under this chapter. In the event that a collective bargaining agreement is in effect, this subsection (b) shall be subject to the agreement of both parties.

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9-8-307(a)(1)(K)(ii)

§ 50-6-115. Extraterritorial application of chapter — Coverage of construction services providers.

(a) For purposes of this section, an employee is considered to be temporarily in a state working for an employer if the employee is working for such employee's employer in a state other than the state where such employee is primarily employed for no more than fourteen (14) consecutive days, or no more than twenty-five (25) days total, during a calendar year. This subsection (a) does not apply to construction services providers, as defined in § 50-6-901, performing work in this state.
(b)
1. (1) If an employee in this state who is subject to this chapter temporarily leaves this state incidental to the employee's employment and receives an accidental injury arising out of and in the course and scope of the employee's employment, the employee, or the employee's beneficiaries in the case of an injury that results in the employee's death, shall be entitled to the benefits of this chapter as if the employee was injured in this state.
2. (2) If an employee, while working outside the territorial limits of this state other than temporarily, suffers an injury on account of which the employee, or, in the event of the employee's death, the employee's dependents, would have been entitled to the benefits provided by this chapter had the injury occurred within this state, the employee, or in the event of the employee's death resulting from the injury, the employee's dependents, shall be entitled to the benefits provided by this chapter; provided, that at the time of the injury:
  1. (A) The employment was principally localized within this state;
  2. (B) The contract of hire was made in this state; or
  3. (C) If at the time of the injury the injured worker was a Tennessee resident and there existed a substantial connection between this state and the particular employer and employee relationship.
(c)
1. (1) An employee from another state and the employee's employer are exempt from this chapter while the employee is temporarily in this state performing work for the employer if:
  1. (A) The employer has furnished workers' compensation insurance coverage under the workers' compensation insurance or similar laws of the other state to cover the employee's employment while in this state;
  2. (B) The extraterritorial provisions of this chapter are recognized in the other state; and
  3. (C) Employees and employers who are covered in this state are likewise exempted from the application of the workers' compensation insurance or similar laws of the other state.
2. (2) The benefits under the workers' compensation insurance or similar laws of the other state, or other remedies under similar law, are the exclusive remedy against the employer for any injury, whether resulting in death or not, received by the employee while temporarily working for that employer in this state.
3. (3) A certificate from the duly authorized officer of the appropriate department of another state certifying that the employer of such other state is insured in that state and has provided extraterritorial coverage insuring employees while working in this state is prima facie evidence that the employer carries such workers' compensation insurance.
4. (4) Whenever in any appeal or other litigation the construction of the laws of another jurisdiction is required, the courts shall take judicial notice of such construction of the laws of the other jurisdiction.
5. (5) When an employee has a claim under the workers' compensation insurance laws of another state, territory, province, or foreign nation for the same injury or occupational disease as the claim filed in this state, the total amount of compensation paid or awarded under such other workers' compensation law shall be credited against the compensation due under this chapter.
6. (6) Subdivisions (c)(1)-(3) do not apply to construction services providers, as defined in § 50-6-901, performing work in this state.
(d)
1. (1) Any employer who is insured in this state for workers' compensation under this chapter, and who has extraterritorial coverage under this chapter, for their employees while such employees are temporarily working outside this state within the meaning of subsection (a) may obtain a certificate evidencing such coverage at the time that the application for certification is made from the commissioner of commerce and insurance.
2. (2) In order to obtain a certificate under subdivision (d)(1), an employer shall:
  1. (A) File an application with the commissioner of commerce and insurance, on a form that is approved by the commissioner of commerce and insurance;
  2. (B) Pay a filing fee to the department of commerce and insurance in the amount of one hundred dollars ($100). The commissioner of commerce and insurance may change the amount of the filing fee required by this subdivision (d)(2)(B) by promulgating a rule pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, as necessary to ensure that the proceeds of such filing fees are sufficient to offset the cost of processing applications and issuing the certificates authorized by this subsection (d); and
  3. (C) Submit to the commissioner of commerce and insurance a copy of the declaration page from the employer's workers' compensation insurance policy, or such proof as the commissioner of commerce and insurance may require to demonstrate that the employer is self insured for workers' compensation and the territorial limits of such coverage.
3. (3) The commissioner of commerce and insurance is authorized to issue a certificate that certifies that, at the time that the application for certification is made, the applicant employer in this state is insured for workers' compensation under this chapter, and that such employers have extraterritorial coverage under this chapter, for their employees while such employees are temporarily working outside this state within the meaning of subsection (a).
(e)
1. (1) A construction services provider, as defined in § 50-6-901, performing work in this state shall maintain workers' compensation insurance coverage throughout the duration of that work and must designate “Tennessee” in section 3A of a construction service provider's workers' compensation insurance policy or endorsement.
2. (2) A construction services provider who violates this subsection (e) is subject to a penalty issued by the administrator or administrator's designee of up to the greater of:
  1. (A) One thousand dollars ($1,000); or
  2. (B) One and one-half (1.5) times the average yearly workers' compensation premium for the construction services provider based on the appropriate assigned risk plan advisory prospective loss cost and multiplier for the construction services provider as of the date of determination that the construction services provider performs work in this state and did not secure payment of compensation pursuant to this subsection (e).

§ 50-6-116. Construction of chapter.

For any claim for workers' compensation benefits for an injury, as defined in this chapter, when the date of injury is on or after July 1, 2014, this chapter shall not be remedially or liberally construed but shall be construed fairly, impartially, and in accordance with basic principles of statutory construction and this chapter shall not be construed in a manner favoring either the employee or the employer.

§ 50-6-117. [Reserved.]

§ 50-6-118. Penalties.

(a) The bureau of workers' compensation shall, by rule promulgated pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, establish and collect penalties for the following:
1. (1) Failure of a covered employer to provide workers' compensation coverage or qualify as a self-insurer;
2. (2) Late filing of accident reports;
3. (3) Bad faith denial of claims;
4. (4) Late filing of notice of denial of claim;
5. (5) Failure of any party to appear or to mediate in good faith at any alternative dispute resolution proceeding;
6. (6) Failure of any party to comply, within the designated timeframe, with any order or judgment issued by a workers' compensation judge;
7. (7) Performance of any enumerated action provided in § 29-9-102 in relation to any proceedings in the court of workers' compensation claims;
8. (8) Failure of any employer to timely provide medical treatment made reasonably necessary by the accident and recommended by the authorized treating physician or operating physician;
9. (9) Failure of an employer to timely provide a panel of physicians that meets the statutory requirements of this chapter;
10. (10) Wrongful failure of an employer to pay an employee's claim for temporary total disability payments;
11. (11) Wrongful failure to satisfy the terms of an approved settlement;
12. (12) Refusal to cooperate with the services provided by an ombudsman; and
13. (13) Any violation of § 50-6-215 by an individual or entity not licensed by the department of commerce and insurance.
(b) All penalties collected by the bureau from an employer for failure to provide workers' compensation coverage or failure to qualify as a self-insurer shall be paid into and become a part of the uninsured employers fund. All other penalties collected pursuant to an assessment made under this section shall be paid to the bureau for use by the bureau, at the discretion of the administrator, to offset the cost of administering this chapter.
(c) The bureau of workers' compensation may assess the penalties authorized by this chapter, upon providing notice and an opportunity for a hearing to an employer, an employee, an insurer, or a self-insured pool or trust. If a hearing is requested, the commissioner, commissioner's designee, or an agency member appointed by the commissioner shall have the authority to hear the matter as a contested case, and the authority to hear the administrative appeal of an agency decision, relating to the assessment of the penalties authorized by this chapter. When a hearing or review of an agency decision is requested, the requesting party shall have the burden of proving, by a preponderance of the evidence, that the penalized party was either not subject to this chapter, or that the penalties assessed pursuant to this chapter should not have been assessed. Any party assessed a penalty pursuant to this section shall have the right to appeal the penalty assessed by the bureau and affirmed by the commissioner, the commissioner's designee or an agency member in the manner provided in this subsection (c), pursuant to the Uniform Administrative Procedures Act.
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- 50-6-125(a)(1)
(d)
1. (1) If an employee receives a settlement, judgment, or decree under this chapter that includes the payment of medical expenses, and the employer or workers' compensation carrier unreasonably fails to reimburse the employee for any medical expenses actually paid by the employee within sixty (60) days of the settlement, judgment, or decree, or unreasonably fails to provide reasonable and necessary medical expenses and treatment, including failure to reimburse the employee for reasonable and necessary medical expenses, after receiving actual notice of the obligation to provide the medical treatment and a reasonable opportunity to obtain the information and documentation necessary to pay medical expenses or provide medical treatment, then the employer or workers' compensation carrier is liable, in the court's discretion, to pay the employee a sum not exceeding twenty-five percent (25%) of the expenses, in addition to the amount due for medical expenses paid. The court may exercise this discretion only if the court finds that the refusal to pay the claim inflicted additional expense, loss, or injury upon the employee.
2. (2) An employer or workers' compensation carrier is not liable under subdivision (d)(1) if payment of the subject medical expense is issued, or reasonable and necessary medical treatment is authorized, within sixty (60) days of the employer's or workers' compensation carrier's receipt of information and documentation reasonably necessary to issue payment of the subject medical expense or to determine liability for reasonable and necessary medical treatment.

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§ 50-6-119. Information awareness program.

(a) In order to provide greater awareness among employers and employees of the rights and obligations of the workers' compensation laws, the bureau of workers' compensation shall institute an information awareness program. The program shall:
1. (1) Involve a statewide effort to consult with employers on the actions required;
2. (2) Provide that employers with frequent incidents of injuries be targeted for referral to appropriate agencies on accident prevention;
3. (3) Provide education and information aimed at preventing disputes and delays in the processing of claims, through the use of speakers' seminars and conferences;
4. (4) Provide a system to communicate developments in the law to interested groups;
5. (5) Provide injured employees with complete information on their rights to compensation and day-to-day assistance with problems on their claims;
6. (6) Develop general informational literature and audio-visual aids for both employees and employers; and
7. (7) Provide a toll-free number for employers and employees to receive information from and ask questions of the department.
(b) Any publications for distribution under this section must be published in accordance with the rules, regulations, policies and procedures of the state publications committee.

§ 50-6-120. Liability of construction design professionals.

(a) No construction design professional, or any employee of the construction design professional, who is retained to perform professional services on a construction project, shall be liable for the personal injury or death of any nonemployee of the construction design professional, working on the construction project, unless the construction design professional or any employee of the construction design professional is guilty of negligence that is a proximate cause of the injury or death of the nonemployee.
(b) Nothing in this section shall be construed to affect the rights or responsibilities of any person under this chapter.
(c) Rule 11 of the Tennessee Rules of Civil Procedure shall apply in all actions against construction design professionals.

§ 50-6-121. Advisory council on workers' compensation.

(a)
1. (1)
  1. (A) There is created an advisory council on workers' compensation. There shall be seven (7) voting members of the council, with three (3) representing employers, three (3) representing employees, and one (1) member who shall serve as the chair and who shall be the state treasurer or the state treasurer's designee. There shall be ten (10) nonvoting members of the council. All members shall have a demonstrable working knowledge of the workers' compensation system.
  2. (B) The chair shall preside at meetings of the council and, in consultation with the voting members of the council, shall supervise the work of the staff of the council. The council shall meet at the call of the chair or at the written call of four (4) voting members of the council which written call shall be delivered to the chair. The chair may vote only on matters related to the administration of the council or the council's research. The chair is not permitted to vote on any matter that constitutes the making of a policy recommendation to the governor or to the general assembly.
  3. (C) The speaker of the house of representatives, the speaker of the senate and the governor shall each appoint one (1) employer and one (1) employee representative to the council, who shall be voting members. Representatives, officers and employees from labor organizations or business trade organizations are eligible for appointment. In making the appointments of the employer representatives, the appointing authorities shall strive to ensure a balance of a commercially insured employer, self-insured employer or an employer who operates a small business. At least one (1) employee representative shall be from organized labor. Proxy voting is prohibited by voting members of the council; provided, however, that in instances where a voting member will be absent from a vote of the council, the member's appointing authority is authorized to appoint an alternate or designee for the vote or votes.
  4. (D) Voting members shall serve four-year terms and the terms shall be staggered so that the terms of only three (3) voting members shall terminate at the same time. All four-year terms shall begin on July 1 and terminate on June 30, four (4) years thereafter.
  5. (E)
    1. (i) The governor shall also appoint ten (10) nonvoting members of the council as follows: one (1) to represent local governments, one (1) to represent insurance companies, five (5) to represent health care providers and three (3) attorneys. The nonvoting local government representative may be appointed from lists of qualified persons submitted by interested municipal and county organizations including, but not limited to, the Tennessee Municipal League and the Tennessee County Services Association. The nonvoting insurance company representative may be appointed from lists of qualified persons submitted by interested insurance organizations including, but not limited to, the Property Casualty Insurers Association of America and the American Insurance Association. One (1) nonvoting healthcare provider representative may be appointed from lists of qualified persons submitted by interested medical organizations including, but not limited to, the Tennessee Medical Association and one (1) nonvoting healthcare provider representative may be appointed from lists of qualified persons submitted by interested hospital organizations including, but not limited to, the Tennessee Hospital Association. One (1) nonvoting health care provider representative shall be a chiropractor who is licensed in this state, one (1) nonvoting health care provider representative shall be a physical therapist who is licensed in this state, and one (1) nonvoting health care provider representative shall be an occupational therapist who is licensed in this state, and these members shall not receive reimbursement for travel expenses. The nonvoting attorney members shall be appointed as follows: one (1) who shall primarily represent injured workers' compensation claimants, who may be appointed from lists of qualified persons submitted by interested justice organizations including, but not limited to, the Tennessee Association for Justice; one (1) who shall primarily represent employers or workers' compensation insurers, who may be appointed from lists of qualified persons submitted by interested defense lawyer organizations including, but not limited to, the Tennessee Defense Lawyers Association; and one (1) who may be appointed from lists of qualified persons submitted by interested legal organizations including, but not limited to the Tennessee Bar Association.
    2. (ii) The appointing authorities shall consult with interested groups including, but not limited to, the organizations listed in subdivision (a)(E)(i) to determine qualified persons to fill positions on the council.
  6. (F) The nonvoting members shall be appointed to four-year terms that shall begin on July 1 and terminate on June 30, four (4) years thereafter.
  7. (G) The chair of the commerce and labor committee of the senate, the chair of the commerce committee of the house of representatives, the administrator of the bureau of workers' compensation and the commissioner of commerce and insurance, or their designees, shall be ex officio, nonvoting members of the council.
2. (2) Each voting and nonvoting member of the advisory council on workers' compensation shall, upon the expiration of the member's term, be eligible for reappointment and shall serve until a successor is appointed. In the event a member resigns or becomes ineligible for service during the member's term, a successor shall be appointed by the appropriate appointing authority to serve the remainder of the term.
3. (3) No employer shall discriminate in any manner against an employee who serves on the advisory council because of the employee's service. Employees who serve on the advisory council shall not be denied any benefit from their employer because of the employee's service. Travel expenses of the employee representatives on the council shall be reimbursed pursuant to subsection (b); however, employers may choose to pay the travel expenses of their employees' service on the advisory council according to their own policies.
(b)
1. (1) Notwithstanding § 3-6-304 or any other law to the contrary, and in addition to all other requirements for membership on the council:
  1. (A) Any person registered as a lobbyist pursuant to the registration requirements of title 3, chapter 6 who is subsequently appointed or otherwise named as a member of the council shall terminate all employment and business association as a lobbyist with any entity whose business endeavors or professional activities are regulated by the council, prior to serving as a member of the council. This subdivision (b)(1)(A) shall apply to all persons appointed or otherwise named to the council after July 1, 2010;
  2. (B) No person who is a member of the council shall be permitted to register or otherwise serve as a lobbyist pursuant to title 3, chapter 6 for any entity whose business endeavors or professional activities are regulated by the council during such person's period of service as a member of the council. This subdivision (b)(1)(B) shall apply to all persons appointed or otherwise named to the council after July 1, 2010, and to all persons serving on the council on such date who are not registered as lobbyists; and
  3. (C) No person who serves as a member of the council shall be employed as a lobbyist by any entity whose business endeavors or professional activities are regulated by the council for one (1) year following the date such person's service on the council ends. This subdivision (b)(1)(C) shall apply to persons serving on the council as of July 1, 2010, and to persons appointed to the council subsequent to such date.
2. (2) A person who violates this subsection (b) shall be subject to the penalties prescribed in title 3, chapter 6.
3. (3) The bureau of ethics and campaign finance is authorized to promulgate rules and regulations to effectuate the purposes of this subsection (b). All such rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, and in accordance with the procedure for initiating and proposing rules by the ethics commission to the bureau of ethics and campaign finance as prescribed in § 4-55-103.
(c) In addition to all other requirements for membership on the council, all persons appointed or otherwise named to serve as members of the council after July 1, 2010, shall be residents of this state.
(d) Members of the council shall not be paid but may be reimbursed for travel expenses. All reimbursement for travel expenses shall be in accordance with the comprehensive travel regulations promulgated by the department of finance and administration and approved by the attorney general and reporter.
(e) The council shall meet at least twice each year. It shall annually review workers' compensation in the state and shall issue a report of its findings and conclusions on or before July 1 of each year. The annual report shall be sent to the governor, the speakers of the house of representatives and the senate, the chair and vice-chair of the special joint committee on workers' compensation, the administrator of the bureau of workers' compensation, the commissioner of commerce and insurance and the clerks of the house of representatives and senate. Notice of the publication of the annual report and all other reports published by the council shall be provided to all members of the general assembly pursuant to § 3-1-114.
(f) In performing its responsibilities, the council's role shall be strictly advisory, but it may:
1. (1) Make recommendations to the governor, the general assembly, the special joint committee on workers' compensation, the standing committees of each house that review the status of the workers' compensation system, the administrator of the bureau of workers' compensation and the commissioner of commerce and insurance relating to the promulgation or adoption of legislation or rules;
2. (2) Make recommendations to the administrator of the bureau of workers' compensation and the commissioner of commerce and insurance regarding the method and form of statistical data collections; and
3. (3) Monitor the performance of the workers' compensation system in the implementation of legislative directives.
(g) The chair, in consultation with the voting members of the council, is authorized to retain staff and professional assistance, such as consultants and actuaries, as the chair deems necessary for the work of the council, subject to budgetary approval in the general appropriations act. For administrative purposes, the council shall be attached to the department of treasury for all administrative matters relating to receipts, disbursements, expense accounts, budget, audit and other related items. The state treasurer shall have administrative and supervisory control over the staff assigned to assist the council. Employees of the council shall not have the status of preferred service employees pursuant to title 8. The autonomy of the council and its authority are not affected by this subsection (g).
(h) The council may develop evaluations, statistical reports and other information from which the general assembly may evaluate the impact of the legislative changes to workers' compensation law, including, but not limited to, the Reform Act of 2004 and subsequent statutory changes to this chapter.
(i) The advisory council shall issue an annual report that includes a summary of significant supreme court decisions relating to workers' compensation, including an explanation of their impact on existing policy. The report shall be due on or before January 15 of each year and shall include, to the extent possible, the decisions that were issued during the preceding calendar year. This annual report shall be sent to the governor, the speaker of the house of representatives, the speaker of the senate, the chair of the commerce committee of the house of representatives, the chair of the commerce and labor committee of the senate, and the chair and co-chair of the special joint committee on workers' compensation. Notice of the publication of the report shall be provided to all members of the general assembly pursuant to § 3-1-114.
(j) The advisory council on workers' compensation shall, within ten (10) business days of each meeting it conducts, provide a summary of the meeting and a report of all actions taken and all actions recommended to be taken to each member of the commerce committee of the house of representatives and the commerce and labor committee of the senate.
(k) Whenever any bill is introduced in the general assembly proposing to amend this chapter or to make any change in workers' compensation law, or to make any change in the law that may have a financial or other substantive impact on the administration of workers' compensation law, the standing committee to which the bill is referred may refer the bill to the council. The council's review of bills relating to workers' compensation should include, but not be limited to, bills that propose to amend chapters 3, 6, 7, and 9 of this title, and title 56, chapters 5 and 47. All bills referred to the council shall be reported back to the standing committee to which they were assigned as quickly as reasonably possible. Notwithstanding the absence of a report from the council, the standing committee is free to consider the bill at any time. The chair making the referral shall immediately notify the prime sponsors of the referral and the council shall not review and comment on the proposed legislation until the prime sponsors have been notified. The comments of the council shall describe the potential effects of the proposed legislation on the workers' compensation system and its operations and any other information or suggestions that the council may think helpful to the sponsors, the standing committees or the general assembly. The comments of the council may include recommendations for or against passage of the proposed legislation. Other than reporting the recommendations for or against passage of proposed legislation and responding to any questions that the legislators may have, no staff of the advisory council shall lobby or advocate for or against passage of proposed legislation.
(l) The council shall study and report on the occupational health and safety of employment in Tennessee and make recommendations for safe employment education and training and promote the development of employer-sponsored health and safety programs.

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§ 50-6-122. Case management and utilization review — Use of HMOs and PPOs — Legislative intent — Claims by health care providers.

(a)
1. (1) It is the intent of the general assembly that quality medical care services shall be available to injured and disabled employees. It is also the legislative intent to control increasing medical costs in workers' compensation matters by establishing cost control mechanisms to ensure cost-effective delivery of medical care services by employing a program of medical case management and a program to review the utilization and quality of medical care services.
2. (2) In order to assure that in workers' compensation cases quality medical care is rendered and to control medical care costs, an employer is authorized to use, but is not required to use, health maintenance organizations (HMOs) and preferred provider organizations (PPOs). An HMO or PPO may contract with medical care providers as permitted by law. The contracts are authorized to use, but are not limited to the use of, the following managed care methodologies:
  1. (A) Medical bill review;
  2. (B) Establishment of medical practice guidelines;
  3. (C) Case management, subject to § 50-6-123;
  4. (D) Utilization review, subject to § 50-6-124; and
  5. (E) Peer review programs.
3. (3) Section 50-6-204(a)(3), relative to medical care, shall apply to any managed care methodology employed pursuant to this section. For the purposes of § 50-6-204(a)(3), physicians and surgeons in the same HMO or PPO are considered to be associated in practice together if they share a common employer for purposes of their clinical practice, or are associated together in a group practice.
(b) A health care provider shall not pursue a private claim against a workers' compensation claimant for all or part of the costs of health care services provided to the claimant by the provider unless:
1. (1) The injury is finally adjudicated not to be compensable under this chapter;
2. (2) The physician or surgeon, as provided in § 50-6-204, who was not authorized by the employer at the time the services were rendered, knew that the physician or surgeon was not an authorized physician or surgeon; or
3. (3) The employee knew that the physician or surgeon was not an authorized physician or surgeon; provided, that subdivision (b)(2) and this subdivision (b)(3) do not apply to emergency care.

§ 50-6-123. Case management system for coordinating medical care services.

(a) All case managers, including case manager assistants, coordinating the medical care services provided to employees claiming benefits or handling claims of employees claimed under this chapter shall be certified by the bureau pursuant to this section.
(b) The administrator shall establish, pursuant to the administrator's rulemaking authority, a system of case management for coordinating the medical care services provided to employees claiming benefits under this chapter; provided, however, it is within the discretion of the administrator to provide or deny case management services to any employee who has suffered a workers' compensation injury. Pursuant to the administrator's rulemaking authority, the administrator may establish:
1. (1) Minimum standards for the professional practice of case managers and case manager assistants; and
2. (2) A procedure for case managers and case manager assistants to obtain certification if required pursuant to this section.
(c) Any case manager, case manager assistant, or person or entity that employs a case manager who fails to comply with this section, or rules promulgated pursuant to this section, may be subject, after notice of a violation has been provided, to a penalty of not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000) per violation, at the discretion of the administrator. In addition to any penalty assessed pursuant to this subsection (c), the administrator may also suspend the person's certification as a case manager or case manager assistant if, in the discretion of the administrator, the person has an established pattern of violations of this section.
(d) The bureau shall notify any person who has violated this section of such violation and may assess a penalty, suspend the person's certification, or both. The person shall have fifteen (15) calendar days from the date notice was sent to appeal the decision pursuant to the procedures provided for under the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, or to pay the assessed penalty.
(e) Nothing in this section shall prevent an employer from establishing its own program of case management that meets the guidelines promulgated by the administrator in rules.
(f) Medical care, treatment, therapy, or services provided at the employee's residence pursuant to this chapter shall not be considered home health services as defined in § 68-11-201 when provided pursuant to direction of the employee's attending physician in the following specific circumstances only:
1. (1) By a licensed healthcare provider who routinely provides services to employees at the place of employment, if the services rendered by the provider at the employee's residence are of the same type rendered by the provider at the place of employment; or
2. (2) By a licensed physical therapist, occupational therapist, or speech therapist practicing independently of a home health agency, when the employee's attending physician determines that it is in the best interest of the employee to be treated by the independent therapist because of the therapist's expertise in workplace injuries.

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§ 50-6-124. Utilization review system — Preadmission review — Penalties for rendering excessive or inappropriate services — Legislative intent — Treatment guidelines.

(a) The administrator of the bureau of workers' compensation shall establish a system of utilization review of selected outpatient and inpatient healthcare providers for employees claiming benefits under this chapter, to be performed by utilization review organizations accredited by either the Utilization Review Accreditation Commission (URAC) or the National Committee for Quality Assurance (NCQA). Utilization review organizations shall be required to provide proof of such accreditation beginning July 1, 2016.
(b) The administrator shall also establish a system of preadmission review of all hospital admissions, except for emergency services; however, utilization review pursuant to subsection (a) and this subsection (b) shall begin within one (1) working day of all emergency hospital admissions.
(c) Pursuant to the administrator's established system of utilization review, the administrator may contract with an independent utilization review organization, not owned by or affiliated with any carrier authorized to write workers' compensation insurance in the state, to provide utilization review, including peer review.
(d) Nothing in this section shall prevent an employer from electing to provide utilization review; however, if the employee, provider or any other party not contractually bound to the employer's utilization review program disagrees with that employer's utilization review, then that employee, provider or other party shall have recourse to the administrator's utilization review program, as provided for in this section.
(e) Pursuant to the utilization review conducted by the administrator, including providing an opportunity for a hearing, any health care provider who is found by the administrator to have rendered excessive or inappropriate services may be subject to:
1. (1) A forfeiture of the right to payment for those services that are found to be excessive or inappropriate;
2. (2) A civil penalty of not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000); or
3. (3) A temporary or permanent suspension of the right to provide medical care services for workers' compensation claims if the health care provider has established a pattern of violations.
(f) It is the intent of the general assembly to ensure the availability of quality medical care services for injured and disabled employees and to manage medical costs in workers' compensation matters by eradicating prescription drug abuse through the employment of the system established by subsection (a) to review any healthcare provider prescribing one (1) or more Schedule II, III, or IV controlled substances for pain management to an injured or disabled employee for a period of time exceeding ninety (90) days from the initial prescription of such controlled substances.
(g) In consultation with the administrator's medical advisory committee, the administrator shall, by rules to become effective on January 1, 2016, adopt guidelines for the diagnosis and treatment of commonly occurring workers' compensation injuries.
(h) Any treatment that explicitly follows the treatment guidelines adopted by the administrator or is reasonably derived therefrom, including allowances for specific adjustments to treatment, shall have a presumption of medical necessity for utilization review purposes. This presumption shall be rebuttable only by clear and convincing evidence that the treatment erroneously applies the guidelines or that the treatment presents an unwarranted risk to the injured worker.
(i) The administrator may assess a reasonable fee, not to exceed two hundred fifty dollars ($250), for an appeal of any utilization review decision.
(j)
1. (1) Except as otherwise provided in subdivision (j)(2), the system of utilization review established by the administrator or provided by an employer shall not apply to:
  1. (A) Diagnostic procedures ordered in accordance with the treatment guidelines by the authorized treating physician or chiropractor in the first thirty (30) days after the date of injury; or
  2. (B) Diagnostic studies recommended by the treating physician in the event the initial treatment regimen is nonsurgical, without diagnostic testing, and is not successful in returning the injured worker to employment.
2. (2) A recommended invasive procedure shall be subject to utilization review at any time.
3. (3) For purposes of this subsection (j):
  1. (A) “Diagnostic procedures” includes, but is not limited to, routine and specialty radiography, magnetic resonance imaging that is not for low back pain without radiculopathy, a computerized tomography scan, a myelogram, an arthrogram, an ultrasound, and electromyogram and nerve conduction velocity testing; and
  2. (B) “Initial treatment” means the first series of treatments or therapies or first two (2) medication trials ordered by the authorized treating physician in accordance with the adopted treatment guidelines within sixty (60) days of a reported injury.

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§ 50-6-125. Medical payment committee.

(a)
1. (1) The administrator shall appoint a medical payment committee. The committee shall hear disputes on medical bill payments between providers and insurers and advise the administrator on issues relating to the medical fee schedule and medical care cost containment in the workers' compensation system. Upon hearing disputes on medical bill payments between providers and insurers, the medical payment committee shall have authority to render a decision on the merits of a dispute. If the medical payment committee determines that a provider or insurer has acted in bad faith in refusing to provide payment for a medical bill or refusing to provide reimbursement for overpayment, the medical payment committee, upon a majority vote, shall refer the malfeasant provider or insurer to the bureau for consideration of assessment of a civil penalty of no more than one thousand dollars ($1,000) per occurrence. Any provider or insurer aggrieved by the assessment of a penalty under this subsection (a) shall have the right to seek review of the penalty assessment in the manner provided by § 50-6-118(c).
2. (2) The committee shall be comprised of seven (7) voting members appointed by the administrator as follows:
  1. (A) Three (3) members shall be representative of the medical provider industry;
  2. (B) Three (3) members shall be representative of the workers' compensation insurance industry; and
  3. (C) The medical director shall serve as the final member of the committee but shall not cast a vote unless a vote taken by members results in a tie. In that case, the medical director shall cast the deciding vote.
(b) In making appointments, the administrator shall strive to achieve a geographic balance and, in the case of the physician members of the committee, shall assure, to the extent possible, that the membership of the committee reflects the diversity of specialties involved in the medical treatment and management of workers' compensation claimants.
(c) Members of the committee shall serve without compensation but, when engaged in the conduct of their official duties as members of the committee, shall be entitled to reimbursement for travel expenses in accordance with uniform regulations promulgated by the department of finance and administration and approved by the attorney general and reporter.
(d) Each member appointed shall serve a term of four (4) years and may be reappointed by the administrator. If a member leaves the position prior to the expiration of the term, the administrator shall appoint an individual meeting the qualifications of this section to serve the unexpired portion of the term, and the individual may be reappointed by the administrator upon expiration of the term.
(e) This section applies to all disputes of medical bill payments for services provided, pursuant to this chapter, on or after July 1, 2014.

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§ 50-6-126. Medical director.

The administrator shall appoint a medical director who shall be the executive secretary and a nonvoting ex officio member of the medical committee. The medical director shall be appointed from a list of three (3) nominees submitted by the Tennessee Medical Association. If the administrator finds the list of three (3) nominees to be unsatisfactory, then the administrator shall return the list to the Tennessee Medical Association and the association shall submit another list of nominees. This process shall be repeated, if necessary, until the administrator selects a nominee to be medical director. The medical director may be a part-time employee, a full-time employee or a contract employee, and shall perform the following functions for which the medical director shall be responsible to the administrator or medical care and cost containment committee, as appropriate:
1. (1) Institute administrative procedures that will enable the medical director to evaluate medical care to effect optimal treatment in workers' compensation cases;
2. (2) Inquire into instances where the medical treatment or the physical rehabilitation provided appears to be deficient or incomplete and recommend corrective action when indicated;
3. (3) Advise on the disposition of complaints of a physician's failure to furnish adequate medical care as required by this law or by rules and regulations adopted by the administrator, the disposition of complaints concerning other aspects of the medical management of a workers' compensation case or the failure to render required reports, and the disposition of complaints of any affected party as to unreasonable interference with the medical management of a workers' compensation case;
4. (4) Gather data and maintain records necessary to fulfill the medical director's responsibilities;
5. (5) Conduct studies and prepare and issue reports on the medical aspect of workers' compensation cases;
6. (6) Expedite the submission and processing of medical reports necessary to the processing of claims;
7. (7) Advise health care providers of their rights and responsibilities under this chapter and under any rules or regulations promulgated pursuant to this chapter;
8. (8) Advise the medical care and cost containment committee as to the reasonableness of fees for medical services in particular cases; and
9. (9) Undertake other functions that may be delegated to the medical director by the administrator.

§ 50-6-127. Public awareness program concerning workers' compensation fraud — Investigations and referrals.

(a) The administrator, in consultation with the commissioner of commerce and insurance and appropriate law enforcement officials, shall implement a public awareness program concerning workers' compensation fraud.
(b) The bureau of workers' compensation shall investigate to determine whether any fraudulent conduct relating to workers' compensation is being practiced, and shall refer to an appropriate law enforcement agency any finding of fraud.

§ 50-6-128. Penalty for employer causing compensable claim to be paid by health insurance or failing to provide necessary medical treatment.

If any employer knowingly, willfully, and intentionally causes a medical or wage loss claim to be paid under health or sickness and accident insurance, or fails to provide reasonable and necessary medical treatment, including a failure to reimburse when the employer knew that the claim arose out of a compensable work-related injury and should have been submitted under its workers' compensation insurance coverage, then a civil penalty of five hundred dollars ($500) shall be assessed against the employer, and the employer may not offset any sickness and accident income benefit paid to the employee against its temporary total disability benefit payment liability due to the employee pursuant to this chapter. The administrator of the bureau of workers' compensation has the authority to assess and collect the civil penalty.

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9-8-307(a)(1)(K)(ii)

§ 50-6-129. [Reserved.]

§ 50-6-130. [Reserved.]

§ 50-6-131. Confidentiality of medical records.

Medical records provided to the bureau of workers' compensation in the course of its activities and the review of settlements pursuant to this chapter shall remain confidential and shall not be considered to be public records.

§ 50-6-132. Report of employers who fail to provide coverage.

No later than December 31 of each year, the bureau of workers' compensation shall produce a report that includes a listing of the name of each covered employer that failed, during the preceding state fiscal year, to provide workers' compensation coverage or qualify as a self-insured employer as required by law. Only those employers whose failure resulted in periods of noncoverage shall be included within the report. The report shall also include the penalty assessed by the bureau and the payment status of the penalty. The report shall be provided to the advisory council on workers' compensation and the chairs of the commerce and labor committee of the senate and the commerce committee of the house of representatives.

§ 50-6-133. [Reserved.]

§ 50-6-134. Annual review.

The bureau shall, on or before July 1, 2015, and annually thereafter, review the impact of the Workers' Compensation Reform Act of 2013 on the workers' compensation system in this state and deliver a report of its findings to each member of the general assembly.

§ 50-6-135. Medical advisory committee.

(a)
1. (1) The administrator shall appoint a medical advisory committee comprised of practitioners in the medical community having experience in the treatment of workers' compensation injuries, representatives of the insurance industry, employer representatives, and employee representatives to assist the administrator in the development of treatment guidelines and advise the administrator on issues relating to medical care in the workers' compensation system.
2. (2) The medical director shall serve as a nonvoting ex-officio member of the committee.
(b) In making appointments, the administrator shall strive to achieve a geographic balance and, in the case of the physician members of the committee, shall assure, to the extent possible, that the membership of the committee reflects the diversity of specialties involved in the medical treatment and management of workers' compensation claimants.
(c) Members of the committee shall serve without compensation but, when engaged in the conduct of their official duties as members of the committee, shall be entitled to reimbursement for travel expenses in accordance with uniform regulations promulgated by the department of finance and administration and approved by the attorney general and reporter.
(d) Each member appointed shall serve a term of four (4) years and may be reappointed by the administrator. If a member leaves the position prior to the expiration of the term, the administrator shall appoint an individual meeting the qualifications of this section to serve the unexpired portion of the term. The individual may be reappointed by the administrator upon expiration of the term.

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4-29-245(a)(21)

Part 2 Claims and Payment of Compensation

§ 50-6-201. Notice of injury.

(a)
1. (1) Every injured employee or the injured employee's representative shall, immediately upon the occurrence of an injury, or as soon thereafter as is reasonable and practicable, give or cause to be given to the employer who has no actual notice, written notice of the injury, and the employee shall not be entitled to physician's fees or to any compensation that may have accrued under this chapter, from the date of the accident to the giving of notice, unless it can be shown that the employer had actual knowledge of the accident. No compensation shall be payable under this chapter, unless the written notice is given to the employer within fifteen (15) days after the occurrence of the accident, unless reasonable excuse for failure to give the notice is made to the satisfaction of the tribunal to which the claim for compensation may be presented.
2. (2) The notice of the occurrence of an accident by the employee required to be given to the employer shall state in plain and simple language the name and address of the employee and the time, place, nature, and cause of the accident resulting in injury or death. The notice shall be signed by the claimant or by some person authorized to sign on the claimant's behalf, or by any one (1) or more of the claimant's dependents if the accident resulted in death to the employee.
3. (3) No defect or inaccuracy in the notice shall be a bar to compensation, unless the employer can show, to the satisfaction of the workers' compensation judge before which the matter is pending, that the employer was prejudiced by the failure to give the proper notice, and then only to the extent of the prejudice.
4. (4) The notice shall be given personally to the employer or to the employer's agent or agents having charge of the business at which the injury was sustained by the employee.
(b) In those cases where the injuries occur as the result of gradual or cumulative events or trauma, then the injured employee or the injured employee's representative shall provide notice of the injury to the employer within fifteen (15) days after the employee:
1. (1) Knows or reasonably should know that the employee has suffered a work-related injury that has resulted in permanent physical impairment; or
2. (2) Is rendered unable to continue to perform the employee's normal work activities as the result of the work-related injury and the employee knows or reasonably should know that the injury was caused by work-related activities.

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50-6-203(b)(1)

§ 50-6-202. Electronic submission and processing of medical bills.

(a) On or after July 1, 2014, the administrator, in cooperation with the commissioner of commerce and insurance, shall adopt rules regarding the electronic submission and processing of medical bills by health care providers to insurance carriers.
(b) Insurance carriers shall accept medical bills submitted electronically by health care providers in accordance with the administrator's rules.
(c) The administrator shall establish by rule the criteria for granting exceptions to insurance carriers and health care providers who are unable to submit or accept medical bills electronically.

§ 50-6-203. Limitation of time, claims and actions.

(a) No request for a hearing by a workers' compensation judge under this chapter shall be filed with the court of workers' compensation claims, other than a request for settlement approval, until a workers' compensation mediator has issued a dispute certification notice certifying issues in dispute for hearing before a workers' compensation judge.
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- 9-8-307(a)(1)(K)(ii)
(b)
1. (1) In instances when the employer has not paid workers' compensation benefits to or on behalf of the employee, the right to compensation under this chapter shall be forever barred, unless the notice required by § 50-6-201 is given to the employer and a petition for benefit determination is filed with the bureau on a form prescribed by the administrator within one (1) year after the accident resulting in injury.
2. (2) In instances when the employer has voluntarily paid workers' compensation benefits, within one (1) year following the accident resulting in injury, the right to compensation is forever barred, unless a petition for benefit determination is filed with the bureau on a form prescribed by the administrator within one (1) year from the latter of the date of the last authorized treatment or the time the employer ceased to make payments of compensation to or on behalf of the employee.
(c) For purposes of this section, the issuing date of the last payment of compensation by the employer, not the date of its receipt, shall constitute the time the employer ceased making payments and an employer or its insurer shall provide the date on request.
(d) In case of physical or mental incapacity, other than minority, of the injured person or the injured person's dependents to perform or cause to be performed any action required within the time specified in this section, then the period of limitation in the case shall be extended for one (1) year from the date when the incapacity ceases.
(e)
1. (1) Unless a claim for death benefits is settled or voluntarily paid, the dependent or dependents of a deceased employee shall file a petition for benefit determination on a form prescribed by the administrator within one (1) year after the date of the employee's death.
2. (2) In the event the deceased employee was a native of a foreign country and leaves no known dependent or dependents within the United States, it shall be the duty of the administrator to give written notice forthwith of the death to the duly accredited consular officer of the country of which the beneficiaries are citizens.
(f) If the employee fails to appear and participate in alternative dispute resolution as scheduled by the bureau, a workers' compensation judge shall have the authority to dismiss the employee's claim by sending a copy of the order of dismissal by certified mail with return receipt requested to the employee's last known address. The order of dismissal for failure to participate in alternative dispute resolution shall become final and the claim shall be forever barred, unless the employee contacts the bureau to schedule mediation and attends mediation within sixty (60) days after the date on which the workers' compensation judge enters the order of dismissal. If the employee complies with the requirements of this subsection (f) within the timeframe provided, the workers' compensation judge shall rescind the order dismissing the employee's claim for failure to participate in alternative dispute resolution.
(g) Proceedings to obtain a judgment in the case of the failure of the employer for thirty (30) days to pay any compensation due under any settlement or determination shall be filed within one (1) year after the default.
(h) In any case where an employer has paid permanent partial disability benefits to an employee in an attempt to settle a claim for workers' compensation benefits but the employee and employer have not entered into a settlement agreement that has been approved by a workers' compensation judge, the statute of limitations for filing a claim to recover workers' compensation benefits pursuant to this chapter shall be extended for two (2) years from the date the last payment of permanent partial disability benefits was made to the employee.

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§ 50-6-204. Medical treatment, attendance and hospitalization — Release of medical records — Reports — Disputes — Reimbursement or payment of expenses — Burial expenses — Physical examinations — Pain management — Impairment ratings.

(a)
1. (1)
  1. (A) The employer or the employer's agent shall furnish, free of charge to the employee, such medical and surgical treatment, medicine, medical and surgical supplies, crutches, artificial members, and other reasonable and necessary apparatus, including prescription eyeglasses and eye wear, such nursing services or psychological services as ordered by the attending physician and hospitalization, including such dental work made reasonably necessary by accident as defined in this chapter.
  2. (B) No medical provider shall charge more than ten dollars ($10.00) for the first twenty (20) pages or less, and twenty-five cents (25¢) per page for each page after the first twenty (20) pages, for any medical reports, medical records or documents pertaining to medical treatment or hospitalization of the employee that are furnished pursuant to this subsection (a).
2. (2)
  1. (A) It is the intent of the general assembly that the administration of the workers' compensation system proceed in a timely manner and that the parties and the bureau have reasonable access to the employee's medical records and medical providers that are pertinent to and necessary for the efficient resolution of the employee's workers' compensation claim in a timely manner. To that end, employers or case managers may communicate with the employee's authorized treating physician, orally or in writing, and each medical provider shall be required to release the records of any employee treated for a work-related injury to both the employer and the employee within thirty (30) days after admission or treatment. There shall be no implied covenant of confidentiality with respect to those records, which will include all written memoranda or visual or recorded materials, e-mails and any written materials provided to the employee's authorized treating physician, by case managers, employers, insurance companies, or their attorneys or received from the employee's authorized treating physician.
  2. (B) For purposes of subdivision (a)(2), “employer” means the employer, the employer's attorney, the employer’s insurance carrier or third party administrator, a case manager as authorized by § 50-6-123, or any utilization review agent as authorized by § 50-6-124 during the employee’s treatment for the claimed workers’ compensation injury.
  3. (C) If the bureau becomes involved in the appeal of a utilization review issue, then the bureau is authorized to communicate with the medical provider involved in the dispute, either orally or in writing, to permit the timely resolution of the issue and shall notify the employee, employer, and any attorney representing the employee or employer that they may review or copy the documents and responses. Each party requesting copies of records shall pay a fee authorized by subdivision (a)(1)(B) prior to the bureau providing the requested copies.
  4. (D) No relevant information developed in connection with authorized medical treatment or an examination provided pursuant to this section for which compensation is sought by the employee shall be considered a privileged communication, and no medical provider shall incur any liability as a result of providing medical information, records, opinions, or reports as described in subdivision (a)(2)(C); provided, that the medical provider complies with subdivision (a)(2)(C).
3. (3)
  1. (A)
    1. (i) The injured employee shall accept the medical benefits afforded under this section; provided that in any case when the employee has suffered an injury and expressed a need for medical care, the employer shall designate a group of three (3) or more independent reputable physicians, surgeons, chiropractors or specialty practice groups if available in the injured employee's community or, if not so available, in accordance with subdivision (a)(3)(B), from which the injured employee shall select one (1) to be the treating physician.
    2. (ii) When necessary, the treating physician selected in accordance with this subdivision (a)(3)(A) shall make referrals to a specialist physician, surgeon, or chiropractor and immediately notify the employer. The employer shall be deemed to have accepted the referral, unless the employer, within three (3) business days, provides the employee a panel of three (3) or more independent reputable physicians, surgeons, chiropractors or specialty practice groups. In this case, the employee may choose a specialist physician, surgeon, chiropractor or specialty practice group to provide treatment only from the panel provided by the employer.
    3. (iii) The liability of the employer for the services provided to the employee shall be limited to the maximum allowable fees that are established in the applicable medical fee schedule adopted pursuant to this section.
    4. (iv) The bureau shall have authority to waive subdivision (a)(3)(A)(iii) when necessary to provide treatment for an injured employee.
  2. (B) If three (3) or more independent reputable physicians, surgeons, chiropractors, or specialty practice groups not associated in practice together are not available in the employee's community, the employer shall provide a list of three (3) independent reputable physicians, surgeons, chiropractors, or specialty practice groups not associated in practice together that are within a one-hundred-twenty-five-mile radius of the employee's community of residence. For purposes of this subdivision (a)(3)(B), “not associated in practice together” means at least one (1) physician, surgeon, chiropractor, or specialty practice group is not associated in practice with another physician, surgeon, chiropractor, or specialty practice group that is on the list or panel provided to an employee pursuant to this section.
  3. (C) When the treating physician or chiropractor refers the injured employee, the employee shall be entitled to have a second opinion on the issue of surgery and diagnosis from a physician or chiropractor from a panel of two (2) physicians practicing in the same specialty as the physician who recommended the surgery. In cases where the employer has provided a panel of specialists pursuant to subdivision (a)(3)(A)(i) of this section, the employee may choose one (1) of the two (2) remaining specialists to provide a second opinion on the issue of surgery and diagnosis. The employee's decision to obtain a second opinion shall not alter the previous selection of the treating physician or chiropractor.
  4. (D)
    1. (i) The employer shall provide the applicable panel of physicians or chiropractors to the employee in writing on a form prescribed by the bureau, and the employee shall select a physician or chiropractor from the panel, sign and date the completed form, and return the form to the employer. The employer shall provide a copy of the completed form to the employee and shall maintain a copy of the completed form in the records of the employer and shall produce a copy of the completed form upon request by the bureau.
    2. (ii) In any case when the employee has been presented the physician selection form but has failed to sign the completed form and return it to the employer, the employee's receipt of treatment from any physician provided in the panel after the date the panel was provided shall constitute acceptance of the panel and selection of the physician from whom the employee received treatment as the treating physician, specialist physician, chiropractor or surgeon.
  5. (E) In all cases where the treating physician has referred the employee to a specialist physician, surgeon, chiropractor or specialty practice group, the specialist physician, surgeon, or chiropractor to which the employee has been referred, or selected by the employee from a panel provided by the employer, shall become the treating physician until treatment by the specialist physician, surgeon, or chiropractor concludes and the employee has been referred back to the treating physician selected by the employee from the initial panel provided by the employer under subdivision (a)(3)(A).
  6. (F) In all cases when an employee changes the employee's community of residence after selection of a physician under this subdivision (a)(3), the employer shall provide the employee, upon written request, a new panel of reputable physicians, surgeons, chiropractors or specialty practice groups, as provided in subdivision (a)(3)(A), from which the injured employee shall select one (1) to be the treating physician.
  7. (G) If any physician, surgeon, chiropractor or specialty practice group included on a panel provided to an employee under this subsection (a) declines to accept the employee as a patient for the purpose of providing treatment to the employee for his workers' compensation injury, the employee may either select a physician from the remaining physicians, surgeons or chiropractors included on the initial panel provided to the employee pursuant to subdivision (a)(3)(A) or request that the employer provide an additional choice of a physician, surgeon, chiropractor or specialty practice group to replace the physician, surgeon or chiropractor who refused to accept the injured employee as a patient for the purpose of treating the employee's workers' compensation injury.
  8. (H) Any treatment recommended by a physician or chiropractor selected pursuant to this subdivision (a)(3) or by referral, if applicable, shall be presumed to be medically necessary for treatment of the injured employee.
  9. (I) Following the adoption of treatment guidelines pursuant to § 50-6-124, the presumption of medical necessity for treatment recommended by a physician or chiropractor selected pursuant to this subsection (a) or by referral, if applicable, shall be rebuttable only by clear and convincing evidence demonstrating that the recommended treatment substantially deviates from, or presents an unreasonable interpretation of, the treatment guidelines.
  2 Backlinks
  - 50-6-102(12)(E)
  - 50-6-122(a)(3)
4. (4)
  1. (A) When an injured worker is required by the worker's employer to travel to an authorized medical provider or facility located outside a radius of fifteen (15) miles from the injured worker's residence or workplace, then, upon request, the employee shall be reimbursed for reasonable travel expenses. The injured employee's travel reimbursement shall be calculated based on a per mile reimbursement rate, as defined in subdivision (a)(4)(B), times the total round trip mileage as measured from the employee's residence or workplace to the location of the medical provider's facility. The definition of community as contemplated by this subdivision (a)(4)(A) shall apply only for the purposes of this section.
  2. (B) The per mile reimbursement rate for the injured employee shall be no less than the mileage allowance authorized for state employees who have been authorized to use personally owned vehicles in the performance of their duties. This minimum per mile reimbursement rate shall be based on the last published comprehensive travel regulations promulgated by the department of finance and administration.
(b) Where the nature of the injury or occupational disease, as defined in § 50-6-102, is such that it does not disable the employee but reasonably requires medical, surgical, psychological or dental treatment or care, medicine, surgery, dental and psychological treatment, medicine, medical and surgical supplies, crutches, artificial members, and other apparatus shall be furnished by the employer.
(c) In case death results from the injury or occupational disease, as defined in § 50-6-102, the employer shall, in addition to the medical services, etc., referred to in subsections (a) and (b), pay the burial expenses of the deceased employee, not exceeding ten thousand dollars ($10,000). If the deceased employee leaves no dependents entitled to compensation under this chapter, the employer shall pay to the employee's estate the additional benefits provided in § 50-6-209(b)(2) and (3), and shall also be liable for the medical and hospital services and burial expenses provided for in this section.
(d)
1. (1) The injured employee must submit to examination by the employer's physician at all reasonable times if requested to do so by the employer, but the employee shall have the right to have the employee's own physician present at the examination, in which case the employee shall be liable to the employee's physician for that physician's services.
2. (2) Any medical report submitted to the employer based upon the examination, or a true copy of the report, shall be furnished by the employer to the employee upon request; provided, that the employer may, in the employer's discretion, furnish the report to the attorney for the employee or to a member of the employee's family.
3. (3) The employer shall pay for the services of the physician making the examination at the instance of the employer.
  4 Backlinks
4. (4) When a dispute as to the degree of medical impairment exists, either party may request an independent medical examiner from the administrator's registry. If the parties are unable to mutually agree on the selection of an independent medical examiner from the administrator's registry, it shall be the responsibility of the employer to provide a written request to the administrator for assignment of an independent medical examiner with a copy of the notice provided to the other party. Upon receipt of the written request, the administrator shall provide the names of three (3) independent medical examiners chosen at random from the registry. No physician may serve as an independent medical examiner in a case and serve on any panel of providers selected under this section for the employer involved in such case. The administrator shall immediately notify the parties by facsimile or e-mail when the list of independent medical examiners has been assigned to a matter, but in any event the notification shall be made within five (5) business days of the date of the request. The employer may strike one (1) name from the list, with the rejection made and communicated to the other party by facsimile or e-mail no later than the third business day after the date on which notification of the list is provided. The employee shall select a physician to perform the independent medical examination from the remaining physicians on the list. All costs and fees for an independent medical examination and report made pursuant to this subdivision (d)(4) shall be paid by the employer. The written opinion as to the permanent impairment rating given by the independent medical examiner pursuant to this subdivision (d)(4) shall be presumed to be the accurate impairment rating; provided, however, that this presumption may be rebutted by clear and convincing evidence to the contrary.
  1 Backlink
  - 50-6-208(h)
5. (5) The administrator shall establish by rule, in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, an independent medical examiners registry. The administrator shall establish qualifications for the independent medical examiners, including continuing education and peer review requirements, with the advice of the Tennessee Medical Association and the advisory council on workers' compensation, established by § 50-6-121. The rules established shall include, but not be limited to, qualifications and procedures for submission of an application for inclusion on the registry, procedures for the review and maintenance of the registry, and procedures for assignment that ensures that the composition of the panels is random.
6. (6) Whenever the nature of the injury is such that specialized medical attention is required or indicated and the specialized medical attention is not available in the community in which the injured employee resides, the injured employee can be required to go, at the request of and at the expense of the employer, to the nearest location at which the specialized medical attention is available.
7. (7) If the injured employee refuses to comply with any reasonable request for examination or to accept the medical or specialized medical services that the employer is required to furnish under this chapter, the injured employee's right to compensation shall be suspended and no compensation shall be due and payable while the injured employee continues to refuse.
8. (8) For accidents or injuries occurring on or after July 1, 2005, in case of a dispute as to the injury, other than disputes as to the degree of medical impairment, the court may, at the instance of either party or on its own motion, appoint a neutral physician of good standing and ability to make an examination of the injured person and report the physician's findings to the court, the expense of which examination shall be borne equally by the parties.
(e) In all death claims where the cause of death is obscure or is disputed, any interested party may require an autopsy, the cost of which is to be borne by the party demanding the autopsy.
(f) Any physician whose services are furnished or paid for by the employer and who treats or makes or is present at any examination of an injured employee may be required to testify as to any knowledge acquired by the physician in the course of the treatment or examination as the treatment or examination relates to the injury or disability arising therefrom.
(g)
1. (1) If an emergency, or on account of the employer's failure or refusal to provide the medical care and services required by this law, the injured employee or the injured employee's dependents may provide the medical care and services, and the cost of the medical care and services, not exceeding three hundred dollars ($300), shall be borne by the employer; provided, that the pecuniary liability of the employer shall be limited to the charges for the service that prevail in the community where the services are rendered.
2. (2)
  1. (A) If an employer does not provide medical care and treatment, medical services or medical benefits, or both, that an employee contends should be provided as a result of a judgment or decree entered by a workers' compensation judge following a workers' compensation trial or as a result of a workers' compensation settlement agreement, either the employee or the employer, or the attorney for the employee or employer, shall request the assistance of a workers' compensation mediator to determine whether such medical care and treatment, medical services or medical benefits, or both, are appropriate by filing a petition for benefit determination and participating in alternative dispute resolution as provided in § 50-6-236. If the parties do not resolve the dispute by agreement, either party may file a request for a hearing and submit the dispute to a workers' compensation judge for resolution in accordance with § 50-6-239(c) after the workers' compensation mediator has issued a dispute certification notice in accordance with § 50-6-236.
  2. (B) A workers' compensation judge shall have the authority to determine whether it is appropriate to order the employer or the employer's insurer to provide specific medical care and treatment, medical services or medical benefits, or both, to the employee pursuant to a judgment or decree entered by a judge following a workers' compensation trial or pursuant to a workers' compensation settlement agreement approved by a workers' compensation judge pursuant to § 50-6-240. The workers' compensation judge's authority shall include, but is not limited to, the authority to order specific medical care and treatment, medical services or medical benefits, or both. The authority of a workers' compensation judge to order the provision of benefits under this section shall include authority to order specific medical care and treatment, medical services or medical benefits, or both for all settlements approved by the department, the bureau, the commissioner, the commissioner's designee or a workers' compensation specialist, even if the settlement was approved under prior law.
(h) All psychological or psychiatric services available under subdivisions (a)(1) and (b)(1) shall be rendered only by psychologists or psychiatrists and shall be limited to those ordered upon the referral of physicians authorized under subdivision (a)(3).
(i)
1. (1) The administrator, in consultation with the medical care and cost containment committee and the advisory council on workers' compensation, is authorized to establish by rule, in accordance with the Uniform Administrative Procedures Act, a comprehensive medical fee schedule and a related system that includes, but is not limited to, procedures for review of charges, enforcement procedures and appeal hearings to implement the fee schedule. In developing the rules, the administrator shall strive to assure the delivery of quality medical care in workers' compensation cases and access by injured workers to primary and specialist care while controlling prices and system costs. The medical care fee schedule shall be comprehensive in scope and shall address fees of physicians and surgeons, hospitals, prescription drugs, and ancillary services provided by other health care facilities and providers. The administrator may consider any and all reimbursement systems and methodologies in developing the fee schedule, except that, in no event shall the fee schedule set forth differing rates for reimbursement or conversion factors for reimbursement of physical or occupational therapy services based or dependent on whether the services are performed in independently-owned facilities or physician-affiliated facilities, and shall not otherwise consider the physician ownership in the facility providing services. However, differing reimbursement rates may be implemented by the administrator upon the department's presentation of state data demonstrating there is a need for differing reimbursement rates for physical/occupational therapy services and upon the department's holding a public hearing on the issue.
2. (2) The administrator is authorized to retain experts to assist in the development of the fee schedule and related system in accordance with the contracting rules of the department of finance and administration.
3. (3) The administrator, in consultation with the medical care and cost containment committee and the advisory council on workers' compensation, shall review the fee schedules adopted pursuant to this section on an annual basis and when appropriate the administrator shall revise the fee schedules as necessary. It is the intent of the general assembly that this annual review consider, among other factors, the medical consumer price index.
4. (4) The comprehensive medical fee schedule adopted pursuant to this subsection (i) is not intended to prohibit an employer, trust or pool, or insurer from negotiating lower fees in its own medical fee agreements.
5. (5) In order to improve the quality of medical care delivered to injured workers and improve the accuracy of permanent impairment ratings, the administrator is authorized to establish by rule a voluntary physician education program that provides an additional reimbursement under the comprehensive medical fee schedule adopted pursuant to this subsection (i). The additional reimbursement must be available to physicians and chiropractors. The administrator shall determine in rule the education and quality improvement requirements to receive the additional reimbursement.
(j)
1. (1) If a treating physician determines that pain is persisting for an injured or disabled employee beyond an expected period for healing, the treating physician may either prescribe, if the physician is a qualified physician as defined in subdivision (j)(2)(B), or refer, such injured or disabled employee for pain management encompassing pharmacological, nonpharmacological and other approaches to manage chronic pain.
2. (2)
  1. (A) In the event that a treating physician refers an injured or disabled employee for pain management, the employee is entitled to a panel of qualified physicians as provided in subdivision (a)(3) except that, in light of the variation in availability of qualified pain management resources across the state, if the office of each qualified physician listed on the panel is located not more than one hundred seventy-five (175) miles from the injured or disabled employee's residence or place of employment, then the community requirement of subdivision (a)(3) shall not apply for the purposes of pain management.
  2. (B) For purposes of the panel required by subdivision (j)(2)(A), “qualified physician” means a physician who has met the requirements set forth in the Chronic Pain Guidelines of the State of Tennessee, Department of Health, definition of “Pain Management Specialist.”
3. (3) The injured or disabled employee is not entitled to a second opinion on the issue of impairment, diagnosis or prescribed treatment relating to pain management. However, on no more than one (1) occasion, if the injured or disabled employee submits a request in writing to the employer stating that the prescribed pain management fails to meet medically accepted standards, then the employer shall initiate and participate in utilization review as provided in this chapter for the limited purpose of determining whether the prescribed pain management meets medically accepted standards.
4. (4)
  1. (A) As a condition of receiving pain management that requires prescribing Schedule II, III, or IV controlled substances, the injured or disabled employee may sign a formal written agreement with the physician prescribing the Schedule II, III, or IV controlled substances acknowledging the conditions under which the injured or disabled employee may continue to be prescribed Schedule II, III, or IV controlled substances and agreeing to comply with such conditions.
  2. (B) If the injured or disabled employee violates any of the conditions of the agreement on more than one (1) occasion, then:
    1. (i) The employee's right to pain management through the prescription of Schedule II, III, or IV controlled substances under this chapter shall be terminated and the injured or disabled employee shall no longer be entitled under this chapter to the prescription of such substances for the management of pain;
    2. (ii) For injuries occurring on or after July 1, 2012, the violation shall be deemed to be misconduct connected with the employee's employment for purposes of § 50-6-207(3); and
    3. (iii) For injuries occurring on or after July 1, 2012, in the event such violation occurs prior to a finding that the injured or disabled employee is totally disabled as provided in § 50-6-207(4), through either a judgment or decree entered by a court following a workers' compensation trial or a settlement agreement approved pursuant to § 50-6-206 [See the Compiler's Notes], the incapacity to work due to lack of pain management shall not be considered when determining whether the injured employee is entitled to permanent total disability benefits as provided in § 50-6-207(4).
  3. (C) A physician may disclose the employee's violation of the formal written agreement on the physician's own initiative. Upon request of the employer, a physician shall disclose the employee's violation of the formal written agreement as provided in this section.
  4. (D) The formal written agreement shall include a notice to the employee in capitalized, conspicuous lettering on the face of the agreement the consequences for violating the terms of the agreement as provided for in this subsection (j).
  5. (E)
    1. (i) If an employer terminates an injured or disabled employee's right under this chapter to pain management through the prescription of Schedule II, III, or IV controlled substances pursuant to alleged violations of the formal agreement as provided in subdivision (j)(4)(B), then the employee may file a petition for benefit determination.
    2. (ii) If an employer or insurer alleges that an injured or disabled employee is not entitled to reconsideration under § 50-6-207(3) or permanent total disability benefits as provided in § 50-6-207(4) because of the employee’s alleged violations of the formal agreement as provided in subdivision (j)(4)(B), then a court shall also determine whether such violations occurred.
5. (5) Prescribing one (1) or more Schedule II, III, or IV controlled substances for pain management treatment of an injured or disabled employee for a period of time exceeding ninety (90) days from the initial prescription of any such controlled substances is considered to be medical care services for the purposes of utilization review as provided in this chapter. The department is authorized to impose a fee for the administration of an appeal process for utilization review under this subdivision (j)(5) and subdivision (j)(3).
(k)
1. (1) All permanent impairment ratings shall be assigned by the treating physician or chiropractor.
2. (2)
  1. (A) The treating physician or chiropractor shall utilize the applicable edition of the AMA guides as established by this chapter.
    1 Backlink
    
    50-6-102(2)
  2. (B) The medical advisory committee shall, within six (6) months of the release of a new edition, conduct an evaluation of the new edition, report the committee's findings to the administrator and recommend to the administrator whether the new edition should be designated for application to this chapter. The administrator shall report the committee's findings and recommendation to the general assembly. The AMA guides, as defined in § 50-6-102, shall remain in effect until a new edition is designated by the general assembly.
  3. (C) No impairment rating, whether contained in a medical record, medical report, including a medical report pursuant to § 50-6-235(c), deposition, or oral expert opinion testimony shall be accepted during alternative dispute resolution proceedings or be admissible into evidence at the trial of a workers' compensation claim unless the impairment rating is based on the applicable edition of the AMA guides or, in cases not covered by the AMA guides, an impairment rating by any appropriate method used and accepted by the medical community.
3. (3) The treating physician or chiropractor shall assign impairment ratings as a percentage of the body as a whole and shall not consider complaints of pain in calculating the degree of impairment, notwithstanding allowances for pain provided by the applicable edition of the AMA guides as established by this chapter.
4. (4) The treating physician or chiropractor shall evaluate the employee for purposes of assigning an impairment rating and the employee shall attend the evaluation. An employee who fails to attend a scheduled evaluation without justifiable cause shall be subject to sanctions up to and including dismissal of the employee's claim for workers' compensation benefits.
5. (5) Scheduling of the evaluation shall occur within time limits and according to procedures promulgated by the administrator by rule.
6. (6) The treating physician or chiropractor shall complete the evaluation and submit an impairment rating report, on a form prescribed by the administrator, within time limits imposed by the administrator through the promulgation of rules.
7. (7) The treating physician's or chiropractor's written opinion of the injured employee's permanent impairment rating shall be presumed to be the accurate impairment rating. This presumption shall be rebuttable by the presentation of contrary evidence that satisfies a preponderance of the evidence standard.

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§ 50-6-205. Period of compensation — Maximum amount — Notice of payment, change or nonpayment — Records — Notice of controversy.

(a) No compensation shall be allowed for the first seven (7) days of disability resulting from the injury, excluding the day of injury, except the benefits provided for in § 50-6-204, but if disability extends beyond that period, compensation shall commence with the eighth day after the injury. In the event, however, that the disability from the injury exists for a period as long as fourteen (14) days, then compensation shall be allowed beginning with the first day after the injury.
(b)
1. (1) The total amount of compensation payable under this part shall not exceed the maximum total benefit, as that benefit is defined in § 50-6-102, in any case, exclusive of travel reimbursement, medical, hospital and funeral benefits.
2. (2) Compensation shall be paid promptly. The first payment shall be due and payable within fifteen (15) days after the employer has knowledge of any disability or death, and thereafter compensation shall be paid to the employee or the employee's dependents semimonthly. Evidence of the initiation or denial of the compensation is inadmissible in a subsequent proceeding concerning the issue of the compensability of injury.
  1 Backlink
  - 9-8-307(a)(1)(K)(ii)
3. (3)
  1. (A) In addition to any other penalty provided by law, if an employer, trust or pool or an employer's insurer fails to pay, or untimely pays, temporary disability benefits within twenty (20) days after the employer has knowledge of any disability that would qualify for benefits under this chapter, a workers' compensation judge shall have the authority to assess against the employer, trust or pool or the employer's insurer a civil penalty in addition to the temporary disability benefits that are due to the employee. The penalty, if assessed, shall be in an amount equal to twenty-five percent (25%) of the temporary disability benefits that were not paid in accordance with this subsection (b). Furthermore, the penalty may be assessed as to all temporary disability benefits that are determined not to be paid in compliance with this subsection (b).
  2. (B) Prior to the assessment of any civil penalty, the judge shall issue a written request to the employer or insurance carrier to provide documentation as to why the civil penalty should not be assessed.
  3. (C) If the judge determines the employer or insurer was not in compliance with this subsection (b), the judge shall issue a written order that assesses the penalty in a specific dollar amount to be paid directly to the employee. If the employer or insurer fails to comply with the order within fifteen (15) calendar days of that order's becoming final, the employer or insurer shall be subject to penalties as set forth in § 50-6-239(f).
  4. (D) In any civil action filed pursuant to this chapter, the court shall have the authority to assess penalties as provided in this subdivision (b)(3).
(c) Upon making the first payment of benefits, and upon stopping or changing the benefits for any cause other than final settlement, or upon denying a claim after proper investigation, the employer's insurance carrier or the employer, if self-insured, shall immediately notify the administrator, on a form prescribed by the administrator, that the payment of income benefits has begun or has been stopped or changed.
(d)
1. (1) If payments have been made without an award, and the employer subsequently elects to controvert the employer's liability, notice of controversy shall be filed with the administrator within fifteen (15) days of the due date of the first omitted payment.
2. (2) In such cases, the prior payment of compensation shall not be considered a binding determination of the obligations of the employer as to future compensation payments.
3. (3) Likewise, the acceptance of compensation by the employee shall not be considered a binding determination of the obligations of the employer as to future compensation payments; nor shall the acceptance of compensation by the employee be considered a binding determination of the employee's rights.

1 Backlink

50-6-303(b)(4)

§ 50-6-206. [Reserved.]

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§ 50-6-207. Schedule of compensation.

The following is the schedule of compensation to be allowed employees under this chapter:
1. (1) Temporary Total Disability.
  1. (A) For injury producing temporary total disability, sixty-six and two-thirds percent (66 ⅔%) of the average weekly wages as defined in this chapter, subject to the maximum weekly benefit and minimum weekly benefit; provided, that if the employee's average weekly wages are equal to or greater than the minimum weekly benefit, the employee shall receive not less than the minimum weekly benefit; and provided, further, that if the employee's average weekly wages are less than the minimum weekly benefit, the employee shall receive the full amount of the employee's average weekly wages, but in no event shall the compensation paid be less than the minimum weekly benefit. Where a fractional week of temporary total disability is involved, the compensation for each day shall be one-seventh (⁄) of the amount due for a full week;
  2. (B)
    1. (i) An employer may choose to continue to compensate an injured employee at the employee's regular wages or salary during the employee's period of temporary total and temporary partial disability. The payments shall not result in an employee's receiving less than the employee would otherwise receive for temporary disability benefits under this chapter; however, a court or the department has no authority to require an employer to pay any temporary disability benefits required by subdivision (1)(A), in addition to the employee's regular wages or salary;
    2. (ii) When an employee receives payments under subdivision (1)(B)(i) and the employee's claim for compensation under this chapter is determined by a court or settlement to be compensable, the employer shall be given credit for the payments. The credit shall be no more than the employee would have been otherwise paid under subdivision (1)(A), and any amount paid beyond the amount that would have otherwise been paid under subdivision (1)(A) shall not be credited against any award for permanent disability;
  3. (C) Any person who has drawn unemployment compensation benefits and who subsequently receives compensation for temporary disability benefits under a workers' compensation law with respect to the same period shall be required to repay the unemployment compensation benefits; provided, that the amount to be repaid does not exceed the amount of temporary disability benefits;
  4. (D) An employee claiming a mental injury, as defined by § 50-6-102, occurring on or after July 1, 2009, shall be conclusively presumed to be at maximum medical improvement upon the earliest occurrence of the following:
    1. (i) At the time the treating psychiatrist concludes the employee has reached maximum medical improvement; or
    2. (ii) One hundred four (104) weeks after the date of injury in the case of mental injuries where there is no underlying physical injury;
  5. (E) An employee claiming an injury as defined in § 50-6-102, when the date of injury is on or after July 1, 2014, shall be conclusively presumed to be at maximum medical improvement when the treating physician ends all active medical treatment and the only care provided is for the treatment of pain or for a mental injury that arose primarily out of a compensable physical injury. The employer shall be given credit against an award of permanent disability for any amount of temporary total disability benefits paid to the employee after the date that the employee attains maximum medical improvement as determined by a workers' compensation judge;
  1 Backlink
  - 50-6-303(b)(4)
2. (2) Temporary Partial Disability.
  1. (A) In all cases of temporary partial disability, the compensation shall be sixty-six and two-thirds percent (66 ⅔%) of the difference between the average weekly wage of the worker at the time of the injury and the wage the worker is able to earn in the worker's partially disabled condition. This compensation shall be paid during the period of the disability, not, however, beyond four hundred fifty (450) weeks, payment to be made at the intervals when the wage was payable, as nearly as may be, and subject to the same maximum, as stated in subdivision (1). In no event shall the compensation be less than the minimum weekly benefit;
  2. (B) In all cases of temporary partial disability for claims with a date of injury on or after July 1, 2014, the compensation shall be sixty-six and two-thirds percent (66 ⅔%) of the difference between the average weekly wage of the worker at the time of the injury and the wage the worker is able to earn in the worker's partially disabled condition. This compensation shall be paid during the period of the disability, but payment shall not extend beyond four hundred fifty (450) weeks. Payment shall be made at the intervals when the wage was payable, as nearly as may be, and subject to the same maximum, as stated in subdivision (1). In no event shall the compensation be less than the minimum weekly benefit;
  3. (C) In any case when a dispute exists over the date of the employee's attainment of maximum medical improvement, the employer shall be given credit against an award of permanent disability for any amount of temporary partial disability paid to the employee after the date on which the workers' compensation judge determines maximum medical improvement;
3. (3) Permanent Partial Disability.
  1. (A) In case of disability partial in character but adjudged to be permanent, at the time the injured employee reaches maximum medical improvement the injured employee shall be paid sixty-six and two-thirds percent (66 ⅔%) of the employee's average weekly wages for the period of compensation, which shall be determined by multiplying the employee's impairment rating by four hundred fifty (450) weeks. The award set out in this subdivision (3)(A) shall be referred to as the “original award.” The injured employee shall receive these benefits, in addition to the benefits provided in subdivisions (1) and (2) and those provided by § 50-6-204, whether the employee has returned to work or not; and
    2 Backlinks
    
    50-6-208(i)(1)
    50-6-242(a)(2)
  2. (B) If at the time the period of compensation provided by subdivision (3)(A) ends, or one hundred eighty (180) days after the employee reaches maximum medical improvement, whichever is later, the employee has not returned to work with any employer or has returned to work and is receiving wages or a salary that is less than one hundred percent (100%) of the wages or salary the employee received from the employee's pre-injury employer on the date of injury, the injured employee may file a claim for increased benefits. If appropriate, the injured employee's original award as determined under subdivision (3)(A) shall be increased by multiplying the original award by a factor of one and thirty-five one hundredths (1.35). The award set out in this subdivision (3)(B) shall be referred to as the “resulting award.” In addition, the injured employee's resulting award shall be further increased by multiplying the resulting award by the product of the following factors, if applicable:
    1. (i) Education: one and forty-five one hundredths (1.45), if the employee lacks a high school diploma or high school equivalency credential approved by the state board of education;
    2. (ii) Age: one and two-tenths (1.2), if the employee was more than forty (40) years of age at the time the period of compensation ends, or one hundred eighty (180) days after the employee reaches maximum medical improvement, whichever is later; and
    3. (iii) Unemployment rate: one and three-tenths (1.3), if the unemployment rate, in the Tennessee county where the employee was employed by the employer on the date of the workers' compensation injury, was at least two (2) percentage points greater than the yearly average unemployment rate in Tennessee according to the yearly average unemployment rate compiled by the department for the year immediately prior to the expiration of the period of compensation;
    1 Backlink
    
    50-6-242(a)(2)
  3. (C) In determining the employee's increased award pursuant to subdivision (3)(B), the employer shall be given credit for payment of the original award of benefits as determined under subdivision (3)(A) against the increased award;
  4. (D) Any employee may file a claim for increased benefits under subdivision (3)(B) by filing a new petition for benefit determination, on a form prescribed by the administrator, with the bureau no more than one (1) year after the period of compensation provided in subdivision (3)(A) ends or one (1) year after the one hundred eighty-day period after the employee reaches maximum medical improvement, whichever is later. Any claim for increased benefits under this subdivision (3)(D) shall be forever barred, unless the employee files a new petition for benefit determination with the bureau within one (1) year after the period of compensation for the subject injury ends or one (1) year after the one hundred eighty-day period after the employee reaches maximum medical improvement, whichever is later. Under no circumstances shall an employee be entitled to additional benefits when:
    1. (i) The employee's loss of employment is due to the employee's voluntary resignation or retirement; provided, however, that the resignation or retirement does not result from the work-related disability;
    2. (ii) The employee's loss of employment is due to the employee's misconduct connected with the employee's employment; or
    3. (iii) The employee remains employed but received a reduction in salary, wages, or hours that is concurrent with a reduction in salary, wages or reduction in hours that affected at least fifty percent (50%) of all hourly employees operating at or out of the same location;
  5. (E) Nothing in this subdivision (3) shall prohibit the employer and employee from settling the issue of additional benefits at any time after the employee reaches maximum medical improvement. Any settlement or award of additional permanent partial disability benefits pursuant to this subdivision (3) shall give the employer credit for prior permanent partial disability benefits paid to the employee;
  6. (F) Subdivision (3)(B) shall not apply to injuries sustained by an employee who is not eligible or authorized to work in the United States under federal immigration laws;
  7. (G) The total amount of compensation payable in this subdivision (3) shall not exceed the maximum total benefit. The payment of temporary total disability benefits or temporary partial disability benefits shall not be included in calculating the maximum total benefit;
  8. (H) All cases of permanent partial disability shall be apportioned to the body as a whole, which shall have a value of four hundred fifty (450) weeks, and there shall be paid compensation to the injured employee for the proportionate loss of use of the body as a whole resulting from the injury. If an employee has previously sustained an injury compensable under this section and has been awarded benefits for that injury, the injured employee shall be paid compensation for the period of temporary total disability or temporary partial disability and only for the degree of permanent disability that results from the subsequent injury;
  2 Backlinks
  - 50-6-204(j)(4)(B)(ii)
  - 50-6-204(j)(4)(E)(ii)
4. (4) Permanent Total Disability.
  1. (A)
    1. (i) For permanent total disability as defined in subdivision (4)(B), sixty-six and two-thirds percent (66 ⅔%) of the wages received at the time of the injury, subject to the maximum weekly benefit and minimum weekly benefit; provided, that if the employee's average weekly wages are equal to or greater than the minimum weekly benefit, the employee shall receive not less than the minimum weekly benefit; provided, further, that if the employee's average weekly wages are less than the minimum weekly benefit, the employee shall receive the full amount of the employee's average weekly wages, but in no event shall the compensation paid be less than the minimum weekly benefit. This compensation shall be paid during the period of the permanent total disability until the employee is, by age, eligible for full benefits in the Old Age Insurance Benefit Program under the Social Security Act (42 U.S.C. § 401 et seq.); provided, that with respect to disabilities resulting from injuries that occur less than five (5) years before the date when the employee is eligible for full benefits in the Old Age Insurance Benefit Program as referenced previously in this subdivision (4)(A)(i) or after the employee is eligible for such benefits, permanent total disability benefits are payable for a period of two hundred sixty (260) weeks. The compensation payments shall be reduced by the amount of any old age insurance benefit payments attributable to employer contributions that the employee may receive under title 42, chapter 7, title II of the Social Security Act (42 U.S.C. § 401 et seq.). Notwithstanding any statute or court decision to the contrary, the statutory social security offset provided by this section shall have no applicability to death benefits awarded to a deceased worker's dependents pursuant to this chapter;
    2. (ii) Notwithstanding any other law to the contrary and notwithstanding any agreement of the parties to the contrary, permanent total disability payments shall not be commuted to a lump sum, except in accordance with the following:
      1. (a) Benefits may be commuted to a lump sum to pay only the employee's attorney's fees and litigation expenses and to pay pre-injury obligations in arrears;
      2. (b) The commuted portion of an award shall not exceed the value of one hundred (100) weeks of the employee's benefits;
      3. (c) After the total amount of the commuted lump sum is determined, the amount of the weekly disability benefit shall be recalculated to distribute the total remaining permanent total benefits in equal weekly installments beginning with the date of entry of the order and terminating on the date the employee's disability benefits terminate pursuant to subdivision (4)(A)(i);
    3. (iii) For injuries occurring on or after July 1, 2014, attorneys' fees in contested cases of permanent disability shall be calculated upon the first four hundred fifty (450) weeks of disability only;
    4. (iv) In case an employee who is permanently and totally disabled becomes a resident of a public institution, and provided further, that if no person or persons are wholly dependent upon the employee, then the amounts falling due during the lifetime of the employee shall be paid to the employee or to the employee's guardian or conservator, if adjudicated incompetent, to be spent for the employee's benefit; such payments to cease upon the death of the employee;
  2. (B) When an injury not otherwise specifically provided for in this chapter totally incapacitates the employee from working at an occupation that brings the employee an income, the employee shall be considered totally disabled and for such disability compensation shall be paid as provided in subdivision (4)(A); provided, that the total amount of compensation payable under this subdivision (4)(B) shall not exceed the maximum total benefit, exclusive of medical and hospital benefits;
  3. (C)
    1. (i) If an employee is determined, by trial or settlement, to be permanently totally disabled, the employer, insurer or the department, in the event the subsequent injury and vocational recovery fund is involved, may have the employee examined, at the expense of the requesting entity, from time to time, subject to the conditions outlined in this section, and may seek reconsideration of the issue of permanent total disability as provided in this subdivision (4)(C);
    2. (ii) The request for the examination of the employee may not be made until twenty-four (24) months have elapsed following the entry of a final order in which it is determined that the employee is permanently totally disabled. Any request for an examination is subject to considerations of reasonableness in regard to notice prior to examination, place of examination and length of examination;
    3. (iii) A request for an examination may not be made more often than once every twenty-four (24) months. The procedure for this examination shall be as follows:
      1. (a) The requesting entity shall first make informal contact with the employee, either by letter or by telephone, to attempt to schedule an appointment with a physician for examination at a mutually agreeable time and place. It is the intent of the general assembly that the requesting entity make a good faith effort to reach a mutual agreement for examination, recognizing the inherently intrusive nature of a request for examination;
      2. (b) If, after a reasonable period of time, not to exceed thirty (30) days, mutual agreement is not reached, the requesting entity shall send the employee written notice of demand for examination by certified mail, return receipt requested, on a form provided by the department. The form shall clearly inform the employee of the following: the date, time and place of the examination; the name of the examining physician; the employee's obligations; any pertinent time limitations; the employee's rights; and any consequences of the employee's failure to submit to the examination. The examination shall be scheduled to take place within thirty (30) days of the date on the notice;
      3. (c) After receipt of the notice of demand for examination, the employee shall either submit to the examination at the time and place identified in the notice form, or, within thirty (30) days from the date of the notice, the employee shall schedule an appointment for a different date and time conducted by the same physician, and this examination shall be completed no later than ninety (90) days from the date of the notice;
      4. (d) In the event the employee fails to submit to the examination at the time and place identified in the notice form and fails to schedule, within thirty (30) days from the date of the notice, an alternative examination date, as provided in subdivision (4)(C)(iii)(c), then the employee's periodic benefits shall be suspended for a period of thirty (30) days;
      5. (e) In the event the employee schedules an alternative date for the examination as provided in subdivision (4)(C)(iii)(c), and fails to submit to the examination within the ninety (90) day period, then the employee's periodic benefits shall be suspended for a period of thirty (30) days beginning at the end of the ninety (90) day period within which the alternatively scheduled examination was to be completed;
      6. (f) If the employee submits to an examination within any period of suspension of benefits, then within fourteen (14) days of the submission, periodic benefits shall be restored and any periodic benefits that were withheld during any period of suspension of benefits shall be remitted to the employee;
      7. (g) Within ten (10) days of the date on which periodic benefits are suspended pursuant to either subdivision (4)(C)(iii)(d) or (4)(C)(iii)(e), the entity suspending the periodic benefits shall notify the department, in writing, that periodic benefits have been suspended and the date on which the periodic benefits were suspended and shall provide the department a copy of the original notice of demand for examination sent to the employee; and
      8. (h) After the department receives notice of suspension of benefits pursuant to either subdivision (4)(C)(iii)(d) or (4)(C)(iii)(e), the department shall contact the employee and for a period of thirty (30) days assist the employee to schedule an examination to be conducted by the physician named in the notice. After the thirty (30) day assistance period has elapsed, if the employee has not submitted to an examination, the department shall authorize the employer, insurer or department to suspend periodic benefits for a period of thirty (30) days. At the conclusion of each thirty (30) day suspension period, periodic benefits shall be restored. After the restoration of periodic benefits, the department shall, in thirty (30) day cycles, continue to assist the employee to schedule the examination, to be followed by thirty (30) day cycles of suspension of benefits until the examination of the employee is completed. If, at any time during any period of suspension of periodic benefits, the employee submits to an examination, then within fourteen (14) days of notice of the examination having been conducted, periodic benefits shall be restored and any periodic benefits that were withheld during any period of suspension shall be remitted to the employee;
    4. (iv) Subsequent to an examination as described in this subdivision (4)(C), the employer, insurer or department may request a reconsideration of the issue of whether the employee continues to be permanently totally disabled based on any changes in the employee's circumstances that have occurred since the time of the initial settlement or trial;
    5. (v) Prior to filing any request for reconsideration, the employer, insurer or department shall file a petition for benefit determination and participate in alternative dispute resolution pursuant to § 50-6-236. In the event the parties are unable to reach an agreement through alternative dispute resolution, the workers' compensation mediator shall issue a dispute certification notice and the employer, insurer or department may file a request for a hearing, as provided in § 50-6-239, to determine the issue of reconsideration.
    6. (vi) In the event a reconsideration request is filed pursuant to this section, the only remedy available to the employer, insurer or department is the modification or termination of future periodic disability benefits;
    7. (vii) In the event the employer, insurer or department files a request for reconsideration or cause of action under this subdivision (4)(C) and the court does not terminate the employee's future periodic disability benefits, the employee shall be entitled to an award of reasonable attorney fees, court costs and reasonable and necessary expenses incurred by the employee in responding to the request for reconsideration upon application to and approval by the court. In determining what attorney fees shall be awarded under this subdivision (4)(C), the court shall make specific findings with respect to the following criteria:
      1. (a) The time and labor required, the novelty and difficulty of the questions involved in responding to the request for reconsideration, and the skill requisite to perform the legal service properly;
      2. (b) The fee customarily charged in the locality or by the attorney for similar legal services;
      3. (c) The amount involved and the results obtained;
      4. (d) The time limitations imposed by the client or by the circumstances; and
      5. (e) The experience, reputation, and ability of the lawyer or lawyers performing the services;
  4. (D)
    1. (i) The employer, insurer or department, in the event the subsequent injury and vocational recovery fund is involved, shall notify the department, on a form to be developed by the department, of the entry of a final order adjudging an employee to be permanently totally disabled. The form shall be submitted to the department within thirty (30) days of the entry of the order;
    2. (ii) On an annual basis, the department shall require an employee who is receiving permanent total disability benefits to certify on forms provided by the department that the employee continues to be permanently totally disabled, that the employee is not currently working at an occupation that brings the employee an income and has not been gainfully employed since the date permanent total disability benefits were awarded, by trial or settlement;
    3. (iii) The department shall send the certification form to the employee by certified mail, return receipt requested and shall include a self-addressed stamped envelope for the return of the completed form; and
    4. (iv) In each annual cycle, if the employee fails to return the form to the department within thirty (30) days of the date of receipt of the form, as evidenced by the date on the return receipt notice, then the department shall notify the entity who gave notice to the department that the employee was permanently totally disabled pursuant to subdivision (4)(D)(i) that four (4) weeks of periodic disability benefits shall be withheld from the employee as a penalty for the failure to return the form to the department. If the completed form is returned to the department within one hundred twenty (120) days of the date on the return receipt notice, the department shall notify the appropriate entity and then, within fourteen (14) days of receipt of the notice from the department, that entity shall refund to the employee the entire four (4) weeks of periodic disability benefits previously withheld from the employee;
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5. (5) Deductions in Case of Death. In case a worker sustains an injury due to an accident arising primarily out of and in the course and scope of the worker's employment, and during the period of disability caused by the injury death results proximately from the injury, all payments previously made as compensation for the injury shall be deducted from the compensation, if any, due on account of death; and
6. (6) For social security purposes only, as permitted by federal law or regulation, in an award of compensation as a lump sum or a partial lump sum under this chapter for permanent partial or permanent total disability, the court may make a finding of fact that the payment represents a payment to the individual to be distributed over the individual's lifetime based upon life expectancy as determined from mortality tables maintained by the United States Centers for Disease Control and Prevention.

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§ 50-6-208. Subsequent permanent injury after sustaining previous permanent injury — Subsequent injury and vocational recovery fund — Disbursement — Settlement authority.

(a)
1. (1) If an employee has previously sustained a permanent physical disability from any cause or origin and becomes permanently and totally disabled through a subsequent injury, the employee shall be entitled to compensation from the employee's employer or the employer's insurance company only for the disability that would have resulted from the subsequent injury, and the previous injury shall not be considered in estimating the compensation to which the employee may be entitled under this chapter from the employer or the employer's insurance company; provided, that in addition to the compensation for a subsequent injury, and after completion of the payments for the subsequent injury, then the employee shall be paid the remainder of the compensation that would be due for the permanent total disability out of a special fund to be known as the subsequent injury and vocational recovery fund.
2. (2) To receive benefits from the subsequent injury and vocational recovery fund, the injured employee must be the employee of an employer who has properly insured the employer's workers' compensation liability or has qualified to operate under this chapter as a self-insurer, and the employer must establish that the employer had actual knowledge of the permanent and preexisting disability at the time that the employee was hired or at the time that the employee was retained in employment after the employer acquired knowledge, but in all cases prior to the subsequent injury.
3. (3) In determining the percentage of disability for which the subsequent injury and vocational recovery fund shall be liable, no previous physical impairment shall be considered unless the impairment was within the knowledge of the employer as prescribed in subdivision (a)(2).
4. (4) Nothing in this section shall be construed to limit the employer's liability as provided by law for aggravation of preexisting conditions or disabilities in cases where recovery against the subsequent injury and vocational recovery fund is not applicable.
5. (5) Claims against the fund shall be made by either the injured employee or the employer in the manner prescribed in § 50-6-239. In all cases when a party is making a claim against the fund, the party advancing the claim shall give notice to the fund of any alternative dispute resolution proceedings scheduled pursuant to § 50-6-236.
6. (6) Nothing in this section shall relieve the employer or its insurance company of liability for other benefits that may be due the injured employee, including temporary benefits, medical expenses and permanent benefits for injuries.
(b) A sum sufficient to provide the benefits of this section shall be allocated from the four percent (4%) premium tax imposed in § 50-6-401(b), subject to a maximum allocation of fifty percent (50%) of the premium tax collected. The sums shall be deposited in the subsequent injury and vocational recovery fund for distribution by the administrator of the bureau of workers' compensation.
1 Backlink
- 29-20-401(f)(1)
(c) There is appropriated a sum sufficient to the subsequent injury and vocational recovery fund for payment of benefits provided in this section, pursuant to this section. The appropriation shall be allocated from and equal to an amount not greater than fifty percent (50%) of the revenues derived from the premium tax levied pursuant to § 50-6-401.
(d) The sums collected by the administrator as provided in this section must be deposited by the administrator in a special fund, which must be termed the “subsequent injury and vocational recovery fund”, to be disbursed by the administrator only for the purposes stated in this section, for costs associated with legal counsel to defend the administrator in actions claiming compensation from the subsequent injury and vocational recovery fund pursuant to this section, and for costs associated with providing vocational recovery assistance to eligible employees pursuant to subsection (i). Monies remaining in the fund must not, at any time, be appropriated or diverted to any other purpose. The administrator shall not invest any monies in the subsequent injury and vocational recovery fund in any other manner than is provided by the general laws of the state for investments of funds in the hands of the state treasurer. Disbursements from the fund for permanent total physical disabilities must be made by the administrator only after receipt by the administrator of a certified copy of the court decree awarding compensation as provided in this section. Disbursements must be made only in accordance with the decree. A copy of the decree awarding compensation from the fund must in all cases be filed with the bureau. The administrator has the authority in accordance with subsection (i) to make disbursements for vocational recovery assistance from the fund without any court decree.
(e) The administrator, in consultation with the attorney general and reporter, shall prepare a plan for a pilot project using private legal counsel to defend the administrator in actions claiming compensation from the subsequent injury and vocational recovery fund pursuant to § 50-6-206 [See the Compiler's Notes.]. The plan shall include types of cases, approximate numbers of cases, proposed method of selection and other relevant matters. Any private legal counsel retained for these purposes shall be retained pursuant to § 8-6-106. Expenses relating to private legal counsel retained pursuant to this subsection (e) shall be paid from the subsequent injury and vocational recovery fund.
(f)
1. (1) Before any proposed settlement is considered final in cases involving benefits from the subsequent injury and vocational recovery fund under this section, it shall either:
  1. (A) Have the written approval of the administrator or the administrator's designee, in accordance with subdivision (f)(2); or
  2. (B) Have been approved in accordance with § 20-13-103.
2. (2) The administrator is authorized to settle certain subsequent injury and vocational recovery fund claims without the necessity of complying with § 20-13-103; provided, that the attorney general and reporter, with the written approval of the governor and the comptroller of the treasury, shall set specific limits and conditions on the settlement authority.
(g) In order to require the subsequent injury and vocational recovery fund to participate in the alternative dispute resolution, a party shall serve notice of potential liability on the fund.
(h) “Party” or “parties,” as referenced in § 50-6-204(d)(4), shall include the subsequent injury and vocational recovery fund.
(i)
1. (1) If, after the compensation under § 50-6-207(3)(A) has been provided, the employee has not returned to work with any employer because of a work injury, or has returned to work and is receiving wages or a salary that is less than one hundred percent (100%) of the wages or salary the employee received from the employee's pre-injury employer on the date of injury, then the injured employee may request vocational recovery assistance from the subsequent injury and vocational recovery fund. To be eligible for assistance, the injured employee must submit to the bureau on a form approved by the administrator a request for vocational recovery assistance within ninety (90) days of the date of final payment of the compensation under § 50-6-207(3)(A).
2. (2) Vocational recovery assistance may include, but is not limited to, vocational assessment, employment training, job analysis, vocational testing, adult education programming that includes preparation and testing toward obtaining a high school equivalency credential approved by the state board of education, and education through a public Tennessee community college, university, or college of applied technology, including books and materials required for courses. All assistance is subject to the maximum limitation set out in subdivision (i)(5).
3. (3) The administrator may evaluate a request for vocational recovery assistance based upon the facts and circumstances relevant to the request and make a determination whether to grant any such request.
4. (4) The administrator may distribute as vocational recovery assistance any revenues in the subsequent injury and vocational recovery fund that are in excess of:
  1. (A) The estimated required reserves for known claims and incurred but not reported subsequent injury claims, as determined in the most recent actuarial analysis;
  2. (B) The liability to be incurred from the date of the most recent actuarial analysis to the end of the fiscal year in which assistance is provided; and
  3. (C) The costs associated with legal counsel to defend the fund and administrative costs of the recovery assistance program.
5. (5) The total amount paid on behalf of any eligible employee for vocational recovery assistance from the subsequent injury and vocational recovery fund pursuant to this subsection (i) must not exceed five thousand dollars ($5,000) in any one (1) fiscal year, and must not exceed the total sum of twenty thousand dollars ($20,000) per employee who participates in this program for all years. The total aggregate amount to be paid from the subsequent injury and vocational recovery fund as to all eligible employees is limited to a total of five hundred thousand dollars ($500,000) in any calendar year.
6. (6) The administrator may promulgate rules in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, for the purpose of discharging the administrator's duties to carry out the purposes, goals, and intent of this subsection (i). Such rules may include determining future eligibility of assistance based upon satisfactory completion of coursework in courses taken.
7. (7) This subsection (i) applies to injuries that occur on or after July 1, 2018, but does not apply to injuries that occur after June 30, 2025.

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§ 50-6-209. Maximum compensation.

(a) In all cases of permanent total disability of an employee covered by this chapter, sixty-six and two-thirds percent (66 ⅔%) of the average weekly wages shall be paid, subject to maximum compensation as follows: where there are or are not persons dependent upon each injured employee, the maximum weekly benefit per week.
(b)
1. (1) In all cases of death of an employee covered by this chapter, sixty-six and two-thirds percent (66 ⅔%) of the average weekly wages shall be paid in cases where the deceased employee leaves dependents, subject to the maximum weekly benefit.
2. (2) In all cases of death of an employee covered by this chapter, and where the employee leaves no dependents, as provided in § 50-6-210, then the lump sum amount of twenty thousand dollars ($20,000) shall be paid to the estate of the deceased employee.
  1 Backlink
  - 50-6-204(c)
3. (3) The total amount of compensation payable under this subsection (b) shall not exceed the maximum total benefit exclusive of medical, hospital and funeral benefits.

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50-6-303(b)(4)

§ 50-6-210. Dependents — Compensation payments.

(a) Persons Wholly Dependent. For the purposes of this chapter, the following persons shall be conclusively presumed to be wholly dependent:
1. (1) A surviving spouse, unless it is shown that the surviving spouse was voluntarily living apart from the surviving spouse's spouse at the time of injury; and
2. (2) Children under sixteen (16) years of age.
(b) Persons Prima Facie Dependent. Children between sixteen (16) and eighteen (18) years of age, or those over eighteen (18) years of age, if physically or mentally incapacitated from earning, shall prima facie be considered dependent.
1 Backlink
- 50-6-221(c)(1)
(c) Actual Dependents. Wife, husband, child, mother, father, grandparent, sister, brother, mother-in-law, father-in-law, who were wholly supported by the deceased employee at the time of death and for a reasonable period of time immediately prior to the time of death, shall be considered actual dependents, and payment of compensation shall be made in the order named.
(d) Partial Dependents. Any member of a class named in subsection (c) who regularly derived part of the member's support from the wages of the deceased employee at the time of death and for a reasonable period of time immediately prior to the time of death shall be considered a partial dependent, and payment of compensation shall be made to the dependents in the order named.
(e) Compensation in Death Cases. In death cases, compensation payable to dependents shall be computed on the following basis, and shall be paid to the persons entitled to compensation, without administration:
1. (1) Surviving Spouse and No Dependent Child. If the deceased employee leaves a surviving spouse and no dependent child, there shall be paid to the surviving spouse sixty-six and two-thirds percent (66 ⅔%) of the average weekly wages of the deceased;
2. (2) Surviving Spouse and Children. If the deceased employee leaves a surviving spouse and one (1) or more dependent children, there shall be paid to the surviving spouse for the benefit of the surviving spouse and the child or children, sixty-six and two-thirds percent (66 ⅔%) of the average weekly wages of the deceased;
3. (3) Surviving Spouse and Children, How Paid. In all cases where compensation is payable to a surviving spouse for the benefit of the surviving spouse and dependent child or children, the court shall have the power to determine in its discretion what portion of the compensation shall be applied for the benefit of any child or children, and may order the compensation paid to a guardian;
4. (4) Remarriage of Surviving Spouse. Upon the remarriage of a surviving spouse, if there is no child of the deceased employee, the periodic compensation benefits shall terminate and the surviving spouse is entitled to one (1) lump sum payment equal to one hundred (100) weeks based on twenty-five percent (25%) of the average weekly wages of the deceased employee, subject to the maximum total benefit; but if there is a child or children under eighteen (18) years of age, or over eighteen (18) years of age if physically or mentally incapacitated from earning, from the time of the remarriage, the child or children have status of orphan or orphans and draw compensation accordingly, except the compensation shall not exceed sixty-six and two-thirds percent (66 ⅔%) of the average weekly wages of the deceased.
5. (5) Dependent Orphans. If the deceased employee leaves one (1) dependent orphan, there shall be paid sixty-six and two-thirds percent (66 ⅔%) of the average weekly wages of the deceased; if the deceased leaves two (2) or more dependent orphans, there shall be paid sixty-six and two-thirds percent (66 ⅔%) of the average weekly wages of the deceased;
6. (6) Parent or Parents. If the deceased employee leaves no surviving spouse or child entitled to any payment under this section, but should leave a parent or parents, either or both of whom are wholly dependent on the deceased, there shall be paid, if only one (1) parent, twenty-five percent (25%) of the average weekly wages of the deceased to the parent, and if both parents, thirty-five percent (35%) of the average weekly wages of the deceased to the parents;
7. (7) Grandparent, Brother, Sister, Mother-in-law or Father-in-law. If the deceased leaves no surviving spouse or dependent child or parent entitled to any payment under this section, but leaves a grandparent, brother, sister, mother-in-law or father-in-law wholly dependent upon the deceased for support, there shall be paid to the dependent, if only one (1), twenty percent (20%) of the average weekly wages of the deceased, or, if more than one (1), twenty-five percent (25%) of the average weekly wages of the deceased, divided between them or among them share and share alike;
8. (8) Compensation to Dependents to Cease upon Death or Marriage. If compensation is being paid under this chapter to any dependent, the compensation shall cease, upon the death or marriage of the dependent, unless otherwise provided in this section;
9. (9) Partial Dependents to Receive Proportion. Partial dependents shall be entitled to receive only that proportion of the benefits provided for actual dependents that the average amount of the wages regularly contributed by the deceased to the partial dependent at the time of, and for a reasonable time immediately prior to, the injury, bore to the total income of the dependent during the same time;
10. (10) Maximum and Minimum Compensation. The compensation payable in case of death to persons wholly dependent shall be subject to the maximum weekly benefit and minimum weekly benefit; provided, that if at the time of injury the employee receives wages of less than the minimum weekly benefit, the compensation shall be the full amount of the wages a week, but in no event shall the compensation payable under this provision be less than the minimum weekly benefit. The compensation payable to partial dependents shall be subject to the same maximum and minimum specified in this subdivision (e)(10); provided, that if the income loss of the partial dependents by the death is less than the minimum weekly benefit, then the dependents shall receive the full amount of the income loss. This compensation shall be paid during dependency not to exceed the maximum total benefit, payments to be paid at the intervals when the wage was payable, as nearly as may be;
  1 Backlink
  - 50-6-303(b)(4)
11. (11) Orphans and Other Children. In computing and paying compensation to orphans or other children, in all cases, only those under eighteen (18) years of age, or those over eighteen (18) years of age who are physically or mentally incapacitated from earning, shall be included, the former to receive compensation only during the time they are under eighteen (18) years of age, the latter only for the time they are so incapacitated. If the dependent is attending a recognized educational institution or completing secondary education or a program leading to an equivalent credential, or enrolled in a recognized institution that provides postsecondary or career or technical education, then benefits shall be paid until twenty-two (22) years of age;
12. (12) Actual Dependents. Actual dependents shall be entitled to take compensation in the order named in subsection (c), until sixty-six and two-thirds percent (66 ⅔%) of the monthly wages of the deceased during the time specified in this chapter have been exhausted, but the total compensation to be paid to all actual dependents of a deceased employee shall not exceed in the aggregate the maximum weekly benefit;
13. (13) Dependency Status Not Affected by Certain Assistance Payments. Sums distributed under the Employment Security Law, compiled in chapter 7 of this title; the Old-Age Assistance Law, compiled in title 71, chapter 2, part 2; the Aid to Dependent Children Law, compiled in title 71, chapter 3, part 1; Aid to Blind Law, compiled in title 71, chapter 4, part 1; the federal Social Security Act (42 U.S.C. § 301 et seq.), or any other public assistance distributed by the United States government, the state, or any county or municipality of the state, shall not be considered income within the meaning of this law and shall not affect the status or compensation of any person entitled to benefits as provided in this chapter.
(f)
1. (1)
  1. (A) If compensation is payable due to the death of an employee under this chapter, and the decedent leaves an alien dependent or dependents residing outside of the United States, a workers' compensation mediator is authorized to conduct alternative dispute resolution proceedings to attempt to resolve the issues; provided, that a representative or representatives of the employer and a duly authorized representative or representatives of the consul or other representative of the foreign country in which the dependent or dependents reside are present. If the parties reach a settlement agreement, the administrator or administrator's designee is authorized to approve the settlement, and the order of the administrator or the administrator's designee shall be entitled to the same standing as a judgment of a court of record for all purposes. If the parties are unable to reach an agreement, the employer or employee's representative may seek relief pursuant to § 50-6-239 following the issuance of a dispute certification notice.
  2. (B) The administrator, or administrator's designee, or the court shall order payment of any compensation due from the employer to be made to the duly accredited consular officer of the country where the beneficiaries are citizens. The consular officer or the consular officer's representative shall be fully authorized and empowered by this law to settle all claims for compensation and to receive the compensation for distribution to the persons entitled to the compensation.
2. (2) The distribution of funds in cases described in subdivision (f)(1)(A) shall be made only upon the order of the administrator, the administrator's designee, or the court that heard the matter. If required to do so by the administrator, the administrator's designee, or the court, the consular officer or the consular officer's representative shall execute a good and sufficient bond to be approved by the administrator, the administrator's designee, or the court, conditioned upon the faithful accounting of the moneys so received by the consular officer or the consular officer's representative. Before the bond is discharged, a verified statement of receipts and disbursements of the moneys shall be made and filed with the administrator or the court, as appropriate.
3. (3) The consular officer or the consular officer's representative shall, before receiving the first payment of the compensation, and at reasonable times thereafter, upon the request of the employer, furnish to the employer a sworn statement containing a list of the dependents with the name, age, residence, extent of dependency and relation to the deceased of each dependent.
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- 9-8-307(a)(1)(K)(ii)
(g)
1. (1) If a dependent, as established by order, judgment, or decree, is determined to be entitled to benefits under this chapter, then the employer or insurer may periodically require the dependent to provide information relevant to whether the dependent continues to qualify for benefits. After receipt of the request for information, the dependent shall provide the requested information relevant to dependency within fifteen (15) days of the date of the request.
2. (2)
  1. (A) If the dependent fails to provide the requested information relevant to dependency, then the employer or insurer may suspend benefits. If benefits are suspended, then the employer or insurer shall notify the department by filing a notice of change or termination of benefits within fifteen (15) days of the first omitted payment of compensation.
  2. (B) If the dependent provides the requested information relevant to dependency within any period of suspension of benefits and the employer or insurer does not dispute the dependent's eligibility for benefits, then within fifteen (15) days of the receipt of such information, the employer or insurer shall restore periodic benefits and shall remit to the dependent any periodic benefits that were withheld during any period of suspension of benefits.
3. (3) If the dependent provides information indicating the dependent no longer qualifies for benefits under this chapter based on changes in the dependent's circumstances that have occurred since the time of the initial order, judgment, or decree, then the employer or insurer may terminate benefits. If benefits are terminated, then the employer or insurer shall notify the department by filing a notice of change or termination of benefits within fifteen (15) days of the first omitted payment of compensation.
4. (4) If benefits are suspended as provided in subdivision (g)(2), or terminated as provided in subdivision (g)(3), then the dependent may file a petition for benefit determination.
5. (5) A person who provides false or misleading information in response to a request for information relevant to dependency commits a fraudulent insurance act as provided in § 56-47-103, which is punishable as theft under § 39-14-105.

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§ 50-6-211. Contribution to payment of compensation by two or more employers — Agreement between employers.

(a) In case any employee for whose injury or death compensation is payable under this chapter, shall, at the time of injury, be employed and paid jointly by two (2) or more employers subject to this chapter, the employers shall contribute to the payment of the compensation in a proportion of their several wage liability to the employee.
(b) If one (1) or more, but not all, of the employers are subject to this chapter, and otherwise subject to liability for compensation under this chapter, then the liability of those who are so subject shall be to pay the proportion of the entire compensation that their portion of the wage liability bears to the wages of the employee; provided, that nothing in this section shall prevent any agreement between the different employers between themselves as to the distribution of the ultimate burden of the compensation.

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9-8-307(a)(1)(K)(ii)

§ 50-6-212. Hernia or rupture.

(a) In all claims for compensation for hernia or rupture, resulting from injury by accident arising primarily out of and in the course and scope of the employee's employment, it must be definitely proven to the satisfaction of the court that:
1. (1) There was an injury resulting in hernia or rupture;
2. (2) The hernia or rupture appeared suddenly;
3. (3) It was accompanied by pain;
4. (4) The hernia or rupture immediately followed the accident; and
5. (5) The hernia or rupture did not exist prior to the accident for which compensation is claimed.
(b) All hernia or rupture, inguinal, femoral or otherwise, so proven to be the result of an injury by accident arising primarily out of and in the course and scope of the employment, shall be treated in a surgical manner by a radical operation. If death results from the operation, the death shall be considered as the result of the injury, and compensation paid in accordance with this chapter.
(c)
1. (1) In case the injured employee refuses to undergo the radical operation for the cure of the hernia or rupture, no compensation will be allowed during the time the refusal continues.
2. (2) If, however, it is shown that the employee has some chronic disease, or is otherwise in such physical condition that the court finds it unsafe for the employee to undergo the operation, the employee shall be paid compensation in accordance with this chapter.

§ 50-6-213. Epileptics — Election not to be covered by certain provisions — Revocation.

(a) Epileptics may elect not to be subject to this part for injuries resulting because of epilepsy and still remain subject to its provisions for all other injuries.
(b) This election shall be made by giving notice to the employer in writing on a form to be furnished by the bureau of workers' compensation and filing a copy of the notice with the bureau.
(c) An election may be revoked by giving written notice to the employer of revocation, and the revocation shall be effective upon filing copy of the notice with the bureau.

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9-8-307(a)(1)(K)(ii)

§ 50-6-214. Responsibility for payment of benefits and loss adjustment expenses between insurance carrier and self-insured employer.

(a) The administrator or the administrator's designee shall order appropriate workers' compensation benefits and loss adjustment expenses associated with the claim to be paid on an equal basis by the insurance carrier or carriers and the self-insured employer, as appropriate, in any case where:
1. (1)
  1. (A) An employer changes insurance carriers;
  2. (B) The employer having been self-insured, becomes insured; or
  3. (C) The employer having been insured, is approved to be self-insured; and
2. (2) One (1) of the following applies:
  1. (A) The compensability of the claim is not being disputed by the employer or carrier; or
  2. (B) A workers' compensation judge has determined the claim to be compensable or ordered the provision of benefits to an employee; and
3. (3) There is a dispute as to which entity is responsible to provide workers' compensation benefits to a worker.
(b) Upon an agreement by the parties or a court order as to which entity is responsible to pay the workers' compensation benefits to the employee, the entity responsible for the provision of workers' compensation benefits shall reimburse the other entity all moneys paid for or on behalf of the employee as ordered by the administrator or the administrator's designee, plus interest from the date of payment at the rate set by § 47-14-121.

§ 50-6-215. Rental and assignment of PPO network rights.

(a) This section may be referred to as the “Rental and Assignment of PPO Network Rights.”
(b) For purposes of this section, unless the context otherwise requires:
1. (1) “Contracting agent” means any person that is in direct privity of contract with a medical provider to reimburse the medical provider for medical services provided to an injured worker pursuant to this chapter at rates other than those provided under the workers' compensation medical fee schedule. Nothing contained within this section shall be construed to permit the creation of preferred provider organization networks that permit payments above the medical fee schedule adopted by the department; and
2. (2) “Workers' compensation payor” means an employer, workers' compensation trust, workers' compensation pool or insurer responsible pursuant to § 50-6-405 for paying a medical provider for the delivery of workers' compensation related healthcare services.
(c) Every contracting agent that sells, leases, assigns, transfers, or conveys its list of contracted medical providers and their contracted reimbursement rates shall, upon entering or renewing a medical provider contract, do all of the following:
1. (1) Disclose to the medical provider whether the list of contracted medical providers may be sold, leased, transferred, or conveyed to other payors or agents, including workers' compensation insurers or self insureds. The disclosure of the ability to sell, lease, transfer or convey the list or network of medical providers shall be in a section of a contract titled “assignment” or “assignability” or similar title;
2. (2) Disclose whether workers' compensation payors to whom the list of contracted medical providers may be sold, leased, transferred, or conveyed may be permitted to pay a medical provider's contracted rate if less than the workers' compensation fee schedule. The disclosure of the ability to pay a medical provider's contracted rate, if less than the workers' compensation fee schedule, shall be in a section of a contract titled “assignment” or “assignability” or similar title;
3. (3) Allow medical providers, upon the initial signing or renewal of a medical provider contract, to decline to participate in networks solely to serve workers' compensation payors that are sold, leased, transferred, or conveyed to workers' compensation payors; and
4. (4) Maintain a web page that contains a complete listing of customers to whom the network is sold, leased, transferred or conveyed that is accessible to all contracted medical providers and updated at least twice a year, as well as maintain a toll-free telephone number accessible to all contracted medical providers whereby medical providers may access workers' compensation payor summary information and a list of lessees of the network.
(d)
1. (1) The explanation of payment (EOP) or explanation of review (EOR) transmitted to the medical provider shall delineate the following information:
  1. (A) Employer's name;
  2. (B) Injured worker's name;
  3. (C) Name of the workers' compensation payor and the name of the third party administrator if a third party administrator is utilized. If a third party administrator is utilized, then a telephone number for the third party administrator shall be delineated; otherwise, a telephone number for the workers' compensation payor shall be delineated;
  4. (D) Name and telephone number of the entity that analyzes the medical provider bill for the purpose of ensuring that the billed amount complies with the workers' compensation medical fee schedule;
  5. (E) Name and telephone number of the contracting agent that has a written medical provider contract signed by the medical provider whereby the contracting agent or a third party is entitled to access and pay rates other than those provided under the workers' compensation medical fee schedule;
  6. (F) Name and telephone number of the entity that analyzes the medical provider bill for the purpose of reducing the billed amount below the medical fee schedule pursuant to a preferred provider organization network contract, unless the entity is the same entity referenced in subdivision (d)(1)(E);
  7. (G) Amount billed by the medical provider;
  8. (H) Amount permitted by the workers' compensation fee schedule; and
  9. (I) Amount of payment.
2. (2) Within twenty (20) calendar days of a medical provider submitting in writing to a workers' compensation payor an EOP or EOR that does not comply with subdivision (d)(1), the entity that originally generated the EOP or EOR shall issue to the medical provider a corrected EOP or EOR that complies with subdivision (d)(1).
3. (3) A workers' compensation payor shall demonstrate that it is entitled to pay a contracted rate within thirty (30) days of receipt of a written request from a medical provider who has received a claim payment from the workers' compensation payor. The medical provider shall include in the request a statement explaining why the payment is not at the correct contracted rate for the services provided. The failure of the medical provider to include such a statement shall relieve the workers' compensation payor from the responsibility of demonstrating that it was entitled to pay the disputed contracted rate. A workers' compensation payor shall be deemed to have demonstrated that it is entitled to pay a contracted rate if it correctly identifies the contracting agent that originally entered into the contract with the medical provider to pay the claim at the contracted rate.
(e)
1. (1) A written complaint alleging a violation of this section by individuals or entities licensed by the department of commerce and insurance may be filed with the bureau of workers' compensation. The bureau may investigate complaints made under this subsection (e) and shall direct all such complaints, along with any investigatory materials, to the department of commerce and insurance. The commissioner of commerce and insurance may take appropriate action in accordance with § 56-2-305.
2. (2) A written complaint alleging a violation of this section by individuals or entities not licensed by the department of commerce and insurance may be filed with the bureau. The bureau may investigate all complaints made under this subsection (e) and shall have the authority to establish and collect penalties for violations of this section in accordance with § 50-6-118.

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50-6-118(a)(13)

§ 50-6-216. Ombudsman program.

(a) The administrator shall establish a workers' compensation ombudsman program to assist injured or disabled employees, persons claiming death benefits, employers, and other persons in protecting their rights, resolving disputes, and obtaining information available under workers' compensation laws. The ombudsman program shall be available only to those individuals or organizations that are not represented by an attorney in the claim for workers' compensation benefits.
(b) No statement, discussion, evidence, allegation or other matter of legal significance that occurs in the presence of an ombudsman shall be admissible as evidence in any other proceeding.
(c) The administrator may adopt rules and regulations consistent with this chapter in order to fulfill the purposes of this section in an orderly and efficient manner.
(d) The bureau shall have authority to assess a civil penalty against any person or organization, with the exception of the state or a representative of the state, that refuses to cooperate with the services provided by an ombudsman as provided in § 50-6-118.
(e)
1. (1) Any party that is not represented by legal counsel may request the services of a workers' compensation ombudsman by contacting the office of mediation services.
2. (2) The ombudsman's authority shall include, but not be limited to, the following:
  1. (A) Meet with and provide information to unrepresented parties about the unrepresented party's rights and responsibilities under the law;
  2. (B) Explain the administrative process for resolving workers' compensation claims;
  3. (C) Investigate claims and attempt to resolve disputes without resort to alternative dispute resolution and court proceedings;
  4. (D) Communicate with all parties and providers in the claim;
  5. (E) Assist the parties in the completion of forms; and
  6. (F) Facilitate the exchange of medical records.
3. (3) An ombudsman who is not a licensed attorney shall not provide legal advice; however, an ombudsman who is a licensed attorney may provide limited legal advice but shall not represent any party as the party's attorney. No ombudsman shall make attorney referrals.
4. (4) An ombudsman shall not be called to testify in any proceeding and no statement or representation made to an ombudsman shall be considered by a workers' compensation judge for any purpose.
5. (5) An unrepresented party has a right to consult with an ombudsman and receive services under this subsection (e). If the party receiving the services of an ombudsman obtains legal counsel pertaining to the case or dispute for which the services of an ombudsman were engaged, the party, or the party's counsel, shall immediately notify the bureau and the office of mediation services. Upon receipt of notice that the party has retained counsel, the ombudsman shall terminate all services.

§ 50-6-217. Workers' compensation appeals board.

(a)
1. (1) The administrator shall establish a workers' compensation appeals board, which must be wholly separate from the court of workers' compensation claims, to review interlocutory and final orders entered by workers' compensation judges upon application of any party to a workers' compensation claim.
2. (2) Any party aggrieved by an order issued by a workers' compensation judge may appeal the order to the workers' compensation appeals board by filing a timely notice of appeal on a form prescribed by the administrator. Review must be accomplished in the following manner:
  1. (A) Within seven (7) business days after the filing of an interlocutory order, either party may appeal the interlocutory order by filing a notice of appeal with the clerk of the court of workers' compensation claims. Following the expiration of the time established by bureau rules for the parties to file a transcript prepared by a licensed court reporter or a statement of the evidence, along with briefs or position statements specifying the issues presented for review and supporting arguments, the record on appeal must be submitted by the clerk of the court of workers' compensation claims to the clerk of the workers' compensation appeals board. Within twenty (20) business days of the receipt of the record on appeal or oral argument conducted pursuant to bureau rules, whichever is later, the workers' compensation appeals board shall issue a decision affirming, reversing, or modifying the interlocutory order and remanding the case. The decision of the workers' compensation appeals board is not subject to further review; and
  2. (B) Within thirty (30) calendar days after the issuance of a compensation order pursuant to § 50-6-239(c)(2), either party may appeal the compensation order by filing a notice of appeal with the clerk of the court of workers' compensation claims. The appealing party has fifteen (15) calendar days after the record is filed with the clerk of the workers' compensation appeals board to file a brief. A brief in response, if any, must be filed within fifteen (15) calendar days of the filing of the appellant's brief. No later than forty-five (45) calendar days after oral argument conducted pursuant to bureau rules or the expiration of the fifteen-day period for a responsive brief to be filed, whichever is later, the workers' compensation appeals board shall issue a decision affirming, reversing, modifying the compensation order; remanding the case; or any combination thereof. For purposes of further appellate review, the workers' compensation appeals board must, if appropriate, certify as final the order of the court of workers' compensation claims as affirmed, reversed, modified, or remanded. The decision of the workers' compensation appeals board is appealable to the Tennessee Supreme Court as provided for in the Tennessee Rules of Appellate Procedure. If a compensation order is timely appealed to the workers' compensation appeals board, the order issued by the workers' compensation judge must not become final, as provided in § 50-6-239(c)(7), until the workers' compensation appeals board issues a written decision certifying the order as a final order.
(b) This section shall have no effect on the procedures established for filing a claim for workers' compensation benefits in the division of claims and risk management, pursuant to § 9-8-402, or in the claims commission, pursuant to § 9-8-307. The workers' compensation appeals board shall have no jurisdiction over an appeal of a decision of a commissioner of the claims commission.
(c) The decisions of the workers' compensation appeals board shall not be subject to judicial review pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
(d)
1. (1) In the appeal of an interlocutory order, with the exception of the filing of the notice of appeal, when an act is required to be performed within a specified time, the workers' compensation appeals board may extend the specified time only in exceptional circumstances not to exceed five (5) additional business days, either upon its own motion or upon motion of any party. In the appeal of a compensation order, with the exception of the filing of the notice of appeal, when an act is required to be performed within a specified time, the workers' compensation appeals board may extend the specified time only in exceptional circumstances not to exceed twenty-one (21) additional calendar days, either upon its own motion or upon motion of any party.
2. (2) The administrator shall have the authority to assess filing fees sufficient to offset the costs of administering this chapter.

§ 50-6-218. Appointment of judges on the workers' compensation appeals board.

1. (a) The governor, in consultation with the speaker of the house of representatives and the speaker of the senate, shall appoint three (3) qualified individuals to serve as judges on the workers' compensation appeals board. Each individual selected shall be a Tennessee licensed attorney, with at least seven (7) years' experience in workers' compensation matters, shall be at least thirty (30) years of age, and shall be required to attend annual training on workers' compensation laws.
2. (b) Upon appointment, each judge of the workers' compensation appeals board shall serve a term of six (6) years and may be reappointed for up to two (2) additional terms by the governor upon expiration of the initial term. The governor shall designate one (1) of the judges as the presiding judge, who, in addition to performing the duties of a judge on the workers' compensation appeals board, shall administer the day to day operations of the workers' compensation appeals board and supervise the activities of the workers' compensation appeals board judges. Service of more than half of a six-year term constitutes service of one (1) full term. A judge appointed to the workers' compensation appeals board to serve less than a full term to fill a vacancy is eligible to serve up to an additional three (3) full terms. In the initial appointment of judges to the workers' compensation appeals board, one (1) judge appointed shall serve a term of two (2) years, one (1) judge appointed shall serve a term of four (4) years, and one (1) judge appointed shall serve a term of six (6) years.
3. (c) The governor shall have authority to remove a judge sitting on the workers' compensation appeals board during an unexpired term for the commission of any of the judicial offenses provided in § 17-5-301(j)(1).
4. (d) Any person appointed to serve as a judge on the workers' compensation appeals board shall be required to take an oath or affirmation to support the constitutions of the United States and of this state, and to administer justice without respect of persons, and impartially to discharge all the duties incumbent upon a judge to the best of the judge's skill and ability. The governor or any active or retired Tennessee judge or chancellor may administer the oath.
5. (e) No person appointed to serve as a judge on the workers' compensation appeals board shall practice law, or perform any of the functions of attorney or counsel, in any of the courts of this state, except in cases in which the judge may have been employed as counsel previous to the appointment as a judge on the workers' compensation appeals board. A newly appointed judge on the workers' compensation appeals board can practice law only in an effort to wind up the judge's practice and must end the practice of law as soon as reasonably possible and in no event longer than one hundred eighty (180) days after assuming the position of judge on the workers' compensation appeals board.

§ 50-6-219. Education and training program for workers' compensation mediators, judges, chief judge, ombudsman and judges of the workers' compensation appeals board.

The administrator shall institute and maintain an education and training program for workers' compensation mediators, workers' compensation judges, the chief judge, ombudsmen, and the judges of the workers' compensation appeals board in order to assure that these persons maintain current and appropriate skills and knowledge in performing their duties. Before assuming their duties, all persons selected to serve or appointed as workers' compensation mediators, workers' compensation judges, the chief judge, ombudsmen, or as judge of the workers' compensation appeals board shall be provided formal training and education, which shall include training on the department's workers' compensation system, the Tennessee workers' compensation statutes and case law, and the rules and regulations of the bureau of workers' compensation. In addition, such persons shall attend at least seven (7) hours of training each year that is focused on workers' compensation statutes and case law, and the rules and regulations of the bureau of workers' compensation.

§ 50-6-220. [Reserved.]

§ 50-6-221. Receipts for payments.

(a) Whenever payment of compensation is made to a surviving spouse for the surviving spouse's use, or for the surviving spouse's use and the use of a child or children, the written receipt of the payment by the surviving spouse shall acquit the employer in this and all other jurisdictions of the entire injury and all its damages.
(b) Whenever payment is made to any person eighteen (18) years of age or over, the written receipt of the person shall acquit the employer in this and all other jurisdictions of the entire injury and all its damages.
(c)
1. (1) Whenever payment is made to a person under eighteen (18) years of age, or to a dependent child as defined in § 50-6-210(b) over eighteen (18) years of age, the payment shall be paid to a duly and regularly appointed guardian or trustee of the child, and the receipt of the guardian or trustee shall acquit the employer in this and all other jurisdictions of the entire injury and all its damages and shall be in lieu of any claim of the parents of the child or minor for loss of services.
2. (2) Where the amount of compensation due a person under eighteen (18) years of age does not exceed the sum of two hundred fifty dollars ($250), the court may, in its discretion, direct the amount of compensation due the minor be paid as provided by title 34, chapter 1.

§ 50-6-222. Preference or priority of rights of compensation.

All rights of compensation granted by this chapter shall have the same preference or priority for the whole thereof against the assets of the employer as is allowed by law for any unpaid wages for labor.

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9-8-307(a)(1)(K)(ii)

§ 50-6-223. Exemption and nonassignability of compensation claims — Exceptions to nonassignability.

(a) No claim for compensation under this chapter shall be assignable, and all compensation and claims for compensation shall be exempt from claims of creditors.
(b) Notwithstanding subsection (a), compensation made by periodic payments shall be subject to income assignment for payment of support as provided by title 36, chapter 5, part 5 and § 50-2-105.
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(c) Notwithstanding subsection (a), the department of human services shall have a lien on any lump-sum settlements for the collection of current or overdue support as defined by § 36-5-113, and may enforce the lien as provided by title 36, chapter 5, part 9.

§ 50-6-224. [Reserved.]

§ 50-6-225. Appeal if dissatisfied or aggrieved by decision to certify compensation order as final.

(a)
1. (1) If a party is dissatisfied or aggrieved by a workers' compensation appeals board decision to certify a compensation order of the court of workers' compensation claims as final, then the party may appeal to the supreme court, where the cause shall be heard and determined as provided in the Tennessee Rules of Appellate Procedure.
2. (2) Review of the court of workers' compensation claims' findings of fact are de novo upon the record of the court of workers' compensation claims, accompanied by a presumption of the correctness of the finding, unless the preponderance of the evidence is otherwise.
3. (3) The supreme court may, by order, refer workers' compensation cases to a panel known as the special workers' compensation appeals panel. This panel shall consist of three (3) judges designated by the chief justice, at least one (1) of whom shall be a member of the supreme court.
4. (4) Any case that the supreme court by order or rule refers to the special workers' compensation appeals panel shall be briefed, and oral argument shall be heard pursuant to the Tennessee Rules of Appellate Procedure as if the appeal were being heard by the entire supreme court.
5. (5)
  1. (A) The special workers' compensation appeals panel shall reduce to writing its findings and conclusions in all cases. The decision of the panel shall become the judgment of the supreme court thirty (30) days after it is issued unless:
    1. (i) Any member of the supreme court files with the clerk a written request within the thirty-day period that the case be heard by the entire supreme court, in which event a final judgment will not be entered until the supreme court, after due consideration of the case, enters final judgment; or
    2. (ii) Any party to the appeal files a motion requesting review by the entire supreme court within fifteen (15) days after issuance of the decision by the panel, in which event a final judgment will not be entered:
      1. (a) Until the motion is denied; or
      2. (b) If the motion is granted, until the supreme court enters final judgment after its consideration of the case.
  2. (B) For purposes of this subsection (a), a decision of the panel shall be deemed to be issued on the day it is mailed to the parties, which date shall be noted on the decision by the clerk. Section 27-1-122 applies to all motions made pursuant to this subsection (a).
(b) Appeal of all cases under this chapter shall be expedited by:
1. (1) Giving the cases priority over all cases on the appellate dockets; and
2. (2) Allowing any case on appeal in the supreme court to be on motion of either party transferred to the bureau where the supreme court is then or will next be in session.
(c)
1. (1) If the judgment or decree is appealed pursuant to subsection (a), interest on the judgment or decree shall be computed from the date that the judgment is entered by the court of workers' compensation claims at an annual rate as defined in § 47-14-121. For purposes of calculating the accrual of interest pursuant to this subdivision (c)(1), the average prime loan rate on the day the judgment or decree is entered by the trial court shall be used.
2. (2) Total judgment awarded is computed by the total number of weeks multiplied by the benefit rate without any reduction.
(d) When a reviewing court determines pursuant to motion or sua sponte that the appeal of an employer or insurer is frivolous, or taken for purposes of delay, a penalty may be assessed by the court, without remand, against the appellant for a liquidated amount.
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(e) When a reviewing court determines pursuant to motion or sua sponte that the appeal of an employee is frivolous, a penalty may be assessed by the court, without remand, against the appellant for a liquidated amount.

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§ 50-6-226. Fees of attorneys and physicians, and hospital charges.

(a)
1. (1) The reasonableness of attorney fees for services to employees under this chapter is subject to the approval of the workers' compensation judge before whom the matter is pending; provided, that attorney fees must not exceed twenty percent (20%) of the amount of the recovery or award to the injured worker, or in cases governed by § 50-6-207(4), twenty percent (20%) of the first four hundred fifty (450) weeks of the award; provided, further, that such fees must be paid by the party employing the attorney. All attorney fees for attorneys representing employers are subject to review for reasonableness of the fee and are subject to approval by a workers' compensation judge when the fee exceeds ten thousand dollars ($10,000).
2. (2)
  1. (A) Medical costs that have been voluntarily paid by the employer or its insurer shall not be included in determining the award for purposes of calculating the attorney's fee.
  2. (B) In cases that proceed to trial, an employee’s attorney shall file an application for approval of a proposed attorney’s fee. Where the award of an attorney’s fee exceeds ten thousand dollars ($10,000), the court shall make specific findings as to the factors that justify the fee as provided in Tennessee Supreme Court Rule 8, RPC 1.5.
  3. (C) The final order or settlement in all workers' compensation cases shall set out the attorney portion of the award in both dollar and percentage terms and the required findings.
3. (3) In accident cases that result in death of an employee, the plaintiff's attorney's fees shall not exceed reasonable payment for actual time and expenses incurred when the employer makes a voluntary settlement offer in writing to dependents or survivors eligible under § 50-6-210 within thirty (30) days of the employee's death if the employer offers to provide the dependents or survivors with all the benefits provided under this chapter. The approving authority shall review and approve the settlements on an expedited basis.
4. (4) The fees of physicians and charges of hospitals for services to employees under this chapter, shall be subject to the approval of the administrator or the court before which the matter is pending, as appropriate, as provided in this subdivision (a)(4). Unless a medical fee or charge is contested, the department shall deem it to be reasonable. If a fee or charge is contested, the department shall permit a party to seek review only of the contested fee or charge in any court with jurisdiction to hear a matter pursuant to § 50-6-237. A court may review the case solely for the purpose of approving the fees and charges that are reasonable.
(b) The charging or receiving of any fee by an attorney in violation of subsection (a) shall be deemed unlawful practice and render the attorney liable to disbarment; and, further, the attorney shall forfeit double the entire amount retained by the attorney, to be recovered as in case of debt by the injured person or the injured person's creditor.
(c)
1. (1) The fees charged to the claimant by the treating physician or a specialist to whom the employee was referred for giving testimony by oral deposition relative to the claim shall, unless the interests of justice require otherwise, be considered a part of the costs of the case, to be charged against the employer when the employee is the prevailing party.
2. (2) The workers' compensation judge shall have the discretion to determine the reasonableness of the fee charged by any physician pursuant to this subsection (c).
3. (3) This subsection (c) applies only to workers' compensation actions arising on or after July 1, 1988.
(d)
1. (1) In addition to attorneys' fees provided for in this section, the court of workers' compensation claims may award reasonable attorneys' fees and reasonable costs, including, but not limited to, reasonable and necessary court reporter expenses and expert witness fees for depositions and trials, incurred when the employer:
  1. (A) Fails to furnish appropriate medical, surgical, and dental treatment or care, medicine, medical and surgical supplies, crutches, artificial members, and other apparatus to an employee provided for in a settlement, expedited hearing order, compensation hearing order, or judgment under this chapter; or
  2. (B) Unreasonably denies a claim or unreasonably fails to timely initiate any of the benefits to which the employee or dependent is entitled under this chapter, including medical benefits under § 50-6-204, temporary or permanent disability benefits under § 50-6-207, or death benefits under § 50-6-210 if the workers' compensation judge makes a finding that the benefits were owed at an expedited hearing or compensation hearing.
2. (2) Subdivision (d)(1)(B) applies to injuries that occur:
  1. (A) Between July 1, 2016, and June 30, 2020; and
  2. (B) Between July 1, 2021, and June 30, 2025.
(e) A health care provider shall not employ a collection agency or make a report to a credit bureau concerning a private claim against an employer for all or part of the costs of medical care provided to an employee that are not paid by the employer's workers' compensation insurer without having first given notice of the dispute to the medical payment committee. The medical director may include the insurer in the administrative process.

§ 50-6-227. [Reserved.]

§ 50-6-228. [Reserved.]

§ 50-6-229. Commutation to lump sum payment with consent of court.

(a) The amounts of compensation payable periodically under this chapter may be commuted to one (1) or more lump sum payments. These may be commuted upon motion of any party subject to the approval of the court of workers' compensation claims. No agreed stipulation or order or any agreement by the employer and employee or any other party to the proceeding shall be a prerequisite to the court's approval or disapproval of the award being paid in one (1) or more lump sum payments. In making the commutation, the lump sum payment shall, in the aggregate, amount to a sum of all future installments of compensation. No settlement or compromise shall be made except on the terms provided in this chapter. In determining whether to commute an award, the trial court shall consider whether the commutation will be in the best interest of the employee, and the court shall also consider the ability of the employee to wisely manage and control the commuted award, regardless of whether special needs exist. Attorneys' fees may be paid as a partial lump sum from any award when approved and ordered by the trial judge.
(b) All settlements of compensation by agreement of the parties and all awards of compensation made by the court of workers' compensation claims, when the amount paid or to be paid in settlement or by award does not exceed the compensation for twenty-six (26) weeks of disability, shall be final and not subject to readjustment.
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(c) All amounts paid by the employer and received by the employee or the employee's dependents, by lump sum payments, shall be final, but the amount of any award payable periodically for more than twenty-six (26) weeks may be modified as follows:
1. (1) At any time by agreement of the parties and approval by the court; or
2. (2) If the parties do not agree, then at any time after twenty-six (26) weeks from the date of the award, either party may file an application to the court of workers' compensation claims, on the ground of increase or decrease of incapacity due solely to the injury.

§ 50-6-230. [Reserved.]

§ 50-6-231. [Reserved.]

§ 50-6-232. Present value of future installments — Deposit in trust releasing employer — Trustee to make payments.

(a) Any time after the amount of any award has been agreed upon by the parties, or found and ordered by the court, a sum of all future installments of compensation may, where death or the nature of the injury renders the amount of future payments certain, by leave of court, be paid by the employer to any savings bank or trust company of this state to be approved and designated by the court, and the sum, together with all interest on the sum, shall be held in trust for the employee or the dependents of the employee who shall have no further recourse against the employer.
(b) The payment of the sum by the employer evidenced by the receipts of the trustee, which shall be filed with the bureau, shall constitute satisfaction of the award by the employer.
(c) Payments from the fund shall be made by the trustee in the same amounts and at the same time as are required of the employer until the fund interest is exhausted.
(d) In the appointment of the trustee, preference shall be given, in the discretion of the court of workers' compensation claims, to the choice of the injured employee or the dependent of the deceased employee, as the case may be.

§ 50-6-233. Enforcement powers of administrator — Promulgation of rules and regulations to implement chapter.

(a)
1. (1) There is conferred upon the administrator the power to enforce this chapter that relate to the assurance of payments of the awards under this chapter.
2. (2) In no event shall the bureau of workers' compensation charge a fee or impose a cost for any necessary or required forms needed to process a workers' compensation claim.
(b) In addition to the rulemaking authority granted in § 50-6-118, and subsection (a), the administrator or the commissioner of commerce and insurance, as appropriate, may promulgate rules and regulations implementing this chapter. The rules and regulations shall be promulgated pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.

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9-8-307(a)(1)(K)(ii)

§ 50-6-234. Discontinuance or change in temporary disability benefits by employer — Resumption or increase of benefits.

(a) In any case when the employer has commenced paying temporary disability benefits to the employee and has then stopped or changed the benefits for any cause other than failure of an employee to submit to employer requests for reasonable medical examinations by the treating physician or final settlement, the employee may request the assistance of a workers' compensation mediator who shall mediate the dispute, in accordance with § 50-6-236. If the dispute is not resolved by agreement, the parties may submit the dispute to a workers' compensation judge for resolution after the workers' compensation mediator has issued a dispute certification notice in accordance with § 50-6-236.
(b) After temporary disability payments have commenced, when the injured employee reaches maximum medical improvement and the compensability of the injury has not been contested by the employer, then payments shall continue until the injured employee accepts or rejects a job offered by any employer at a wage equal to or greater than the employee's pre-injury wage, if the employee is able to perform the duties of the position within any restrictions placed on the employee by the physician selected pursuant to § 50-6-204. In no case may temporary payments pursuant to this subsection (b) exceed the lesser of sixty (60) days or the value of the employee's permanent partial disability award calculated solely upon the medical impairment; provided, that these limits may be exceeded if agreed to by all parties. The amount of the payment shall be credited against any permanent award. For purposes of this subsection (b), the determination of attainment of maximum medical improvement and the employee's medical impairment shall be made by the physician selected in accordance with § 50-6-204. Nothing in this subsection (b) shall require an employer to return any employee to work.

§ 50-6-235. Depositions by physicians — Written medical report — Admissibility — Schedule for charges.

(a)
1. (1) If a physician refuses to make a reasonable effort to give a deposition in a workers' compensation case within ninety (90) days of receipt of notice, the employee may petition the court for an order requiring the physician to give the deposition.
2. (2) If the physician does not respond to the petition in a timely fashion, the physician may lose the exemption from subpoena to trial established by § 24-9-101.
(b) For the purpose of subsection (a), the requirement that the physician make a reasonable effort to give a deposition may be presumed to be satisfied if the physician offers to be available to give the physician's deposition within ninety (90) days' of notice at two (2) or more reasonable places and at times within normal business hours, but because of scheduling difficulties on the part of any of the other persons who wish to be present at the deposition, the deposition cannot take place at either of the times and places offered by the physician.
(c)
1. (1) Any party may introduce direct testimony from a physician through a written medical report on a form established by the administrator. The administrator shall establish by rule the form for the report. All parties have the right to take the physician's deposition on cross examination concerning the contents of the medical report. A written medical report sought to be introduced as evidence must be signed by the physician making the report bearing an original or electronic signature. A reproduced medical report that was originally signed is admissible as evidence to the same extent as the original report or a report bearing an electronic signature unless a genuine question is raised as to the authenticity of the original, which question must be resolved by a workers' compensation judge. A written medical report sought to be introduced into evidence must include within the body of the report or as an attachment a statement of qualifications of the person making the report. The administrator shall, by rule, fix the fee to be charged by the physician for the preparation and filing of the report and fix penalties for a failure to file the report after a timely request for it by an interested party.
2. (2) The written medical report of a treating or examining physician shall be admissible at any stage of a workers' compensation claim in lieu of a deposition upon oral examination, if notice of intent to use the sworn statement is provided to the opposing party or counsel not less than twenty (20) days before the date of intended use. If no objection is filed within ten (10) days of the receipt of the notice, the sworn statement shall be admissible as described in this subsection (c). In the event that a party does object, then the objecting party shall depose the physician within a reasonable period of time or the objection shall be deemed to be waived.
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- 50-6-204(k)(2)(C)
(d) The medical payment committee established in § 50-6-125 shall establish a schedule by rule for reasonable charges by physicians for preparing and giving depositions in workers' compensation cases. The schedule may be subject to annual revision. Physicians shall not be permitted to charge more than the amount permitted under the schedule. The rule shall be subject to the approval of the administrator, including annual revisions.

§ 50-6-236. Workers' compensation mediators program.

(a) The administrator shall establish a workers' compensation mediators program to assist injured or disabled employees, persons claiming death benefits, employers and other persons in protecting their rights, resolving disputes, and obtaining information pertinent to workers' compensation laws and practices.
(b) In accordance with rules adopted by the administrator, the mediator shall conduct alternative dispute resolution and the mediator shall:
1. (1) Mediate all disputes between the parties related to the resolution of a claim for workers' compensation benefits and assist in the adjustment of claims consistent with this chapter and the policies of the administrator;
2. (2) Thoroughly inform all parties of their rights and responsibilities under this chapter, including the right of any party to be represented by an attorney of the party's choice;
3. (3) Accept all documents and information presented to the bureau relating to the employee's wages, medical condition, and any other information pertinent to the resolution of disputed issues and include them in the claim file; and
4. (4) If the parties reach a full and final settlement, then either the mediator, or one (1) party's legal representative upon agreement of the parties, shall reduce the settlement to writing and each party, or their representative, shall sign. A settlement reached during alternative dispute resolution proceedings is not effective until it has been approved by a workers' compensation judge in accordance with the procedure provided in this chapter.
(c)
1. (1) When mediation is held, a person representing the employee and the employer, or the employer's insurer, with the authority to settle, shall attend. It shall not be required that the state or its representative who attends mediation have final settlement authority. Parties entering into mediation shall be prepared to mediate all disputed issues at the beginning of mediation and shall mediate all issues in good faith.
2. (2) When a mediator determines that a party is not prepared to mediate as required or believes a party is not mediating in good faith, the mediator shall include comments to that effect in the dispute certification notice.
  1 Backlink
  - 9-8-307(a)(1)(K)(ii)
3. (3) The administrator is authorized to promulgate rules to effectuate the purposes of this subsection (c) in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. The violation of those rules or this subsection (c) may subject the party or their representative to a civil penalty of not less than fifty dollars ($50.00) or more than five thousand dollars ($5,000).
(d)
1. (1) If the parties are unable to reach settlement of any disputed issues, the mediator shall issue a written dispute certification notice setting forth all unresolved issues for hearing before a workers' compensation judge.
2. (2) The dispute certification shall be issued on a form prescribed by the administrator and signed by the assigned workers' compensation mediator who shall distribute a copy of the signed dispute certification notice to all parties in accordance with rules adopted by the administrator.
3. (3)
  1. (A) No party is entitled to a hearing before a workers' compensation judge to determine temporary or permanent benefits or to resolve a dispute over the terms of an agreed settlement of a workers' compensation claim, unless a workers' compensation mediator has issued a dispute certification notice setting forth the issues for adjudication by a workers' compensation judge.
  2. (B) Within five (5) business days after a copy of the dispute certification notice signed by the mediator has been distributed to the parties, any party may, on no more than one (1) occasion for each notice, present a written request that the contents of the dispute certification notice be amended to the mediator who presided over the alternative dispute resolution proceeding.
  3. (C) If a written request to amend the dispute certification notice is presented to the mediator before the expiration of the five (5) business day period provided in subdivision (d)(3)(B), the mediator shall, within three (3) business days after the initial five (5) business day period ends, issue an amended dispute certification notice. If no amended dispute certification notice is signed by the mediator and distributed to the parties, the initial dispute certification notice distributed to the parties pursuant to subdivision (d)(3) shall remain in effect.
(e) A workers' compensation mediator shall not be an advocate for either party and shall mediate all issues without favor or presumption for or against either party. A mediator shall have no authority to order the provision of workers' compensation benefits.
(f) Any person employed as a workers' compensation mediator shall not engage in mediation, litigation, or determination of workers' compensation claims outside of the workers' compensation mediator's duties as a workers' compensation mediator.
(g) If, following a request by the mediator, a party fails to produce documents, to cooperate in scheduling mediation, or to provide a representative authorized to settle a matter in attendance at mediation, then the mediator may issue a dispute certification notice and include a statement detailing the party's failure to cooperate, produce documents or to ensure attendance of a representative authorized to settle the claim. On the motion of either party or on the workers' compensation judge's motion, a workers' compensation judge is authorized, but not required, to hold a hearing on the failure to produce documents requested by the mediator, to cooperate in scheduling and to provide a representative who possessed settlement authority. If the workers' compensation judge determines that the failure lacked good cause or resulted from bad faith, then the workers' compensation judge may assess the offending party who failed to take the requested action with attorney's fees and costs related only to the mediation and the hearing. The administrator is authorized to promulgate rules to effectuate the purposes of this subsection (g) in accordance with the Uniform Administrative Procedures Act.

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§ 50-6-237. Court of workers' compensation claims.

There is created the court of workers' compensation claims in the bureau of workers' compensation, which shall have original and exclusive jurisdiction over all contested claims for workers' compensation benefits when the date of the alleged injury is on or after July 1, 2014. The administrator shall have sole administrative authority over the court including authority to appoint, and to remove, workers' compensation judges. The administrator shall promulgate rules and regulations consistent with this chapter in order to fulfill the purposes of this chapter in an orderly and efficient manner.

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§ 50-6-238. Appointment of workers' compensation judges — Duties of judges — Appointment of chief judge of the court of workers' compensation claims — Duties of chief judge — Appointment of clerk of the court of workers' compensation claims — Duties of clerk.

(a)
1. (1) On or after July 1, 2013, the administrator shall appoint qualified individuals to serve as workers' compensation judges. Workers' compensation judges shall be Tennessee licensed attorneys in good standing with at least five (5) years experience in workers' compensation matters and shall be at least thirty (30) years of age. Workers' compensation judges shall be executive service employees of the state as defined in § 8-30-103.
2. (2)
  1. (A) In making the initial appointments, the administrator shall have authority to shorten and stagger the terms of workers' compensation judges to ensure that the terms of no more than seven (7) workers' compensation judges shall terminate at the same time.
  2. (B) Except for the initial appointment of candidates to fill the position of workers' compensation judge, upon appointment, each workers' compensation judge shall serve a term of six (6) years. Terms shall begin on July 1 and expire six (6) years later, on June 30. No workers' compensation judge shall serve more than three (3) full terms, and service of more than half of a term shall constitute service of one (1) full term. If a sitting workers' compensation judge is removed or resigns, a vacancy shall exist in the office, which shall be filled for the unexpired term by a person meeting the requirements of subdivision (a)(1).
  3. (C) Any workers' compensation judge may be reappointed by the administrator upon expiration of the term.
  4. (D) If a workers' compensation judge leaves the position prior to the expiration of the term, the administrator shall appoint an individual meeting the qualifications of this section to serve the unexpired portion of the term. The individual may be reappointed by the administrator upon expiration of the term. Any workers' compensation judge appointed to serve less than a full term to fill a vacancy created by the removal or resignation of a sitting workers' compensation judge shall be eligible to serve an additional three (3) full terms.
3. (3) It shall be the duty of a workers' compensation judge to hear and determine claims for compensation, to approve settlements of claims for compensation, to conduct hearings, and to make orders, decisions, and determinations. Workers' compensation judges shall conduct hearings in accordance with the Tennessee Rules of Civil Procedure, the Tennessee Rules of Evidence, and the rules adopted by the bureau and shall have authority to swear in witnesses at hearings and other court of workers' compensation claims functions, to issue subpoenas, to compel obedience to their judgments, orders, and process through the assessment of a penalty as provided in § 50-6-118, and to conduct judicial settlement conferences.
4. (4) In any claim for workers' compensation death benefits, a workers' compensation judge shall have the authority to appoint a guardian ad litem consistent with § 37-1-149 and Tennessee Supreme Court Rule 40. For purposes of this section, “guardian ad litem” means a lawyer appointed by the court to advocate for the best interests of a child and to ensure that the child's concerns and preferences are effectively advocated. The court shall have authority to award a reasonable fee for the services provided by the guardian ad litem, which shall be paid by the employer.
(b)
1. (1) On or after July 1, 2013, the administrator shall appoint a qualified individual to serve as chief judge of the court of workers' compensation claims. The individual shall be a Tennessee licensed attorney in good standing with at least seven (7) years experience in workers' compensation matters. The chief judge shall be an executive service employee of the state as defined in § 8-30-103.
2. (2) In addition to performing the duties required of a workers' compensation judge by subdivision (a)(3), it shall be the duty of the chief judge, under the rules adopted by the bureau, to administer the day to day operations of the court of workers' compensation claims and supervise the activities of workers' compensation judges.
3. (3) Upon appointment, the chief judge shall serve a term of six (6) years and may be reappointed by the administrator upon expiration of a term if the chief judge has served competently, responsibly, and impartially. Service of more than half of a six-year term constitutes service of one (1) full term. A chief judge of the court of workers' compensation claims appointed to serve less than a full term to fill a vacancy is eligible to serve up to an additional three (3) full terms.
(c) Unless otherwise provided by law or clearly inapplicable in context, the Tennessee Code of Judicial Conduct, Rule 10, Canons 1-4, of the Rules of the Tennessee Supreme Court, and any subsequent amendments thereto, shall apply to all workers' compensation judges. However, any complaints regarding the conduct of a workers' compensation judge under the code shall be made to the chief workers' compensation judge. Any complaints about the chief judge shall be made to the administrator.
(d) The administrator shall have authority to remove a workers' compensation judge or the chief judge during an unexpired term for the commission of any of the judicial offenses provided in § 17-5-301(j)(1).
(e) Any person appointed to serve as a workers' compensation judge or as the chief judge shall be required to take an oath or affirmation to support the constitutions of the United States and of this state, and to administer justice without respect of persons, and impartially to discharge all the duties incumbent upon a judge to the best of the judge's skill and ability. The governor, an active or retired Tennessee judge or chancellor, or an active or retired judge of the court of workers' compensation claims or workers' compensation appeals board may administer the oath.
(f) No workers' compensation judge or chief judge shall practice law, or perform any of the functions of attorney or counsel, in any of the courts of this state, except in cases in which the judge may have been employed as counsel previous to the appointment as a workers' compensation judge or chief judge. A newly appointed workers' compensation judge or chief judge can practice law only in an effort to wind up the judge's practice and must end the practice of law as soon as reasonably possible and in no event longer than one hundred eighty (180) days after assuming the position of workers' compensation judge or chief judge.
(g) When considering the appointment of an individual to serve as a workers' compensation judge or as the chief judge, the administrator shall consider comment from the members of the business, labor and legal communities concerning the suitability of the individual for appointment as a workers' compensation judge or the chief judge.
(h) On or after July 1, 2013, the administrator shall appoint a qualified individual to serve as the clerk of the court of workers' compensation claims whose duty it shall be to perform all the clerical functions of the court. The clerk of the court of workers' compensation claims shall be an executive service employee of the state as defined in § 8-30-103.
(i) The judges of the court of workers' compensation claims shall have execution authority as provided in title 26.

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9-8-307(a)(1)(K)(ii)

§ 50-6-239. Request of hearing after issuance of dispute certification notice — Issuance of notice — Permission required to present issues not certified by mediator — Conduct of hearings — Hearings of disputes on expedited basis — Discovery disputes —Penalties for failure to comply with orders — Filing fees — Judicial review of orders.

(a) Within sixty (60) days after issuance of a dispute certification notice by a workers' compensation mediator, a party seeking further resolution of disputed issues shall file a request for a hearing with the bureau, and the clerk of the court of workers' compensation claims shall issue notice to all parties identifying the judge to whom the claim has been assigned and the procedure for scheduling and preparing for a hearing.
(b)
1. (1) Unless permission has been granted by the assigned workers' compensation judge, only issues that have been certified by a workers' compensation mediator within a dispute certification notice may be presented to the workers' compensation judge for adjudication.
2. (2) Following the issuance of a dispute certification notice and assignment of the claim to a workers' compensation judge, the workers' compensation judge may grant permission for parties to present issues that have not been certified by a workers' compensation mediator only upon finding that:
  1. (A) The parties did not have knowledge of the issue prior to issuance of the dispute certification and could not have known of the issue despite reasonable investigation; and
  2. (B) Prohibiting presentation of the issue would result in substantial injustice to the petitioning party.
(c) Hearings of disputes shall be conducted in the following manner:
1. (1) All hearings shall be conducted within the timeframes adopted by the administrator through the promulgation of rules. The Tennessee Rules of Evidence and the Tennessee Rules of Civil Procedure shall govern proceedings at all hearings before a workers' compensation judge unless an alternate procedural or evidentiary rule has been adopted by the administrator. Whenever the administrator has adopted an alternate procedural or evidentiary rule that conflicts with the Tennessee Rules of Civil Procedure or the Tennessee Rules of Evidence, the rule adopted by the administrator shall apply;
2. (2) Following the hearing, the workers' compensation judge shall issue a compensation order that sets forth findings of fact and conclusions of law, and, if appropriate, an order for the payment of benefits under the workers' compensation law. The workers' compensation judge shall note the date of entry on the order and a copy of the order shall be distributed to the parties in accordance with procedures adopted by the administrator;
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  - 50-6-217(a)(2)(B)
3. (3) If a party who has filed a request for hearing files a notice of nonsuit of the action, either party shall have ninety (90) days from the date of the order of dismissal to institute an action for recovery of benefits under this chapter;
4. (4) All hearings before the workers' compensation judge shall be open to the public. The parties may provide a court reporter for the preparation of a record;
5. (5) The testimony of any witness may be taken by deposition according to the Tennessee Rules of Civil Procedure or may be taken before the workers' compensation judge. No costs shall be charged, taxed or collected by the workers' compensation judge for the appearance of witnesses except fees for witnesses who testify under subpoena. The witnesses shall be allowed the same fee for attendance and mileage as is fixed by law in civil actions;
6. (6) Unless the statute provides for a different standard of proof, at a hearing the employee shall bear the burden of proving each and every element of the claim by a preponderance of the evidence;
7. (7) There shall be a presumption that the findings and conclusions of the workers' compensation judge are correct, unless the preponderance of the evidence is otherwise. The decision of the workers' compensation judge shall become final thirty (30) days after the workers' compensation judge enters a compensation order, unless a party in interest seeks an appeal of the decision from the workers' compensation appeals board pursuant to this chapter;
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  - 50-6-217(a)(2)(B)
8. (8) The workers' compensation judge may, in his discretion, assess discretionary costs including reasonable fees for depositions of medical experts against the employer upon adjudication of the employee's claim as compensable;
9. (9) After an order entered by a workers' compensation judge has become final, the parties subject to the order shall have five (5) business days after all appeals are exhausted to comply with the order or the noncompliant parties shall be subject to penalization as provided by § 50-6-118;
10. (10) In any claim where the employee has suffered a catastrophic injury, the workers' compensation judge assigned to the claim shall have discretion to order that the claim be heard on an expedited basis. If the assigned workers' compensation judge orders an expedited hearing of the claim, the claim shall be given priority over all cases on the workers' compensation judge's trial docket with the exception of any other claims that the workers' compensation judge has previously ordered to be heard on an expedited basis under this subdivision (c)(10).
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- 50-6-204(g)(2)(A)
(d) Hearings of disputes on an expedited basis shall be conducted in the following manner:
1. (1) Upon motion of either party made at any time after a dispute certification notice has been issued by a workers' compensation mediator, a workers' compensation judge may, at the judge's discretion, hear disputes over issues provided in the dispute certification notice concerning the provision of temporary disability or medical benefits on an expedited basis and enter an interlocutory order upon determining that the injured employee would likely prevail at a hearing on the merits. A copy of the motion shall be served by the moving party on all other parties to the claim in accordance with procedures adopted by the administrator;
2. (2) A workers' compensation judge is not required to hold a full evidentiary hearing before issuing an interlocutory order for temporary disability or medical benefits;
3. (3) If temporary disability or medical benefits are ordered, the employer shall have seven (7) business days to comply with the order or to request an appeal from the workers' compensation appeals board. Unless modified by the workers' compensation appeals board following an appeal or unless a subsequent order to modify an interlocutory order for temporary disability or medical benefits is issued by the workers' compensation judge presiding over the claim, the interlocutory order shall remain in effect pending conclusion of the matter by hearing according to the procedure provided in subsection (c);
4. (4) If a motion for temporary disability or medical benefits is denied on the basis that the claim is not compensable, the proceeding shall continue according to the procedure provided in subsection (c) unless the employee files a request for an appeal to the workers' compensation appeals board. At any time after the employee has exhausted the procedures for seeking an appeal from the workers' compensation appeals board, as provided in this chapter, the workers' compensation judge may entertain an appropriate motion from the employer for dismissal of the claim.
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- 50-6-802(e)(1)
(e) All discovery disputes, including motions to compel and for protective order, shall be adjudicated upon the review of written motions and affidavits. A workers' compensation judge may, in the judge's discretion, convene a hearing on a discovery dispute only upon a finding that good cause to convene a hearing exists.
(f) The failure of any party to comply in a timely manner with an interlocutory or final order issued by a workers' compensation judge may result in the assessment of a penalty as provided in § 50-6-118.
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- 50-6-205(b)(3)(C)
(g) The administrator shall have authority to assess filing fees sufficient to offset the cost of administering this chapter.
(h) Except as otherwise provided in § 50-6-118, no order issued by a workers' compensation judge shall be subject to judicial review pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.

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§ 50-6-240. Approval or rejection of settlement agreements.

(a) The interested parties shall have the right to settle all matters of compensation between themselves, but all settlements shall be reduced to writing and shall be approved by a judge of the court of workers' compensation claims before they are binding on either party. It shall be the duty of the judge of the court of workers' compensation claims to whom any proposed settlement is presented for approval under this chapter, to examine the proposed settlement to determine whether the employee is receiving, substantially, the benefits provided by this chapter. Upon approving the settlement, a judgment shall be rendered on the settlement by the court of workers' compensation claims and duly entered by the clerk. The cost of the proceeding shall be borne by the employer. In all cases where the settlement proceedings or any other court proceedings for workers' compensation under this chapter involve a subsequent injury wherein the employee would be entitled to receive or is claiming compensation from the subsequent injury and vocational recovery fund provided for in § 50-6-208, the administrator shall be made a party defendant to the proceedings in an action filed by either the employer or the injured employee, and an attorney representing the bureau under the supervision of the attorney general and reporter shall represent the administrator in the proceeding. The court of workers' compensation claims, by its decree, shall determine the right of the employee to receive compensation from the fund.
(b) A workers' compensation judge shall approve or reject settlements submitted to the bureau within three (3) business days after the settlement has been received by the bureau and assigned to a workers' compensation judge for consideration.
(c) In approving settlements, a workers' compensation judge shall consider all pertinent factors and if the injured employee is not represented by counsel, then the workers' compensation judge shall thoroughly inform the employee of the scope of benefits available under this chapter and the employee's rights and the procedures necessary to protect those rights.
(d) Nothing in this section shall be construed to prohibit the parties from compromising and settling the issue of future medical benefits at any time; provided, that the settlement agreement is approved by a judge of the court of workers' compensation claims, and includes a provision confirming that the employee has been informed of the potential consequences of the settlement, if any, with respect to medicare and TennCare benefits and liabilities. Notwithstanding any other provision of this chapter, an employee who is determined to be permanently and totally disabled shall not be allowed to compromise and settle the employee's rights to future medical benefits.
(e) Notwithstanding any other provision of this section, if there is a dispute between the parties as to whether a claim is compensable, or as to the amount of compensation due, the parties may settle the matter without regard to whether the employee is receiving substantially the benefits provided by this chapter; provided, that the settlement is determined by a workers' compensation judge to be in the best interest of the employee.
(f) No party may settle a claim for permanent disability benefits unless the settlement agreement has been approved by a workers' compensation judge. Any settlement agreement not approved pursuant to this section is void.

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§ 50-6-241. Maximum permanent partial disability awards for claims arising after July 1, 2004 but before July 1, 2014 — Public policy regarding legal immigration.

(a)
1. (1)
  1. (A) For injuries occurring on or after July 1, 2004, but before July 1, 2014, in cases in which an injured employee is eligible to receive any permanent partial disability benefits either for body as a whole or for schedule member injuries, except schedule member injuries specified in § 50-6-207(3)(A)(ii)(a)-(l), (n), (q), and (r), and the pre-injury employer returns the employee to employment at a wage equal to or greater than the wage the employee was receiving at the time of the injury, the maximum permanent partial disability benefits that the employee may receive is one and one-half (1 ½) times the medical impairment rating determined pursuant to [former] § 50-6-204(d)(3). In making the determinations, the court shall consider all pertinent factors, including lay and expert testimony, the employee's age, education, skills and training, local job opportunities and capacity to work at types of employment available in claimant's disabled condition.
  2. (B)
    1. (i) If an injured employee receives benefits for body as a whole injuries pursuant to subdivision (a)(1)(A) and the employee is subsequently no longer employed by the pre-injury employer at the wage specified in subdivision (a)(1)(A) within four hundred (400) weeks of the day the employee returned to work for the pre-injury employer, the employee may seek reconsideration of the permanent partial disability benefits. Employees who continue in their employment after a reduction in pay or a reduction in hours due to economic conditions shall not be entitled to reconsideration of their claims under this section if the reduction in pay or reduction in hours affected at least fifty percent (50%) of all hourly employees operating at or out of the same location. This provision does not apply to or include employees involved in layoffs, closures or a termination of business operations.
    2. (ii) If an injured employee receives benefits for schedule member injuries pursuant to subdivision (a)(1)(A), and the employee is subsequently no longer employed by the pre-injury employer at the wage specified in subdivision (a)(1)(A), the employee may seek reconsideration of the permanent partial disability benefits. The right to seek the reconsideration shall extend for the number of weeks for which the employee was eligible to receive benefits under § 50-6-207, beginning with the day the employee returned to work for the pre-injury employer. Employees who continue in their employment after a reduction in pay or a reduction in hours due to economic conditions shall not be entitled to reconsideration of their claims under this section if the reduction in pay or reduction in hours affected at least fifty percent (50%) of all hourly employees operating at or out of the same location. This provision does not apply to or include employees involved in layoffs, closures or a termination of business operations.
    3. (iii) Notwithstanding this subdivision (a)(1)(B), under no circumstances shall an employee be entitled to reconsideration when the loss of employment is due to either:
      1. (a) The employee's voluntary resignation or retirement; provided, however, that the resignation or retirement does not result from the work-related disability that is the subject of such reconsideration; or
      2. (b) The employee's misconduct connected with the employee's employment.
    4. (iv) To seek reconsideration pursuant to subdivision (a)(1)(B)(i) or (a)(1)(B)(ii), the employee shall first request a benefit review conference within one (1) year of the date on which the employee ceased to be employed by the pre-injury employer. If the parties are not able to reach an agreement regarding additional permanent partial disability benefits at the benefit review conference, the employee shall be entitled to file a complaint seeking reconsideration in a court of competent jurisdiction within ninety (90) days of the date of the benefit review conference. Any settlement or award of additional permanent partial disability benefits pursuant to reconsideration shall give the employer credit for prior permanent partial disability benefits paid to the employee. Any new settlement or award regarding additional permanent partial disability benefits remains subject to the maximum established in [former] subdivision (a)(2) and shall be based on the medical impairment rating that was the basis of the previous settlement or award.
    5. (v) Notwithstanding any other provision of law to the contrary, an employee shall not be permitted to waive or forfeit, and the parties shall not be permitted to compromise and settle, the employee's rights to reconsideration pursuant to this section.
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    50-6-242(b)
  3. (C)
    1. (i) Notwithstanding any other law to the contrary, for injuries occurring on or after July 1, 2009, but before July 1, 2014, if an injured employee receives permanent partial disability benefits for body as a whole injuries or if the injured employee receives permanent partial disability benefits for schedule member injuries pursuant to subdivision (a)(1)(A) and the pre-injury employer is sold or acquired subsequent to the receipt of the permanent partial disability benefits, then the injured employee shall not be entitled to seek reconsideration:
      1. (a) Provided, that the injured employee continues to be employed by the successor employer at the same or higher pay; or
      2. (b) If the employee declines an offer of employment with the successor employer at the same or higher pay.
    2. (ii) Notwithstanding subdivision (a)(1)(C)(i), an injured employee shall be entitled to seek reconsideration:
      1. (a) From the successor employer within four hundred (400) weeks of the day the employee returned to work for the pre-injury employer, if the injured employee received permanent partial disability benefits for body as a whole injuries from the pre-injury employer pursuant to subdivision (a)(1)(A) and the injured employee is no longer employed by the successor employer at the same or higher pay; or
      2. (b) From the successor employer within the number of weeks for which the employee was eligible to receive benefits from the pre-injury employer under § 50-6-207, to be calculated from the day the employee returned to work for the pre-injury employer, if the injured employee received permanent partial disability benefits for schedule member injuries from the pre-injury employer pursuant to subdivision (a)(1)(A) and the injured employee is no longer employed by the successor employer at the same or higher pay.
    3. (iii) Any additional permanent partial disability benefits to which the injured employee is entitled pursuant to subdivision (a)(1)(C)(ii) shall be paid by the successor employer or the insurance carrier for the successor employer.
    4. (iv) If an injured employee is entitled to seek reconsideration pursuant to this subdivision (a)(1)(C), then the employee shall first request a benefit review conference within one (1) year of the date on which the employee ceased to be employed by the successor employer. If the parties are not able to reach an agreement regarding additional permanent partial disability benefits at the benefit review conference, then the employee shall be entitled to file a complaint against the successor employer seeking reconsideration in a court of competent jurisdiction within ninety (90) days of the date of the benefit review conference. Any settlement or award of additional permanent partial disability benefits pursuant to reconsideration shall give the successor employer credit for the prior permanent partial disability benefits paid by the pre-injury employer to the employee. Any new settlement or award regarding additional permanent partial disability benefits shall be subject to the maximum established in subdivision (a)(2).
2. (2)
  1. (A) For injuries arising on or after July 1, 2004, but before July 1, 2014, in cases in which the pre-injury employer did not return the injured employee to employment at a wage equal to or greater than the wage the employee was receiving at the time of the injury, the maximum permanent partial disability benefits that the employee may receive for body as a whole and schedule member injuries may not exceed six (6) times the medical impairment rating determined pursuant to [former] § 50-6-204(d)(3). The maximum permanent partial disability benefits to which the employee is entitled shall be computed utilizing the appropriate maximum number of weeks as set forth in § 50-6-207 for the type of injury sustained by the employee. In making such determinations, the court shall consider all pertinent factors, including lay and expert testimony, the employee's age, education, skills and training, local job opportunities, and capacity to work at the types of employment available in claimant's disabled condition.
  2. (B) If the court awards a permanent partial disability percentage that equals or exceeds five (5) times the medical impairment rating, the court shall include specific findings of fact in the order that detail the reasons for awarding the maximum permanent partial disability.
(b)
1. (1) It is the intent of the general assembly to adopt as public policy for this state specific provisions related to workers' compensation to preserve the tradition of legal immigration while seeking to close the door to illegal workers in this state and to encourage the employers of this state to comply with federal immigration laws in the hiring or continued employment of individuals who are not eligible or authorized to work in the United States.
2. (2) The general assembly takes notice that federal law prohibits a pre-injury employer from permitting an employee to return to work following the work-related injury when the employee is not eligible or authorized to work in the United States pursuant to federal immigration laws; and, therefore, the general assembly adopts the following as the compensation to which such an employee is entitled for permanent partial disability benefits:
  1. (A) For injuries occurring on or after July 1, 2009, but before July 1, 2014, in cases in which an injured employee is eligible to receive any permanent partial disability benefits either for body as whole or schedule member injuries, the maximum permanent partial disability benefits that the employee may receive is up to one and one-half (1 ½) times the medical impairment rating determined pursuant to [former] § 50-6-204(d)(3); provided, that the employer did not knowingly hire the employee at a time when the employee was not eligible or authorized to work in the United States under federal immigration laws. It shall be presumed the employer did not knowingly hire the employee at a time when the employee was not eligible or authorized to work in the United States under federal immigration laws if the employer can show, by a preponderance of the evidence, that the employer in good faith complied with the employment eligibility and identity verification requirements of federal law when the employee was hired:
    1. (i) By ensuring the employee completed Section 1 of Form I-9 at the time the employee started to work;
    2. (ii) By reviewing the documents provided by the employee to establish the employee's identity and eligibility to work;
    3. (iii) By making a good faith determination that the documents presented by the employee for employment and identity authorization appeared to relate to the employee, appeared to be genuine and that the documents provided were in the list of acceptable documents on Form I-9; and
    4. (iv) By reverifying the employment eligibility of the employee upon the expiration of the employee's work authorization and by completing Section 3 of Form I-9, if applicable;
  2. (B) The presumption established in subdivision (b)(2)(A) may be rebutted if the employee can show, by a preponderance of the evidence, that the employer had actual knowledge of the ineligible or unauthorized status of the employee at the time of hire or at the time of the injury, or both. If the presumption is rebutted, a sum of up to five (5) times the medical impairment rating determined by the authorized treating physician pursuant to [former] § 50-6-204(d)(3) shall be paid in the following manner:
    1. (i) A sum up to one and one-half (1 ½) times the medical impairment rating shall be paid in a lump sum to the employee, the sum to be paid by the employer's insurer; and
    2. (ii) An additional sum up to three and one-half (3 ½) times the medical impairment rating shall be paid by the employer, in a lump sum into, and shall become a part of, the uninsured employers fund created by § 50-6-801; provided, that the sum shall not be paid by the employer's insurer.

§ 50-6-242. Additional disability benefits — Award of permanent partial disability benefits for permanent medical impairment in certain cases — Specific documented findings required — Employees not eligible or authorized to work in the United States under federal immigration laws are ineligible.

(a)
1. (1) This subsection (a) shall apply to injuries that occur on or after July 1, 2014.
2. (2) For injuries that occur during the time period set out in subdivision (a)(1), in extraordinary cases where the employee is eligible for increased benefits under § 50-6-207(3)(B), the employee may receive disability benefits of sixty-six and two-thirds percent (66 ⅔%) of the employee's pre-injury average weekly wage or salary for a period not to exceed the two hundred seventy-five (275) weeks inclusive of the benefits provided to the employee under § 50-6-207(3)(A). Benefits may be awarded pursuant to this subsection (a), in lieu of the increased benefits for which the employee is eligible under § 50-6-207(3)(B), if the presiding workers' compensation judge first determines based on clear and convincing evidence that limiting the employee's recovery to the benefits provided by § 50-6-207(3)(B) would be inequitable in light of the totality of the circumstances and the presiding workers' compensation judge makes specific, documented findings that as of the date of the award or settlement the three (3) following facts concerning the employee are true:
  1. (A) The employee has been assigned an impairment rating of at least ten percent (10%) to the body as whole, that has been determined according to the AMA guides as defined by § 50-6-102, by the authorized treating physician;
  2. (B) The authorized treating physician has certified on a form provided by the bureau that due to the permanent restrictions on activity the employee has suffered as a result of the injury the employee no longer has the ability to perform the employee's pre-injury occupation. The authorized treating physician's certification pursuant to this subdivision (a)(2)(B) shall have a presumption of correctness that may be overcome by the presentation of contrary clear and convincing evidence; and
  3. (C) The employee is not earning an average weekly wage or salary that is greater than or equal to seventy percent (70%) of the employee's pre-injury average weekly wage or salary.
(b) For those injuries that occur on or after July 1, 2004 but prior to July 1, 2014, and notwithstanding any provision of this chapter to the contrary and in appropriate cases where the employee is eligible to receive the maximum permanent partial disability award under § 50-6-241(a)(1)(B) or (a)(2), the employee may receive disability benefits not to exceed the appropriate maximum number of weeks as set forth in § 50-6-207 for the type of injury sustained by the employee. In those cases, the court or workers' compensation specialist shall make specific documented findings, supported by clear and convincing evidence, that as of the date of the award or settlement, at least three (3) of the following facts concerning the employee are true:
1. (1) The employee lacks a high school diploma or general equivalency diploma or the employee cannot read or write on a grade eight (8) level;
2. (2) The employee is fifty-five (55) years of age or older;
3. (3) The employee has no reasonably transferable job skills from prior vocational background and training; and
4. (4) The employee has no reasonable employment opportunities available locally considering the employee's permanent medical condition.
(c) Subsections (a) and (b) shall not apply to injuries sustained on or after July 1, 2009, by an employee who is not eligible or authorized to work in the United States under federal immigration laws.

§ 50-6-243. [Reserved.]

§ 50-6-244. Statistical data form for assessment of workers' compensation system — Penalty for noncompliance.

(a) The bureau shall develop a statistical data form for collecting data relevant to assessing the workers' compensation system. In developing or altering the form, the bureau shall seek written comment from the advisory council on workers' compensation and the administrative office of the courts. The administrator shall submit the proposed form to the commerce and labor committee of the senate, and the commerce committee of the house of representatives, together with any written comments of the advisory council on workers' compensation and the administrative office of the courts, prior to submission of a proposed rule to the attorney general and reporter. The administrator shall promulgate the form by rule, pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
(b)
1. (1) A statistical data form must be filed for every workers' compensation matter that is concluded by trial or settlement. Settlement includes a settlement for initial benefits, a settlement for increased benefits, and a settlement for closure of future medical benefits that remained open pursuant to a prior order, even if a statistical data form was filed at the time of submission of the prior order.
2. (2) The bureau shall seek written comment on substantive changes to the statistical data form from the advisory council on workers' compensation. The administrator shall submit the proposed form to the commerce and labor committee of the senate and the commerce committee of the house of representatives, together with any written comments of the advisory council on workers' compensation, thirty (30) days prior to submission of a proposed rule to the attorney general and reporter.
3. (3) If the administrator or the administrator's designee determines that an employer or employer's agent fails to fully complete and timely file the statistical data form within ten (10) business days of the date of a compensation hearing order, the bureau may assess a civil penalty against the offending party of not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000) per violation.
(c) The clerk of the court shall forward to the administrator of the bureau of workers' compensation, on or before the tenth day of each calendar month, all workers' compensation statistical data forms filed with the clerk during the preceding calendar month.
(d) In cases involving a workers' compensation settlement that is submitted to the bureau for approval, the statistical data form required by this section shall also be completed and submitted to the bureau at the time of the submission of the settlement for approval. A settlement approved by the bureau shall not become final until the statistical data form required by this section is fully completed and received by the bureau.
(e) It is the responsibility of the employer or the employer's agent to complete and file the form required by this section, contemporaneously with the filing of the final order or settlement. The employee and any agent of the employee are required to cooperate with the employer in completing this form.
(f)
1. (1) If the administrator or the administrator's designee determines that an insurer or self-insured employer fails to complete substantially and file the statistical data forms with such frequency as to indicate a general business practice, the administrator may assess a monetary penalty against the insurance company for the employer or against the employer, if self insured. The amount of the monetary penalty shall not exceed one hundred dollars ($100). For the purposes of this subsection (f), “general business practice” means an insurer or self-insured employer fails to complete substantially and file a statistical data form more than five (5) times.
2. (2) No monetary penalty may be assessed by the administrator, or the administrator's designee, with respect to a form that has been filed with the bureau of workers' compensation for more than ninety (90) days. No monetary penalty may be assessed for a statistical data form that was not filed with the court clerk more than ninety (90) days from the date of entry of the final order of the court. No monetary penalty may be assessed due to the failure to provide information on the statistical data form that is solely within the knowledge of the employee or due solely to the failure of the employee to sign the form.
3. (3) An insurance company or self insured employer assessed a monetary penalty by the administrator pursuant to this subsection (f), may appeal the penalty under the Uniform Administrative Procedures Act. The administrator, or an agency member appointed by the administrator, shall have the authority to hear as a contested case an administrative appeal of any monetary penalty assessed pursuant to this subsection (f).

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9-8-307(a)(1)(K)(ii)

§ 50-6-245. Judgments with multiple findings and separate awards.

(a) If following a civil action in a workers' compensation case filed pursuant to § 50-6-225, the court enters a judgment or decree that includes multiple findings with separate awards of payment to the employee, the following shall apply:
1. (1) If the employer, insurer or employee appeals one (1) or more of the findings but not all, any payments owed to the employee as the result of a finding not appealed shall be due and payable to the employee when the time for appealing the judgment or decree has expired;
2. (2) If the employer, insurer or employee appeals more than one (1) of the findings and the supreme court grants permission to appeal as to at least one (1) of the findings appealed but not all, any payments owed to the employee as the result of a finding not appealed or for which permission to appeal was not granted shall be due and payable to the employee when the time for appealing the judgment or decree has expired.
(b)
1. (1) When the time for filing an appeal has expired under subdivision (a)(1), the court, unless in its discretion it determines otherwise, shall enter final judgment pursuant to Rule 54.02 of the Rules of Civil Procedure as to all findings not appealed.
2. (2) When the time for filing an appeal has expired under subdivision (a)(2), the supreme court, unless in its discretion it determines otherwise, shall issue a mandate pursuant to Rule 42 of the Rules of Appellate Procedure as to all findings for which permission to appeal was not granted.

§ 50-6-246. [Reserved.]

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63-2-102(f)

Part 3 Occupational Diseases

§ 50-6-301. [Reserved.]

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50-6-303(a)(1)

§ 50-6-302. Retroactivity — Coal worker's pneumoconiosis, effect of federal law.

(a) An occupational disease that an employee had on March 12, 1947, shall not be covered under this chapter. An employee has an occupational disease within the meaning of this chapter if the disease or condition has developed to such an extent that it can be diagnosed as an occupational disease. In every suit for compensation benefits, the burden shall be on the employee to prove that the employee did not have, as of that date, the occupational disease for which the employee is seeking compensation.
(b) In considering whether an employee has the occupational disease of coal worker's pneumoconiosis and is totally disabled or dies from coal worker's pneumoconiosis, all the presumptions, criteria and standards contained in or promulgated by reason of the federal Coal Mine Health and Safety Act of 1969 (Pub. L. No. 91-173, compiled in 30 U.S.C. § 901 et seq.), specified as the basis for determining eligibility of applicants for benefits because of the disease or its effects shall be used and be applicable under this chapter, and where in a proceeding under this chapter for benefits it is determined the employee or the employee's dependents would be entitled to benefits under the federal Coal Mine Health and Safety Act of 1969, and the Black Lung Benefits Act of 1972 (Pub. L. No. 92-303, compiled in 30 U.S.C. § 901 et seq.), the employee or the employee's dependents by reason of the determination shall be considered totally disabled from coal worker's pneumoconiosis and its effects, under this chapter the same as if the employee, or the employee's dependents, establishes the right to recover benefits based upon a total disability from coal worker's pneumoconiosis, or death by reason of coal worker's pneumoconiosis under the laws of this state.

§ 50-6-303. Compensation and benefits.

(a)
1. (1) When the employer and employee are subject to this chapter, the partial or total incapacity for work or the death of an employee resulting from an occupational disease as defined in [former] § 50-6-301 [Applicable only to injuries occurring prior to July 1, 2014. See the Compiler's Notes.], shall be treated as the happening of an injury by accident or death by accident, and the employee, or in case of the employee's death, the employee's dependents, shall be entitled to compensation as provided in this chapter.
2. (2) An employee who has an occupational disease shall be entitled to the same hospital, medical and miscellaneous benefits as an employee who has a compensable injury by accident, and, in the event of death, the same funeral benefit shall be paid as in the case of death from a compensable accident.
(b)
1. (1) An employee totally disabled due to coal workers' pneumoconiosis shall be paid benefits during disability as provided for by the federal Coal Mine Health and Safety Act of 1969 (30 U.S.C. § 901 et seq.).
2. (2) In accordance with the federal Coal Mine Health and Safety Act of 1969, if the employee has one (1) or more dependents, the payments shall be increased fifty percent (50%) of such payments for the first dependent, seventy-five percent (75%) for two (2) dependents, and one hundred percent (100%) for three (3) or more dependents.
3. (3) In case of death of an employee receiving benefits under this chapter, benefits shall be paid to that employee's surviving spouse and any dependents in the same manner provided in the federal Coal Mine Health and Safety Act of 1969, as applicable to employees suffering from coal workers' pneumoconiosis.
4. (4) Benefits paid under this subsection (b) shall not be subject to the maximum compensation limitations set forth in §§ 50-6-205, 50-6-207(1), (3) and (4), 50-6-209, 50-6-210(e)(10) or any other sections of this chapter, but the maximum compensation limitations shall be controlled exclusively by the maximum compensation benefits and limitations established under the federal Coal Mine Health and Safety Act of 1969, as applicable to employees suffering from coal workers' pneumoconiosis.
5. (5) The minimum compensation limitations for employees suffering from coal workers' pneumoconiosis shall be no less than those set forth in the federal Coal Mine Health and Safety Act of 1969.

§ 50-6-304. Last employer liable.

When an employee has an occupational disease, the employer in whose employment the employee was last injuriously exposed to the hazards of the disease, and the employer's insurance carrier, if any, at the time of the exposure, shall alone be liable, for the occupational disease, without right to contribution from any prior employer or insurance carrier.

§ 50-6-305. Notice of contraction of disease and claim for compensation.

(a) Within thirty (30) days after the first distinct manifestation of an occupational disease, the employee, or someone in the employee's behalf, shall give written notice thereof to the employer in the same manner as is provided in the case of a compensable accidental injury.
(b) This section shall not apply to claims for total disability or death due to or resulting from an asbestos-related disease or coal worker's pneumoconiosis.

§ 50-6-306. Statute of limitations.

(a) The right to compensation for an occupational disease or a claim for death benefits as a result of an occupational disease shall be forever barred, unless a claim is initiated pursuant to § 50-6-203; provided, however, that the applicable time limitation period or periods shall commence as of the date of the beginning of the incapacity for work resulting from an occupational disease or upon the date death results from the occupational disease; provided, further, that if upon the date of the death of the employee the employee's claim has become barred, the claim of the employee's dependent or dependents shall likewise be barred, and in that case the claim shall be barred whether or not the employer gives the notice required by § 50-6-224(2) [Applicable only to injuries occurring prior to July 1, 2014. See the Compiler's Notes.].
(b) A claim for benefits or death due to coal worker's pneumoconiosis shall be timely filed if the claim is instituted pursuant to § 50-6-203 within three (3) years of the discovery of total disability or the date of death, as the case may be.

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9-8-307(a)(1)(K)(ii)

§ 50-6-307. Waiver of compensation for aggravation of condition.

(a)
1. (1) When an employee, or prospective employee, though not incapacitated for work, is found to be affected by or susceptible to a specific occupational disease, the employee or prospective employee may, subject to the approval of the workers' compensation bureau of the department of labor and workforce development, be permitted to waive in writing compensation for any aggravation of the employee's or prospective employee's condition that may result from the employee's or prospective employee's working or continuing to work in the same or similar occupation for the same employer or for another employer; provided, that this provision shall not apply to specific occupational diseases on which waivers are prohibited by the federal Coal Mine Health and Safety Act of 1969 (30 U.S.C. § 901 et seq.).
2. (2) All provisions of this chapter, with respect to accidents shall be applicable to the coverage provided in this part for occupational diseases, except as otherwise provided in this part.
(b) When an employee or prospective employee has a prior history of heart disease, heart attack or coronary failure or occlusion, the employee or prospective employee may be permitted to waive in writing compensation from the employee's or prospective employee's employer or future employer for claims growing out of an aggravation or repetition of the condition, the waiver to be evidenced by filing with the administrator a written instrument to which shall be attached a copy of a medical statement giving the prior history of the condition, and in all those cases claims for workers' compensation benefits growing out of an aggravation or repetition of the condition by the employee or the employee's dependents shall be barred.
(c) No employer shall require the execution of a waiver by any employee who was at work on March 17, 1961, unless the employee subsequently suffers a heart condition.

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9-8-307(a)(1)(K)(ii)

Part 4 Insurance

§ 50-6-401. Authority to write insurance — Tax.

(a)
1. (1)
  1. (A) Every person, partnership, association, organization or corporation, whether organized under the laws of this or any other state or country, that has or may hereafter comply with the laws of this state and is authorized to write accident or indemnity insurance in this state shall be authorized and empowered to write workers' compensation insurance under the terms and provisions of this part, and likewise every reciprocal and mutual insurance association or corporation shall have the same privileges; provided, that any such entity offering workers' compensation insurance shall be required to offer medical benefits coverage for paid-on-call and volunteer firefighters.
  2. (B) For purposes of this subdivision (a)(1), “volunteer firefighter” means any member or personnel of a fire department, volunteer fire department, rescue squad or volunteer rescue squad, including, but not limited to, a junior member, a board member or an auxiliary member of the department or squad.
2. (2) An entity offering workers' compensation insurance shall offer coverage for members of rescue squads on similar terms and conditions as coverage available to full-time paid firefighters or emergency medical services personnel.
(b)
1. (1) All insurance carriers provided for by this section shall be subject to a tax of four percent (4%) on premiums collected for workers' compensation insurance, and a surcharge of four-tenths of one percent (0.4%) of the premiums, the surcharge to be earmarked for the administration of the Tennessee Occupational Safety and Health Act, compiled in chapter 3 of this title, and this shall be in lieu of any other tax on premiums for the writing of the business of workers' compensation insurance now provided for by law.
2. (2) The surcharge of four-tenths of one percent (0.4%) on the tax on workers' compensation insurance premiums levied by this section shall not apply to any employer who employs ten (10) or fewer employees unless the employer is in the business of construction or manufacturing.
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- 50-6-208(b)
(c) Of the funds collected pursuant to subsection (b), a sum sufficient shall be allocated from and equal to an amount not greater than fifty percent (50%) of the revenues derived from the premium tax levied pursuant to this section, and shall be paid into the subsequent injury and vocational recovery fund created in § 50-6-208, to provide payments for the benefits provided in § 50-6-208.

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§ 50-6-402. Classification of risks and premiums — Filing — Approval.

(a) In determining classifications of risks and premiums relating to the classification, the insurer may include allowances of any character made to any employee, only when the allowances are in lieu of wages, and are specified as part of the wage contract.
(b) Before approving any workers' compensation loss cost filing made by the designated rate service organization pursuant to this part or title 56, the commissioner of commerce and insurance shall consult with the advisory council on workers' compensation concerning the filing. The council shall have sixty (60) days to provide written comment on the filing. The council shall meet to provide the comment. The commissioner of commerce and insurance shall approve, disapprove or modify the filing within ninety (90) days of receiving the filing. If the commissioner of commerce and insurance modifies the filing, the modification shall be within the range established by the recommendation of the rate service organization in its filing and the recommendation of the advisory council on workers' compensation. In instances when the commissioner of commerce and insurance modifies the filing, the rate service organization shall develop a plan that reflects the commissioner's modification, unless the organization appeals the modification pursuant to § 56-5-308. The commissioner shall report the action taken on the filing to the commerce and labor committee of the senate, and the commerce committee of the house of representatives and to the speakers of the senate and the house of representatives.
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- 56-5-108(a)(2)
(c) Prior to the commissioner of commerce and insurance establishing the multiplier to be applied to the assigned risk plan, as provided in § 56-5-114(c), the commissioner shall provide notice of the intended action, including supporting rationale for the action, to the advisory council on workers' compensation. The council may, within fifteen (15) days of receipt of the notice, provide written comment and recommendation to the commissioner related to the intended action. After the fifteen-day period has expired, the commissioner shall establish the multiplier, by order, as provided in § 56-5-114(c).
(d) The commissioner of commerce and insurance shall report quarterly to the advisory council on workers' compensation concerning all workers' compensation filings made by the designated rate service organization received by the department of commerce and insurance that were not referred to the council as set out in subsection (b) since the last report.

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56-5-106(c)

§ 50-6-403. [Reserved.]

§ 50-6-404. Bond or certificate.

(a)
1. (1) Every insurance company doing a workers' compensation business in this state shall furnish a bond running to the state in the sum of fifty thousand dollars ($50,000) with some surety company authorized to transact business in this state as surety, in the form approved by the commissioner of commerce and insurance, conditioned for the payment of compensation losses on policies issued by the company upon risks located in the state.
2. (2) Suit may be brought upon the bond by the bureau of workers' compensation for the use and benefit of any party or parties at interest.
3. (3) The annual license of the company shall not be issued or renewed until it has filed with the commissioner of commerce and insurance a bond as required in subdivision (a)(1).
4. (4) In lieu of the bond, a deposit of the same amount may be made with the state treasurer in the form of other security satisfactory to the commissioner of commerce and insurance.
(b) The commissioner may, in the commissioner's discretion, accept, in lieu of the bond required in subdivision (a)(1), a certificate from the commissioner of insurance or other corresponding official of the state in which the insurance company is organized and domiciled, that the company has on deposit in such state the sum of not less than one hundred thousand dollars ($100,000) in cash, or its equivalent, which deposit is for the protection of all of its policyholders, ratably.

§ 50-6-405. Compensation insurance or proof of financial ability required — Self insurers — Payment of premiums — Excess catastrophe reinsurance coverage — Authority and duty of administrator.

(a) Every employer under and affected by this chapter, shall:
1. (1) Insure and keep insured the employer's liability under this chapter in some person or persons, association, organization or corporation authorized to transact the business of workers' compensation insurance in this state; or
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  - 29-20-401(c)(2)
2. (2) Possess a valid certificate of authority from the commissioner of commerce and insurance by furnishing satisfactory proof of the employer's financial ability to pay all claims that may arise against the employer under this chapter and guarantee the payment of the claims in the amount and manner and when due as provided for in this chapter.
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  - 56-5-114(c)(2)
(b)
1. (1) If the employer elects to proceed under subdivision (a)(2), the commissioner of commerce and insurance shall require the applicant to pay a nonrefundable application fee of five hundred dollars ($500) or in an amount the commissioner shall promulgate by rule.
2. (2) The commissioner of commerce and insurance shall require the applicant to file and maintain with the department of commerce and insurance the following:
  1. (A)
    1. (i) Security, in an amount to be determined by the commissioner of commerce and insurance, but not less than five hundred thousand dollars ($500,000), in any of the following forms, as specified herein: negotiable securities; a surety bond; a certificate of deposit; or a letter of credit;
    2. (ii) The security, or a contract between the self-insured employer, a depository institution and the commissioner of commerce and insurance evidencing the security held in the depository institution for purposes of compliance with this section, shall be held by the commissioner of commerce and insurance and shall be conditioned to run solely and directly for the benefit of the employees of the self-insured employer. Any legal actions to enforce the payment of the security being held for purposes of compliance with this section shall be brought by the commissioner of commerce and insurance for the benefit of the employees of the self-insured employer;
    3. (iii) The security held pursuant to this section may be used for the payment of any and all fees or costs required to administer the disbursement of the proceeds to or for the benefit of the employees;
    4. (iv) The venue for any suit filed by the commissioner of commerce and insurance under this provision shall be in Davidson County.
    5. (v)
      1. (a) Any security held for purposes of compliance with this section shall be held for a minimum of ten (10) years after the self-insured employer is no longer self-insured and the self-insured employer shall maintain the fair market value of security on deposit at not less than five hundred thousand dollars ($500,000), unless otherwise approved by the commissioner of commerce and insurance or the commissioner's designee;
      2. (b) Any employer that is no longer self-insured pursuant to this section as of December 31, 2004, shall not be subject to subdivision (b)(2)(A)(v)(a).
    6. (vi) All security, and contracts evidencing the security, filed with the commissioner of commerce and insurance shall be in a form substantively that has been previously approved by the commissioner of commerce and insurance. Any security that fails to meet any requirement under this section shall not be considered for purposes of determining a self-insurer's compliance with any of the security maintenance requirements of this section;
    7. (vii) As used in this subdivision (b)(2)(A), “qualified United States financial institution” shall have the meaning assigned by § 56-2-209(a);
    8. (viii) The commissioner of commerce and insurance may by rule establish requirements for securities posted pursuant to this subsection (b). These rules may also prescribe the various types and classes of securities that the commissioner of commerce and insurance will accept under this subsection (b);
  2. (B)
    1. (i) Evidence of the employer's financial ability to pay all claims that may arise against the employer in the form of an annual certified financial statement, including a statement of assets and liabilities and a statement of profit and loss, to be filed no later than the last day of the ninth month after the end of the employer's immediately preceding fiscal year;
    2. (ii) The financial statement is to include a detailed accounting for reserves for losses outstanding incurred in connection with workers' compensation self-insurance. The employer's losses and adequacy of reserves shall be certified annually by an actuary qualified under rules established by the commissioner of commerce and insurance for the filing of statements by insurance companies.
3. (3) Filings pursuant to this subsection (b) shall be kept confidential by the commissioner of commerce and insurance and shall not be construed to be a public record pursuant to title 10, chapter 7.
4. (4) The commissioner of commerce and insurance may assess a civil penalty of one hundred dollars ($100) per day for each day any self-insured employer has failed to comply with any financial record filing requirement. The civil penalty assessed under this subdivision (b)(4) shall be cumulative and in addition to any other civil penalty or remedy available to the commissioner. No civil penalty shall be assessed against any political subdivision of the state.
5. (5) The commissioner of commerce and insurance shall take into account all available information when making the determination as to both the adequacy of all security deposits, letters of credit, negotiable securities or bonds held by the commissioner and whether an employer has the ability to pay all claims that may arise.
6. (6) No employer shall self-insure its workers' compensation liabilities without a certificate of authority issued by the commissioner of commerce and insurance. It shall be unlawful for any employer to self-insure its liabilities for workers' compensation without first obtaining a duly issued certificate of authority from the commissioner of commerce and insurance. Whenever an employer has complied with subdivisions (a)(2) and (b)(2)(A) and (B), the commissioner of commerce and insurance, or the commissioner's designee, may issue to the employer a certificate of authority allowing the employer to self-insure under this section. Notice of this authorization shall be sent to the administrator of the bureau of workers' compensation.
7. (7) Upon failure by an authorized self-insured employer to furnish the commissioner of commerce and insurance the requirements delineated in subdivisions (a)(2) and (b)(2)(A) and (B), the commissioner may, after giving written notice and an opportunity for a hearing to the affected party or parties within thirty (30) days, suspend or revoke the certificate authorizing the employer to self-insure granted under this section. The commissioner may, without prior notice and if it appears in the commissioner's discretion that the continuation of the certificate would be clearly hazardous to the employees of the self-insurer or to the public generally, summarily suspend an authorized self-insurer's certificate before a hearing is commenced and in that event shall immediately notify the self-insurer, and the notice shall include a statement to the effect that the commissioner's action is subject to review. All hearings conducted under this section shall comply with the contested case provisions of the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
8. (8) Any hearing under this section shall be requested in writing by the self-insured employer within fifteen (15) days of receiving written notification from the commissioner of commerce and insurance or the commissioner's designee. In any proceeding in which the self-insured employer's certificate of authority is suspended or revoked, the self-insured employer shall pay all costs associated with the proceeding. The commissioner may serve a notice, order, petition or complaint in any action arising under this section by certified mail to the self-insured employer at the address of record in the files of the department. Notwithstanding any law to the contrary, service in the manner set forth in this subdivision (b)(8), shall be deemed to constitute actual service on the self-insured employer.
9. (9) The commissioner of commerce and insurance or the commissioner's designee shall immediately notify the administrator of the bureau of workers' compensation of any decision to suspend or revoke a certificate authorizing an employer to self-insure.
10. (10) The commissioner of commerce and insurance or the commissioner's designee has the authority to examine and investigate any self-insured employer whenever the commissioner deems it prudent to do so. The purposes and scope of the examinations and the commissioner's powers shall be set forth in title 56, chapter 1, part 4, pertaining to examinations of insurance companies.
11. (11) The commissioner of commerce and insurance may promulgate rules and regulations, including emergency rules and regulations, necessary for the administration of this section and shall conduct all rulemaking in accordance with the Uniform Administrative Procedures Act.
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(c)
1. (1) With the permission of a trade or professional association board of directors, ten (10) or more employers of the same group may enter into agreements to pool their liabilities under this chapter for the purpose of qualifying as self-insurers. The trade or professional association shall have been in active existence in Tennessee for at least five (5) years and the association shall:
  1. (A) Have a constitution or bylaws;
  2. (B) Have members that support the association by regular payment of dues on an annual, semiannual, quarterly or monthly basis; and
  3. (C) Be created in good faith for purposes other than that of creating workers' compensation self-insurer pools. The commissioner of commerce and insurance has the authority to promulgate rules and regulations deemed necessary to provide for the solvency, administration and enforcement of the pooling agreements. To the extent deemed necessary by the commissioner of commerce and insurance, each employer member of the approved group shall be classified as a self-insurer as otherwise provided in this chapter.
  1 Backlink
  - 55-17-103(a)(2)
2. (2) Notwithstanding any other law or rule to the contrary, funds not needed for current obligations may be invested by the board of trustees in Tennessee securities as defined in § 56-4-210(a). The board of trustees of each workers' compensation pool shall adopt an investment policy. The policy shall address credit, quality of investments, maximum maturity of investments and other matters the board deems appropriate. Real estate investments must be undertaken with the approval of the commissioner of commerce and insurance.
3. (3)
  1. (A) Each group of employers qualifying as self-insurers pursuant to this subsection (c) shall submit to the commissioner of commerce and insurance a statement of financial condition audited by an independent certified public accountant on or before the last day of the sixth month following the end of the group's fiscal year. A thirty-day extension of the financial statement filing requirement shall be granted by the commissioner upon receipt of a request, via certified mail, by a group. The request shall be submitted to the commissioner not less than thirty (30) days prior to the date the financial statement is due to be filed.
  2. (B) Notwithstanding subdivision (c)(3)(A), a qualified self-insured trust that has entered into a self-insurance loss portfolio transfer agreement approved by the commissioner of commerce and insurance with an insurer licensed in this state pursuant to which all of the liabilities and obligations pooled by the group of employers of the self-insured trust for their workers' compensation and employers' liability losses, including all existing and incurred but not reported claims, is not required to annually submit a statement of financial condition audited by an independent certified public accountant; provided, that the commissioner of commerce and insurance has granted a request filed by the self-insured trust for exemption from the annual submission of an audited statement of financial condition.
4. (4)
  1. (A) At the request of a group of employers qualifying as self-insurers pursuant to this subsection (c), the commissioner of commerce and insurance, in the commissioner's sole discretion, may grant additional thirty-day extensions to the financial statement filing requirements for acts of God, public enemies, fire, flood, storms or similar events constituting force majeure that cause the group to require more time to meet the filing requirements.
  2. (B) The commissioner of commerce and insurance, after notice and an opportunity for a hearing, may revoke the certificate of approval of a group of employers qualifying as self-insurers pursuant to this subsection (c) if the group fails to comply with this subsection (c) or any rules promulgated under this subsection (c). In addition to or in lieu of revoking a certificate of approval, the commissioner may assess a civil penalty of one hundred dollars ($100) per day for failure to timely meet the filing requirements set forth in this subsection (c). All hearings under this subsection (c) shall be conducted pursuant to the Uniform Administrative Procedures Act.
  3. (C) Financial statements filed pursuant to this subsection (c), individual member financial statements, work papers, notes, internal documents generated by the department of commerce and insurance or any other information obtained by or disclosed to the commissioner of commerce and insurance pursuant to this chapter or any regulations promulgated under this chapter, shall be confidential and shall not be disclosed to the public. This provision, however, shall not apply to the examination report prepared by the commissioner of commerce and insurance, nor to any rebuttal to the examination reports submitted by or on behalf of the group examined. However, nothing contained in this subdivision (c)(4)(C) shall be construed as prohibiting the commissioner of commerce and insurance from disclosing the information listed in this subdivision (c)(4)(C), or any matters relating to that information, to state agencies of this or any other state, or to law enforcement officials of this or any other state or agency of the federal government at any time.
  4. (D) Upon receipt of a request from any approved authorized agent of a group of employers qualifying as self-insurers pursuant to this subsection (c), the group shall provide a copy of the annual statement of financial condition. The agent, however, shall not further disseminate the information except for purposes of obtaining errors and omission insurance or in the exercise of due diligence of the agent on behalf of the agent's client seeking admission to the group. Further, any individual or entity obtaining a copy of the statement shall hold the information confidential and shall not share or disclose the information to any other individual or entity.
5. (5) All groups pooling their liabilities pursuant to this subsection (c) shall pay premium tax and surcharges at the rates set forth in § 56-4-206. Each group's premium tax and surcharge payments shall be due on or before the last day of the sixth month following the end of the group's fiscal year. Any group failing to timely pay the taxes and surcharges shall be subject to the penalties and sanctions set forth in § 56-4-216.
6. (6) The sponsoring trade association may determine whether or not the pool shall remain in existence, subject to the approval of the commissioner.
7. (7) The pool shall provide to the sponsoring trade association all information requested by the association, other than a member's financial information.
8. (8) The sponsoring association shall not be liable or responsible for any act or omission of the pool.
9. (9) The commissioner of commerce and insurance has the authority to promulgate rules and regulations that would provide for civil penalties for violations of this subsection (c) or rules promulgated under this subsection (c).
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(d)
1. (1) It is an offense for any employer whose employee is entitled to the benefits of this chapter:
  1. (A) To require such employee to pay any portion of the insurance premium paid by the employer; or
  2. (B) To deduct any portion of such premium from the wages or salary of such employee.
2. (2) A violation of subdivision (d)(1) is a Class C misdemeanor.
3. (3)
  1. (A) In addition to any criminal penalty assessed for a violation of subdivision (d)(1), the administrator of the bureau of workers' compensation is authorized to impose a civil penalty of up to an amount equal to the amount of premiums deducted from such employee’s wages or salary.
  2. (B) If a civil penalty is assessed pursuant to subdivision (d)(3)(A), the administrator of the bureau of workers' compensation shall assess the penalty in a specific dollar amount to be paid directly to the employee.
(e) If at any time the commissioner of commerce and insurance deems the security or bond inadequate or unsafe, the commissioner shall require adequate bond or security.
(f) The commissioner of commerce and insurance may require the employer to secure excess catastrophe reinsurance coverage.
(g) This part shall not apply to policies of insurance against loss from explosions of boilers or flywheels or other similar single catastrophe hazards.
(h) The commissioner of commerce and insurance may issue rules, regulations and orders necessary to properly administer the deposits, bonds and financial evidence as required in this part.
(i) It is the duty of the commissioner of commerce and insurance and the administrator of the bureau of workers' compensation to interchange information as to matters of mutual interest under this chapter.
(j) Any employer of a construction services provider, as defined in § 50-6-901, shall, upon request by the bureau, provide proof of valid workers' compensation insurance coverage at the employer's place of business and at job sites where the employer is providing construction services. Failure to provide proof of valid workers' compensation insurance coverage within one (1) business day of the request may result in a penalty of not less than fifty dollars ($50.00) nor more than five hundred dollars ($500) per violation for any initial violation at the discretion of the administrator or administrator's designee, and not less than fifty dollars ($50.00) nor more than five thousand dollars ($5,000) per violation for subsequent violations. The administrator has discretion in determining acceptable proof of coverage, including electronic proof of coverage, taking into account standard insurance industry practices. Insurers shall advise policy holders who are construction services providers regarding the availability of electronic downloads of policy information to facilitate field inspection of proof of workers' compensation coverage.

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§ 50-6-406. Evidence of compliance to be filed — Penalty for failing to comply — Liability to employee in damages — Defenses.

(a) Every employer, or the employer's insurance carrier unless the employer is self-insured, subject to this chapter, shall file evidence of its compliance with § 50-6-405 with the bureau of workers' compensation on a form prescribed by the administrator, within thirty (30) days after procurement or renewal of suitable workers' compensation insurance or qualification as a self-insurer.
(b) If an employer fails to comply with § 50-6-405, then during the continuance of the failure, the employer shall be liable to an injured employee either for compensation as provided in this chapter to be recovered in an action brought in a court of competent jurisdiction for that purpose, or for damages to be recovered as if this chapter had not been enacted, as the employee may elect; and in the case suit for damages is brought instead of a suit to recover compensation under this chapter, the employer, when sued, shall not be allowed to set up as a defense to the action that the employee was negligent, or that the injury was caused by negligence of a fellow servant or fellow employee, or that the employee had assumed the risk of the injury.
(c) Claim of compensation made under this chapter shall be deemed a waiver of the right to sue for damages, and the institution and prosecution to final judgment of a suit for damages shall be deemed a waiver of a right to claim compensation under this chapter.

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§ 50-6-407. Certificate of compliance with insurance provisions.

Every individual, firm, association, or corporation using the services of one (1) or more persons for pay shall post and maintain in a conspicuous place on the business premises a printed notice regarding workers' compensation as prescribed by the administrator of the bureau of workers' compensation. The notice shall include, at a minimum, a general description of the duties and obligations of both the employer and the employee under the law; the name, address and telephone number of the individual to notify in the event of a work-related injury; a toll-free number and address for the department of labor and workforce development at which employers or employees may obtain additional information; and the name, address and telephone number of a representative of the employer who can confirm whether the individual, firm, association, or corporation is subject to this chapter; and other information required through rules promulgated by the administrator of the bureau of workers' compensation.

§ 50-6-408. Mandatory policy provisions.

All policies insuring the payment of compensation under this chapter, including all contracts of mutual, reciprocal, or interinsurance, must contain a clause to the effect that:
1. (1) As between the employer and the insurer or insurers, the notice of or knowledge of the occurrence of the injury on the part of the insured employer shall be deemed notice or knowledge, as the case may be, on the part of the insurer or insurers;
2. (2) Jurisdiction of the insured for the purpose of this chapter shall be jurisdiction of the insurer or insurers; and
3. (3) The insurer or insurers shall in all things be bound by and subject to the awards, orders, judgments or decrees rendered against the insured employer, whether a formal party to the proceedings or not.

§ 50-6-409. Policy provision concerning agreement to pay benefits.

(a) No policy of insurance against liability arising under this chapter, shall be issued unless it contains an express agreement of the insurer that it will promptly pay to the person entitled to them all benefits conferred by this chapter and all installments of the compensation that may be awarded or agreed upon, and that this obligation shall not be affected by any default of the insured for the injury or by any default in the giving of any notice required by the policy or otherwise.
(b) The agreement shall be construed to be a direct promise by the insurer to the person entitled to compensation under this chapter, and may be enforced directly by that person in that person's name, and the failure, if any, of the insured to comply with any provisions of the policy regarding notice of injury, and such matters shall not be a defense in a suit on the policy by the insured employee or the insured employee's dependents or representatives, unless it can be shown that the insured employee or the insured employee's representatives or dependents aided and abetted in seeking to mislead or defraud the insurer.

§ 50-6-410. Violations of § 50-6-405.

The grand jury of every county in the state is given inquisitorial power over all violations of § 50-6-405 relating to employers insuring their compensation liability under this chapter, and is required to inquire into all such violations and to present them to the court by indictment or presentment.

§ 50-6-411. Misclassification of employees by construction service providers. [Effective on July 1, 2024. See the version effective until July 1, 2024.]

(a)
1. (1) It is a violation of this section if at any time a construction services provider, as defined in § 50-6-901, misclassifies employees to avoid proper classification for premium calculations by concealing any information pertinent to the computation and application of an experience rating modification factor or by materially understating or concealing:
  1. (A) The amount of the construction services provider's payroll;
  2. (B) The number of the construction services provider's employees; or
  3. (C) Any of the construction services provider's employee's duties.
2. (2) A construction services provider who violates subdivision (a)(1) shall be subject to a penalty issued by the administrator or administrator's designee of up to the greater of one thousand dollars ($1,000) or one and one-half (1 ½) times the average yearly workers' compensation premium for such construction services provider based on the appropriate assigned risk plan advisory prospective loss cost and multiplier minus the premium dollars paid on the policy that was the object of the understatement or concealment.
(b) This section shall have no effect upon a construction services provider's or carrier's duty to provide benefits under this chapter or upon any of the construction services provider's or carrier's rights and defenses under this chapter, including, but not limited to, § 50-6-108.
(c) In addition to the penalties provided for in subdivision (a)(2), the department shall refer cases involving business operations that are in violation of this section to the Tennessee bureau of investigation or the appropriate district attorney general for any action deemed necessary under any applicable criminal law.
(d)
1. (1) As used in this subsection (d), “successor in interest” means a successor in ownership of any part of a business or enterprise that is carried on and controlled in substantially the same manner as the penalized construction services provider.
  1 Backlink
  - 50-6-412(k)(1)
2. (2) A penalty issued under this section must follow any owner of a business, or member of an LLC, that is closed, liquidated, or dissolved, when that owner or member owns or operates any part of a subsequent business that is carried on and controlled in substantially the same manner as the penalized construction services provider.
3. (3) A successor in interest to a construction service provider is liable for any penalty assessed under this section against that construction services provider.
4. (4) A penalized owner, or member of an LLC, of a construction services provider, or a successor in interest to the construction services provider, may appeal a penalty assessment by requesting a contested case hearing pursuant to § 50-6-412(e).
5. (5) The administrator or the administrator's designee may waive a penalty against a penalized owner, or member of an LLC, of a construction services provider, or successor in interest to a construction services provider, for good cause.
(e) The funds collected by the administrator or the administrator's designee for penalties assessed pursuant to this section shall be deposited in the employee misclassification education and enforcement fund established by § 50-6-913 to be administered by the administrator.

§ 50-6-411. Workers' compensation insurance compliance investigations — Subpoenas and other process. [Effective until July 1, 2024. See the version effective on July 1, 2024.]

(a)
1. (1) In order to carry out the purposes of this chapter, the administrator or the administrator's designee, upon receipt of sufficient information to give reasonable cause that an employer may be in violation of the insurance requirements of this chapter and upon the compliance specialist presenting appropriate credentials to the owner, operator, or agent in charge, is authorized:
  1. (A) To inspect and investigate the places of employment and pertinent conditions; business records, including complete payroll and tax information; certificates of insurance; sign in and sign out sheets for jobsites; and vendor lists; and
  2. (B) To question privately an employer, owner, operator, agent, worker, or employee.
2. (2) The administrator or the administrator's designee may request, and the general contractor shall provide, a list of amounts paid by the general contractor to subcontractors on the jobsite.
(b) The administrator or the administrator's designee shall designate representatives who may serve subpoenas and other process of the bureau issued under this chapter.
(c)
1. (1) For the purposes of workers' compensation insurance compliance investigations, the administrator or administrator's designee may issue and serve subpoenas:
  1. (A) For the attendance of witnesses at administrative hearings; and
  2. (B) For the production of books, documents, or other tangible things that may be relevant, or reasonably calculated, to lead to the discovery of relevant information necessary to determine whether the employer is subject to this chapter held by the employer or third parties, including, but not limited to, general contractors, subcontractors, intermediate contractors, accountants and tax preparers, insurance agents and carriers, and banking institutions.
2. (2)
  1. (A) Information requested in a subpoena under subdivision (c)(1)(B) must be submitted to the bureau within twenty-one (21) calendar days of service of the subpoena.
  2. (B) If an employer or entity wishes to dispute the subpoena, then the employer or entity shall submit that dispute with particularity, in writing, to the administrator or the administrator's designee within ten (10) calendar days of service of the subpoena.
  3. (C) Failure to timely comply with the subpoena issued and served under subdivision (c)(1)(B) may result in an assessment by the bureau of civil penalties against the employer and third-party holder of information relevant to the bureau's investigation. The penalties, if assessed by the bureau, may be in an amount not less than fifty dollars ($50.00) per day per subpoena until the requested information is provided, or five thousand dollars ($5,000) per subpoena, whichever is less.
3. (3)
  1. (A) In addition to civil penalties, if a person refuses to obey a subpoena to appear for an administrative hearing or to produce evidence requested by the administrator or the administrator's designee, then the administrator or the administrator's designee may seek an order requiring compliance with the subpoena in the chancery court where the person named in the subpoena resides. The chancery court may find a person who refuses to obey an order requiring compliance with a subpoena in contempt.
  2. (B) In addition to civil penalties, the person who refuses to comply with a subpoena under this section shall pay costs, including reasonable attorneys' fees, court costs, and court reporter attendance and transcription costs, incurred by the administrator or the administrator's designee in obtaining an order to enforce the subpoena.
4. (4) An employer or entity who is aggrieved pursuant to this section may appeal under the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
(d) Penalties assessed pursuant to this section must be deposited in the employee misclassification education and enforcement fund established by § 50-6-913 to be administered by the administrator.

§ 50-6-412. Failure to secure workers' compensation — Assessment of penalties — Notification of employer — Contested case hearing. [Effective until July 1, 2024. See the version effective on July 1, 2024.]

(a) An employer fails to secure workers' compensation if, at any time, an employer:
1. (1) Who is required by this chapter to secure or maintain insurance, fails to secure or maintain the payment of workers' compensation insurance coverage; or
2. (2) Misclassifies employees to avoid proper classification for premium calculations by:
  1. (A) Concealing information pertinent to the computation and application of an experience rating modification factor; or
  2. (B) Materially understating or concealing the amount of payroll, the number of employees, or the employees' duties.
  1 Backlink
  - 50-6-801(c)
(b)
1. (1) The bureau shall assess against an employer who has failed to comply with subdivision (a)(1) or (a)(2) a penalty equal to one and one-half (1 ½) times the accurate average yearly workers' compensation premium, or, if the employer is engaged in the construction industry, as defined in § 50-6-901, the greater of one thousand dollars ($1,000) or one and one-half (1 ½) times the accurate average yearly workers' compensation premium when applying appropriate assigned risk rates to the employer's payroll, minus the premium dollars paid, if any, during a period of violation.
2. (2) If the employer fails to secure the payment of workers' compensation insurance coverage as ordered by the administrator or the administrator's designee within the required time as set forth by the decision, then the bureau shall assess a second penalty, immediately due and payable, equal to the greater of one thousand dollars ($1,000) or an amount equal to the accurate average yearly workers' compensation premium. The bureau shall hold the second penalty in abeyance if coverage is timely obtained pursuant to the order.
3. (3) If the administrator or the administrator's designee determines the period of noncompliance is less than twelve (12) consecutive months, then the administrator or the administrator's designee shall prorate any assessed monetary penalty; however, the monetary penalty shall not be less than an amount equal to one (1) month's premium or, in the case of construction services providers, not less than one thousand dollars ($1,000).
(c)
1. (1) If the bureau's investigation of an employer reasonably indicates that the employer is subject to this chapter and has failed to comply with the insurance requirements of this chapter, then the bureau shall so notify the employer by certified letter advising the employer of monetary penalties that may be assessed.
2. (2) The employer shall provide to the bureau, within ten (10) calendar days of the receipt of the certified letter:
  1. (A) Proof that the employer had secured the payment of workers' compensation insurance at all required times; or
  2. (B) Proof that the employer has not engaged in misclassification of its employees.
3. (3) If the bureau determines that sufficient proof is not provided, then the administrator or the administrator's designee shall issue a decision ordering the employer to secure payment of workers' compensation insurance coverage and assessing the penalties as described in subsection (b) by certified mail to the employer's last known address.
(d) The employer may request a contested case hearing, in writing, within fifteen (15) calendar days of receipt of the decision assessing monetary penalties. If the request is not made within the fifteen-day period, then the decision becomes final.
(e) The employer has the burden of proof at the contested case hearing and shall produce documentary evidence that the penalties should be reduced.
1 Backlink
- 50-6-411(d)(4)
(f) The contested case hearing must be scheduled to be heard within sixty (60) calendar days from the date of receipt by the bureau of the employer's written request for a contested case hearing pursuant to subsection (d).
(g) [Deleted by 2021 amendment, effective January 1, 2022.]
(h) If an employer, or successor in interest, fails to comply with this section two (2) or more times within a five-year period, then the monetary penalty is the greater of three thousand dollars ($3,000) or three (3) times the average unpaid yearly workers' compensation premium for each second or subsequent violation. The second violation is presumed to be a willful violation subject to rebuttal by the employer, or successor in interest as set forth in subdivision (k)(1), with clear and convincing evidence to the contrary.
(i) If an employer engaged in the construction industry, as defined in § 50-6-901, fails to comply with this section two (2) or more times within a five-year period, in addition to other penalties pursuant to this chapter, then such employer is permanently prohibited from obtaining an exemption pursuant to part 9 of this chapter. As used in this subsection (i), “such employer” includes, but is not limited to, a construction services provider, as defined by § 50-6-901, or successor in interest, who applies for or has ever received a workers’ compensation exemption pursuant to part 9 of this chapter.
1 Backlink
- 50-6-909(a)
(j)
1. (1) The administrator or the administrator's designee has the authority to seek an injunction in the chancery court of Davidson County to prohibit an employer from operating its business until the employer has complied with an order by the administrator or the administrator's designee to comply with the insurance requirements of this chapter.
2. (2) The employer may appeal, pursuant to the Uniform Administrative Procedures Act, compiled at title 4, chapter 5, a decision made, or order issued, by the administrator or the administrator's designee pursuant to this section.
(k)
1. (1) As used in this section, “successor in interest” means a successor in ownership of any part of a business or enterprise that is carried on and controlled in substantially the same manner as the penalized employer.
2. (2) A penalty issued under this section must follow an owner of a business, or member of an LLC, that is closed, liquidated, or dissolved, when that owner or member owns or operates any part of a subsequent business that is carried on and controlled in substantially the same manner as the penalized employer.
3. (3) A successor in interest is liable for a penalty assessed under this section against that employer.
4. (4) A penalized owner, general contractor, company, corporation, or member of an LLC, or a successor in interest, may appeal a penalty assessment by requesting a contested case hearing pursuant to subsection (d).
5. (5) The administrator or the administrator's designee may waive a penalty against a penalized owner, general contractor, company, corporation, or member of an LLC, or successor in interest, for good cause.
(l) The funds collected by the administrator or the administrator's designee for penalties assessed for violations of subdivision (a)(2) must be deposited in the employee misclassification education and enforcement fund established by § 50-6-913 to be administered by the administrator.
(m) In addition to the penalties provided for in this chapter, the bureau shall refer cases involving business operations that are in violation of this section to the Tennessee bureau of investigation or the appropriate district or state attorney general for any action deemed necessary under applicable criminal law.
(n) A person that submits an initial exemption registry application, renewal exemption registry application, or insurance application that contains false, forged, misleading, or incomplete information to avoid proper classification for premium calculations by concealing information or materially understating or concealing the amount of payroll, the number of employees, or the employees' duties is subject to a civil penalty. The penalty, per violation, is in an amount of up to the greater of one thousand dollars ($1,000) or the unpaid premium, which is calculated as one and one-half (1 ½) times the accurate average yearly workers' compensation premium for the employer based on the appropriate assigned risk rate minus the premium dollars actually paid by the employer on the policy that was the object of the understatement or concealment.

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§ 50-6-412. Penalties for noncompliance with insurance requirements. [Effective on July 1, 2024. See the version effective until July 1, 2024.]

(a) The administrator of the bureau of workers' compensation or the administrator's designee has the authority to issue a subpoena to require an employer doing business in the state to produce any and all books, documents or other tangible things that may be relevant to or reasonably calculated to lead to the discovery of relevant information necessary to determine whether an employer is subject to this chapter, or has secured payment of compensation pursuant to this chapter, and to determine the amount of any monetary penalty that is required to be assessed against an employer for failure to secure payment of compensation pursuant to this chapter.
(b)
1. (1) All monetary penalties assessed pursuant to this section that are based on the average yearly workers' compensation premium shall be calculated by utilizing the appropriate assigned risk plan advisory prospective loss cost and multiplier for the employer as of the date of determination that the employer is subject to this chapter, and has not secured payment of compensation pursuant to this chapter.
2. (2) If the administrator or administrator's designee determines the period of noncompliance with this chapter, is less than one (1) year, any assessed monetary penalty shall be prorated; however, the monetary penalty shall not be less than an amount equal to one (1) month's premium of the average yearly workers' compensation premium for the employer based on the appropriate assigned risk plan advisory prospective loss cost and multiplier.
3. (3) If any monetary penalty assessed against an employer is held in abeyance pursuant to this section, the period of abeyance shall be two (2) years. Any abated penalty becomes void upon the expiration of the two-year period; provided, that the employer remained subject to this chapter, during the two-year period and continuously secured payment of compensation as required by law. Any abated penalty becomes voidable, if within the two-year period, the employer provides notice to the administrator that the employer is no longer subject to this chapter and upon concurrence of the administrator that the employer is no longer subject to this chapter, the penalty shall become void. Any abated penalty shall become due and payable immediately if, within the two-year period, the employer continues to be subject to this chapter and fails to secure payment of compensation as required by law.
4. (4) The administrator shall advise an employer of the amount of any assessed monetary penalty in writing and shall include the date on which the monetary penalty shall be due and payable.
(c)
1. (1) When the records of the bureau of workers' compensation indicate, or when the bureau's investigation of an employer indicates, that an employer is subject to this chapter, and has failed to secure payment of compensation as required by this chapter, the bureau shall so notify the employer by certified letter, return receipt requested.
2. (2) The bureau shall require the employer to provide, within fifteen (15) calendar days of the receipt of the certified letter, either proof that the employer had secured payment of compensation as required by this chapter or a verifiable sworn affidavit, with supporting documentation, that the employer is exempt from this chapter.
3. (3) The certified letter shall also advise the employer of the monetary penalties that may be assessed against the employer if it is determined by the administrator or the administrator's designee that the employer has failed to secure payment of compensation as required by this chapter and shall advise the employer of the criminal penalties to which the employer may be subject for the failure.
(d)
1. (1) If the employer responds to the certified letter within fifteen (15) calendar days of its receipt and the administrator or the administrator's designee determines that the employer has secured payment of compensation as required by this chapter, or that the employer is not subject to this chapter, no monetary penalty shall be assessed.
2. (2) If the employer responds to the certified letter within fifteen (15) calendar days of its receipt and the administrator or the administrator's designee determines that the employer is subject to this chapter and that the employer has secured the payment of compensation since the date of receipt of the certified letter, the administrator or the administrator's designee shall issue a decision assessing a monetary penalty to the employer equal to one and one-half (1 ½) times the average yearly workers' compensation premium, or if the employer is engaged in the construction industry, as defined in § 50-6-901, the greater of one thousand dollars ($1,000) or one and one-half (1 ½) times the average yearly workers' compensation premium.
(e)
1. (1)
  1. (A) If the employer fails to respond to the certified letter within fifteen (15) calendar days of its receipt or the employer responds to the certified letter but does not provide a verifiable sworn affidavit of exemption, the administrator or the administrator's designee shall issue a decision assessing two (2) penalties. The administrator or administrator's designee shall send the decision to the employer by certified mail, return receipt requested, to the employer's last known address, according to the bureau's records.
  2. (B) The first monetary penalty shall be equal to one and one-half (1 ½) times the average yearly workers' compensation premium, or if the employer is engaged in the construction industry, as defined in § 50-6- 901, the greater of one thousand dollars ($1,000) or one and one-half (1 ½) times the average yearly workers' compensation premium.
  3. (C) The second monetary penalty shall be equal to the average yearly workers' compensation premium for such employer.
2. (2) The administrator's or administrator's designee's decision shall notify the employer of all monetary penalties that have been assessed against the employer and the criminal penalties to which the employer may be subject.
3. (3) The administrator's or administrator's designee's decision shall advise the employer that it may request a contested case hearing to show cause why it should not have been assessed penalties for failure to comply with the workers' compensation law or to challenge the amount of the penalties assessed. Such a request must be made to the bureau in writing within fifteen (15) calendar days of receipt of the administrator's or administrator's designee's decision assessing monetary penalties. If such request is not timely made, the decision becomes final.
4. (4) The employer has the burden of proof at the contested case hearing and shall produce documentary evidence that the penalties should be reduced, that the employer is not subject to this chapter, or that the employer was in compliance with this chapter.
5. (5) The contested case hearing shall be scheduled to be heard in a timely manner, not to exceed forty-five (45) calendar days from the date of the employer's timely written request for a contested case hearing pursuant to subdivision (e)(3).
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- 50-6-411(d)(4)
(f)
1. (1) If the administrator or the administrator's designee determines at the contested case hearing that the employer is not subject to this chapter, or that the employer had secured and continues to secure payment of compensation as required by this chapter, all monetary penalties shall be void.
2. (2) If the administrator or the administrator's designee determines at the contested case hearing that the employer is subject to this chapter and that the employer has come into compliance with this chapter by securing payment of compensation prior to the date of the contested case hearing, the first monetary penalty equal to one and one-half (1 ½) times the average yearly workers' compensation premium, or if the employer is engaged in the construction industry, as defined in § 50-6-901, the greater of one thousand dollars ($1,000) or one and one-half (1 ½) times the average yearly workers' compensation premium shall be due; however, the second monetary penalty equal to the average yearly workers' compensation premium shall be held in abeyance.
3. (3) If the administrator or the administrator's designee determines at the contested case hearing that the employer is subject to this chapter and that the employer has failed to secure payment of compensation as required by this chapter, the employer shall be ordered to procure workers' compensation insurance coverage and to provide the bureau with proof of coverage within five (5) days of the issuance of the order, excluding Saturdays, Sundays and holidays. If the employer obtains workers' compensation insurance coverage and provides the bureau with proof of coverage as ordered, the first monetary penalty equal to one and one-half (1 ½) times the average yearly workers' compensation premium, or if the employer is engaged in the construction industry, as defined in § 50-6-901, the greater of one thousand dollars ($1,000) or one and one-half (1 ½) times the average yearly workers' compensation premium shall be due; however, the second monetary penalty equal to the average yearly workers' compensation premium shall be held in abeyance.
4. (4) If the employer fails to obtain workers' compensation insurance coverage as ordered by the administrator or administrator's designee within the required time period, all monetary penalties, totaling two and one-half (2 ½) times the average yearly workers' compensation premium, or if the employer is engaged in the construction industry, as defined in § 50-6-901, the greater of two thousand dollars ($2,000) or two and one-half (2 ½) times the average yearly workers' compensation premium, shall be immediately due and payable.
(g) [Deleted by 2021 amendment.]
(h)
1. (1) In the event an employer engaged in the construction industry, as defined in § 50-6-901, fails to comply with the requirements of this chapter, by failing to secure payment two (2) or more times within a five-year period, then the administrator shall issue a monetary penalty against the employer that is the greater of three thousand dollars ($3,000) or three (3) times the average yearly workers' compensation premium for each second or subsequent violation.
2. (2)
  1. (A) In the event an employer engaged in the construction industry, as defined in § 50-6-901, fails to comply with the requirements of this chapter, by failing to secure payment two (2) or more times within a five-year period, such employer shall be permanently prohibited from obtaining an exemption pursuant to part 9 of this chapter.
  2. (B) For purposes of subdivision (h)(2)(A), “such employer” includes any construction services provider, as defined by § 50-6-901, who applies for or has ever received a workers' compensation exemption pursuant to part 9 of this chapter using the same federal employer identification number as the employer who fails to comply with the requirements of this chapter.
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  - 50-6-909(a)
(i)
1. (1) The administrator has the authority to seek an injunction in the chancery court of Davidson County to prohibit an employer from operating its business in any way until the employer has complied with an order by the administrator or the administrator's designee to obtain workers' compensation insurance coverage.
2. (2) In the event an employer fails to comply with the requirements of this chapter, by failing to secure payment of compensation on a second or subsequent occasion, the administrator shall have the authority to seek an injunction in the chancery court of Davidson County to prohibit the employer from operating its business in any way until the employer provides proof that it has complied with this chapter by securing payment of compensation.
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- 50-6-909(a)
(j) The employer shall have the right to appeal, pursuant to the Uniform Administrative Procedures Act, compiled at title 4, chapter 5, any decision made by or order issued by the administrator or the administrator's designee pursuant to this section.
(k)
1. (1) A successor in interest, as defined in § 50-6-411(d)(1), is liable for any penalty issued under this section against a construction services provider.
2. (2) A person or entity designated as a successor in interest may appeal a penalty assessment by requesting a contested case hearing pursuant to subsection (e).
3. (3) The administrator or the administrator's designee may waive a penalty against a successor in interest for good cause.

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§ 50-6-413. Collection of penalties by civil action — Distress warrants. [Effective until July 1, 2024.]

(a) In addition to other remedies provided in this chapter:
1. (1) If after due notice, an employer defaults in payment of penalties, then the amount due may be collected by civil action in the name of the administrator, and the employer adjudged in default shall pay the costs of the action; and
2. (2) The administrator or the administrator's designee is authorized to issue a distress warrant against the delinquent employer for the amount of the penalties that may be due and unpaid as of the date of the issuance.
(b) The distress warrant is returnable within thirty (30) days from its date and has the same effect as other distress warrants authorized by law for the collection of delinquent taxes or revenue owed to the state or an agency of the state.
(c) Distress warrants issued under the authority of this chapter for the collection of penalties, arising out of this chapter may, in the discretion of the administrator, be addressed to and delivered to an employee or representative of the bureau for the purpose of execution, and the employee or representative has the same power and authority as a sheriff for the purpose of levying and executing the distress warrant. All costs must be included in the total amount to be collected from the penalized party.

§ 50-6-414. Experience modification factors — Notification of employers — Failure to give timely notification.

(a) Any employer who is assigned an experience modification factor for the purpose of determining its workers' compensation premium shall be sent annually, at no charge to the employer, a copy of any information relative to its experience modification factor that is available to an insurance company.
(b) If the experience modification factor notification is not received by the employer prior to the policy renewal date, or the policy anniversary date if different, the experience modification factor shall not be used for premium purposes if its use results in a higher premium for the employer. The mailing of the experience modification factor worksheet shall be sufficient proof of notice, provided the mailing is by certified mail, return receipt requested.

§ 50-6-415. Data collection — Reporting data.

(a)
1. (1) The administrator of the bureau of workers' compensation has the same authority as the commissioner of commerce and insurance to request and obtain relevant information on workers' compensation claims. All workers' compensation insurers or their designated agents, self insurers and the department of commerce and insurance shall report claims information and other relevant workers' compensation data necessary to determine and analyze costs of the system to the administrator of the bureau of workers' compensation or to the agents as the administrator may designate. The administrator may promulgate all reasonable rules and regulations necessary to implement this section in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
2. (2) In promulgating rules concerning data collection, the administrator of the bureau of workers' compensation shall include appropriate elements of the Detailed Claim Information Reporting Model Regulation for Workers' Compensation Insurance issued by the National Association of Insurance Commissioners, and other information the administrator deems necessary. The administrator shall also consult with the advisory council on workers' compensation in defining the information needed to permit management of the system. The administrator shall also report to the commerce and labor committee of the senate and the commerce committee of the house of representatives at the request of the chairs of the committees.
(b) The bureau of workers' compensation shall gather, and has the duty to analyze and report, information relevant to the functioning of the workers' compensation system to the advisory council on workers' compensation, the general assembly and the governor. The bureau shall respond to information requests concerning workers' compensation issues from the advisory council on workers' compensation, the general assembly and the governor.
(c) The administrator of the workers' compensation bureau shall enforce requests pursuant to this section in the same manner and with the same authority as the commissioner of commerce and insurance possesses with respect to violations of this part and title 56. The administrator shall also notify the principal corporate office of any insurer of any refusal to comply with such requests. The administrator's enforcement authority under this subsection (c) applies only to the administrator's efforts to obtain relevant data as provided in subsections (a) and (b).

§ 50-6-416. [Reserved.]

§ 50-6-417. Dispute of experience modification factor.

In cases where an employer disputes an experience modification factor assigned to the employer, the insurer shall notify the employer of the employer's right to submit a request for review and to appeal to the commissioner of commerce and insurance pursuant to § 56-5-109(b).

§ 50-6-418. Rating plans based on drug-free workplace program participation.

(a)
1. (1) The department of commerce and insurance shall approve rating plans for workers' compensation insurance that give specific identifiable consideration in the setting of rates to employers that implement a drug-free workplace program pursuant to rules adopted by the bureau of workers' compensation of the department of labor and workforce development. The plans must take effect January 1, 1997, must be actuarially sound, and must state the savings anticipated to result from the drug testing. The credit shall be at least five percent (5%) unless the commissioner of commerce and insurance determines that five percent (5%) is actuarially unsound.
2. (2) The commissioner is also authorized to develop a schedule of premium credits for workers' compensation insurance for employers who have safety programs that attain certain criteria for safety programs. The commissioner shall consult with the administrator of the bureau of workers' compensation in setting the criteria.
(b) The department of commerce and insurance shall apply the drug-free workplace program credit separately to each individual company for an employer having more than one (1) company under one (1) workers' compensation insurance policy. However, no credit given to an individual company may be combined with any credit given to any other company of the common employer or to the common employer itself.

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§ 50-6-419. Rules governing settlement of workers' compensation claims.

(a) Notwithstanding any other provision of this part or of title 56 to the contrary, in order to assure that injured employees are treated fairly and to assure that claims are handled in an appropriate and uniform manner, the administrator of the bureau of workers' compensation shall set standards by rule governing the adjustment and settlement of workers' compensation claims by insurance carriers, self-insured employers, and any entity acting on behalf of an insurance carrier or self-insured employer in the resolution of claims brought pursuant to this title. The standards may include, but are not limited to, standards governing contact with an employee after notice of injury has been given, the processing of claims and procedures for making an offer of settlement.
(b) The administrator shall promulgate rules and regulations to effectuate the purposes of this section. The rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
(c)
1. (1) The administrator may enforce the standards described in this section, and any rules promulgated pursuant to this section, through assessment of civil penalties pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, against any entity employing individuals who adjust workers' compensation claims under this title. Such penalties may be in an amount not less than fifty dollars ($50.00) nor more than five thousand dollars ($5,000) per violation. Each separate act shall constitute a separate violation and may subject the entity to assessment of additional civil penalties.
2. (2) The administrator may also notify:
  1. (A) The department of commerce and insurance of any penalties assessed by the bureau pursuant to this section; and
  2. (B) The principal corporate office of any insurer of any violations of the standards or rules described in this section.

§ 50-6-420. Legislative intent.

It is the intent of the general assembly that upon the filing of a claim pursuant to this chapter, the insurer is encouraged to provide semi-annual reports to the employer, at no cost to the employer, regarding the status of the claim.

§ 50-6-421. Requesting and obtaining information on employer workers’ compensation insurance policies to ensure compliance with law — Confidentiality — What constitutes public record.

(a) The administrator of the bureau of workers' compensation may request and obtain information regarding employer workers’ compensation insurance policies in order to ensure compliance with the law. Except as otherwise provided in subsection (b), any information relating to workers’ compensation insurance policies obtained by the administrator pursuant to this subsection (a) shall be deemed confidential and shall not constitute a public record, as defined in § 10-7-503; provided, such information may be used by any state agency, or vendor designated by the state, for the purpose of ensuring compliance with the law.
(b) The following information obtained by the administrator pursuant to subsection (a) shall constitute a public record, as defined in § 10-7-503, and shall be open for personal inspection by any citizen of this state:
1. (1) Employer name and business address;
2. (2) Workers’ compensation insurance carrier name and business address; and
3. (3) Workers' compensation insurance policy number, policy effective date, policy expiration date, policy cancellation date, and policy reinstatement date.

Part 5 Safe Employment Practices

§ 50-6-501. Establishment of safety committees — Reporting by insurance companies — Civil penalty.

(a) In order to promote health and safety in places of employment in this state, every public or private employer that is subject to this chapter, shall establish and administer a safety committee in accordance with rules adopted pursuant to § 50-6-502, if the administrator of the workers' compensation bureau finds that the employer has an experience modification factor or rate applied to the premium greater than or equal to one and twenty hundredths (1.20).
(b) In making determinations under subsection (a), the administrator of the workers' compensation bureau shall utilize the most recent statistics regarding experience modification rates.
(c)
1. (1) Every insurance company authorized to write workers' compensation insurance shall submit its modification factors or rates for each of its workers' compensation insureds to the commissioner of commerce and insurance, when requested by the commissioner. On request from the administrator of the workers' compensation bureau, the commissioner of commerce and insurance shall provide the bureau of workers' compensation with the information.
2. (2) The administrator of the workers' compensation bureau shall establish safety committee requirements for self-insured employers pursuant to rules promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
3. (3) The commissioner of commerce and insurance may assess a civil penalty of up to two thousand dollars ($2,000) per incident for failure to comply with subdivision (c)(1).

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§ 50-6-502. Rules governing committees — Duties of committees — Training — Operation under collective bargaining agreement.

(a) In carrying out § 50-6-501, the administrator of the workers' compensation bureau shall promulgate rules that include, but are not limited to, provisions:
1. (1) Prescribing the membership of the committees to ensure equal numbers of hourly employees and employer representatives as well as specifying the frequency of meetings;
2. (2) Requiring employers to make adequate written records of each meeting and to maintain the records subject to inspection by Tennessee occupational safety and health administration representatives; and
3. (3) Requiring employers to compensate employee representatives on safety committees at the regular hourly wage while the employees are engaged in safety committee training or are attending safety committee meetings.
(b) The duties and functions of the safety committee shall include, but are not limited to:
1. (1) Assisting in establishing procedures for workplace safety inspections by the committee;
2. (2) Assisting in establishing procedures for investigating all safety incidents, accidents, illnesses and deaths; and
3. (3) Assisting in evaluating accident and illness prevention programs.
(c) The employer shall provide training for safety committee members in their duties and responsibilities provided in subsection (b).
(d) An employer operating under a collective bargaining agreement that contains provisions regulating the formation and operation of a safety committee that meets or exceeds the minimum requirements of this section and § 50-6-501 may apply to the administrator of the workers' compensation bureau for a determination that the employer meets the requirements of this section and § 50-6-501.

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50-6-501(a)

§ 50-6-503. Civil liability of labor organization.

When an employee incurs an injury compensable under this chapter, the discussion or furnishing, or failure to discuss or furnish, or failure to enforce any safety or health provision, shall not subject a labor organization representing the injured employee to any civil liability for the injury.

Part 6 Workers' Compensation Insurance Fund Act of 1992

§ 50-6-601. Short title — Establishment of competitive state workers' compensation insurance fund.

(a) This part shall be known and may be cited as the “Workers' Compensation Insurance Fund Act of 1992.”
(b)
1. (1) There shall be established a competitive state workers' compensation insurance fund to insure employers under this chapter.
2. (2) This fund shall operate as a nonprofit insurance company and is subject to all requirements of law and regulation as any other insurer offering workers' compensation insurance in Tennessee pursuant to title 56 and this chapter.
3. (3) This fund shall act in addition to, and not as a substitute for, an assigned risk pool.
4. (4) The fund shall be required to maintain an adequate rate and any assessment for accumulated liabilities shall be made only against those insured within the state workers' compensation insurance fund. No assessments shall be made against or for the Tennessee Guaranty Association, as described in title 56, chapter 12, and no assessment shall be made against a private insurer or any entity authorized under § 50-6-405(c), not participating in the state workers' compensation insurance fund. The policies written by the fund shall be assessable against the policyholders.

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56-5-114(c)(5)

§ 50-6-602. Part definitions.

As used in this part, unless the context otherwise requires:
1. (1) “Board” means the board of directors of the competitive state compensation insurance fund;
2. (2) “Fund” means the competitive state compensation insurance fund; and
3. (3) “Personal injury” or “injury” has the meaning given to it in § 50-6-102.

§ 50-6-603. Purpose and organization of fund.

The fund shall be created as a nonprofit independent public corporation for the purpose of insuring employers against liability for personal injuries for which their employees may be entitled to benefits under this part. The fund shall be organized as a domestic insurance company.

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56-5-114(c)(5)

§ 50-6-604. Board of directors — Members.

(a) In the event the commissioner of commerce and insurance elects to make the fund operational pursuant to § 56-5-114, the existing board of directors shall terminate and a new board shall be appointed within sixty (60) days of the election.
(b) The board of directors shall initially consist of seven (7) members who are knowledgeable concerning the workers' compensation system. The state treasurer shall be an ex officio member. Initially, the speakers of the senate and the house of representatives and the governor shall each appoint one (1) member for a two-year term and one (1) member for a three-year term. Each director shall hold office until a successor is appointed and qualifies. The board shall annually elect a chair from among its members and other officers it deems necessary for the performance of its duties.
(c)
1. (1) Once the fund is operational and the commissioner of commerce and insurance certifies it as a fund able to effectively operate under this part and title 56, then on the next scheduled expiration of board members' terms:
  1. (A) The members shall be elected by policyholders; and
  2. (B) The state treasurer shall, on expiration of the treasurer's term, cease to be a member of the board.
2. (2) The successor board shall consist of seven (7) members selected by policyholders for three-year terms.

§ 50-6-605. Management of fund.

The management and control of the fund is vested solely in the board.

§ 50-6-606. Powers of board.

(a)
1. (1) The board is vested with full power, authority, and jurisdiction over the fund.
2. (2) The board may perform all acts necessary or convenient in the exercise of any power, authority, or jurisdiction over the fund, either in the administration of the fund or in connection with the insurance business to be carried on by it under this part, as fully and completely as the governing body of a private insurance carrier to fulfill the objectives and intent of this part.
(b) The board may invest assets as permitted by § 56-3-402.

§ 50-6-607. [Reserved.]

§ 50-6-608. Nonliability of board members, officers or employees.

The members of the board and officers or employees of the fund shall not be liable personally, either jointly or severally, for any debt or obligation created or incurred by the fund.

§ 50-6-609. Scope of insurance by fund.

The fund shall insure an employer against any workers' compensation claim arising primarily out of and in the course and scope of employment as fully as any other insurer.

§ 50-6-610. Powers of fund.

For purposes of exercising the specific powers granted in this part and carrying out the other purposes of this part, the fund may:
1. (1) Sue and be sued;
2. (2) Have a seal and alter it at will;
3. (3) Make, amend, and repeal rules relating to the conduct of the business of the fund;
4. (4) Enter into contracts relating to the administration of the fund;
5. (5) Rent, lease, buy, or sell property in its own name and may construct or repair buildings necessary to provide space for its operations;
6. (6) Declare a dividend when there is an excess of assets over liabilities, and minimum surplus requirements;
7. (7) Pay medical expenses, rehabilitation expenses, compensation due claimants of insured employers, pay salaries, and pay administrative and other expenses;
8. (8) Hire personnel and set salaries and compensation; and
9. (9) Perform all other functions and exercise all other powers of a domestic insurance company that are necessary, appropriate, or convenient to administer the fund.

§ 50-6-611 — 50-6-114. [Reserved.]

§ 50-6-615. Property of fund — Fund employees.

All premiums and other money paid to the fund, all property and securities acquired through the use of money belonging to the fund, and all interest and dividends earned upon money belonging to the fund and deposited or invested by the fund are the sole property of the fund and shall be used exclusively for the operation and obligations of the fund. The money of the fund is not state property. The employees of the fund shall not be considered state employees.

§ 50-6-616. Appropriations prohibited except as provided in § 50-6-621.

The fund shall not receive any state appropriation at any time other than as provided by § 50-6-621.

§ 50-6-617. Fund not a state agency.

The fund shall not be considered a state agency for any purpose.

§ 50-6-618. Rules for sale of coverage by agents.

Private independent insurance agents licensed to sell workers' compensation insurance in this state may sell insurance coverage for the fund according to rules adopted by the board. The board shall, by rule, also establish a schedule of commissions that the fund will pay for the services of an agent.

§ 50-6-619. Annual report required.

The board shall submit an annual report to the governor and general assembly indicating the business done by the fund the previous year and containing a statement of the resources and liabilities of the fund.

§ 50-6-620. Contents of annual report.

The board shall annually report to the general assembly, governor, and the director of the division of state audit the operations of the fund up to that date. The report shall include, but not be limited to:
1. (1) The volume of premiums insured through the state fund and its share of the state workers' compensation insurance market;
2. (2) The percent division of premium dollars among various types of benefit payments and administrative costs for policies and claims under the state fund;
3. (3) The average rate of return enjoyed by the state fund on its invested assets;
4. (4) Recommendations concerning desirable changes in the state fund to promote its prompt and efficient administration of policies and claims;
5. (5) A recommendation to the general assembly and governor regarding the continued operation of the fund;
6. (6) A full report concerning reserve practices including any actuarial analysis of the funds reserved; and
7. (7) Any other information the director deems appropriate.

§ 50-6-621. Bonds, appropriation for start-up costs.

The state is authorized to issue bonds in accordance with law or appropriate funds in the general appropriations act to the competitive state compensation insurance fund for start-up costs to be repaid pursuant to terms set by authorizing legislation for issuance of the bonds or appropriated funds. The start-up costs may be utilized by the fund to meet the reserve and capitalization requirements of the department of commerce and insurance. The funds set aside for this purpose shall be considered an admitted asset for regulatory purposes. The time for the fund repaying the appropriations may be extended by the funding board.

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50-6-616

§ 50-6-622. Start-up of operations.

The fund shall begin providing workers' compensation insurance coverage when the board determines that the fund is able to do so and all requirements under state law have been met. The fund shall not issue insurance policies to employers until the approval of the director of the division of state audit has been obtained.

§ 50-6-623. Submission and review of organizational and operating plans.

Before the fund established by this part shall enter into any contract, except for consulting services, or issue any bonds, or incur any liability, the board of directors shall submit organizational and operating plans for the fund to a review committee for approval. The review committee shall consist of the administrator of the workers' compensation bureau, the commissioners of commerce and insurance, and finance and administration, the state treasurer, and the comptroller of the treasury. The review committee shall approve the operational and organizational plans if it determines the plans to be in accord with this part and to be fiscally sound and responsible. If the committee approves the plan, then the fund may become fully operational. If the committee does not approve the plan, then the committee shall make appropriate recommendations to the board of directors, governor, and the speakers of the senate and house of representatives concerning any deficiencies.

Part 7 Interlocal Agreements by Electric Cooperatives and Municipal Utilities

§ 50-6-701. Part definitions.

As used in this part, unless the context otherwise requires:
1. (1) “Association captive insurance company” means an association captive insurance company described in § 56-13-102, operated by an association described in § 56-13-102;
2. (2) “Electric cooperative” means an electric cooperative or electric membership corporation, whether organized or operating under title 65, chapter 25, or similar statutes of any other state, that distributes electric power purchased from the Tennessee Valley authority (TVA);
3. (3) “Interlocal agreement” means an agreement authorized by title 12, chapter 9, or by this part, or by both; and
4. (4) “Municipal utility” means any governmental entity as defined in § 29-20-102, having a system for the distribution of electric power, whether operated under the authority of a board of the governmental entity, by a department of the governmental entity or under the authority of a board created pursuant to the Municipal Electric Plant Law of 1935, compiled in title 7, chapter 52, or by the authority of any other law of the state, and that operates an electric generation or distribution system that distributes electric power purchased from the Tennessee Valley authority; and also includes any municipality, county or other political subdivision of another state, whether operated under a board or as a county or municipal department, that distributes electric power purchased from the Tennessee Valley authority.

§ 50-6-702. Authorization to enter interlocal agreements — General assembly findings.

(a) For the purpose of insuring or self-insuring the obligations and liabilities under this chapter, municipal utilities and electric cooperatives are authorized to enter into interlocal agreements to pool their liabilities pursuant to § 29-20-401, as if each electric cooperative were a governmental entity for purposes of § 29-20-401, and as if each cooperative were a public agency for purposes of title 12, chapter 9, and under which the interlocal agreement is administered by an association captive insurance company or any of its affiliates or subsidiaries. An interlocal arrangement that is administered by an association captive insurance company may also provide for the insuring or self-insuring of obligations and liabilities arising under the federal Longshoremen's and Harbor Workers' Compensation Act (33 U.S.C. §§ 901-950), as long as the company has obtained any necessary approvals by the appropriate federal agencies.
(b) The general assembly finds and determines that participation in the interlocal agreements by electric cooperatives and municipal utilities provides a mutual benefit to help reduce the expense of operations of municipal utilities and electric cooperatives and hence reduces the cost of electricity for the citizens of the state, and finds that all contributions of financial and administrative resources and associated costs and expenses made by a municipal utility pursuant to an interlocal agreement, as authorized in this part, are made for a public and governmental purpose, and that the contributions benefit the contributing municipal utilities. To the extent that the interlocal agreements provide for the respective parties to indemnify or hold harmless each other from certain liabilities arising out of participation in the pooling agreement, the provisions are authorized in accordance with the findings of the general assembly.

§ 50-6-703. Association captive insurance companies as administrators for certain entities.

An association captive insurance company may, directly or through an entity it may create and control, enter into agreements with participating governmental entities or electric cooperatives under § 29-20-401, to serve as administrator or act as the special fund or legal or administrative entity of the pooled financial and administrative resources thereunder and under this part, and may charge fees and costs for such services as administrator. The company may provide insurance or reinsurance for excess losses above the amounts that are retained by the pooled financial resources, the same as if it were created by governmental entities under § 29-20-401(e), for those purposes, an electric cooperative shall be deemed to be a governmental entity. To the extent that an association captive insurance company shall be deemed to become a party to an interlocal agreement, it shall be deemed to have the status of a public agency for those purposes. The administrative activities and operations of the fund or entity, whether by, through or under the direction or supervision of the association captive insurance company or otherwise, shall be subject to § 29-20-401(d), and certificates of compliance may be issued as authorized by § 29-20-401(c)(2).

§ 50-6-704. Liability — Participation in other arrangements — No implied repeal.

(a) Nothing in this part shall be construed to confer upon any electric cooperative any immunity from liability for damages for injuries to persons or property granted to a governmental entity under the Tennessee Governmental Tort Liability Act, compiled in title 29, chapter 20, nor to prevent a municipal utility from exercising any right, privilege or option it may have under this chapter.
(b) Nothing in this part shall preclude a municipal utility or electric cooperative from participating in any other insured, self-insured, or risk-pooling arrangement permitted under any other law of this state.
(c) Nothing in this part shall be deemed to be an implied repeal of any of title 65, chapter 25.

§ 50-6-705. Liberal construction.

This part shall be liberally construed to permit electric cooperatives and municipal utilities to enter into agreements to pool their resources to provide for satisfaction of obligations under this chapter, as if electric cooperatives were governmental entities under § 29-20-401 or public agencies under title 12, chapter 9.

Part 8 Uninsured Employers Fund

§ 50-6-801. Creation — Legislative intent — Uses of fund.

(a) There is created the uninsured employers fund as an account in the general fund, which shall be invested pursuant to § 9-4-603. Moneys from the fund may be expended to fund activities authorized by this part. Any revenues deposited in this fund shall remain in the fund until expended for purposes consistent with this part, and shall not revert to the general fund on any June 30. Any appropriation for the fund shall not revert to the general fund on any June 30, but shall remain available for expenditure in subsequent fiscal years.
(b) The uninsured employers fund may receive revenues that shall include all penalties assessed and collected from employers who fail to provide workers' compensation coverage or who fail to qualify as self-insurers pursuant to this chapter, and any other amounts that may be appropriated. In addition, when deemed necessary in the discretion of the administrator and when the balance remaining in the uninsured employers fund is less than the amount of funds distributed by the bureau to provide benefits to injured workers in the previous fiscal year, the administrator may also withdraw up to twenty-five percent (25%) of the balance of funds remaining after the costs and expenditures provided by § 50-6-913(b) have been satisfied, from the employee misclassification education and enforcement fund to provide benefits under this part.
(c) [Effective until July 1, 2024] Except for funds collected by the administrator or the administrator's designee for penalties assessed for violations of § 50-6-412(a)(2) and (n), which must be deposited in the employee misclassification education and enforcement fund established by § 50-6-913, to be administered by the administrator, the remainder of the funds collected in § 50-6-412 must be deposited in the uninsured employers fund and must be used for payment of the costs incurred by the bureau of workers' compensation to administer the assessment of and collection of the other penalties provided in § 50-6-412, and the costs of administering this part, including, but not limited to, lien fees or fees of third-party administrators.
(c) [Effective July 1, 2024] The uninsured employers fund shall be used for payment of the costs incurred by the bureau of workers' compensation to administer the assessment of and collection of penalties provided in § 50-6-412 and the cost of administering this part 8 including, but not limited to, lien fees or fees of third party administrators.
(d) The bureau may use any revenues remaining in the uninsured employers fund that are not used for the purposes provided in subsection (c) to provide temporary disability benefits, medical benefits, or death benefits to an eligible employee who suffered an injury or death arising primarily within the course and scope of the employee's employment with an employer who failed to secure the payment of compensation pursuant to this chapter at the time the eligible employee suffered the injury or death.
1. (1) The employee was employed by an employer who failed to secure payment of compensation pursuant to this chapter;
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  - 50-6-802(d)(1)
  - 50-6-802(e)(1)
2. (2) The employee suffered an injury on or after July 1, 2015, primarily within the course and scope of employment, at a time when the employer had failed to secure the payment of compensation;
3. (3) The employee was a Tennessee resident on the date of injury;
4. (4) The employee provided notice to the bureau of the injury and of the failure of the employer to secure the payment of compensation within a reasonable period of time, but in no event more than one hundred eighty (180) days, after the date of the injury; and
5. (5) Except as provided in § 50-6-802(d) and (e), the employee secured a judgment for workers' compensation benefits against the employer for the injury.
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- 50-6-802(a)

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50-6-241(b)(2)(B)(ii)

§ 50-6-802. Request for benefits from fund.

(a) An eligible employee may request that the bureau provide the employee temporary disability benefits, medical benefits, or death benefits, pursuant to § 50-6-801(d), by submitting a request for benefits from the uninsured employers fund to the bureau no more than sixty (60) days after conclusion of the claim, including all appeals. The request shall be made on a form prescribed by the bureau, and shall be submitted to the bureau via certified mail. The eligible employee shall include a copy of the judgment with the request. Any request for benefits that does not meet the requirements of this subsection (a) shall not be considered.
(b) For claims with a date of injury that is on or after July 1, 2015, the bureau may, upon receipt of a request for benefits pursuant to subsection (a) from an eligible employee, provide the employee temporary disability benefits, medical benefits, or death benefits. The bureau shall promulgate rules, pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, setting forth the circumstances under which benefits may be paid pursuant to this part.
(c) If the bureau pays workers' compensation benefits to the injured employee, then the bureau shall pay the workers' compensation benefits to the employee from the uninsured employers fund and the amount paid to, or on behalf of, an injured employee, pursuant to this part, shall not exceed sixty thousand dollars ($60,000). Of the sixty thousand dollars ($60,000), the bureau shall pay no more than twenty thousand dollars ($20,000) for medical benefits, no more than twenty thousand dollars ($20,000) for temporary disability benefits, and no more than twenty thousand dollars ($20,000) for death benefits. However, if no more than twenty thousand dollars ($20,000) has been paid to the employee for temporary disability or medical benefits and the employee has secured a judgment for temporary disability or medical benefits in an amount greater than twenty thousand dollars ($20,000), then the administrator may pay to the employee the remaining funds not exceeding a total of forty thousand dollars ($40,000) for both temporary disability and medical benefits combined, exclusive of death benefits, if applicable. The administrator shall not pay benefits pursuant to this part to, or on behalf of, an employee for more than one (1) workplace injury.
(d)
1. (1) In order to establish medical causation, the administrator shall have authority to provide medical benefits to an employee who meets the requirements of § 50-6-801(d)(1)-(4) for the payment of the cost associated with the employee's visit with a physician to perform an evaluation and provide an opinion on medical causation. The employer shall be required to reimburse the bureau for the payment of benefits pursuant to this section even when the employee's injury is determined not to be compensable under this chapter.
2. (2) When medical benefits have been provided pursuant to subdivision (d)(1), the amount of payment shall be deducted from the total amount of benefits that may be provided under subsection (c) in the event that those benefits are provided. However, the provision of medical benefits pursuant to this subsection (d) shall not automatically entitle the employee to the benefits provided by subsection (c) even when the claim is determined to be compensable under this chapter.
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- 50-6-801(d)(5)
(e)
1. (1) If medical causation is established and a workers' compensation judge determines that an employee, who meets the requirements of § 50-6-801(d)(1)-(4), is entitled to temporary disability or medical benefits, following an expedited hearing as provided in § 50-6-239(d), the administrator has the discretion to begin paying temporary disability or medical benefits.
2. (2) If the administrator makes any payments of temporary disability or medical benefits pursuant to this subsection (e) and the employee fails to prosecute the claim, the bureau has authority to seek recovery of the payments from the employee.
3. (3) The provision of medical benefits pursuant to this subsection (e) shall not automatically entitle the employee to the benefits provided by subsection (c) even when the claim is determined to be compensable under this chapter.

§ 50-6-803. Payment of benefits constitutes satisfaction of judgment — Recovery from employer.

(a) The payment of workers' compensation benefits to, or on behalf of, an injured employee pursuant to this part constitutes satisfaction of the judgment against the uninsured employer up to the amount paid. The bureau shall assume the rights of a creditor against the employer and may take action to collect the portion of the judgment that it satisfied on the employer's behalf.
(b) The bureau shall place a lien on the assets of the employer to recover money paid pursuant to this part by filing a notice of claim with the register of deeds of any county where the employer has assets. Upon filing the notice of claim with the appropriate official, the bureau shall be a secured creditor, and any lien secured pursuant to this part has first priority over all other liens with the exception of liens established for the collection of delinquent tax payments.
(c) The injured employee may collect the remaining portion of the judgment that was not satisfied by payment made pursuant to this part from the employer.

Part 9 Construction Services Providers

§ 50-6-901. Part definitions.

For purposes of this part, unless the context otherwise requires:
1. (1) “Active and in good standing as reflected in the records of the secretary of state” means a corporation, limited liability company, or partnership that is in existence, registered or authorized to transact business in this state as reflected in the records of the secretary of state; and in the case of a corporation, limited liability company, limited liability partnership, or limited partnership, such entity is in good standing with the Tennessee department of revenue;
2. (2) “Board” means the state board for licensing contractors;
3. (3) “Commercial construction project” means any construction project that is not:
  1. (A) The construction, erection, remodeling, repair, improvement, alteration or demolition of one (1), two (2), three (3) or four (4) family unit residences not exceeding three (3) stories in height or accessory use structures in connection with the residences;
  2. (B) The construction, erection, remodeling, repair, improvement, alteration or demolition of any building or structure for use and occupancy by the general public which, pursuant to § 62-6-112(f)(2), a small commercial building contractor is authorized to bid on and contract for; or
  3. (C) Performed by any person, municipality, county, metropolitan government, cooperative, board, commission, district, or any entity created or authorized by public act, private act or general law to provide electricity, natural gas, water, waste water services, telephone service, telecommunications service, cable service, or internet service or any combination thereof, for sale to consumers in any particular service area;
4. (4) “Construction project” means the construction, erection, remodeling, repair, improvement, alteration or demolition of a building, structure or other undertaking; provided, that if a general contractor contracts to erect, remodel, repair, improve, alter or demolish multiple buildings, structures or undertakings in one (1) contract, all such buildings, structures or undertakings described in such contract shall constitute one (1) construction project;
5. (5) “Construction services provider” or “provider” means any person or entity engaged in the construction industry;
6. (6) “Corporate officer” or “officer of a corporation” means any person who fills an office provided for in the corporate charter or articles of incorporation of a corporation that in the case of a domestic corporation is formed under the laws of this state pursuant to title 48, chapters 11-68, or in the case of a foreign corporation is authorized to transact business in this state pursuant to title 48, chapters 11-68; provided, that a domestic or foreign corporation is active and in good standing as reflected in the records of the secretary of state;
7. (7) “Direct labor” means the performance of any activity that would be assigned to the contracting group as those classifications are designated by the rate service organization designated by the commissioner of commerce and insurance as provided in § 56-5-120, but does not include:
  1. (A) Classification code 5604, or any subsequent classification code, for construction executives, supervisors, or foremen that are responsible only for the oversight of laborers; or
  2. (B) Classification code 5606, or any subsequent classification code, for project managers, construction executives, construction managers and construction superintendents having only administrative or managerial responsibilities for construction projects by exercising operational control indirectly through job supervisors or foremen;
8. (8) “Engaged in the construction industry” means any person or entity assigned to the contracting group as those classifications are designated by the rate service organization designated by the commissioner of commerce and insurance as provided in § 56-5-120; provided, that where more than one (1) classification applies, the governing classification, as that term is defined by the rate service organization designated by the commissioner of commerce and insurance as provided in § 56-5-120, shall be used to determine whether the person or entity is engaged in the construction industry;
9. (9) “Family-owned business” means a business entity in which members of the same family of the applicant have an aggregate of at least ninety-five percent (95%) ownership of such business;
10. (10) “General contractor” means the person or entity responsible to the owner or developer for the supervision or performance of substantially all of the work, labor, and the furnishing of materials in furtherance of the construction, erection, remodeling, repair, improvement, alteration or demolition of a building, structure or other undertaking and who contracts directly with the owner or developer of the building, structure or other undertaking; “general contractor” includes a prime contractor;
11. (11) “Good standing with the Tennessee department of revenue” means the bureau of workers' compensation has received and verified through electronic confirmation or a certificate of tax clearance issued by the commissioner of revenue that a corporation, limited liability company, limited liability partnership, or limited partnership is current on all fees, taxes, and penalties to the satisfaction of the commissioner;
12. (12) “Member of a limited liability company” means any member of a limited liability company formed pursuant to title 48, chapters 201-249 that is active and in good standing as reflected in the records of the secretary of state;
13. (13) “Members of the same family of the applicant” means parents, children, siblings, grandparents, grandchildren, stepparents, stepchildren, stepsiblings, or spouses of such, and includes adoptive relationships;
14. (14) “Partner” means any person who is a member of an association that is formed by two (2) or more persons to carry on as co-owners of a business or other undertaking for profit and such association is active and in good standing as reflected in the records of the secretary of state;
15. (15) “Person” means only a natural person and does not include a business entity;
16. (16) “Registry” means the construction services provider workers' compensation exemption registry established pursuant to this part and maintained by the bureau of workers' compensation; and
17. (17) “Sole proprietor” means one (1) person who owns a form of business in which that person owns all the assets of such business.

§ 50-6-902. Requirement that construction services providers carry workers' compensation insurance — Exemptions — Election by subcontractor.

(a) Except as provided in subsection (b), all construction services providers shall be required to carry workers' compensation insurance on themselves. The requirement set out in this subsection (a) shall apply whether or not the provider employs fewer than five (5) employees.
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(b) To the extent there is no restriction on applying for an exemption pursuant to § 50-6-903, a construction services provider shall be exempt from subsection (a) if the provider:
1. (1) Is a construction services provider rendering services on a construction project that is not a commercial construction project and is listed on the registry;
2. (2) Is a construction services provider rendering services on a commercial construction project, is listed on the registry and such provider is rendering services to a person or entity that complies with § 50-6-914(b)(2);
3. (3) Is covered under a policy of workers' compensation insurance maintained by the person or entity for whom the provider is providing services;
4. (4) Is a construction services provider performing work directly for the owner of the property; provided, however, that this subdivision (b)(4) shall not apply to a construction services provider who acts as a general or intermediate contractor and who subsequently subcontracts any of the work contracted to be performed on behalf of the owner;
5. (5) Is a construction services provider building a dwelling or other structure, or performing maintenance, repairs, or making additions to structures, on the construction service provider's own property; or
6. (6) Is a provider whose employment at the time of injury is casual as provided in § 50-6-106.
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- 50-6-908(c)
(c) A subcontractor engaged in the construction industry under contract to a general contractor engaged in the construction industry may elect to be covered under any policy of workers' compensation insurance insuring the general contractor upon written agreement of the general contractor, regardless of whether such subcontractor is on the registry established pursuant to this part, by filing written notice of the election, on a form prescribed by the administrator of the workers' compensation bureau, with the bureau. It is the responsibility of the general contractor to file the written notice with the bureau. Failure of the general contractor to file the written notice shall not operate to relieve or alter the obligation of an insurance company to provide coverage to a subcontractor when the subcontractor can produce evidence of payment of premiums to the insurance company for the coverage. The election shall in no way terminate or affect the independent contractor status of the subcontractor for any other purpose than to permit workers' compensation coverage. The election of coverage may be terminated by the subcontractor or general contractor by providing written notice of the termination to the bureau and to all other parties consenting to the prior election. The termination shall be effective thirty (30) days from the date of the notice to all other parties consenting to the prior election and to the bureau.
(d) Nothing in this part shall be construed as exempting or preventing a construction services provider from carrying workers' compensation insurance for any of its employees. The requirement set out in this subsection (d) shall apply whether or not the provider employs fewer than five (5) employees.

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§ 50-6-903. Criteria for applying for exemption.

(a) Any construction services provider who meets one (1) of the following criteria may apply for an exemption from § 50-6-902(a):
1. (1) An officer of a corporation who is engaged in the construction industry; provided, that no more than five (5) officers of one (1) corporation shall be eligible for an exemption;
2. (2) A member of a limited liability company who is engaged in the construction industry if such member owns at least twenty percent (20%) of such company;
3. (3) A partner in a limited partnership, limited liability partnership or a general partnership who is engaged in the construction industry if such partner owns at least twenty percent (20%) of such partnership;
4. (4) A sole proprietor engaged in the construction industry; or
5. (5) An owner of any business entity listed in subdivisions (a)(1)-(3) that is family-owned; provided, that no more than five (5) owners of one (1) family-owned business may be exempt from § 50-6-902(a).
(b) A construction services provider may be eligible for and may utilize multiple exemptions if the construction services provider meets the requirements set out in subsection (a) for each such exemption and complies with § 50-6-904 for each such exemption in which the construction services provider seeks to obtain; provided, however, that a construction services provider applying for a second or subsequent exemption shall not be required to pay the fees set out in § 50-6-912(a)(1) and (2), but shall instead pay the fee set out in § 50-6-912(a)(9) for each subsequent workers' compensation exemption registration and shall pay the fee set out in § 50-6-912(a)(10) for each subsequent registration renewal.
(c)
1. (1) A construction services provider who is an individual and who does not meet the criteria established in subsection (a), but who is a member of a recognized religious sect or division and is an adherent of established tenets or teachers of such sect or division by reason of which such construction services provider is conscientiously opposed to acceptance of the benefits provided by this chapter may apply for an exemption from § 50-6-902(a); provided, however, that no more than five (5) individuals associated with one business entity may be exempt from § 50-6-902(a).
2. (2) Any applicant applying for an exemption from § 50-6-902(a) pursuant to subdivision (c)(1) shall provide an affidavit from the leader of the recognized religious sect or division stating that the individual filing the application for an exemption is a member of the recognized religious sect or division and is exempt, as evidenced by the Internal Revenue Service Form 4029, or similar form used by the internal revenue service. The leader of the recognized religious sect or division shall notify the bureau of workers' compensation and department, in writing, if the member of the recognized religious sect or division who obtains an exemption from § 50-6-902(a) leaves or withdraws membership from the recognized religious sect or division.
3. (3) Each individual employee of a construction services provider who meets the religious exemption requirements pursuant to this subsection (c) shall pay the fees set out in § 50-6-912(a)(1) and (a)(2). Any collected fees shall be deposited into the employee misclassification education and enforcement fund, pursuant to § 50-6-913.
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- 50-6-904(a)(2)(F)
- 50-6-904(a)(2)(J)

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§ 50-6-904. Application for construction services provider registration.

(a)
1. (1)
  1. (A) Any construction services provider applying for an exemption from § 50-6-902(a) who has not been issued a license by the board shall obtain a construction services provider registration from the bureau of workers' compensation at the same time such provider applies for such exemption.
  2. (B) The bureau of workers' compensation is authorized and directed to issue the construction services provider registration on behalf of the board. The bureau of workers' compensation shall issue an identification number assigned to the provider's registration. The board shall obtain such identification number and other identifying information from the bureau of workers' compensation.
2. (2) Any construction services provider requesting exemption from § 50-6-902(a) shall submit an application along with the required filing fees to the bureau of workers' compensation. The applicant shall provide sufficient documentation for the bureau of workers' compensation to assure that such applicant meets the requirements set out in § 50-6-902, including, but not limited to:
  1. (A) The applicant's full legal name;
  2. (B) The applicant's birth month;
  3. (C) The applicant's physical address; provided, that the applicant may provide a post office box number for purposes of receiving mail from the bureau of workers' compensation, as long as the applicant also provides a physical address for the business entity for which the applicant is an officer, member, partner or owner;
  4. (D) A telephone number through which the applicant can be reached;
  5. (E) The name of the business entity through which the applicant is seeking the workers' compensation exemption;
  6. (F) The federal employer identification number issued to the applicant if a sole proprietor or a business entity for which the applicant is an officer, member, partner or owner seeking exemption pursuant to § 50-6-903, and the last four (4) digits of the applicant's social security number; provided, however, that if an applicant seeks an exemption pursuant to § 50-6-903(c), the applicant may provide the last four (4) digits of a control number issued to the applicant by the social security administration instead of the last four (4) digits of the applicant's social security number;
  7. (G) The contractor license number issued by the board to such applicant or the construction services provider registration number issued by the bureau of workers' compensation to such applicant;
  8. (H) A current license issued by a local government pursuant to § 67-4-723, if the business entity through which the applicant is seeking the workers' compensation exemption is required by law to obtain such license;
  9. (I) Any other information the bureau of workers' compensation deems necessary to identify such applicant; and
  10. (J) If the construction services provider is applying for an exemption pursuant to the criteria set out in § 50-6-903(c), the provider shall submit a copy of an approved Internal Revenue Service Form 4029 or similar form used by the internal revenue service, to show that an application for exemption from social security and medicare taxes and waiver of benefits has been approved for such provider applying for an exemption pursuant to this part.
3. (3) The bureau of workers' compensation shall verify that the applicant meets the qualifications set out in § 50-6-902 upon a review of its records and the records provided by such applicant.
4. (4) If the bureau of workers' compensation is unable for any reason to verify that the applicant meets the qualifications set forth in this part for inclusion on the exemption registry, or if the applicant, or any person completing or submitting the application on the applicant's behalf, misstates any material information on the application, then the applicant is not eligible for exemption under this part, and any exemption previously granted to the applicant is revoked.
(b) The application shall be on a form designed by the bureau of workers' compensation and shall contain a statement that specifies the eligibility requirements for exemption, contain an attestation that the applicant meets the eligibility requirements and contain a statement that a false statement on such application is subject to the penalties of perjury set out in § 39-16-702.
(c) The application, as well as a process for submission of such application, shall be available through the bureau of workers' compensation's website or by contacting the bureau of workers' compensation's office in person or by mail.

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§ 50-6-905. Filing of application — Issuance of notice — Publication on registry — Correction of documents filed with bureau of workers' compensation — Address and change of address — Fine.

(a) If a construction services provider's application delivered to the bureau of workers' compensation meets the requirements of this part, as determined by the bureau of workers' compensation, the bureau of workers' compensation shall file the application and:
1. (1) Issue a notice to such provider that the provider is listed on the registry; and
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  - 50-6-912(a)(8)
2. (2) Publish on the registry, contained on the bureau of workers' compensation's website, the provider's name and other identifying information, including, but not limited to:
  1. (A) The full legal name of the provider;
  2. (B) The specific identification number issued to the provider by the bureau of workers' compensation upon filing the application;
  3. (C) The period in which the provider is exempt, including the date and time in which such exemption expires; and
  4. (D) Any other identifying information the bureau of workers' compensation deems necessary for the public to identify such provider.
(b) The provider shall not be exempt from the requirement of § 50-6-902(a) until the provider's application is filed by the bureau of workers' compensation and the applicant's name and other identifying information is published on the registry. If a provider's exemption is revoked pursuant to § 50-6-908, such revocation is effective upon the provider's name and other identifying information no longer appearing on the registry after being removed by the bureau of workers' compensation pursuant to § 50-6-908.
(c) A provider listed on the registry may correct a document filed with the bureau of workers' compensation if the document contains an incorrect statement or was defectively executed, attested, sealed, verified or acknowledged. A document shall be corrected in a manner established by the bureau of workers' compensation.
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- 50-6-912(a)(3)
(d) A provider listed on the registry shall maintain a current physical mailing address with the bureau of workers' compensation. A change of address shall be made in a manner established by the bureau of workers' compensation.
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- 50-6-912(a)(4)
(e) Any person or representative of an entity who knowingly enters or directs a party to enter false or unauthorized information on a construction services provider's application to the bureau of workers' compensation may be subject to a fine of not less than fifty dollars ($50.00) nor more than five thousand dollars ($5,000) per violation at the discretion of the administrator or administrator's designee.
(f) [Effective until July 1, 2024] An exemption that is fraudulent, or where the exemption holder is determined to be an employee is void.

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50-6-909(c)

§ 50-6-906. Refusal by bureau of workers' compensation to file application — Reversal or modification by court — Hearing — Appeal.

(a) If the bureau of workers' compensation refuses to file an application and list the construction services provider on the registry, the bureau of workers' compensation shall return such application to the provider within ten (10) business days after the document was received for filing, together with a brief, written explanation of the reason for the bureau of workers' compensation's refusal to file.
(b) If the bureau of workers' compensation refuses to file an application and list a provider on the registry, the provider may appeal the refusal to the chancery court of Davidson County. The appeal shall be commenced by petitioning the court to compel listing such provider on the registry and shall attach to the petition the application and the bureau of workers' compensation's explanation of the bureau of workers' compensation's refusal to file.
(c) The court may reverse or modify the actions of the bureau of workers' compensation if the rights of the provider have been prejudiced because the bureau of workers' compensation's actions are:
1. (1) In violation of constitutional or statutory provisions;
2. (2) In excess of the statutory authority of the bureau of workers' compensation;
3. (3) Made upon unlawful procedure; or
4. (4) Arbitrary or capricious or characterized by abuse of discretion or clearly unwarranted exercise of discretion.
(d) After any hearing deemed necessary by the court, the court may summarily order the bureau of workers' compensation to list such provider on the registry or take other action the court considers appropriate.
(e) The court's final decision may be appealed as in other civil proceedings.

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50-6-908(b)(4)

§ 50-6-907. Term of validity of exemption — Renewal.

(a) The exemption obtained pursuant to this part shall be valid for two (2) years from a date and time set by the bureau of workers' compensation. No more than sixty (60) days prior to the expiration of the exemption period, a construction services provider may file an application to renew an exemption. Renewal of an exemption shall be made in a manner established by the bureau of workers' compensation.
(b) The bureau of workers' compensation shall remove the construction services provider's name from the registry at the close of business on the day the provider's exemption expires. If the exemption expires on a day that state offices are closed or the bureau of workers' compensation's office in Nashville is closed, the exemption shall expire at the close of business on the next business day.
(c) A construction services provider whose registration expires under this section may renew the exemption by following the procedure outlined in § 50-6-904.

§ 50-6-908. Revocation of exemption by provider or bureau of workers' compensation.

(a)
1. (1) Any construction services provider who obtains an exemption and subsequently chooses to revoke such exemption shall:
  1. (A) Give notice to the person or entity for whom the provider may currently be providing services of the revocation in accordance with a form prescribed by the bureau of workers' compensation;
  2. (B) Attest as to whether or not the provider has any employment related injuries at the time of such revocation that occurred while providing services to a person or entity that did not provide coverage under a policy of workers' compensation; and
  3. (C) Within twenty-four (24) hours of such revocation, notify any person or entity for whom the provider is currently providing services that the provider has voluntarily revoked the provider's workers' compensation exemption.
2. (2) Upon filing such notice, the bureau of workers' compensation shall remove the construction services provider's name from the registry.
3. (3) A construction services provider who revokes an exemption under this section may reapply for an exemption by following the procedure set forth in § 50-6-904.
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- 50-6-912(a)(7)
(b)
1. (1) In addition to the revocation set out in subsection (a), a workers' compensation exemption shall be revoked by the bureau of workers' compensation upon:
  1. (A) Notification from the board that the board has revoked or suspended any license issued to the construction services provider by the board, including a license issued to a business entity through which the construction services provider obtained such an exemption. For purposes of this subdivision (b)(1)(A), if a construction services provider's license is revoked, whether or not such license is in the provider's individual name or in the name of a business entity through which the provider obtained an exemption, then any exemption obtained through such business entity shall be revoked;
  2. (B) Notification from the department of any violations of § 50-6-412 by the construction services provider, including any violation against a business entity through which the construction services provider obtained such an exemption. For purposes of this subdivision (b)(1)(B), if a construction services provider has violated § 50-6-412, whether or not such violation was committed by the individual or a business entity through which the provider obtained an exemption, then any exemption obtained through such business entity shall be revoked and all exemptions in the provider's name shall be subject to revocation;
  3. (C) A determination by the bureau of workers' compensation that the construction services provider no longer meets the requirements for an exemption established pursuant to this part; or
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    50-6-914(b)(1)(B)(iii)
  4. (D) A determination by the bureau of workers' compensation that the construction services provider failed to renew prior to the expiration date of such exemption or the provider failed to pay any fees required to be paid pursuant to this part.
2. (2) Any notification of a violation made by the department pursuant to subdivision (b)(1)(B) shall include information indicating whether such violation requires a temporary or permanent revocation pursuant to § 50-6-412.
3. (3) If a provider's exemption is revoked pursuant to this section, the bureau of workers' compensation shall:
  1. (A) Remove the construction services provider's name from the registry within seven (7) days of receipt of notification from the department or the board, or upon making a determination as provided in subdivision (b)(1)(C) or (b)(1)(D); and
  2. (B) [Effective until July 1, 2024] Notify the construction services provider that such provider is required to notify, within twenty-four (24) hours of such revocation, any person or entity for whom the provider is currently providing services that the provider's workers' compensation exemption has been revoked. If a construction services provider fails to perform the notification required in this subdivision (b)(3)(B), then the person or entity for whom the provider provided services is not liable for workers' compensation insurance for the construction services provider.
  3. (B) [Effective July 1, 2024] Notify the construction services provider that such provider is required to notify, within twenty-four (24) hours of such revocation, any person or entity for whom the provider is currently providing services that the provider's workers' compensation exemption has been revoked.
4. (4) If a provider's exemption is revoked pursuant to subdivision (b)(1), the administrative and judicial procedures available to such provider shall be those procedures set out in § 50-6-906.
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- 50-6-909(b)
- 50-6-911(b)(2)
(c) If a construction services provider's exemption is revoked pursuant to this section, the construction services provider shall be required to carry workers' compensation insurance as provided in § 50-6-902(a); provided, that such construction services provider does not otherwise meet an exemption set out in § 50-6-902(b).
(d) A construction services provider whose exemption is revoked for any reason set out in this part shall be notified of such revocation in writing, and shall not be entitled to a refund of filing fees.

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§ 50-6-909. Reinstatement of exemption.

(a) Except as provided in § 50-6-412(h)(2) [codified at 50-6-412(i) effective July 1, 2021, until July 1, 2024], a construction services provider whose exemption is revoked pursuant to § 50-6-908 may apply to reinstate such exemption in the same manner as provided for in this part for an initial application.
(b) A construction services provider whose exemption is revoked under § 50-6-908(b) may only be granted a reinstatement of exemption:
1. (1) Upon notification to the bureau of workers' compensation from the board that such provider's license is no longer revoked or suspended;
2. (2) Upon verification from the bureau of workers' compensation that the provider qualified for reinstatement; and
3. (3) If the bureau of workers' compensation determines that the provider meets the requirements for an exemption established pursuant to this part.
(c) Upon verification by the bureau of workers' compensation that the requirements of subsection (b) are met, the bureau of workers' compensation shall file the application in accordance with § 50-6-905.

§ 50-6-910. Action to recover damages.

(a) Any action to recover damages for injury, as defined by § 50-6-102, by a construction services provider shall proceed as at common law, and the defendant in the suit may make use of all common law defenses if, at the time of the injury, the construction services provider was:
1. (1) Listed on the registry as having a workers' compensation exemption and working in the service of a business entity through which the construction services provider obtained such an exemption;
2. (2) Not covered under a policy of workers' compensation insurance maintained by the person or entity for whom the provider was providing services at the time of such injury; and
3. (3) Eligible for an exemption pursuant to § 50-6-914(b)(2), if such eligibility requirements apply, at the time of such injury.
(b) Any construction services provider proceeding as at common law pursuant to subsection (a) shall forego the right to sue to establish or reestablish workers' compensation coverage.

§ 50-6-911. Notice to public of exemptions — Website — Additions and deletions from registry.

(a)
1. (1) The bureau of workers' compensation shall provide notice on its website that the registry is for purposes of establishing providers who are exempt from workers' compensation coverage and in no way reflects licensing or certification of any construction services provider.
2. (2) The board, the department of commerce and insurance and the bureau of workers' compensation shall each develop a notice provision to inform the public that any person or entity interested in determining whether a construction services provider is exempt from workers' compensation coverage shall review the bureau of workers' compensation's website. Such notice provision shall be prominently displayed on the websites of the board, the department of commerce and insurance and the bureau of workers' compensation.
(b)
1. (1) The bureau of workers' compensation shall provide notice to the board and the department of commerce and insurance when a construction services provider is added to or removed from the registry.
2. (2) If any construction services provider has a license issued by the board, and such license is revoked or suspended, the board shall immediately notify the bureau of workers' compensation, in order for the bureau of workers' compensation to revoke such provider's exemption pursuant to § 50-6-908(b).

§ 50-6-912. Fees.

(a) The bureau of workers' compensation may charge the following maximum fees for each of the following:
1. (1) The issuance of a construction services provider registration to providers who have not been issued a license by the board $50
  2 Backlinks
  - 50-6-903(b)
  - 50-6-903(c)(3)
2. (2) The issuance of a construction services provider workers' compensation exemption $50
3. (3) The filing of correction information pursuant to § 50-6-905(c) $20
4. (4) The filing of change of address information pursuant to§ 50-6-905(d) $20
5. (5) The filing of a construction services provider workers' compensation exemption renewal $50
6. (6) The filing of a construction services provider registration renewal to providers who have not been issued a license by the board $50
7. (7) The filing of a revocation pursuant to § 50-6-908(a) $20
8. (8) The issuance of a copy of the notice issued pursuant to§ 50-6-905(a)(1) $20
9. (9) The issuance of a second or subsequent construction services provider workers' compensation exemption registration $20 per registration
  1 Backlink
  - 50-6-903(b)
10. (10) The filing of a second or subsequent construction services provider workers' compensation exemption renewal $20 per renewal
  1 Backlink
  - 50-6-903(b)
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- 50-6-913(a)
(b) In addition to the maximum fees authorized in subsection (a), the bureau of workers' compensation is authorized to charge an online transaction fee to cover costs associated with processing payments for applications submitted online.
(c) Except as provided in subsections (a) and (b), no other fees shall be charged by the bureau of workers' compensation to administer this part.

§ 50-6-913. Creation of employee misclassification education and enforcement fund — Costs of administration.

(a) There is created a fund to be known as the “employee misclassification education and enforcement fund.” Any fee collected pursuant to § 50-6-912(a) shall be deposited in the employee misclassification education and enforcement fund. Moneys in the fund shall be invested by the state treasurer in accordance with § 9-4-603. The fund shall be administered by the administrator of the workers' compensation bureau.
(b) All costs of the bureau of workers' compensation associated with the administration of this part shall be paid by the administrator of the workers' compensation bureau from the employee misclassification education and enforcement fund. Moneys remaining in the fund after such payment may be expended, subject to appropriation by the general assembly, at the direction of the administrator of the workers' compensation bureau for the purchase of computer software and hardware designed to establish and maintain exemptions of construction services providers pursuant to this part, for the purchase of computer software and hardware designed to identify potential employee misclassification activity, for the hiring of additional employees to investigate potential employee misclassification activity, for education of employers and employees regarding the requirements of this part and in support of the ongoing investigation and prosecution of employee misclassification.
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- 50-6-801(b)
(c) Any amount in the employee misclassification education and enforcement fund at the end of any fiscal year shall not revert to the general fund, but shall remain available for the purposes set forth in subsection (b). Interest accruing on investments and deposits of the employee misclassification education and enforcement fund shall be credited to such account, shall not revert to the general fund, and shall be carried forward into each subsequent fiscal year.

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§ 50-6-914. Liability of general contractor, intermediate contractor or subcontractor for injured employee — Claims. [Effective until July 1, 2024. See the version effective on July 1, 2024.]

(a) Except as provided for in subsection (b), a general contractor, intermediate contractor, or subcontractor is liable for compensation to an employee injured while in the employ of a subcontractor of the general contractor, intermediate contractor, or subcontractor and engaged upon the subject matter of the contract to the same extent as the immediate employer.
(b)
1. (1)
  1. (A) Notwithstanding subsection (a) and subject to subdivision (b)(2), a general contractor, intermediate contractor, or subcontractor is not liable for workers' compensation to a construction services provider listed on the registry established pursuant to this part.
  2. (B) Notwithstanding subsection (a) and subject to subdivision (b)(2), a general contractor, intermediate contractor, or subcontractor is not liable for workers' compensation to a construction services provider for injuries occurring during the time period of December 9, 2019, through September 9, 2021, if the following conditions are met:
    1. (i) During the time period of December 9, 2017, through December 9, 2021, the construction services provider provided the general contractor, intermediate contractor, or subcontractor a notice of registration from the secretary of state showing exemption from § 50-6-902(a);
    2. (ii) The general contractor, intermediate contractor, or subcontractor did not obtain workers' compensation insurance to cover the construction service provider providing the notice of registration; and
    3. (iii) The construction services provider's exemption registry registration was revoked on December 9, 2019, pursuant to § 50-6-908(b)(1)(C), and the construction services provider failed to inform the general contractor, the intermediate contractor, or the subcontractor of the revocation.
2. (2)
  1. (A) No more than three (3) construction services providers performing direct labor on a commercial construction project may be exempt from § 50-6-902(a).
  2. (B) For purposes of subdivision (b)(2)(A), the three (3) construction services providers shall be selected by the general contractor. The limit of three (3) set out in subdivision (b)(2)(A) shall be three (3) individuals listed on the registry as having a workers' compensation exemption and working in the service of a business entity through which the construction services provider obtained such an exemption.
  3. (C) If a general contractor allows a construction services provider to provide services on a commercial construction project while such provider is utilizing an exemption pursuant to this part, the general contractor shall:
    1. (i) Notify each such construction services provider in writing that the provider has been chosen by the general contractor as one of the three (3) construction services providers performing direct labor who may be exempt from § 50-6-902(a); and
    2. (ii) Maintain a record identifying each such construction services provider. The general contractor shall make the record maintained pursuant to this subdivision (b)(2)(C)(ii) available for inspection upon request by the general contractor's insurance provider, the department, and the department of commerce and insurance.
  4. (D)
    1. (i) A construction services provider is not liable for workers' compensation premiums prior to January 1, 2021, for a commercial construction project, as long as the provider held a valid exemption.
    2. (ii) A general contractor, intermediate contractor, or subcontractor is not liable for workers' compensation premiums prior to January 1, 2021, for a construction services provider on a commercial construction project that held a valid exemption.
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3. (3) The assessment of retroactive fees or premiums are prohibited pursuant to time periods exempted by this chapter.
(c) Any general contractor, intermediate contractor or subcontractor who pays compensation under subsection (a) may recover the amount paid from any person or entity who, independently of this section, would have been liable to pay compensation to the injured employee, or from any subcontractor.
(d) Every claim for compensation under this section shall be presented first to and instituted against the immediate employer, but the proceedings shall not constitute a waiver of the employee's rights to recover compensation under this chapter from the general contractor, intermediate contractor or subcontractor; provided, that the collection of full compensation from one (1) employer shall bar recovery by the employee against any others, and the employee shall not collect from all employers a total compensation in excess of the amount for which any of the contractors is liable.
(e) This section applies only in cases where the injury occurred on, in, or about the premises on which the general contractor has undertaken to execute work or that are otherwise under the general contractor's control or management.

§ 50-6-915. Records not open — Exception for registry.

Notwithstanding any law to the contrary, records maintained by the bureau of workers' compensation relative to the construction services provider registration and to the workers' compensation exemption registration, other than records displayed on the registry established pursuant to this part, shall not constitute a public record as defined in § 10-7-503 and shall not be open for public inspection.

§ 50-6-916. Contractor may require a certificate of workers' compensation insurance.

Nothing in this part shall be construed as preventing or prohibiting any contractor from requiring a certificate of workers' compensation insurance from any of its subcontractors or any construction services providers providing services to such contractor.

§ 50-6-917. Coverage by a policy of workers' compensation issued through assigned risk plan.

A policy of workers' compensation insurance issued through the assigned risk plan as provided in § 56-5-114 that insures a person engaged in the construction industry shall be governed by this part, and a state agency shall not impose requirements relative to this part on such a policy other than those imposed by this part.

§ 50-6-918. [Repealed]

§ 50-6-919. [Reserved.]

§ 50-6-920. Offense — Violation.

(a) It is an offense for any employer to knowingly:
1. (1) Coerce or attempt to coerce, as a precondition to employment or otherwise, a job applicant to obtain an exemption pursuant to this part; or
2. (2) Coerce, attempt to coerce, discharge or take any adverse employment action against an employee because the employee has failed to obtain an exemption pursuant to this part.
(b) A violation of subsection (a) is a Class A misdemeanor.

§ 50-6-921. Effective date of exemption — Maintaining exemption under prior law.

The construction services provider workers' compensation exemption for any provider not exempt prior to March 1, 2011, who has been placed on the workers' compensation exemption registry by the secretary of state or the bureau of workers' compensation shall be in effect beginning at 12:00 a.m. on March 1, 2011, regardless of such provider's date of application; provided, that any person exempt under provisions of law in effect prior to March 1, 2011, shall maintain such exemption until March 1, 2011.

Chapter 7 Tennessee Employment Security Law

Part 1 General Provisions

§ 50-7-101. Short title.

This chapter shall be known and may be cited as the “Tennessee Employment Security Law.”

§ 50-7-102. Declaration of state public policy — Construction.

(a) As a guide to the interpretation and application of this chapter, the public policy of this state is declared to be as follows:
1. (1) Economic insecurity due to unemployment is a serious menace to the health, morals and welfare of the people of this state; therefore, involuntary unemployment is a subject of general interest and concern that requires action by the general assembly to prevent its spread and to lighten its burden that now so often falls with crushing force upon the unemployed worker and the worker's family;
2. (2) The achievement of social security requires protection against this greatest hazard to our economic life. This can be provided by encouraging employers to provide more stable employment and, by the systematic accumulation of funds during periods of employment, to provide benefits for periods of unemployment, thus maintaining purchasing power and limiting the serious social consequences of poor relief assistance; and
3. (3) The general assembly, therefore, declares that in its considered judgment the public good and general welfare of the citizens of this state require the enactment of this measure, under the police powers of the state, for the compulsory setting aside of unemployment reserves to be used for the benefit of persons unemployed through no fault of their own.
(b) This chapter is to be construed in pari materia with Internal Revenue Code, § 3303(a)(1) (26 U.S.C. § 3303(a)(1)), and is to be construed in accordance with the construction placed on the Internal Revenue Code, § 3303(a)(1) to the extent the construction is relevant to this chapter, it being the intent of the general assembly that this chapter was adopted with the intent to conform with the Internal Revenue Code, and further that it was the intent of the general assembly to enact the remaining portions of this chapter that are in conformity with the Internal Revenue Code, if some portions of this chapter should be declared not to meet the requirements.

§ 50-7-103. Saving clause.

(a) The general assembly reserves the right to amend or repeal all, or any part of, this chapter at any time; and there shall be no vested private right of any kind against the amendment or repeal.
(b) All the rights, privileges or immunities conferred hereby or by acts done pursuant thereto shall exist subject to the power of the general assembly to amend or repeal this chapter at any time.

§ 50-7-104. Invalidating clause — Conformity to federal law.

(a) If the tax imposed by §§ 3301-3308 of the Internal Revenue Code of 1954 (26 U.S.C. §§ 3301 – 3308) or any other federal tax against which premiums under this chapter may be credited, has been amended or repealed by congress, or has been held unconstitutional by the supreme court of the United States, with the result that premiums under this chapter, or a major portion of the premiums, may no longer be credited against the federal tax, then no further premiums under this chapter shall be made.
(b) This chapter is to be construed in pari materia with the federal Unemployment Tax Act (26 U.S.C. § 3301 et seq.), the federal Social Security Act (42 U.S.C. § 301 et seq.), and any other related federal law and is to be construed in accordance with the construction placed on those acts to the extent the construction is relevant to this chapter, it being the intent of the general assembly that this chapter was adopted with the intent to conform with the federal laws, and, therefore, any section, paragraph, clause or portion of this chapter that is declared by lawful authority not to conform to the law or laws shall be void and of no effect. Further, that it is the intent of the general assembly to enact the remaining portions of this chapter that are in conformity with the relevant provisions of the federal law or laws if some portions of this chapter are declared not to conform with the federal requirements.
(c) If any federal law or laws or any portions of the law or laws effectively requiring state unemployment compensation laws to cover services performed in the employ of governmental employers referred to in § 50-7-207(b)(3) should be repealed by congress or held unconstitutional by any action of the supreme court of the United States, no further premiums or payments in lieu of premiums shall be made by the employers, and the services will no longer be considered covered by this chapter.

§ 50-7-105. Repeal or suspension of chapter upon invalidity of federal statute.

(a) Notwithstanding anything contained in this chapter to the contrary, if the Unemployment Compensation Amendments of 1976 (5 U.S.C. §§ 8501, 8503-8506, 8521, 8522; 26 U.S.C. §§ 3301, 3303, 3304, 3306, 3309, 6157; 29 U.S.C. §§ 49b, 49d; and 42 U.S.C. §§ 603(a), 607, 1101, 1301, 1321, 1382, 1382(a), 1382(d), 1382(e)) are adjudged invalid or unconstitutional in their application to the employees of this state or any of its agencies or political subdivisions by a court of competent jurisdiction, then the coverage of those employees under chapter 330 of the Public Acts of 1977, as codified in this chapter, is automatically repealed to the extent of the adjudged inapplicability.
(b) The repeal shall be effective from the date of final disposition upon appeal or from the date of expiration of the right of appeal.
(c) If the effect of Pub. L. No. 94-566 as applied to employees of this state or any of its agencies or political subdivisions is suspended by injunction issued by a court of competent jurisdiction, then the coverage of those employees under chapter 330 of the Public Acts of 1977, as codified in this chapter, is automatically suspended to the extent of the enjoined applicability of that law.

§ 50-7-106. Employers not included by employment security law — Notice to employees.

If this chapter does not include an employer within the requirement to provide unemployment compensation insurance coverage to its employees, then the employer shall notify in writing each present and prospective employee.

§ 50-7-107. More Jobs and Revenues, Less Hassle and Expenses, Help Businesses and Taxpayers Act of 2009.

(a) This section shall be known and may be cited as the “More Jobs and Revenues, Less Hassle and Expenses, Help Businesses and Taxpayers Act of 2009.”
(b) The department of revenue, with the assistance of all appropriate state departments and agencies, shall consult and explore with the Tennessee congressional delegation, the internal revenue service and other appropriate federal agencies the possibility of simplifying and streamlining federal and state requirements placed upon citizens who employ household employees and the forms such employers must file to comply with the Tennessee Employment Security Law, compiled in title 50, chapter 7, the federal Unemployment Tax Act (26 U.S.C. § 3301 et seq.), social security and medicare taxes and other state and federal laws. Such consultation should include exploration of the possibility of filing one (1) simplified form for both state and federal purposes to make the task of complying with state and federal laws and regulations easier, faster, simpler and cheaper for citizens employing household workers.

§ 50-7-108. Report by commissioner of labor and workforce development on the condition of the unemployment compensation fund — Monthly statement.

(a) The commissioner of labor and workforce development shall provide a report to the general assembly concerning the condition of the unemployment compensation fund no later than February 1 of each year based upon the findings as to the balance on December 31 of each year under § 50-7-403(j)(1).
(b) The report provided pursuant to subsection (a) must include:
1. (1) The unemployment compensation fund balance as credited to the state's account with the United States department of treasury as of December 31 of each year; and
2. (2) The projected unemployment compensation fund revenues and expenditures and unemployment compensation fund balances for the eighteen-month period following December 31. The report shall be prepared and documented in accordance with sound statistical methodology and shall be accompanied by a written explanation of the methodology.
(c) The commissioner of labor and workforce development shall provide a monthly statement to the general assembly concerning the unemployment compensation fund balance on or before the last business day of each month based upon the findings as to the balance on the last day of the preceding month.

§ 50-7-109. Electronic communications authorized.

Any notification, notice, decision, or correspondence as prescribed by the commissioner for the administration of this chapter may be sent to or received by the department through electronic means, if an individual or entity agrees to send or receive such notifications, notices, decisions, or correspondence through electronic means.

Part 2 Definitions

§ 50-7-201. Definitions generally.

As used in this chapter, unless the context otherwise requires, the terms defined in this part have the meanings respectively ascribed to them.

§ 50-7-202. “Benefits” defined.

“Benefits” means the money payments payable to a claimant, as provided in this chapter, with respect to the claimant's unemployment.

§ 50-7-203. “Administrator,” “commissioner” and “department” defined.

(a) “Administrator” means the chief administrative officer of the division of employment security of the department of labor and workforce development.
(b) “Commissioner” means the commissioner of labor and workforce development.
(c) “Department” means the department of labor and workforce development.

§ 50-7-204. “Attributable to service” defined — “Payments in lieu of premiums” and “premiums” defined.

As used in this chapter, unless the context otherwise requires:
1. (1) “Attributable to service” expressly means any and all benefits paid based on wages earned while in the employ of any and all eligible employers who elect to reimburse the state for benefits paid in lieu of premiums wherever an election is authorized by this chapter;
2. (2) “Payments in lieu of premiums,” whether singular or plural:
  1. (A) Means the money payments made into the state unemployment compensation fund by employers pursuant to § 50-7-403(h) and (i);
  2. (B) Means payments in lieu of contributions within the meaning and contemplation of the federal Unemployment Tax Act, subtitle C, chapter 23, of the Internal Revenue Code of 1954 (26 U.S.C. § 3301 et seq.); and
  3. (C) Is deemed to be taxes due to the state; and
3. (3) “Premiums,” except for purposes of §§ 50-7-213(d)(1)(D)(i), 50-7-501(b), and 50-7-502(a), whether singular or plural:
  1. (A) Means the money payments to the state unemployment compensation fund required by § 50-7-403(e)–(g);
  2. (B) Means contributions within the meaning and contemplation of the federal Unemployment Tax Act, Subtitle C, Chapter 23 of the Internal Revenue Code of 1954 (26 U.S.C. § 3301 et seq.); and
  3. (C) Is deemed to be taxes due to the state.

§ 50-7-205. “Employer” defined.

“Employer” means:
1. (1) Any employing unit that, after December 31, 1971:
  1. (A) In any calendar quarter, in either the current or preceding calendar year, paid for service in employment wages of one thousand five hundred dollars ($1,500) or more; or
  2. (B) For some portion of a day in each of twenty (20) different calendar weeks, whether or not the weeks were consecutive, in either the current or the preceding calendar year, had in employment at least one (1) individual, regardless of whether the same individual was in employment on each day;
2. (2) Any employing unit that has been determined to be a successor of an employer pursuant to § 50-7-403(b)(2);
3. (3) Any employing unit not an employer by reason of any other paragraph of this section, for which within either the current or preceding calendar year services in employment are or were performed with respect to which the employing unit is liable for any federal tax against which credit may be taken for contributions required to be paid into a state unemployment compensation fund;
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  - 50-7-405(c)
4. (4) Any employing unit for which service in employment as defined in § 50-7-207(b)(3) is performed, except as provided in subdivision (11);
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  - 50-7-403(h)(5)(C)
  - 50-7-403(i)
5. (5) Any employing unit for which service in employment as defined in § 50-7-207(b)(4) and (c)(5) is performed after December 31, 1971, except as provided in subdivision (11);
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6. (6) Any employing unit that, having become an employer under this chapter has not, under § 50-7-405, ceased to be an employer subject to this chapter;
7. (7) For the effective period of its election pursuant to § 50-7-405(d), any employing unit that has elected to become fully subject to this chapter;
8. (8) For purposes of this section, “employment” includes service that would constitute employment but for the fact that the service is deemed to be performed entirely within another state pursuant to an election under an arrangement entered into in accordance with § 50-7-706 by the commissioner and an agency charged with the administration of any other state or federal unemployment compensation law;
9. (9) For purposes of this section, if any week includes both December 31 and January 1, the days of that week up to January 1 shall be deemed one (1) calendar week and the days beginning January 1 another week;
10. (10)
  1. (A) Any employing unit for which agricultural labor, as defined in § 50-7-207(b)(7) and (c)(3), is performed after December 31, 1977;
  2. (B) Any employing unit for which domestic service in employment, as defined in § 50-7-207(b)(8), is performed after December 31, 1977; and
11. (11)
  1. (A) In determining whether or not an employing unit for which service other than domestic service is also performed is an employer under subdivision (1), (4), (5) or (10)(A), the wages paid to or the employment of an employee performing domestic service after December 31, 1977, shall not be taken into account. If an employing unit is determined an employer of agricultural labor, the employing unit shall be determined an employer for the purposes of subdivision (1);
  2. (B) In determining whether or not an employing unit for which service other than agricultural labor is also performed is an employer under subdivision (1), (4), (5) or (10)(B), the wages paid to or the employment of an employee performing service in agricultural labor after December 31, 1977, shall not be taken into account. If an employing unit is determined an employer of agricultural labor, the employing unit shall be determined an employer for the purposes of subdivision (1).

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§ 50-7-206. “Employing unit” defined — Common paymaster.

(a) “Employing unit” means any individual or type of organization, including any partnership, association, trust, estate, joint stock company, insurance company, limited liability company or corporation, whether domestic or foreign, or the receiver, trustee in bankruptcy, trustee or successor of the individual or organization, or the legal representative of a deceased person, that has or subsequent to January 1, 1935, had, in its employ one (1) or more individuals performing services for the person or entity within this state; or the state, or any department, political subdivision, county or municipality of the state that has in its employ one (1) or more individuals performing services for it within this state.
(b) All individuals performing services within this state for any employing unit that maintains two (2) or more separate establishments within this state shall be deemed to be employed by a single employing unit for all the purposes of this chapter.
(c) Each individual employed to perform or to assist in performing the work of any agent or employee of an employing unit shall be deemed to be employed by the employing unit for all the purposes of this chapter, whether the individual was hired or paid directly by the employing unit or by the agent or employee; provided, that the employing unit had actual or constructive knowledge of the performance of the work.
(d) Common Paymaster. For purposes of this chapter, if two (2) or more related corporations concurrently employ the same individual and compensate the individual through a common paymaster that is one of the corporations, each corporation shall be considered to have paid as remuneration to the individual only the amounts actually disbursed by it to the individual and shall not be considered to have paid as remuneration to the individual amounts actually disbursed to the individual by another of the corporations.

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50-7-403(b)(2)(B)(i)

§ 50-7-207. “Employment” and related definitions.

(a) Definition of “Employment.” For purposes of this chapter and subject to the special rules contained in subsection (e), and the definitions contained in subsection (f), “employment” means service that meets all of the following conditions:
1. (1) It is within any category of “included service” as listed in subsection (b);
2. (2) It is not within any category of “excluded service” as listed in subsection (c); and
3. (3) It is within any category of “Tennessee service” as listed in subsection (d).
(b) “Included Service.” For purposes of this section, “included service” means any of the following:
1. (1) Service performed prior to January 1, 1978, that was employment as defined in this section prior to January 1, 1978;
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  - 50-7-213(c)(1)
2. (2) Subject to the other provisions of this section, service performed after December 31, 1977, including service in interstate commerce, by:
  1. (A) Any officer of a corporation;
  2. (B) Any individual who performs services for an employer for wages if the services are performed by the individual qualify as an employer-employee relationship with the employer based upon consideration of the following twenty (20) factors as described in the twenty-factor test of Internal Revenue Service Revenue Ruling 87-41, 1987-1 C.B. 296:
    1. (i) Instructions. A worker who is required to comply with other persons' instructions about when, where, and how the worker is to work is ordinarily an employee. This control factor is present if the person or persons for whom the services are performed have the right to require compliance with instructions;
    2. (ii) Training. Training a worker by requiring an experienced employee to work with the worker, by corresponding with the worker, by requiring the worker to attend meetings, or by using other methods indicates that the person or persons for whom the services are performed want the services performed in a particular method or manner;
    3. (iii) Integration. Integration of the worker's services into the business operations generally shows that the worker is subject to direction and control. When the success or continuation of a business depends to an appreciable degree upon the performance of certain services, the workers who perform those services must necessarily be subject to a certain amount of control by the owner of the business;
    4. (iv) Services rendered personally. If the services must be rendered personally, then presumably the persons for whom the services are performed are interested in the methods used to accomplish the work as well as in the results;
    5. (v) Hiring, supervising, and paying assistants. If the person or persons for whom the services are performed hire, supervise, and pay assistants, then that factor generally shows control over the workers on the job. However, if one (1) worker hires, supervises, and pays the other assistants pursuant to a contract under which the worker agrees to provide materials and labor and under which the worker is responsible only for the attainment of a result, then this factor indicates an independent contractor status;
    6. (vi) Continuing relationship. A continuing relationship between the worker and the person or persons for whom the services are performed indicates that an employer-employee relationship exists. A continuing relationship may exist where work is performed at frequently recurring although irregular intervals;
    7. (vii) Set hours of work. The establishment of set hours of work by the person or persons for whom the services are performed is a factor indicating control;
    8. (viii) Full time required. If the worker must devote substantially full time to the business of the person or persons for whom the services are performed, then the person or persons have control over the amount of time the worker spends working and impliedly restrict the worker from doing other gainful work. An independent contractor is free to work when and for whom the independent contractor chooses;
    9. (ix) Doing work on employer's premises. If the work is performed on the premises of the person or persons for whom the services are performed, then that factor suggests control over the worker, especially if the work could be done elsewhere. Work done off the premises of the person or persons receiving the services, such as at the office of the worker, indicates some freedom from control. However, this fact by itself does not mean that the worker is not an employee. The importance of this factor depends on the nature of the service involved and the extent to which an employer generally would require that employees perform those services on the employer's premises. Control over the place of work is indicated when the person or persons for whom the services are performed have the right to compel the worker to travel a designated route, to canvass territory within a certain time, or to work at specific places as required;
    10. (x) Order or sequence set. If a worker must perform services in the order or sequence set by the person or persons for whom the services are performed, then that factor shows that the worker is not free to follow the worker's own pattern of work but instead must follow the established routines and schedules of the person or persons for whom the services are performed. Often, because of the nature of an occupation, the person or persons for whom the services are performed do not set the order of the services or set the order infrequently. It is sufficient to show control, however, if the person or persons retain the right to do so;
    11. (xi) Oral or written reports. A requirement that the worker submit regular or written reports to the person or persons for whom the services are performed indicates a degree of control;
    12. (xii) Payment by hour, week, month. Payment by the hour, week, or month generally points to an employer-employee relationship; provided, that this method of payment is not just a convenient way of paying a lump sum agreed upon as the cost of a job. Payment made by the job or on straight commission generally indicates the worker is an independent contractor;
    13. (xiii) Payment of business or traveling expenses. If the person or persons for whom the services are performed ordinarily pay the worker's business or traveling expenses, then the worker is ordinarily an employee. An employer, to be able to control expenses, generally retains the right to regulate and direct the worker's business activities;
    14. (xiv) Furnishing of tools and materials. The fact that the person or persons for whom the services are performed furnish significant tools, materials, and other equipment tends to show the existence of an employer-employee relationship;
    15. (xv) Significant investment. If the worker invests in facilities that are used by the worker in performing services and are not typically maintained by employees, such as the maintenance of an office rented at fair value from an unrelated party, then that factor tends to indicate that the worker is an independent contractor. However, lack of investment in facilities indicates dependence on the person or persons for whom the services are performed for the facilities and the existence of an employer-employee relationship;
    16. (xvi) Realization of profit or loss. A worker who can realize a profit or suffer a loss as a result of the worker's services, in addition to the profit or loss ordinarily realized by employees, is generally an independent contractor but the worker who cannot is an employee. For example, if the worker is subject to a real risk of economic loss due to significant investments or a bona fide liability for expenses, such as salary payments to unrelated employees, then that factor indicates that the worker is an independent contractor. The risk that a worker will not receive payment for the worker's services is common to both independent contractors and employees and does not constitute sufficient economic risk to support treatment as an independent contractor;
    17. (xvii) Working for more than one firm at a time. If a worker performs more than de minimis services for multiple unrelated persons or firms at the same time, then that factor generally indicates that the worker is an independent contractor. However, a worker who performs services for more than one (1) person may be an employee of each of the persons, especially where such persons are part of the same service arrangement;
    18. (xviii) Making service available to general public. The fact that a worker makes the worker's services available to the general public on a regular and consistent basis indicates an independent contractor relationship;
    19. (xix) Right to discharge. The right to discharge a worker is a factor indicating that the worker is an employee and the person possessing the right is an employer. An employer exercises control through the threat of dismissal, which causes the worker to obey the employer's instructions. An independent contractor cannot be fired so long as the independent contractor produces a result that meets the contract specifications; and
    20. (xx) Right to terminate. If the worker has the right to end the worker's relationship with the person for whom the services are performed at any time the worker wishes without incurring liability, then that factor indicates an employer-employee relationship;
  3. (C) Any individual other than an individual described in subdivision (b)(2)(A) or (b)(2)(B) who performs services for remuneration for any person:
    1. (i) In either of the following capacities:
      1. (a) As an agent driver or commission driver engaged in distributing meat products, vegetable products, fruit products, bakery products, beverages other than milk, or laundry or dry-cleaning service, for the driver's principal; or
      2. (b) As a traveling or city salesperson, other than as an agent driver or commission driver, engaged on a full-time basis in the solicitation on behalf of, and the transmission to, the salesperson's principal, except for side-line sales activities on behalf of some other person, of orders from wholesalers, retailers, contractors, or operators of hotels, restaurants, or other similar establishments for merchandise for resale or supplies for use in their business operations; and
    2. (ii) In the presence of all of the following conditions:
      1. (a) The contract of service contemplates that substantially all of the services are to be performed personally by the individual;
      2. (b) The individual does not have a substantial investment in facilities used in connection with the performance of services other than in facilities for transportation; and
      3. (c) The services are not in the nature of a single transaction that is not part of a continuing relationship with the person for whom the services are performed;
3. (3) Except as provided in subdivision (c)(5), service performed by an individual:
  1. (A) After December 31, 1971 and prior to January 1, 1978, in the employ of this state or any of its instrumentalities, or in the employ of this state and one (1) or more other states or their instrumentalities, for a hospital or institution of higher education located in this state; provided, that the service is excluded from “employment” as defined in the federal Unemployment Tax Act (26 U.S.C. § 3306(c)(7)), and does not constitute “excluded employment” under subdivision (c)(5); and
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    50-7-402(b)
    50-7-403(g)
    50-7-403
    50-7-403(j)(2)
  2. (B) After December 31, 1977, in the employ of this state or any of its instrumentalities or any political subdivision of the state or any of its instrumentalities or any instrumentality of more than one (1) of the foregoing or any instrumentality of any of the foregoing and one (1) or more other states or political subdivisions; provided, that the service is excluded from “employment” as defined in the federal Unemployment Tax Act (26 U.S.C. § 3306(c)(7)), and does not constitute “excluded employment” under subdivision (c)(5);
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4. (4) Except as provided in subdivision (c)(5), service performed by an individual after December 31, 1977, in the employ of a religious, charitable, educational or other organization, but only if both of the following conditions are met:
  1. (A) The service is excluded from “employment” as defined in the federal Unemployment Tax Act (26 U.S.C. § 3306(c)(8)); and
  2. (B) The organization had four (4) or more individuals in employment for some portion of a day in each of twenty (20) different weeks, whether or not the weeks were consecutive, within either the current or preceding calendar year, regardless of whether they were employed at the same point in time;
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  - 50-7-205(5)
5. (5) Service performed after December 31, 1971, by an officer or crew member of an American vessel or American aircraft or in connection with the American vessel or American aircraft; provided, that it meets the conditions of subdivision (d)(5);
6. (6) Notwithstanding subsection (c), service with respect to which a tax is required to be paid under any federal law imposing a tax against which credit may be taken for contributions required to be paid into a state unemployment fund or that as a condition for full credit against the tax imposed by the federal Unemployment Tax Act (26 U.S.C. § 3301 et seq.), is required to be covered by this chapter;
7. (7) Service performed after December 31, 1977, by an individual in agricultural labor as defined in subdivision (f)(1); provided, that:
  1. (A) The service is performed for a person who either:
    1. (i) During any calendar quarter in either the current or preceding calendar year paid remuneration in cash of twenty thousand dollars ($20,000) or more to individuals employed in agricultural labor, not taking into account service in agricultural labor performed before January 1, 1980, by an alien referred to in subdivision (b)(7)(B); or
    2. (ii) For some portion of a day in each of twenty (20) different calendar weeks, whether or not the weeks were consecutive, in either the current or the preceding calendar year, employed in agricultural labor ten (10) or more individuals, regardless of whether they were employed at the same point in time, not taking into account service in agricultural labor performed before January 1, 1980, by an alien referred to in subdivision (b)(7)(B);
  2. (B) For purposes of this section, any individual who is a crew member furnished by a crew leader to perform service in agricultural labor for any other person shall be treated as an employee of the crew leader, if both of the following conditions are met:
    1. (i) Substantially all the members of the crew operate or maintain tractors, mechanized harvesting or cropdusting equipment or any other mechanized equipment, that is provided by the crew leader; and
    2. (ii) The individual is not an employee of the other person within the meaning of subdivision (a)(2);
  3. (C) For the purposes of this subdivision (b)(7), in the case of any individual who is furnished by a crew leader to perform service in agricultural labor for any other person and who is not treated as an employee of the crew leader under subdivision (b)(7)(B), the following shall apply:
    1. (i) The other person and not the crew leader shall be treated as the employer of the individual; and
    2. (ii) The other person shall be treated as having paid cash remuneration to the individual in any amount equal to the amount of cash remuneration paid to the individual by the crew leader, either on the person's own behalf or on behalf of the other person, for the service in agricultural labor performed for the other person;
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  - 50-7-205(10)(A)
8. (8) Domestic service performed after December 31, 1977, in a private home, local college club, or local chapter of a college fraternity or college sorority and performed for a person who paid cash remuneration of one thousand dollars ($1,000) or more after December 31, 1977, in any calendar quarter, to an individual or individuals employed in the domestic service in the current calendar year or the preceding calendar year;
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  - 50-7-205(10)(B)
  - 50-7-213(c)(2)(A)
9. (9) During the effective period of the election, service covered by an election pursuant to § 50-7-405 and service covered by an election duly approved by the administrator in accordance with an arrangement pursuant to § 50-7-405; or
10. (10) The entire service of an individual in the case of service that is not covered under this section and performed entirely without this state, with respect to no part of which contributions are required and paid under any unemployment compensation law of any other state or of the federal government; provided, that the individual performing the services is a resident of this state and the administrator approves the election of the employing unit for which the services are performed.
(c) “Excluded Service.” For purposes of this section, “excluded service” means any of the following, unless the employing unit for which the service is performed is liable for a federal tax on the remuneration paid for the service against which credit may be taken for premiums paid under this chapter, or unless the employing unit has elected that the service shall be deemed to constitute employment subject to this chapter pursuant to § 50-7-405, in which cases the service shall be “included service” as provided in subsection (b):
1. (1) Service performed in the employ of any other state or its political subdivisions, or of the United States government, or of an instrumentality of any other state or states or their political subdivisions or of the United States, except that after 1961, to the extent that the congress of the United States permits states to require any instrumentalities of the United States to make payments into an unemployment fund under a state employment security law, this chapter shall apply to those instrumentalities, and to service performed for the instrumentalities, in the same manner, to the same extent, and on the same terms as to all other employers, employing units, individuals, and service; provided, that, if this state is not certified for any year by the secretary of labor under the federal Unemployment Tax Act (26 U.S.C. § 3304(c)), the payments required of the instrumentalities with respect of that year shall be refunded by the commissioner for the fund in the same manner and within the same period as is provided in § 50-7-404(f) with respect to premiums erroneously collected;
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  - 50-7-404(f)(1)
2. (2) Service performed after June 30, 1939, with respect to which unemployment compensation is payable under the Railroad Unemployment Insurance Act of Congress, 52 Stat. 1094 (45 U.S.C. § 351 et seq.), and services with respect to which unemployment benefits are payable under an unemployment compensation system for maritime employees established by an act of congress; provided, that the commissioner is authorized and directed to enter into agreements with the proper agencies under the act of congress, which agreements shall become effective in the manner provided in § 50-7-603, to provide reciprocal treatment to individuals who have, after acquiring potential rights to benefits under this chapter, acquired rights for unemployment compensation under the act of congress, or who have, after acquiring potential rights to unemployment compensation under the act of congress, acquired rights to benefits under this chapter;
3. (3) Except as provided in subsection (b), service performed by an individual in agricultural labor as defined in subdivision (f)(1);
4. (4) Service performed by an individual in the employ of the individual's son, daughter or spouse, and service performed by a child under eighteen (18) years of age in the employ of the child's father or mother;
5. (5) Notwithstanding subdivisions (b)(3) and (4), services performed:
  1. (A) In the employ of a church, convention or association of churches;
  2. (B) In the employ of an organization that is operated primarily for religious purposes and that is operated, supervised, controlled or principally supported by a church, convention or association of churches;
  3. (C) By a duly ordained, commissioned or licensed minister of a church in the exercise of the minister's ministry or by a member of a religious order in the exercise of duties required by the religious order;
  4. (D) After December 31, 1977, in the employ of a governmental entity referred to in subdivision (b)(3) if the service is performed by an individual in the exercise of duties:
    1. (i) As an elected official;
    2. (ii) As a member of a legislative body, or a member of the judiciary, of a state or political subdivision;
    3. (iii) As a member of the state national guard or air national guard;
    4. (iv) As an employee serving on a temporary basis in the case of fire, storm, snow, earthquake, flood or similar emergency; or
    5. (v) In a position that, under or pursuant to the laws of this state, is designated as either:
      1. (a) A major nontenured policymaker or advisory position; or
      2. (b) A policymaking or advisory position the performance of the duties of which ordinarily does not require more than eight (8) hours per week;
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    50-7-213(c)(2)(B)
  5. (E) In a facility conducted for the purpose of carrying out a program of rehabilitation for individuals whose earning capacity is impaired by age or physical or mental deficiency or injury, or providing remunerative work for individuals who, because of their impaired physical or mental capacity, cannot be readily absorbed in the competitive labor market, by an individual receiving the rehabilitation or remunerative work;
  6. (F) After December 31, 1977, in a custodial or penal institution by an inmate of the institution and, after June 30, 1999, by an inmate committed to a custodial or penal institution for any employer; or
  7. (G) As part of an unemployment work-relief or work-training program assisted or financed in whole or in part by any federal agency or an agency of a state or political subdivision of a state, by an individual receiving the work-relief or work-training, unless otherwise required by the agency or by law governing the agency assisting or financing in whole or in part the unemployment work-relief or work-training program as a condition to the assistance or financing;
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  - 50-7-405(d)(3)(A)
6. (6) Except to the extent set forth in subdivisions (b)(4) and (6), service performed in the employ of the corporation, community chest, fund or foundation, organized and operated exclusively for religious, charitable, scientific, literary or educational purposes, or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual;
7. (7) Service performed by an individual for an employer as an insurance agent or as an insurance solicitor, if all the service performed by the individual for the employer is performed for remuneration solely by way of commission;
8. (8) Service performed in the employ of a school, college or university, if the service is performed:
  1. (A) By a student who is enrolled and is regularly attending classes at the school, college or university; or
  2. (B) By the spouse of the student, if the spouse is advised, at the time the spouse commences to perform the service, both that:
    1. (i) The employment of the spouse to perform the service is provided under a program to provide financial assistance to the student by the school, college or university; and
    2. (ii) The employment will not be covered by any program of unemployment insurance;
9. (9) Service performed by an individual who is enrolled at a nonprofit or public educational institution that normally maintains a regular faculty and curriculum and normally has a regularly organized body of students in attendance at the place where its educational activities are carried on, as a student in a full-time program, that is taken for credit and that combines academic instruction with work experience, if the service is an integral part of the program, and the institution has so certified to the employer, except that this subdivision (c)(9) does not apply to service performed in a program established for or on behalf of an employer or group of employers;
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  - 50-7-405(d)(3)(B)
10. (10) Service performed in the employ of a hospital, if the service is performed by a patient of the hospital, as defined in subdivision (f)(7);
11. (11) Service performed by a qualified real estate agent if:
  1. (A) The individual is a licensed real estate agent;
  2. (B) Substantially all of the remuneration for the services performed as a real estate agent is directly related to sales or other output, including the performance of services, rather than the number of hours worked; and
  3. (C) The services performed by the individual are performed pursuant to a written contract between the individual and the person for whom the services are performed, and the contract provides that the individual will not be treated as an employee with respect to the services for federal tax (FUTA) purposes;
12. (12) Service performed by a direct seller, including an individual engaged in the trade or business of the delivery or distribution of newspapers or shopping news, if:
  1. (A) The individual is engaged in the trade or business of selling or soliciting the sale of consumer products to any buyer on a:
    1. (i) Buy-sell basis;
    2. (ii) Deposit-commission basis; or
    3. (iii) Any similar basis that the United States secretary of treasury prescribes by regulations, for resale by the buyer or any other individual, in the home or otherwise than in a permanent retail establishment; or
  2. (B) The individual is engaged in the trade or business of selling or soliciting the sale of consumer products to a consumer in the home or somewhere other than in a permanent retail establishment; and
    1. (i) Substantially all of the remuneration for the services performed as a direct seller is directly related to sales or output, including the performance of services, rather than to the number of hours worked; and
    2. (ii) The services performed by the individual are performed pursuant to a written contract between the individual and the person for whom the services are performed, and the contract provides that the individual will not be treated as an employee with respect to the services for federal tax (FUTA) purposes;
13. (13) Service performed by a full-time student in the employ of an organized camp, if:
  1. (A) The camp did not operate for more than seven (7) months in the calendar year and did not operate for more than seven (7) months in the preceding calendar year, or had average gross receipts for any six (6) months in the preceding calendar year that were not more than thirty-three and one-third percent (33 ⅓%) of its average gross receipts for the other six (6) months in the preceding calendar year;
  2. (B) The full-time student performed services in the employ of the camp for less than thirteen (13) calendar weeks in the calendar year; and
  3. (C) For purposes of this subdivision (c)(13), an individual shall be treated as a full-time student for any period during which the individual is enrolled as a full-time student at an educational institution, or that is between academic years or terms if the individual was enrolled as a full-time student at an educational institution for the immediately preceding academic year or term, and there is reasonable assurance that the individual will be so enrolled for the immediately succeeding academic year or term;
14. (14) Service performed by an individual on a boat, or boats in the case of a fishing operation involving more than one (1) boat, engaged in catching fish or other forms of aquatic animal life under an arrangement with the owner or operator of the boat pursuant to which:
  1. (A) The individual does not receive any cash remuneration, other than as provided in subdivision (c)(14)(B);
  2. (B) The individual receives a share of the boat's or boats' catch of fish or other forms of aquatic animal life or a share of the proceeds from the sale of the catch;
  3. (C) The amount of the individual's share depends on the amount of the boat's or boats' catch of fish or other forms of aquatic animal life, but only if the operating crew of the boat, or each boat from which the individual receives a share in the case of a fishing operation involving more than one (1) boat, is normally made up of fewer than ten (10) individuals;
15. (15) Service performed by an individual as a product demonstrator pursuant to a written contract between the individual and a person whose principal business is providing demonstrators to third parties for those purposes, and the contract provides that the individual will not be treated as an employee with respect to the services;
16. (16) The service performed on or after January 1, 1995, by an individual who is an alien admitted to the United States to perform service in agricultural labor pursuant to §§ 101(a)(15)(H) and 214(c) of the Immigration and Nationality Act (8 U.S.C. §§ 1101(a)(15)(H) and 1184, respectively);
17. (17) After June 30, 1999, service performed by an election official or an election worker, if the amount of remuneration received by the individual during the calendar year for services as an election official or election worker is less than one thousand dollars ($1,000); and
18. (18)
  1. (A) Notwithstanding any provision of this chapter or any other law to the contrary, companion-sitters who receive referrals under registry or referral arrangements substantially similar to those addressed within the IRS determination shall not be classified as employees of the person, corporation or business entity pursuant to this chapter, unless the person, corporation or business entity and the department mutually agree to the reclassification of the companion sitters as employees of the person, corporation or business entity in order to absolve the elderly, sick or disabled clients or the parents of the children from liability for payment of any premiums, fees or other costs that may be imposed pursuant to the Tennessee Employment Security Law, if:
    1. (i) A person, corporation or business entity maintains an employment registry or referral service exclusively for companion sitters seeking employment opportunities for providing personal attendant, companionship, household care, ancillary health care or related services to children, the elderly, or sick or disabled clients;
    2. (ii) The companion sitters do not provide personal attendant, companionship, household care, ancillary health care or related services for hire to nonprofit organizations, Indian tribes or state or local governments; and
    3. (iii) Pursuant to the federal Insurance Contributions Act, the federal Unemployment Tax Act, or the collection of income tax at source on wages, chapters 21, 23 and 24, respectively, Subtitle C, Internal Revenue Code (26 U.S.C. § 3101 et seq., 26 U.S.C. § 3301 et seq., and 26 U.S.C. § 3401 et seq., respectively), the Internal Revenue Service issues a determination that a companion-sitter is not an employee of the person, corporation or business entity under the typical registry or referral arrangements of the person, corporation or business entity;
  2. (B) Subdivision (c)(18)(A) shall not be construed to require forgiveness or refund of any premiums, fees or other related costs duly imposed prior to July 1, 2004.
(d) “Tennessee Service.” For purposes of this section, “Tennessee service” means any of the following:
1. (1) Any individual's entire service, performed within or both within and without this state, if the service is localized in this state. Service shall be deemed to be localized within a state if either:
  1. (A) The service is performed entirely within the state; or
  2. (B) The service is performed both within and without the state but the service performed without the state is incidental to the individual's service within the state; for example, is temporary or transitory in nature or consists of isolated transactions;
2. (2) An individual's entire service, performed within and without this state, if the service is not localized in any state but some of the service is performed in this state and:
  1. (A) The individual's base of operations is in this state; or
  2. (B) If there is no base of operations, then the place from which the service is directed or controlled is in this state; or
  3. (C) The individual's base of operations or place from which the service is directed or controlled is not in any state in which some part of the service is performed, but the individual's residence is in this state;
3. (3) Service wherever performed within the United States, or Canada, if both:
  1. (A) The service is not covered under the unemployment compensation law of any other state or Canada; and
  2. (B) The place from which the service is directed or controlled is in this state;
4. (4) Service that is performed after December 31, 1971, except service performed in Canada, by an individual who is a citizen of the United States and who is in the employ of an American employer, other than service that is deemed to be “Tennessee employment” under subdivisions (d)(1) and (2) or to be “employment” under the parallel provisions of another state's law, if:
  1. (A) The employer's principal place of business in the United States is located in this state; or
  2. (B) The employer has no place of business in the United States, but:
    1. (i) The employer is an individual who is a resident of this state;
    2. (ii) The employer is a corporation that is organized under the laws of this state; or
    3. (iii) The employer is a partnership or a trust and the number of the partners or trustees who are residents of this state is greater than the number who are residents of any other state; or
  3. (C) None of the criteria of subdivisions (d)(4)(A) and (B) are met, but the employer has elected coverage in this state or, the employer having failed to elect coverage in any state, the individual has filed a claim for benefits, based on the service under the laws of this state;
5. (5) Specifically in the case of included service described in subdivision (b)(5), service where the operating office from which the operations of the American vessel, operating on navigable waters within the United States, or the operations of the American aircraft within the United States, or the operations of both the vessel and the aircraft within and without the United States are ordinarily and regularly supervised, managed, directed and controlled is within this state; or
6. (6) Specifically in the case of included service described in subdivision (b)(10), service when the individual performing the service is a resident of this state.
(e) Special Rules. The following rules shall govern for purposes of this section:
1. (1) Services performed by an individual who provides services as a leased-operator or an owner-operator of a motor vehicle or vehicles under contract to a common carrier conducting an interstate business while engaged in interstate commerce are deemed to be an excluded service for the purposes of this section, regardless of whether the common law relationship of master and servant exists. However, this subdivision (e)(1) does not apply to services performed under subdivision (b)(3) or (b)(4); and
2. (2) It is the legislative intent that no elected official is eligible for benefits based upon service as an elected official.
(f) Section Definitions. The following words and terms have the following respective meanings for the purposes of this section, unless the context otherwise requires:
1. (1) “Agricultural labor” means remunerated service performed after December 31, 1971:
  1. (A) On a farm, in the employ of any person, in connection with cultivating the soil, or in connection with the raising or harvesting of any agricultural or horticultural commodity, including the raising, shearing, feeding, caring for, training, and management of livestock, bees, poultry, and fur-bearing animals and wildlife;
  2. (B) In the employ of the owner or tenant or other operator of a farm, in connection with the operation, management, conservation, improvement or maintenance of the farm and its tools and equipment, or in salvaging timber or clearing land of brush and other debris left by a hurricane, if the major part of the service is performed on a farm;
  3. (C) In connection with the production or harvesting of any commodity defined as an agricultural commodity in § 15(g) of the Agricultural Marketing Act (12 U.S.C. § 1141j), or in connection with the ginning of cotton, or in connection with the operation or maintenance of ditches, canals, reservoirs or waterways, not owned or operated for profit, and used exclusively for supplying and storing water for farming purposes;
  4. (D) In the employ of either:
    1. (i) The operator of a farm in handling, planting, drying, packing, packaging, processing, freezing, grading, storing or delivering to storage or to market or to a carrier for transportation to market, in its unmanufactured state, any agricultural or horticultural commodity, but only if the operator produced more than one-half (½) of the commodity with respect to which the service is performed; or
    2. (ii) In the employ of a group of operators of farms, or a cooperative organization of which the operators are members, in the performance of service described in subdivision (f)(1)(D)(i), but only if the operators produced more than one-half (½) of the commodity with respect to which the service is performed; provided, that this subdivision (f)(1)(D) shall not be deemed to include service performed in connection with commercial canning or commercial freezing or in connection with any agricultural or horticultural commodity after its delivery to a terminal market for distribution for consumption; or
  5. (E) On a farm operated for profit if the service is not in the course of the employer's trade or business or is not domestic service in a private home of the employer;
2. (2) “American aircraft” means an aircraft registered under the laws of the United States;
3. (3) “American employer” means a person who is:
  1. (A) An individual who is a resident of the United States;
  2. (B) A partnership, if two-thirds (⅔) or more of the partners are residents of the United States;
  3. (C) A trust, if all of the trustees are residents of the United States; or
  4. (D) A corporation organized under the laws of the United States or of any state;
4. (4) “American vessel” means any vessel documented or numbered under the laws of the United States; and includes any vessel that is neither documented nor numbered under the laws of the United States nor documented under the laws of any foreign country, if its crew performs service solely for one (1) or more citizens or residents of the United States or corporations organized under the laws of the United States or of any state;
5. (5) “Crew leader” means an individual who:
  1. (A) Furnishes individuals to perform service in agricultural labor for any other person;
  2. (B) Pays, either on the individual's own behalf or on behalf of the other person, for the service in agricultural labor performed by them; and
  3. (C) Has not entered into a written agreement with the other person under which the individual is designated as an employee of the other person;
6. (6) “Hospital” means an institution that has been licensed, certified or approved by the hospital licensing board of the department of health as a hospital; and
  1 Backlink
  - 50-7-405(d)(3)(A)
7. (7) “Institution of higher education” means:
  1. (A) Any college or university in this state; or
  2. (B) An educational institution that meets all of the following conditions:
    1. (i) It admits as regular students only individuals having a certificate of graduation from high school, or the recognized equivalent of such a certificate;
    2. (ii) It is legally authorized in this state to provide a program of education beyond high school;
    3. (iii) It provides an educational program for which it awards a bachelor's or higher degree, or provides a program that is acceptable for full credit toward such a degree, a program of post-graduate or post-doctoral studies, or a program of training to prepare students for gainful employment in a recognized occupation; and
    4. (iv) It is a public or other nonprofit institution.
1 Backlink
- 50-7-213(c)(2)(A)
(g) Chapter Definition. Unless the context otherwise requires, “farm” includes stock, dairy, poultry, fruit, fur-bearing animals, and truck farms, plantations, ranches, nurseries, ranges, greenhouses or other similar structures used primarily for the raising of agricultural or horticultural commodities, and orchards.

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50-7-401(a)

§ 50-7-208. “Employment office” defined.

“Employment office” means a free public employment office, or branch of a free public employment office, operated by the United States or by any state of the United States or by a state, province or similar political subdivision of a foreign government.

§ 50-7-209. “Fund” defined.

“Fund” means the unemployment compensation fund established by this chapter, to which all premiums required, and from which all benefits provided under this chapter, shall be paid.

§ 50-7-210. “State” and “United States” defined.

For the purposes of this chapter:
1. (1) “State” includes the states of the United States, the District of Columbia, the Commonwealth of Puerto Rico and the Virgin Islands; and
2. (2) “United States,” when used in a geographical sense, includes the states, the District of Columbia, the Commonwealth of Puerto Rico and the Virgin Islands.

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50-7-404(b)(3)(D)

§ 50-7-211. “Unemployed” defined.

(a) An individual shall be deemed “unemployed” in any week during which the individual performs no services and with respect to which no wages are payable to the individual, or in any week of less than full-time work if the wages payable to the individual with respect to the week are less than the individual's weekly benefit amount.
(b) The commissioner shall prescribe rules and regulations applicable to unemployed individuals, making distinctions in the procedures as to total unemployment, part total unemployment, partial unemployment of individuals attached to their regular jobs, and other forms of short-time work that the commissioner deems necessary.

§ 50-7-212. “Unemployment compensation administration fund” defined.

“Unemployment compensation administration fund” means the unemployment compensation administration fund established by this chapter, from which regular administrative expenses under this chapter shall be paid.

§ 50-7-213. “Wages” defined.

(a) “Wages” means all remuneration paid for personal services from whatever source, including commissions, bonuses, tips that are both paid to an employee while performing services that constitute employment and included in a written statement furnished by the employee to the employer pursuant to § 6053(a) of the Internal Revenue Code of 1954 (26 U.S.C. § 6053(a)), tips allocated by the employer pursuant to § 6053(c)(3) of the Internal Revenue Code of 1954 (26 U.S.C. § 6053(c)(3)), employee salary reduction contributions to cash or deferred plans pursuant to §§ 401(k), 403(b), 457 (26 U.S.C. §§ 401(k), 403(b) and 457, respectively), or any similar plan contained in the Internal Revenue Code, employee salary reduction contributions to cafeteria plans pursuant to § 125 of the Internal Revenue Code (26 U.S.C. § 125), and the cash value of all remuneration in any medium other than cash. The reasonable cash value of any remuneration in any medium other than cash shall be determined in accordance with rules prescribed by the commissioner; provided, that “wages” does not include that part of the remuneration that, after remuneration equal to the taxable wage base, as defined in subsection (e), with respect to employment has been paid to an individual by an employer during any calendar year, is paid to the individual by the employer during the calendar year. The remuneration paid to the individual by the employer during the calendar year in excess of the taxable wage base, as defined in subsection (e), shall be deemed “wages” solely for the purpose of determining the benefit rights under this chapter of the individual.
(b) Notwithstanding any other provision of this chapter, “wages” shall always include remuneration paid for services if the employing unit for which the services are performed is liable for any federal tax on the remuneration against which credit may be taken for premiums paid under this chapter. The remuneration paid to an individual by an employer with respect to employment in another state or states, upon which premiums were required of and paid by the employer under an unemployment compensation law of the other state or states, shall be included as a part of remuneration equal to the taxable wage base, referred to in this section, as defined in subsection (e).
(c) With respect to weeks of unemployment beginning on or after January 1, 1978, wages for insured work shall include wages paid for previously uncovered services. For the purposes of this subsection (c), “previously uncovered services” means services:
1. (1) That were not employment as defined in § 50-7-207(b)(1), and were not services covered pursuant to § 50-7-405(d) at any time during the one-year period ending December 31, 1975; and
2. (2) That are:
  1. (A) Agricultural labor as defined in § 50-7-207(f) or domestic service as defined in § 50-7-207(b)(8); or
  2. (B) Services performed by an employee of this state or a political subdivision of the state, as provided in § 50-7-207(b)(3), or by an employee of a nonprofit educational institution that is not an institution of higher education, as provided in § 50-7-207(c)(5)(D), except to the extent that assistance under Title II of the Emergency Jobs and Unemployment Assistance Act of 1974, contained in 26 U.S.C. § 3304 note, was paid on the basis of the services.
(d) “Wages” does not include:
1. (1) The amount of any payment with respect to services performed on behalf of an individual in its employ under a plan or system established by an employing unit that makes provision for individuals in its employ generally or for a class or classes of the individuals, including any amount paid by an employing unit for insurance or annuities, or into a fund to provide for any such payment on account of:
  1. (A) Retirement;
  2. (B) Sickness or accident disability made to an employee or any of the employee's dependents that is awarded under a workers' compensation law. Any third party that makes the payment on account of sickness or accident disability to an employee or any of the employee's dependents that is awarded under a workers' compensation law shall be treated, for purposes of this chapter, as the employer with respect to the wages, except as otherwise provided in regulations prescribed by the commissioner;
  3. (C) Medical and hospitalization expenses in connection with sickness or accident disability; or
  4. (D) Death, provided the individual in its employ does not have:
    1. (i) The option to receive, instead of provision for the death benefit, any part of the payment, if the death benefit is insured, any part of the premium, or contributions of premium, paid by the individual's employing unit; and
      1 Backlink
      
      50-7-204(3)
    2. (ii) The right under the provisions of the plan or system or policy of insurance providing for the death benefit to assign the benefit, or to receive a cash consideration in lieu of the benefit either upon the individual's withdrawal from the plan or system providing for the benefit or upon termination of the plan or system or policy of insurance or of the individual's services with the employing unit;
2. (2) The payment of an employer, without deduction from the remuneration of the individual in its employ, of the tax imposed upon an individual in its employ under 26 U.S.C. §§ 3101 and 3102; or
3. (3) Any payment on account of sickness or accident disability, or medical or hospitalization expenses in connection with sickness or accident disability, made by an employer to, or on behalf of, an employee after the expiration of six (6) calendar months following the last calendar month in which the employee worked for the employer.
(e) For purposes of this chapter, “taxable wage base” means:
1. (1) The first seven thousand dollars ($7,000) paid to each individual employee during any period with respect to the calendar years beginning January 1, 1983, and ending December 31, 2008, and at any time after December 31, 2008, that the unemployment trust fund balance is greater than one billion dollars ($1,000,000,000), as determined in accordance with § 50-7-403(j);
2. (2) The first eight thousand dollars ($8,000) paid to each individual employee during any period after December 31, 2008, when the unemployment trust fund balance is greater than nine hundred million dollars ($900,000,000) but lower than or equal to one billion dollars ($1,000,000,000), as determined in accordance with § 50-7-403(j); and
3. (3) The first nine thousand dollars ($9,000) paid to each individual employee during the period after December 31, 2008, and at any time after December 31, 2008, that the unemployment trust fund balance is lower than or equal to nine hundred million dollars ($900,000,000), as determined in accordance with § 50-7-403(j).

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§ 50-7-214. “Week” defined.

(a) “Week” means the period of seven (7) consecutive days that the commissioner prescribes by regulation.
(b) The commissioner may by regulation prescribe that a week shall be deemed to be “in,” “within” or “during” that benefit year that includes the greater part of the week.

§ 50-7-215. “Calendar quarter” defined.

“Calendar quarter” means the period of three (3) consecutive calendar months ending on March 31, June 30, September 30 or December 31.

§ 50-7-216. “Weekly benefit amount” defined.

An individual's “weekly benefit amount” means the amount of benefits the individual would be entitled to receive for one (1) week of total unemployment.

§ 50-7-217. “Benefit year” defined.

(a) “Benefit year” with respect to any individual means the fifty-two (52) consecutive week period beginning with the first day of the first week with respect to which the individual first files a valid claim for benefits, and thereafter the fifty-two (52) consecutive week period beginning with the first day of the first week with respect to which the individual next files a valid claim for benefits after the termination of the individual's last preceding benefit year.
(b) The last preceding benefit year shall be a fifty-three (53) week period if fifty-two (52) weeks would result in the overlap of any calendar quarter of the base period of the new benefit year with the same calendar quarter of the base period of the previous benefit year.
(c) Any claim for benefits made in accordance with § 50-7-304(a) shall be deemed to be a “valid claim” for the purposes of subsection (a) if the individual has been paid the wages for insured work required under § 50-7-302(b)(1).

§ 50-7-218. “Base period” defined.

“Base period” means the first four (4) of the last five (5) completed calendar quarters immediately preceding the first day of an individual's benefit year; provided, that if the first quarter of the last five (5) completed calendar quarters was included in the base period applicable to any individual's previous benefit year, the individual's base period shall be the last four (4) completed calendar quarters. For the purposes of establishing a base period in cases involving persons receiving workers' compensation benefits for temporary total disability, the department shall exclude periods of such disability from the base period and determine the base period from the last four (4) completed quarters of work before any such disability.

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§ 50-7-219. “Insured work” defined.

“Insured work” means employment covered by this chapter.

Part 3 Benefits

§ 50-7-301. Benefit formula. [Effective on December 1, 2023. See the version effective until December 1, 2023.]

(a) Payments of Benefits. Benefits shall be payable from the fund in the manner provided by this section. All benefits shall be paid through employment offices in accordance with regulations the commissioner prescribes. Notwithstanding any other provision of this chapter to the contrary, any amount of unemployment compensation payable to any claimant for any weeks if not an even dollar amount, shall be rounded to the next lower full dollar amount.
1 Backlink
- 50-7-302(a)(3)
(b) Weekly Benefit Amount. An individual's weekly benefit amount shall be the amount appearing in column B in the Benefit Table corresponding to the line on which in column A of the Benefit Table there appears the average total wages for insured work paid to the individual in the two (2) calendar quarters in the individual's base period in which the total wages are highest. “Total wages for insured work,” as used in this section, is deemed to mean all remuneration paid to an employee in the base period by employers subject to this chapter.
1. BENEFIT TABLE
2. (Effective for benefit years established on and after July 5, 1992)
4. Average Wages Paid in HighestWeekly Benefit
5. Two Quarters of Base Period Amount
6. $ 780.01 through $ 806.00$55.00
7. 806.01 through 832.00 56.00
8. 832.01 through 858.00 57.00
9. 858.01 through 884.00 58.00
10. 884.01 through 910.00 59.00
11. 910.01 through 936.00 60.00
12. 936.01 through 962.00 61.00
13. 962.01 through 988.00 62.00
14. 988.01 through 1,014.00 63.00
15. 1,014.01 through 1,040.00 64.00
16. 1,040.01 through 1,066.00 65.00
17. 1,066.01 through 1,092.00 66.00
18. 1,092.01 through 1,118.00 67.00
19. 1,118.01 through 1,144.00 68.00
20. 1,144.01 through 1,170.00 69.00
21. 1,170.01 through 1,196.00 70.00
22. 1,196.01 through 1,222.00 71.00
23. 1,222.01 through 1,248.00 72.00
24. 1,248.01 through 1,274.00 73.00
25. 1,274.01 through 1,300.00 74.00
26. 1,300.01 through 1,326.00 75.00
27. 1,326.01 through 1,352.00 76.00
28. 1,352.01 through 1,378.00 77.00
29. 1,378.01 through 1,404.00 78.00
30. 1,404.01 through 1,430.00 79.00
31. 1,430.01 through 1,456.00 80.00
32. 1,456.01 through 1,482.00 81.00
33. 1,482.01 through 1,508.00 82.00
34. 1,508.01 through 1,534.00 83.00
35. 1,534.01 through 1,560.00 84.00
36. 1,560.01 through 1,586.00 85.00
37. 1,586.01 through 1,612.00 86.00
38. 1,612.01 through 1,638.00 87.00
39. 1,638.01 through 1,664.00 88.00
40. 1,664.01 through 1,690.00 89.00
41. 1,690.01 through 1,716.00 90.00
42. 1,716.01 through 1,742.00 91.00
43. 1,742.01 through 1,768.00 92.00
44. 1,768.01 through 1,794.00 93.00
45. 1,794.01 through 1,820.00 94.00
46. 1,820.01 through 1,846.00 95.00
47. 1,846.01 through 1,872.00 96.00
48. 1,872.01 through 1,898.00 97.00
49. 1,898.01 through 1,924.00 98.00
50. 1,924.01 through 1,950.00 99.00
51. 1,950.01 through 1,976.00 100.00
52. 1,976.01 through 2,002.00 101.00
53. 2,002.01 through 2,028.00 102.00
54. 2,028.01 through 2,054.00 103.00
55. 2,054.01 through 2,080.00 104.00
56. 2,080.01 through 2,106.00 105.00
57. 2,106.01 through 2,132.00 106.00
58. 2,132.01 through 2,158.00 107.00
59. 2,158.01 through 2,184.00 108.00
60. 2,184.01 through 2,210.00 109.00
61. 2,210.01 through 2,236.00 110.00
62. 2,236.01 through 2,262.00 111.00
63. 2,262.01 through 2,288.00 112.00
64. 2,288.01 through 2,314.00 113.00
65. 2,314.01 through 2,340.00 114.00
66. 2,340.01 through 2,366.00 115.00
67. 2,366.01 through 2,392.00 116.00
68. 2,392.01 through 2,418.00 117.00
69. 2,418.01 through 2,444.00 118.00
70. 2,444.01 through 2,470.00 119.00
71. 2,470.01 through 2,496.00 120.00
72. 2,496.01 through 2,522.00 121.00
73. 2,522.01 through 2,548.00 122.00
74. 2,548.01 through 2,574.00 123.00
75. 2,574.01 through 2,600.00 124.00
76. 2,600.01 through 2,626.00 125.00
77. 2,626.01 through 2,652.00 126.00
78. 2,652.01 through 2,678.00 127.00
79. 2,678.01 through 2,704.00 128.00
80. 2,704.01 through 2,730.00 129.00
81. 2,730.01 through 2,756.00 130.00
82. 2,756.01 through 2,782.00 131.00
83. 2,782.01 through 2,808.00 132.00
84. 2,808.01 through 2,834.00 133.00
85. 2,834.01 through 2,860.00 134.00
86. 2,860.01 through 2,886.00 135.00
87. 2,886.01 through 2,912.00 136.00
88. 2,912.01 through 2,938.00 137.00
89. 2,938.01 through 2,964.00 138.00
90. 2,964.01 through 2,990.00 139.00
91. 2,990.01 through 3,016.00 140.00
92. 3,016.01 through 3,042.00 141.00
93. 3,042.01 through 3,068.00 142.00
94. 3,068.01 through 3,094.00 143.00
95. 3,094.01 through 3,120.00 144.00
96. 3,120.01 through 3,146.00 145.00
97. 3,146.01 through 3,172.00 146.00
98. 3,172.01 through 3,198.00 147.00
99. 3,198.01 through 3,224.00 148.00
100. 3,224.01 through 3,250.00 149.00
101. 3,250.01 through 3,276.00 150.00
102. 3,276.01 through 3,302.00 151.00
103. 3,302.01 through 3,328.00 152.00
104. 3,328.01 through 3,354.00 153.00
105. 3,354.01 through 3,380.00 154.00
106. 3,380.01 through 3,406.00 155.00
107. 3,406.01 through 3,432.00 156.00
108. 3,432.01 through 3,458.00 157.00
109. 3,458.01 through 3,484.00 158.00
110. 3,484.01 through 3,510.00 159.00
111. 3,510.01 through 3,536.00 160.00
112. 3,536.01 through 3,562.00 161.00
113. 3,562.01 through 3,588.00 162.00
114. 3,588.01 through 3,614.00 163.00
115. 3,614.01 through 3,640.00 164.00
116. 3,640.01 through 3,666.00 165.00
117. 3,666.01 through 3,692.00 166.00
118. 3,692.01 through 3,718.00 167.00
119. 3,718.01 through 3,744.00 168.00
120. 3,744.01 through 3,770.00 169.00
121. 3,770.01 through 3,796.00 170.00
122. 3,796.01 through 3,822.00 171.00
123. 3,822.01 through 3,848.00 172.00
124. 3,848.01 through 3,874.00 173.00
125. 3,874.01 through 3,900.00 174.00
126. 3,900.01 through 3,926.00 175.00
127. 3,926.01 through 3,952.00 176.00
128. 3,952.01 through 3,978.00 177.00
129. 3,978.01 through 4,004.00 178.00
130. 4,004.01 through 4,030.00 179.00
131. 4,030.01 through 4,056.00 180.00
132. 4,056.01 through 4,082.00 181.00
133. 4,082.01 through 4,108.00 182.00
134. 4,108.01 through 4,134.00 183.00
135. 4,134.01 through 4,160.00 184.00
136. 4,160.01 through 4,186.00 185.00
137. 4,186.01 through 4,212.00 186.00
138. 4,212.01 through 4,238.00 187.00
139. 4,238.01 through 4,264.00 188.00
140. 4,264.01 through 4,290.00 189.00
141. 4,290.01 through 4,316.00 190.00
142. 4,316.01 through 4,342.00 191.00
143. 4,342.01 through 4,368.00 192.00
144. 4,368.01 through 4,394.00 193.00
145. 4,394.01 through 4,420.00 194.00
147. (Effective for Benefit Years Established on or after July 4, 1993)
149. Average Wages Paid in HighestWeekly Benefit
150. Two Quarters of Base Period Amount
151. $ 4,420.01 through $ 4,446.00 $220.00
152. 4,446.01 through 4,472.00 221.00
153. 4,472.01 through 4,498.00 222.00
154. 4,498.01 through 4,524.00 223.00
155. 4,524.01 through 4,550.00 224.00
156. 4,550.01 through 4,576.00 225.00
157. 4,576.01 through 4,602.00 226.00
158. 4,602.01 through 4,628.00 227.00
159. 4,628.01 through 4,654.00 228.00
160. 4,654.01 through 4,680.00 229.00
161. 4,680.01 through 4,706.00 230.00
162. 4,706.01 through 4,732.00 231.00
163. 4,732.01 through 4,758.00 232.00
164. 4,758.01 through 4,784.00 233.00
165. 4,784.01 through 4,810.00 234.00
166. 4,810.01 through 4,836.00 235.00
168. (Effective for Benefit Years Established on or after July 3, 1994)
170. Average Wages Paid in HighestWeekly Benefit
171. Two Quarters of Base Period Amount
172. $ 4,836.01 through $ 4,862.00 $236.00
173. 4,862.01 through 4,888.00 237.00
174. 4,888.01 through 4,914.00 238.00
175. 4,914.01 through 4,940.00 239.00
176. 4,940.01 through 4,966.00 240.00
177. 4,966.01 through 4,992.00 241.00
178. 4,992.01 through 5,018.00 242.00
179. 5,018.01 through 5,044.00 243.00
180. 5,044.01 through 5,070.00 244.00
181. 5,070.01 through 5,096.00 245.00
182. 5,096.01 through 5,122.00 246.00
183. 5,122.01 through 5,148.00 247.00
184. 5,148.01 through 5,174.00 248.00
185. 5,174.01 through 5,200.00 249.00
187. (Effective for Benefit Years Established on or after July 7, 1996)
189. Average Wages Paid in HighestWeekly Benefit
190. Two Quarters of Base Period Amount
191. $ 5,200.01 through $ 5,226.00 $250.00
192. 5,226.01 through 5,252.00 251.00
193. 5,252.01 through 5,278.00 252.00
194. 5,278.01 through 5,304.00 253.00
195. 5,304.01 through 5,330.00 254.00
196. 5,330.01 through 5,356.00 255.00
197. 5,356.01 through 5,382.00 256.00
198. 5,382.01 through 5,408.00 257.00
199. 5,408.01 through 5,434.00 258.00
200. 5,434.01 through 5,460.00 259.00
201. 5,460.01 through 5,486.00 260.00
202. 5,486.01 through 5,512.00 261.00
203. 5,512.01 through 5,538.00 262.00
204. 5,538.01 through 5,564.00 263.00
205. 5,564.01 through 5,590.00 264.00
206. 5,590.01 through 5,616.00 265.00
207. 5,616.01 through 5,642.00 266.00
208. 5,642.01 through 5,668.00 267.00
209. 5,668.01 through 5,694.00 268.00
210. 5,694.01 through 5,720.00 269.00
211. 5,720.01 through 5,746.00 270.00
213. (Effective for Benefit Years Established on or after July 6, 1997)
215. Average Wages Paid in HighestWeekly Benefit
216. Two Quarters of Base Period Amount
217. $ 5,746.01 through $ 5,772.00 $271.00
218. 5,772.01 through 5,798.00 272.00
219. 5,798.01 through 5,824.00 273.00
220. 5,824.01 through 5,850.00 274.00
221. 5,850.01 through 5,876.00 275.00
222. 5,876.01 through 5,902.00 276.00
223. 5,902.01 through 5,928.00 277.00
224. 5,928.01 through 5,954.00 278.00
225. 5,954.01 through 5,980.00 279.00
226. 5,980.01 through 6,006.00 280.00
227. 6,006.01 through 6,032.00 281.00
228. 6,032.01 through 6,058.00 282.00
229. 6,058.01 through 6,084.00 283.00
230. 6,084.01 through 6,110.00 284.00
231. 6,110.01 through 6,136.00 285.00
232. 6,136.01 through 6,162.00 286.00
233. 6,162.01 through 6,188.00 287.00
234. 6,188.01 through 6,214.00 288.00
235. 6,214.01 through 6,240.00 289.00
236. 6,240.01 through 6,266.00 290.00
238. (Effective for Benefit Years Established on or after July 5, 1998)
240. Average Wages Paid in HighestWeekly Benefit
241. Two Quarters of Base Period Amount
242. $ 6,266.01 through $ 6,292.00 $291.00
243. 6,292.01 through 6,318.00 292.00
244. 6,318.01 through 6,344.00 293.00
245. 6,344.01 through 6,370.00 294.00
246. 6,370.01 through 6,396.00 295.00
247. 6,396.01 through 6,422.00 296.00
248. 6,422.01 through 6,448.00 297.00
249. 6,448.01 through 6,474.00 298.00
250. 6,474.01 through 6,500.00 299.00
251. 6,500.01 through 6,526.00 300.00
252. 6,526.01 through 6,552.00 301.00
253. 6,552.01 through 6,578.00 302.00
254. 6,578.01 through 6,604.00 303.00
255. 6,604.01 through 6,630.00 304.00
256. 6,630.01 through 6,656.00 305.00
258. (Effective for Benefit Years Established on or after August 5, 2001)
260. Average Wages Paid in HighestWeekly Benefit
261. Two Quarters of Base Period Amount
262. $ 6,656.01 through $ 6,682.00 $306.00
263. 6,682.01 through 6,708.00 307.00
264. 6,708.01 through 6,734.00 308.00
265. 6,734.01 through 6,760.00 309.00
266. 6,760.01 through 6,786.00 310.00
267. 6,786.01 through 6,812.00 311.00
268. 6,812.01 through 6,838.00 312.00
269. 6,838.01 through 6,864.00 313.00
270. 6,864.01 through 6,890.00 314.00
271. 6,890.01 through 6,916.00 315.00
272. 6,916.01 through 6,942.00 316.00
273. 6,942.01 through 6,968.00 317.00
274. 6,968.01 through 6,994.00 318.00
275. 6,994.01 through 7,020.00 319.00
276. 7,020.01 through 7,046.00 320.00
277. 7,046.01 through 7,072.00 321.00
278. 7,072.01 through 7,098.00 322.00
279. 7,098.01 through 7,124.00 323.00
280. 7,124.01 through 7,150.00 324.00
281. 7,150.01 and over 325.00
1 Backlink
- 50-7-302(a)(6)
(c) Weekly Benefit for Unemployment.
1. (1) Effective for weeks beginning July 6, 1997, and after, each eligible claimant who is unemployed in any week shall be paid with respect to the week a benefit in an amount equal to the claimant's weekly benefit amount, less that part of the wages, if any, payable to the claimant with respect to the week that is in excess of the greater of fifty dollars ($50.00) or twenty-five percent (25%) of the claimant's weekly benefit amount.
2. (2) However, no otherwise eligible claimant shall be denied benefits for any week that the claimant has received remuneration for services performed in the Tennessee national guard.
3. (3) The benefit, if not a multiple of one dollar ($1.00), shall be computed to the next lower multiple of one dollar ($1.00).
4. (4) Voluntary Withholding of Income Tax from Benefits.
  1. (A) An individual filing a new claim for benefits shall, at the time of filing the claim, be advised that:
    1. (i) Benefits are subject to federal, state and local income tax;
    2. (ii) Requirements exist pertaining to estimated tax payments;
    3. (iii) The individual may elect to have federal income tax deducted and withheld from the individual's payment of benefits at the amount specified in the Internal Revenue Code (26 U.S.C.); and
    4. (iv) The individual shall be permitted to change a previously elected withholding status.
  2. (B) Amounts deducted and withheld from benefits shall remain in the unemployment fund until transferred to the federal taxing authority as payment of income tax.
  3. (C) The administrator shall follow all procedures specified by the United States department of labor and the internal revenue service pertaining to the deducting and withholding of income tax.
  4. (D) Amounts shall be deducted and withheld under this section only after amounts are deducted and withheld for any overpayments of benefits, child support obligations, food stamp over-issuances or any other amounts required to be deducted and withheld under this chapter.
5. (5) If requested in writing by a claimant, the weekly benefit amount payable to the claimant shall be paid by direct deposit in an account at a financial institution selected by the claimant. With the written request, the claimant shall submit a void check which includes the bank routing numbers and the bank account number of the account selected by the claimant.
6. (6) If the benefits are paid by check:
  1. (A) The full nine-digit social security number of the claimant shall be omitted from the check and the check stub or other document included in the envelope which contains the check; however, the redacted last four (4) digits of the social security number shall be permitted; and
  2. (B) If the claimant files a written report that the check was not received by the claimant or if the check has been stolen and the claimant was not negligent or responsible for the check being stolen, the administrator shall reissue such check to the claimant within ninety (90) days of the date of the original check.
(d) Maximum Benefits.
1. (1) Beginning with those benefit years established on July 4, 1983, and ending November 30, 2023, a claimant is eligible during a benefit year to a total amount of benefits equal to whichever is the lesser of:
  1. (A) Twenty-six (26) times the claimant's weekly benefit amount; or
  2. (B) One-fourth (¼) of the claimant's wages for insured work paid.
2. (2) Beginning with those benefit years established on December 1, 2023, a claimant is eligible during a benefit year to a total amount of benefits:
  1. (A) Equal to:
    1. (i) Twelve (12) weeks, if the state average unemployment rate is at or below five and five-tenths percent (5.5%); and
    2. (ii) An additional week in addition to the twelve (12) weeks described in subdivision (d)(2)(A)(i) for each five-tenths percent (0.5%) increment in the state's average unemployment rate above five and five-tenths percent (5.5%); and
  2. (B) Up to a maximum of twenty (20) weeks if the state's average unemployment rate exceeds nine percent (9%).
  1 Backlink
  - 50-7-910(b)
3. (3)
  1. (A) The total amount of benefits, if not a multiple of one dollar ($1.00), must be computed at the next lower multiple of one dollar ($1.00).
  2. (B) A claimant is not entitled to benefits if the claimant's base period earnings are less than forty (40) times the claimant's weekly benefit amount.
  3. (C) A claimant is not entitled to benefits if the claimant's base period earnings, outside the claimant's highest calendar quarter of earnings, are less than the lesser of six (6) times the claimant's weekly benefit amount or nine hundred dollars ($900).
4. (4)
  1. (A) For purposes of subdivision (d)(2)(A), the department shall determine the state average unemployment rate biannually, and the rate must be equal to the seasonally adjusted unemployment rate, as published by the United States department of labor.
  2. (B) Notwithstanding subdivision (d)(2)(A), a claimant's maximum eligibility shall not be reduced or increased during a benefit year for a claim.
1 Backlink
- 50-7-302(a)(7)

§ 50-7-301. Benefit formula. [Effective until December 1, 2023. See the version effective on December 1, 2023.]

(a) Payments of Benefits. Benefits shall be payable from the fund in the manner provided by this section. All benefits shall be paid through employment offices in accordance with regulations the commissioner prescribes. Notwithstanding any other provision of this chapter to the contrary, any amount of unemployment compensation payable to any claimant for any weeks if not an even dollar amount, shall be rounded to the next lower full dollar amount.
1 Backlink
- 50-7-302(a)(3)
(b) Weekly Benefit Amount. An individual's weekly benefit amount shall be the amount appearing in column B in the Benefit Table corresponding to the line on which in column A of the Benefit Table there appears the average total wages for insured work paid to the individual in the two (2) calendar quarters in the individual's base period in which the total wages are highest. “Total wages for insured work,” as used in this section, is deemed to mean all remuneration paid to an employee in the base period by employers subject to this chapter.
1. BENEFIT TABLE
2. (Effective for benefit years established on and after July 5, 1992)
3. COLUMN A COLUMN B
4. Average Wages Paid in HighestWeekly Benefit
5. Two Quarters of Base Period Amount
7. $ 780.01 through $ 806.00$30.00
8. 806.01 through 832.00 31.00
9. 832.01 through 858.00 32.00
10. 858.01 through 884.00 33.00
11. 884.01 through 910.00 34.00
12. 910.01 through 936.00 35.00
13. 936.01 through 962.00 36.00
14. 962.01 through 988.00 37.00
15. 988.01 through 1,014.00 38.00
16. 1,014.01 through 1,040.00 39.00
17. 1,040.01 through 1,066.00 40.00
18. 1,066.01 through 1,092.00 41.00
19. 1,092.01 through 1,118.00 42.00
20. 1,118.01 through 1,144.00 43.00
21. 1,144.01 through 1,170.00 44.00
22. 1,170.01 through 1,196.00 45.00
23. 1,196.01 through 1,222.00 46.00
24. 1,222.01 through 1,248.00 47.00
25. 1,248.01 through 1,274.00 48.00
26. 1,274.01 through 1,300.00 49.00
27. 1,300.01 through 1,326.00 50.00
28. 1,326.01 through 1,352.00 51.00
29. 1,352.01 through 1,378.00 52.00
30. 1,378.01 through 1,404.00 53.00
31. 1,404.01 through 1,430.00 54.00
32. 1,430.01 through 1,456.00 55.00
33. 1,456.01 through 1,482.00 56.00
34. 1,482.01 through 1,508.00 57.00
35. 1,508.01 through 1,534.00 58.00
36. 1,534.01 through 1,560.00 59.00
37. 1,560.01 through 1,586.00 60.00
38. 1,586.01 through 1,612.00 61.00
39. 1,612.01 through 1,638.00 62.00
40. 1,638.01 through 1,664.00 63.00
41. 1,664.01 through 1,690.00 64.00
42. 1,690.01 through 1,716.00 65.00
43. 1,716.01 through 1,742.00 66.00
44. 1,742.01 through 1,768.00 67.00
45. 1,768.01 through 1,794.00 68.00
46. 1,794.01 through 1,820.00 69.00
47. 1,820.01 through 1,846.00 70.00
48. 1,846.01 through 1,872.00 71.00
49. 1,872.01 through 1,898.00 72.00
50. 1,898.01 through 1,924.00 73.00
51. 1,924.01 through 1,950.00 74.00
52. 1,950.01 through 1,976.00 75.00
53. 1,976.01 through 2,002.00 76.00
54. 2,002.01 through 2,028.00 77.00
55. 2,028.01 through 2,054.00 78.00
56. 2,054.01 through 2,080.00 79.00
57. 2,080.01 through 2,106.00 80.00
58. 2,106.01 through 2,132.00 81.00
59. 2,132.01 through 2,158.00 82.00
60. 2,158.01 through 2,184.00 83.00
61. 2,184.01 through 2,210.00 84.00
62. 2,210.01 through 2,236.00 85.00
63. 2,236.01 through 2,262.00 86.00
64. 2,262.01 through 2,288.00 87.00
65. 2,288.01 through 2,314.00 88.00
66. 2,314.01 through 2,340.00 89.00
67. 2,340.01 through 2,366.00 90.00
68. 2,366.01 through 2,392.00 91.00
69. 2,392.01 through 2,418.00 92.00
70. 2,418.01 through 2,444.00 93.00
71. 2,444.01 through 2,470.00 94.00
72. 2,470.01 through 2,496.00 95.00
73. 2,496.01 through 2,522.00 96.00
74. 2,522.01 through 2,548.00 97.00
75. 2,548.01 through 2,574.00 98.00
76. 2,574.01 through 2,600.00 99.00
77. 2,600.01 through 2,626.00100.00
78. 2,626.01 through 2,652.00101.00
79. 2,652.01 through 2,678.00102.00
80. 2,678.01 through 2,704.00103.00
81. 2,704.01 through 2,730.00104.00
82. 2,730.01 through 2,756.00105.00
83. 2,756.01 through 2,782.00106.00
84. 2,782.01 through 2,808.00107.00
85. 2,808.01 through 2,834.00108.00
86. 2,834.01 through 2,860.00109.00
87. 2,860.01 through 2,886.00110.00
88. 2,886.01 through 2,912.00111.00
89. 2,912.01 through 2,938.00112.00
90. 2,938.01 through 2,964.00113.00
91. 2,964.01 through 2,990.00114.00
92. 2,990.01 through 3,016.00115.00
93. 3,016.01 through 3,042.00116.00
94. 3,042.01 through 3,068.00117.00
95. 3,068.01 through 3,094.00118.00
96. 3,094.01 through 3,120.00119.00
97. 3,120.01 through 3,146.00120.00
98. 3,146.01 through 3,172.00121.00
99. 3,172.01 through 3,198.00122.00
100. 3,198.01 through 3,224.00123.00
101. 3,224.01 through 3,250.00124.00
102. 3,250.01 through 3,276.00125.00
103. 3,276.01 through 3,302.00126.00
104. 3,302.01 through 3,328.00127.00
105. 3,328.01 through 3,354.00128.00
106. 3,354.01 through 3,380.00129.00
107. 3,380.01 through 3,406.00130.00
108. 3,406.01 through 3,432.00131.00
109. 3,432.01 through 3,458.00132.00
110. 3,458.01 through 3,484.00133.00
111. 3,484.01 through 3,510.00134.00
112. 3,510.01 through 3,536.00135.00
113. 3,536.01 through 3,562.00136.00
114. 3,562.01 through 3,588.00137.00
115. 3,588.01 through 3,614.00138.00
116. 3,614.01 through 3,640.00139.00
117. 3,640.01 through 3,666.00140.00
118. 3,666.01 through 3,692.00141.00
119. 3,692.01 through 3,718.00142.00
120. 3,718.01 through 3,744.00143.00
121. 3,744.01 through 3,770.00144.00
122. 3,770.01 through 3,796.00145.00
123. 3,796.01 through 3,822.00146.00
124. 3,822.01 through 3,848.00147.00
125. 3,848.01 through 3,874.00148.00
126. 3,874.01 through 3,900.00149.00
127. 3,900.01 through 3,926.00150.00
128. 3,926.01 through 3,952.00151.00
129. 3,952.01 through 3,978.00152.00
130. 3,978.01 through 4,004.00153.00
131. 4,004.01 through 4,030.00154.00
132. 4,030.01 through 4,056.00155.00
133. 4,056.01 through 4,082.00156.00
134. 4,082.01 through 4,108.00157.00
135. 4,108.01 through 4,134.00158.00
136. 4,134.01 through 4,160.00159.00
137. 4,160.01 through 4,186.00160.00
138. 4,186.01 through 4,212.00161.00
139. 4,212.01 through 4,238.00162.00
140. 4,238.01 through 4,264.00163.00
141. 4,264.01 through 4,290.00164.00
142. 4,290.01 through 4,316.00165.00
143. 4,316.01 through 4,342.00166.00
144. 4,342.01 through 4,368.00167.00
145. 4,368.01 through 4,394.00168.00
146. 4,394.01 through 4,420.00169.00
148. (Effective for Benefit Years Established on or after July 4, 1993)
149. COLUMN A COLUMN B
150. Average Wages Paid in HighestWeekly Benefit
151. Two Quarters of Base Period Amount
152. $ 4,420.01 through $ 4,446.00$170.00
153. 4,446.01 through 4,472.00 171.00
154. 4,472.01 through 4,498.00 172.00
155. 4,498.01 through 4,524.00 173.00
156. 4,524.01 through 4,550.00 174.00
157. 4,550.01 through 4,576.00 175.00
158. 4,576.01 through 4,602.00 176.00
159. 4,602.01 through 4,628.00 177.00
160. 4,628.01 through 4,654.00 178.00
161. 4,654.01 through 4,680.00 179.00
162. 4,680.01 through 4,706.00 180.00
163. 4,706.01 through 4,732.00 181.00
164. 4,732.01 through 4,758.00 182.00
165. 4,758.01 through 4,784.00 183.00
166. 4,784.01 through 4,810.00 184.00
167. 4,810.01 through 4,836.00 185.00
169. (Effective for Benefit Years Established on or after July 3, 1994)
170. COLUMN A COLUMN B
171. Average Wages Paid in HighestWeekly Benefit
172. Two Quarters of Base Period Amount
173. $ 4,836.01 through $ 4,862.00$186.00
174. 4,862.01 through 4,888.00 187.00
175. 4,888.01 through 4,914.00 188.00
176. 4,914.01 through 4,940.00 189.00
177. 4,940.01 through 4,966.00 190.00
178. 4,966.01 through 4,992.00 191.00
179. 4,992.01 through 5,018.00 192.00
180. 5,018.01 through 5,044.00 193.00
181. 5,044.01 through 5,070.00 194.00
182. 5,070.01 through 5,096.00 195.00
183. 5,096.01 through 5,122.00 196.00
184. 5,122.01 through 5,148.00 197.00
185. 5,148.01 through 5,174.00 198.00
186. 5,174.01 through 5,200.00 199.00
188. (Effective for Benefit Years Established on or after July 7, 1996)
189. COLUMN A COLUMN B
190. Average Wages Paid in HighestWeekly Benefit
191. Two Quarters of Base Period Amount
192. $ 5,200.01 through $ 5,226.00$200.00
193. 5,226.01 through 5,252.00 201.00
194. 5,252.01 through 5,278.00 202.00
195. 5,278.01 through 5,304.00 203.00
196. 5,304.01 through 5,330.00 204.00
197. 5,330.01 through 5,356.00 205.00
198. 5,356.01 through 5,382.00 206.00
199. 5,382.01 through 5,408.00 207.00
200. 5,408.01 through 5,434.00 208.00
201. 5,434.01 through 5,460.00 209.00
202. 5,460.01 through 5,486.00 210.00
203. 5,486.01 through 5,512.00 211.00
204. 5,512.01 through 5,538.00 212.00
205. 5,538.01 through 5,564.00 213.00
206. 5,564.01 through 5,590.00 214.00
207. 5,590.01 through 5,616.00 215.00
208. 5,616.01 through 5,642.00 216.00
209. 5,642.01 through 5,668.00 217.00
210. 5,668.01 through 5,694.00 218.00
211. 5,694.01 through 5,720.00 219.00
212. 5,720.01 through 5,746.00 220.00
214. (Effective for Benefit Years Established on or after July 6, 1997)
215. COLUMN A COLUMN B
216. Average Wages Paid in HighestWeekly Benefit
217. Two Quarters of Base Period Amount
218. $ 5,746.01 through $ 5,772.00$221.00
219. 5,772.01 through 5,798.00 222.00
220. 5,798.01 through 5,824.00 223.00
221. 5,824.01 through 5,850.00 224.00
222. 5,850.01 through 5,876.00 225.00
223. 5,876.01 through 5,902.00 226.00
224. 5,902.01 through 5,928.00 227.00
225. 5,928.01 through 5,954.00 228.00
226. 5,954.01 through 5,980.00 229.00
227. 5,980.01 through 6,006.00 230.00
228. 6,006.01 through 6,032.00 231.00
229. 6,032.01 through 6,058.00 232.00
230. 6,058.01 through 6,084.00 233.00
231. 6,084.01 through 6,110.00 234.00
232. 6,110.01 through 6,136.00 235.00
233. 6,136.01 through 6,162.00 236.00
234. 6,162.01 through 6,188.00 237.00
235. 6,188.01 through 6,214.00 238.00
236. 6,214.01 through 6,240.00 239.00
237. 6,240.01 through 6,266.00 240.00
239. (Effective for Benefit Years Established on or after July 5, 1998)
240. COLUMN A COLUMN B
241. Average Wages Paid in HighestWeekly Benefit
242. Two Quarters of Base Period Amount
243. $ 6,266.01 through $ 6,292.00$241.00
244. 6,292.01 through 6,318.00 242.00
245. 6,318.01 through 6,344.00 243.00
246. 6,344.01 through 6,370.00 244.00
247. 6,370.01 through 6,396.00 245.00
248. 6,396.01 through 6,422.00 246.00
249. 6,422.01 through 6,448.00 247.00
250. 6,448.01 through 6,474.00 248.00
251. 6,474.01 through 6,500.00 249.00
252. 6,500.01 through 6,526.00 250.00
253. 6,526.01 through 6,552.00 251.00
254. 6,552.01 through 6,578.00 252.00
255. 6,578.01 through 6,604.00 253.00
256. 6,604.01 through 6,630.00 254.00
257. 6,630.01 through 6,656.00 255.00
259. (Effective for Benefit Years Established on or after August 5, 2001)
260. COLUMN A COLUMN B
261. Average Wages Paid in HighestWeekly Benefit
262. Two Quarters of Base Period Amount
263. $ 6,656.01 through $ 6,682.00$256.00
264. 6,682.01 through 6,708.00 257.00
265. 6,708.01 through 6,734.00 258.00
266. 6,734.01 through 6,760.00 259.00
267. 6,760.01 through 6,786.00 260.00
268. 6,786.01 through 6,812.00 261.00
269. 6,812.01 through 6,838.00 262.00
270. 6,838.01 through 6,864.00 263.00
271. 6,864.01 through 6,890.00 264.00
272. 6,890.01 through 6,916.00 265.00
273. 6,916.01 through 6,942.00 266.00
274. 6,942.01 through 6,968.00 267.00
275. 6,968.01 through 6,994.00 268.00
276. 6,994.01 through 7,020.00 269.00
277. 7,020.01 through 7,046.00 270.00
278. 7,046.01 through 7,072.00 271.00
279. 7,072.01 through 7,098.00 272.00
280. 7,098.01 through 7,124.00 273.00
281. 7,124.01 through 7,150.00 274.00
282. 7,150.01 and over 275.00
1 Backlink
- 50-7-302(a)(6)
(c) Weekly Benefit for Unemployment.
1. (1) Effective for weeks beginning July 6, 1997, and after, each eligible claimant who is unemployed in any week shall be paid with respect to the week a benefit in an amount equal to the claimant's weekly benefit amount, less that part of the wages, if any, payable to the claimant with respect to the week that is in excess of the greater of fifty dollars ($50.00) or twenty-five percent (25%) of the claimant's weekly benefit amount.
2. (2) However, no otherwise eligible claimant shall be denied benefits for any week that the claimant has received remuneration for services performed in the Tennessee national guard.
3. (3) The benefit, if not a multiple of one dollar ($1.00), shall be computed to the next lower multiple of one dollar ($1.00).
4. (4) Voluntary Withholding of Income Tax from Benefits.
  1. (A) An individual filing a new claim for benefits shall, at the time of filing the claim, be advised that:
    1. (i) Benefits are subject to federal, state and local income tax;
    2. (ii) Requirements exist pertaining to estimated tax payments;
    3. (iii) The individual may elect to have federal income tax deducted and withheld from the individual's payment of benefits at the amount specified in the Internal Revenue Code (26 U.S.C.); and
    4. (iv) The individual shall be permitted to change a previously elected withholding status.
  2. (B) Amounts deducted and withheld from benefits shall remain in the unemployment fund until transferred to the federal taxing authority as payment of income tax.
  3. (C) The administrator shall follow all procedures specified by the United States department of labor and the internal revenue service pertaining to the deducting and withholding of income tax.
  4. (D) Amounts shall be deducted and withheld under this section only after amounts are deducted and withheld for any overpayments of benefits, child support obligations, food stamp over-issuances or any other amounts required to be deducted and withheld under this chapter.
5. (5) If requested in writing by a claimant, the weekly benefit amount payable to the claimant shall be paid by direct deposit in an account at a financial institution selected by the claimant. With the written request, the claimant shall submit a void check which includes the bank routing numbers and the bank account number of the account selected by the claimant.
6. (6) If the benefits are paid by check:
  1. (A) The full nine-digit social security number of the claimant shall be omitted from the check and the check stub or other document included in the envelope which contains the check; however, the redacted last four (4) digits of the social security number shall be permitted; and
  2. (B) If the claimant files a written report that the check was not received by the claimant or if the check has been stolen and the claimant was not negligent or responsible for the check being stolen, the administrator shall reissue such check to the claimant within ninety (90) days of the date of the original check.
(d) Maximum Benefits.
1. (1) Beginning with those benefit years established on July 4, 1983, any otherwise eligible claimant shall be entitled during any benefit year to a total amount of benefits equal to whichever is the lesser of:
  1. (A) Twenty-six (26) times the claimant's weekly benefit amount; or
  2. (B) One-fourth (¼) of the claimant's wages for insured work paid during the claimant's base period.
2. (2) The total amount of benefits, if not a multiple of one dollar ($1.00), shall be computed at the next lower multiple of one dollar ($1.00).
  1 Backlink
  - 50-7-910(b)
3. (3) No claimant will be entitled to benefits if the claimant's base period earnings are less than forty (40) times the claimant's weekly benefit amount.
4. (4) No claimant will be entitled to benefits if the claimant's base period earnings, outside the claimant's highest calendar quarter of earnings, are less than the lesser of six (6) times the claimant's weekly benefit amount or nine hundred dollars ($900).
1 Backlink
- 50-7-302(a)(7)

§ 50-7-302. Benefit eligibility conditions. [Effective on July 1, 2024. See the version effective until July 1, 2024.]

(a) Personal Eligibility Conditions. An unemployed claimant shall be eligible to receive benefits with respect to any week only if the administrator finds that all of the following conditions are met:
1. (1) The claimant has made a claim for benefits with respect to the week in accordance with rules or regulations the commissioner prescribes;
2. (2) The claimant has furnished to the division of employment security the claimant's social security account number, or numbers, if the claimant has more than one (1) social security account number;
3. (3) The claimant has registered for work, and thereafter continued to report, at an employment office as prescribed by the administrator, except that the administrator may waive or alter either or both of the requirements of this subdivision (a)(3) as to individuals attached to regular jobs and as to such other types of cases or situations with respect to which the administrator finds that compliance with the requirements would be oppressive, or would be inconsistent with the purposes of this chapter; provided, that no prescription, waiver or alteration shall conflict with § 50-7-301(a);
4. (4)
  1. (A) The claimant is able to work, available for work, and making a reasonable effort to secure work. As used in this subdivision (a)(4)(A), “making a reasonable effort to secure work” means the claimant provides detailed information regarding at least four (4) work search activities per week;
  2. (B) The following actions are acceptable work search activities that count toward the requirement of subdivision (a)(4)(A) that a claimant is making a reasonable effort to secure work:
    1. (i) A department-approved job search or skills assessment;
    2. (ii) Completion of a department-approved job search plan;
    3. (iii) Participating in an on-the-job training opportunity;
    4. (iv) Taking a civil service exam;
    5. (v) Developing a complete resume in the state's employment service system;
    6. (vi) Submitting a resume to an employer;
    7. (vii) Completing and submitting a job application to an employer;
    8. (viii) Attending and completing an interview with an employer;
    9. (ix) Attending a job fair; or
    10. (x) Completing a skills test assigned by an employer as part of an interview process;
  3. (C)
    1. (i) The administrator shall:
      1. (a) Verify whether claimants are complying with the requirement of at least four (4) work search activities per week; and
      2. (b) Disqualify any claimant receiving benefits who the administrator finds has provided false work search information; and
    2. (ii) In determining whether the claimant is making a reasonable effort to secure work, the administrator shall consider the customary methods of obtaining work in the claimant's usual occupation or occupation for which the claimant is reasonably qualified, the current condition of the labor market, and any attachment the claimant may have to a regular job;
  4. (D) A claimant shall not be considered ineligible in any week of unemployment for failure to comply with this subsection (a) if the failure is due to an illness or disability that occurred after the claimant has registered for work, and no work that would have been considered suitable at the time of the claimant's initial registration has been offered after the beginning of the illness or disability. The administrator may, however, in the administrator's discretion, require the claimant to obtain and submit a certificate by a duly licensed physician as to the illness or disability with respect to each week that the illness or disability exists;
  5. (E) An otherwise eligible claimant must not be denied benefits for any week because the claimant is in training with the approval of the administrator, nor may the claimant be denied benefits with respect to any week in which the claimant is in training with the approval of the administrator by reason of the application of this subsection (a) relating to availability for work, or of § 50-7-303(a)(3) relating to failure to apply for, or refusal to accept, suitable work;
  6. (F) The unemployment of a claimant for any week or any portion of a week, caused by a plant, departmental, or other type of shutdown for vacation purposes, must not be the basis for a denial of benefits for the week, or portion of a week, if the claimant has not or will not receive any vacation pay from the claimant's employer for the period, when so found by the administrator;
  7. (G) An otherwise eligible claimant must not be denied benefits by reason of the application of this subsection (a) who, subsequent to the claimant's enrollment in and while attending a regularly established school, college, or university, has been regularly employed and becomes unemployed and makes the claimant available for all suitable work, as determined by the administrator, to the same extent that the claimant was previously employed while continuing to attend and be enrolled in the regularly established school, college, or university; provided, that if the claimant is offered the same job that the claimant previously held immediately prior to entering the school and refuses the job, then the claimant is ineligible for the benefits provided by this chapter if the job meets the standards set forth in § 50-7-303(a)(3)(A) and (B) as required by applicable federal law;
  8. (H) This subsection (a) or any other provision of law must not be construed to deny unemployment benefits to any claimant who is a veteran enrolled in school under the Veterans' Educational Assistance Program, commonly known as the “G.I. Bill” (38 U.S.C. § 1650 et seq.), solely because of the claimant's enrollment and attendance in school, if the claimant is otherwise eligible for the benefits, except that if the claimant is offered the same job that the claimant previously held immediately prior to entering the school and refuses the job, then the claimant shall become ineligible for benefits as provided by § 50-7-303(a)(3) if the job meets the standards set forth in § 50-7-303(a)(3)(A) and (B) as required by applicable federal law; and
  9. (I) A claimant is ineligible for benefits if the claimant is incarcerated four (4) or more days in any week for which unemployment benefits are being claimed;
5. (5)
  1. (A) The claimant has been unemployed for a waiting period of one (1) week. For the purpose of this subsection (a), one (1) week of part total or partial unemployment or other forms of short time work shall be deemed one (1) week of unemployment. No week shall be counted as a week of unemployment for the purposes of this subsection (a), unless:
    1. (i) It occurs within the benefit year that includes the week with respect to which the claimant claims payment of benefits;
    2. (ii) No benefits have been paid with respect to the week to which the claimant claims payment of benefits; and
    3. (iii) The claimant was eligible for benefits with respect to the week to which the claimant claims payment of benefits as provided in § 50-7-303 and this section, except for the requirements of this subsection (a);
  2. (B) Benefits shall be payable to a claimant for the waiting period, provided the claimant has made a claim for benefits and is determined to be eligible and certified for benefits in the waiting period and in each of the three (3) consecutive weeks immediately following the waiting period;
  3. (C) [Repealed effective July 1, 2022.]
6. (6) The claimant has satisfied the wages requirements of § 50-7-301(b);
7. (7) The claimant has satisfied the requirements of § 50-7-301(d); and
8. (8) The claimant participates in reemployment services, such as job search assistance services, if the claimant has been determined to be likely to exhaust regular benefits and to need reemployment services pursuant to a profiling system established by the administrator, unless the administrator determines that:
  1. (A) The claimant has completed the services; or
  2. (B) There is justifiable cause for the claimant's failure to participate in the services.
(b) Special Rules. The following special rules shall apply in the circumstances indicated:
1. (1) If the qualifying base period wages of the claimant's current benefit year include wages paid prior to the establishment of a previous benefit year, the claimant shall not be eligible for any benefits under this chapter unless the claimant has been paid wages for insured work performed after the establishment of the previous benefit year equal to at least five (5) times the claimant's weekly benefit amount in the claimant's preceding benefit year;
  1 Backlink
  - 50-7-217(c)
2. (2) Benefits based on service after December 31, 1977, in employment defined in § 50-7-207(b)(3) and (c)(5) shall be payable in the same amount, on the same terms and subject to the same conditions as benefits payable on the basis of other service subject to this chapter; provided, that:
  1. (A) With respect to services performed in an instructional, research or principal administrative capacity for an educational institution, benefits shall not be paid based on the services for any week of unemployment commencing during the period between two (2) successive academic years or terms, or, when an agreement provides instead for a similar period between two (2) regular but not successive terms, during that period, or during a period of paid sabbatical leave provided for in the claimant's contract, to any claimant if the claimant performs the services in the first of the academic years or terms, or if there is a contract or a reasonable assurance that the claimant will perform services in that capacity for any educational institution in the second of the academic years or terms;
  2. (B) With respect to services performed in any other capacity for an educational institution:
    1. (i) Benefits shall not be paid on the basis of the services to any individual for any week that commences during a period between two (2) successive academic years or terms, if the individual performs the services in the first of the academic years or terms and there is a reasonable assurance that the individual will perform the services in the second of the academic years or terms, except that;
    2. (ii) If compensation is denied to any claimant for any week under subdivision (b)(2)(B)(i) and the claimant was not offered an opportunity to perform the services for any educational institution for the second of the academic years or terms, the claimant shall be entitled to a retroactive payment of compensation for each week for which the claimant filed a timely claim for compensation and for which compensation was denied solely by reason of subdivision (b)(2)(B)(i);
  3. (C) With respect to weeks of unemployment beginning after December 31, 1977, benefits shall be denied to any claimant for any week that commences during an established and customary vacation period or holiday recess that has been predetermined as part of a school calendar prior to the beginning of each fiscal year if the claimant performs any services described in subdivision (b)(2)(A) or (b)(2)(B) in the period immediately before the vacation period or holiday recess, and there is a reasonable assurance that the claimant will perform any such services in the period immediately following the vacation period or holiday recess;
  4. (D) With respect to services performed for any educational institution, benefits shall not be payable on the basis of services in the capacities specified in subdivision (b)(2)(A), (b)(2)(B) or (b)(2)(C) to an individual who performed the services in an educational institution while in the employ of an educational service agency, and for this purpose “educational service agency” means a governmental entity that is established and operated exclusively for the purpose of providing the services to one (1) or more educational institutions; and
  5. (E) With respect to services performed for an educational institution, benefits shall not be payable on the basis of services in any such capacities as specified in subdivision (b)(2)(A), (b)(2)(B), or (b)(2)(C) to an individual who provided such services to or on behalf of an educational institution;
3. (3) Benefits shall not be paid to any claimant on the basis of any services, substantially all of which consist of participating in sports or athletic events or training or preparing to so participate, for any week that commences during the period between two (2) successive sport seasons, or similar periods, if the claimant performed the services in the first of the seasons, or similar periods, and there is a reasonable assurance that the claimant will perform the services in the later of the seasons, or similar periods; and
4. (4)
  1. (A) Benefits shall not be payable on the basis of services performed by an alien unless the alien is an individual who was lawfully admitted for permanent residence at the time the services were performed, was lawfully present for the purposes of performing the services, or was permanently residing in the United States under color of law at the time the services were performed, including an alien who was lawfully present in the United States as the result of the application of the Immigration and Nationality Act, § 203(a)(7) or § 212(d)(5) (8 U.S.C. §§ 1153(a)(7) [deleted by amendment] and 1182(d)(5), respectively);
  2. (B) Any data or information required of claimants applying for benefits to determine whether benefits are not payable to them because of their alien status shall be uniformly required from all claimants applying for benefits;
  3. (C) In the case of a claimant whose application for benefits would otherwise be approved, no determination that benefits to the claimant are not payable because of the claimant's alien status shall be made except upon a preponderance of the evidence.
(c) Partial Unemployment Claims. A penalty in the amount of fifty dollars ($50.00) may be assessed against any employer for failure to file partial claims required by regulations and within the time limits required by regulations for individuals having regular jobs with the employers, but who have sustained underemployment as defined in the regulations. In the event the commissioner finds that the employer had good cause for failure to comply with the regulations, this penalty may be waived.

§ 50-7-302. Benefit eligibility conditions. [Effective until July 1, 2024. See the version effective on July 1, 2024.]

(a) Personal Eligibility Conditions. An unemployed claimant shall be eligible to receive benefits with respect to any week only if the administrator finds that all of the following conditions are met:
1. (1) The claimant has made a claim for benefits with respect to the week in accordance with rules or regulations the commissioner prescribes;
2. (2) The claimant has furnished to the division of employment security the claimant's social security account number, or numbers, if the claimant has more than one (1) social security account number;
3. (3) The claimant has registered for work, and thereafter continued to report, at an employment office as prescribed by the administrator, except that the administrator may waive or alter either or both of the requirements of this subdivision (a)(3) as to individuals attached to regular jobs and as to such other types of cases or situations with respect to which the administrator finds that compliance with the requirements would be oppressive, or would be inconsistent with the purposes of this chapter; provided, that no prescription, waiver or alteration shall conflict with § 50-7-301(a);
4. (4) The claimant is able to work, available for work, and making a reasonable effort to secure work. “Making a reasonable effort to secure work” means the claimant shall provide detailed information regarding contact with at least three (3) employers per week or shall access services at a career center created by the department. The administrator shall verify whether claimants are complying with the requirement of contacting at least three (3) employers per week or accessing services at a career center. The administrator shall disqualify any claimant receiving benefits who the administrator finds has provided false work search information. In determining whether the claimant is making a reasonable effort to secure work, the administrator shall consider the customary methods of obtaining work in the claimant's usual occupation or occupation for which the claimant is reasonably qualified, the current condition of the labor market, and any attachment the claimant may have to a regular job;
  1. (A) No claimant shall be considered ineligible in any week of unemployment for failure to comply with this subsection (a) if the failure is due to an illness or disability that occurred after the claimant has registered for work, and no work that would have been considered suitable at the time of the claimant's initial registration has been offered after the beginning of the illness or disability. The administrator may, however, in the administrator's discretion, require the claimant to obtain and submit a certificate by a duly licensed physician as to the illness or disability with respect to each week that the illness or disability exists;
  2. (B) No otherwise eligible claimant shall be denied benefits for any week because the claimant is in training with the approval of the administrator, nor shall the claimant be denied benefits with respect to any week in which the claimant is in training with the approval of the administrator by reason of the application of this subsection (a) relating to availability for work, or of § 50-7-303(a)(3) relating to failure to apply for, or refusal to accept, suitable work;
  3. (C) The unemployment of a claimant for any week or any portion of a week, caused by a plant, departmental or other type of shutdown for vacation purposes shall not be the basis for a denial of benefits for the week, or portion of a week, if the claimant has not or will not receive any vacation pay from the claimant's employer for the period, when so found by the administrator;
  4. (D) No otherwise eligible claimant shall be denied benefits by reason of the application of this subsection (a) who subsequent to the claimant's enrollment in and while attending a regularly established school, college or university, has been regularly employed and becomes unemployed and makes the claimant available for all suitable work, as determined by the administrator, to the same extent that the claimant was previously employed while continuing to attend and be enrolled in the regularly established school, college or university, but if the claimant is offered the same job that the claimant previously held immediately prior to entering the school and refuses the job, then the claimant shall become ineligible for the benefits provided by this chapter if the job meets the standards set forth in § 50-7-303(a)(3)(A) and (B) as required by applicable federal law;
  5. (E) No provision of this subsection (a) or any other provision of law shall be construed to deny unemployment benefits to any claimant who is a veteran enrolled in school under the Veterans' Educational Assistance Program, commonly known as the “G.I. Bill” (38 U.S.C. § 1650 et seq.), solely because of the claimant's enrollment and attendance in school, if the claimant is otherwise eligible for the benefits, except that if the claimant is offered the same job that the claimant previously held immediately prior to entering the school and refuses the job, then the claimant shall become ineligible for benefits as provided by § 50-7-303(a)(3) if the job meets the standards set forth in § 50-7-303(a)(3)(A) and (B) as required by applicable federal law; and
  6. (F) A claimant shall be considered ineligible for benefits if the claimant is incarcerated four (4) or more days in any week for which unemployment benefits are being claimed;
5. (5)
  1. (A) The claimant has been unemployed for a waiting period of one (1) week. For the purpose of this subsection (a), one (1) week of part total or partial unemployment or other forms of short time work shall be deemed one (1) week of unemployment. No week shall be counted as a week of unemployment for the purposes of this subsection (a), unless:
    1. (i) It occurs within the benefit year that includes the week with respect to which the claimant claims payment of benefits;
    2. (ii) No benefits have been paid with respect to the week to which the claimant claims payment of benefits; and
    3. (iii) The claimant was eligible for benefits with respect to the week to which the claimant claims payment of benefits as provided in § 50-7-303 and this section, except for the requirements of this subsection (a);
  2. (B) Benefits shall be payable to a claimant for the waiting period, provided the claimant has made a claim for benefits and is determined to be eligible and certified for benefits in the waiting period and in each of the three (3) consecutive weeks immediately following the waiting period;
  3. (C) [Repealed effective July 1, 2022.]
6. (6) The claimant has satisfied the wages requirements of § 50-7-301(b);
7. (7) The claimant has satisfied the requirements of § 50-7-301(d); and
8. (8) The claimant participates in reemployment services, such as job search assistance services, if the claimant has been determined to be likely to exhaust regular benefits and to need reemployment services pursuant to a profiling system established by the administrator, unless the administrator determines that:
  1. (A) The claimant has completed the services; or
  2. (B) There is justifiable cause for the claimant's failure to participate in the services.
(b) Special Rules. The following special rules shall apply in the circumstances indicated:
1. (1) If the qualifying base period wages of the claimant's current benefit year include wages paid prior to the establishment of a previous benefit year, the claimant shall not be eligible for any benefits under this chapter unless the claimant has been paid wages for insured work performed after the establishment of the previous benefit year equal to at least five (5) times the claimant's weekly benefit amount in the claimant's preceding benefit year;
  1 Backlink
  - 50-7-217(c)
2. (2) Benefits based on service after December 31, 1977, in employment defined in § 50-7-207(b)(3) and (c)(5) shall be payable in the same amount, on the same terms and subject to the same conditions as benefits payable on the basis of other service subject to this chapter; provided, that:
  1. (A) With respect to services performed in an instructional, research or principal administrative capacity for an educational institution, benefits shall not be paid based on the services for any week of unemployment commencing during the period between two (2) successive academic years or terms, or, when an agreement provides instead for a similar period between two (2) regular but not successive terms, during that period, or during a period of paid sabbatical leave provided for in the claimant's contract, to any claimant if the claimant performs the services in the first of the academic years or terms, or if there is a contract or a reasonable assurance that the claimant will perform services in that capacity for any educational institution in the second of the academic years or terms;
  2. (B) With respect to services performed in any other capacity for an educational institution:
    1. (i) Benefits shall not be paid on the basis of the services to any individual for any week that commences during a period between two (2) successive academic years or terms, if the individual performs the services in the first of the academic years or terms and there is a reasonable assurance that the individual will perform the services in the second of the academic years or terms, except that;
    2. (ii) If compensation is denied to any claimant for any week under subdivision (b)(2)(B)(i) and the claimant was not offered an opportunity to perform the services for any educational institution for the second of the academic years or terms, the claimant shall be entitled to a retroactive payment of compensation for each week for which the claimant filed a timely claim for compensation and for which compensation was denied solely by reason of subdivision (b)(2)(B)(i);
  3. (C) With respect to weeks of unemployment beginning after December 31, 1977, benefits shall be denied to any claimant for any week that commences during an established and customary vacation period or holiday recess that has been predetermined as part of a school calendar prior to the beginning of each fiscal year if the claimant performs any services described in subdivision (b)(2)(A) or (b)(2)(B) in the period immediately before the vacation period or holiday recess, and there is a reasonable assurance that the claimant will perform any such services in the period immediately following the vacation period or holiday recess;
  4. (D) With respect to services performed for any educational institution, benefits shall not be payable on the basis of services in the capacities specified in subdivision (b)(2)(A), (b)(2)(B) or (b)(2)(C) to an individual who performed the services in an educational institution while in the employ of an educational service agency, and for this purpose “educational service agency” means a governmental entity that is established and operated exclusively for the purpose of providing the services to one (1) or more educational institutions; and
  5. (E) With respect to services performed for an educational institution, benefits shall not be payable on the basis of services in any such capacities as specified in subdivision (b)(2)(A), (b)(2)(B), or (b)(2)(C) to an individual who provided such services to or on behalf of an educational institution;
3. (3) Benefits shall not be paid to any claimant on the basis of any services, substantially all of which consist of participating in sports or athletic events or training or preparing to so participate, for any week that commences during the period between two (2) successive sport seasons, or similar periods, if the claimant performed the services in the first of the seasons, or similar periods, and there is a reasonable assurance that the claimant will perform the services in the later of the seasons, or similar periods; and
4. (4)
  1. (A) Benefits shall not be payable on the basis of services performed by an alien unless the alien is an individual who was lawfully admitted for permanent residence at the time the services were performed, was lawfully present for the purposes of performing the services, or was permanently residing in the United States under color of law at the time the services were performed, including an alien who was lawfully present in the United States as the result of the application of the Immigration and Nationality Act, § 203(a)(7) or § 212(d)(5) (8 U.S.C. §§ 1153(a)(7) [deleted by amendment] and 1182(d)(5), respectively);
  2. (B) Any data or information required of claimants applying for benefits to determine whether benefits are not payable to them because of their alien status shall be uniformly required from all claimants applying for benefits;
  3. (C) In the case of a claimant whose application for benefits would otherwise be approved, no determination that benefits to the claimant are not payable because of the claimant's alien status shall be made except upon a preponderance of the evidence.
(c) Partial Unemployment Claims. A penalty in the amount of fifty dollars ($50.00) may be assessed against any employer for failure to file partial claims required by regulations and within the time limits required by regulations for individuals having regular jobs with the employers, but who have sustained underemployment as defined in the regulations. In the event the commissioner finds that the employer had good cause for failure to comply with the regulations, this penalty may be waived.

§ 50-7-303. Disqualification for benefits. [Effective on July 1, 2024. See the version effective until July 1, 2024.]

(a) Disqualifying Events. A claimant shall be disqualified for benefits:
1. (1)
  1. (A)
    1. (i) If the administrator finds that the claimant has left the claimant's most recent work voluntarily without good cause connected with the claimant's work. Except as otherwise provided in subdivision (a)(1)(A)(ii)(b), the disqualification shall be for the duration of the ensuing period of unemployment and until the claimant has secured subsequent employment covered by the unemployment compensation law of this state, another state, or the United States, and was paid wages by the subsequent employment ten (10) times the claimant's weekly benefit amount. This disqualification shall not apply to a claimant who left the claimant's work in good faith to join the armed forces of the United States;
    2. (ii)
      1. (a) A claimant who has left the claimant's most recent work due to sickness, disability, or pregnancy shall be considered to have left voluntarily without good cause for purposes of disqualification under subdivision (a)(1)(A)(i);
      2. (b) Notwithstanding subdivision (a)(1)(A)(ii)(a), a claimant who has left the claimant's most recent work due to sickness, disability, or pregnancy shall become eligible for unemployment compensation upon providing proof satisfactory to the administrator that the claimant:
        
        (1) Was forced to leave the claimant's most recent work because the claimant was sick, disabled, or pregnant and such evidence is supported by competent medical proof;
        
        (2) Provided written notification to the claimant's most recent employer that the claimant was forced to leave as described in this subdivision (a)(1)(A)(ii) as soon as it was reasonably practical to do so;
        
        (3) Was able to return to the claimant's most recent work, and such evidence is supported by competent medical proof;
        
        (4) Returned to the claimant's most recent work and offered to work and perform the claimant's former duties once the claimant was able, and the employer did not reemploy the claimant; and
        
        (5) Is otherwise eligible to receive benefits under this chapter;
    3. (iii) Nothing in subdivision (a)(1)(A)(ii) shall entitle a claimant, retroactively or otherwise, to receive benefits for the period in which a claimant is unable to work;
    1 Backlink
    
    14-3-101(a)
  2. (B) The disqualification provided in subdivision (a)(1)(A) shall not apply to a claimant who left employment because the claimant’s spouse is a member of the armed services of the United States, the spouse is the subject of a military transfer, and the claimant left employment to accompany the claimant’s spouse; provided, however, that any benefits payable under this subdivision (a)(1)(B) shall be paid from the state’s general revenue funds and the payment of any such benefits shall not adversely affect the employer’s experience rating for purposes of determining premiums;
  3. (C) The disqualification provided in subdivision (a)(1)(A) does not apply to a claimant who left employment because the claimant's employer required its employees to receive a COVID-19 vaccine, as defined in § 14-1-101, and the claimant failed or refused to receive the immunization or vaccination;
  1 Backlink
  - 50-7-403(d)(1)(B)(i)
2. (2)
  1. (A) If the administrator finds that a claimant has been discharged from the claimant's most recent work for misconduct connected with the claimant's work, the disqualification shall be for the duration of the ensuing period of unemployment and until the claimant has secured subsequent employment covered by an unemployment compensation law of this state, another state, or the United States, and was paid wages by the subsequent employment ten (10) times the claimant's weekly benefit amount;
  2. (B)
    1. (i) A discharge resulting from a positive result from a drug test for drugs administered in conformity with chapter 9 of this title shall be deemed to be a discharge for misconduct connected with the claimant's work;
    2. (ii) A discharge resulting from an alcohol test administered in conformity with chapter 9 of this title, where the claimant's blood alcohol concentration level is equal to or greater than ten-hundredths of one percent (0.10%) by weight for non-safety-sensitive positions, and four-hundredths of one percent (0.04%), as determined by blood or breath testing, for safety-sensitive positions, shall be deemed to be a discharge for misconduct connected with work;
    3. (iii) A discharge resulting from a refusal to take a drug test or an alcohol test authorized by chapter 9 of this title shall be deemed to be a discharge for misconduct connected with work where it is based upon substantial and material evidence of the employee's refusal;
    4. (iv) As regards an injured employee, refusal shall not be presumed from failure to take the test during a period of approved medical leave;
  3. (C) A discharge shall be deemed to be a discharge for misconduct connected with the claimant's work when it results after a claimant entered into a written agreement with an employer to obtain a license or certification by a specified date as a condition of employment and subsequently the claimant willfully fails without good cause to obtain such license or certification by the specified date;
3. (3)
  1. (A) If the administrator finds that the claimant has failed without good cause either to apply for available, suitable work, when so directed by the employment office or the administrator, or to accept suitable work when offered, or to return to the claimant's customary self-employment, if any, when so directed by the administrator. The disqualification shall continue for the week in which the failure occurred, and for the duration of the ensuing period of unemployment and until the claimant has secured subsequent employment covered by an unemployment compensation law of this state, another state, or the United States, and was paid wages by the subsequent employment ten (10) times the claimant's weekly benefit amount. In determining whether or not any work is suitable for a claimant, the administrator shall consider the degree of risk involved to the claimant's health, safety and morals, the claimant's physical fitness and prior training, the claimant's experience and prior earnings, the claimant's length of unemployment and prospects for securing local work in the claimant's customary occupation, and the distance of the available work from the claimant's residence. Work is suitable if the work meets all the other criteria of this subdivision (a)(3) and if the gross weekly wages for the work equal or exceed the following percentages of the claimant's average weekly wage for insured work paid to the claimant during that quarter of the claimant's base period in which the claimant's wages were highest:
    1. (i) One hundred percent (100%), if the work is offered during the first thirteen (13) weeks of unemployment;
    2. (ii) Seventy-five percent (75%), if the work is offered during the fourteenth through the twenty-fifth week of unemployment;
    3. (iii) Seventy percent (70%), if the work is offered during the twenty-sixth through the thirty-eighth week of unemployment; and
    4. (iv) Sixty-five percent (65%), if the work is offered after the thirty-eighth week of unemployment. This subdivision (a)(3) shall not be construed as requiring a claimant to accept employment below the federal minimum wage;
    4 Backlinks
    
    50-7-302(a)(4)(G)
    50-7-302(a)(4)(H)
    50-7-302(a)(4)(D)
    50-7-302(a)(4)(E)
  2. (B) Notwithstanding any other provisions of this chapter, no work shall be deemed suitable and benefits shall not be denied under this section to any otherwise eligible claimant for refusing to accept new work under any of the following conditions:
    1. (i) If the position offered is vacant due directly to a strike, lockout or other labor dispute;
    2. (ii) If the wages, hours or other conditions of the work offered are substantially less favorable to the claimant than those prevailing for similar work in the locality; or
    3. (iii) If, as a condition of being employed, the claimant would be required to join a company union or to resign from or refrain from joining any bona fide labor organization;
    1 Backlink
    
    50-7-305(d)(5)
  3. (C)
    1. (i) A claimant who fails to appear for a scheduled job interview is non-compliant with the work search requirements of the unemployment insurance program. A claimant is disqualified for the week the failure occurred; and
    2. (ii) The department shall:
      1. (a) Establish a portal on its website, and an email and telephone hotline, for employers to report an unemployment insurance claimant who fails to appear for a scheduled job interview; and
      2. (b) Communicate annually with employers in this state that participate in the unemployment insurance program of the employer's right to use the portal to report suspected unemployment insurance program violations;
  5 Backlinks
4. (4)
  1. (A) For any week with respect to which the administrator finds that the claimant's total or partial unemployment is due to a labor dispute, other than a lockout that is in active progress at the factory, establishment or other premises at which the claimant is or was last employed; provided, that this subdivision (a)(4) shall not apply if it is shown to the satisfaction of the administrator that:
    1. (i) The claimant is not participating in the labor dispute that caused the claimant's total or partial unemployment;
    2. (ii) The claimant does not belong to a grade or class of workers of which immediately before the commencement of the labor dispute there were members employed at the premises at which the labor dispute occurs, any of whom are participating in the dispute; and
    3. (iii) The claimant was indefinitely separated from employment prior to the labor dispute and is otherwise eligible for benefits. Subdivision (a)(4)(A)(ii) notwithstanding, persons who were separated before the commencement of the labor dispute, and who were eligible for benefits as a result of the separation, shall continue to be eligible for benefits as long as they do not participate in the labor dispute and remain otherwise eligible. For purposes of this subdivision (a)(4)(A)(iii), an “indefinite separation” means that the relationship between the employee and employer has been severed without a reasonably definite recall date;
  2. (B) If, in any case, separate branches of work that are commonly conducted as separate businesses in separate premises are conducted in separate departments of the same premises, each department shall, for the purposes of this subsection (a), be deemed to be a separate factory, establishment or other premises;
  3. (C) Disqualification imposed by this subdivision (a)(4) shall be for the duration of the labor dispute or until the claimant has secured employment covered by an unemployment compensation law of this state, another state, or the United States, and was paid by subsequent employment ten (10) times the claimant's weekly benefit amount. The subsequent employment must meet the definition of “most recent work” as set forth in subsection (b);
  1 Backlink
  - 50-7-304(b)(1)(B)
5. (5) For any week with respect to which the claimant is receiving, or has received, remuneration in the form of compensation for temporary partial disability under the workers' compensation law of any state or under a similar law of the United States;
6. (6)
  1. (A) For any week with respect to which, or a part of which the claimant has received, or is seeking, unemployment benefits under an unemployment compensation law of another state or of the United States; however, if the appropriate agency of the other state or of the United States finally determines that the claimant is not entitled to the unemployment benefits, this disqualification shall not apply. The disqualification imposed by this subdivision (a)(6)(A) shall not apply to any claimant who is seeking or who has received benefits provided for by the Veterans' Readjustment Assistance Act of 1952, Act of July 16, 1952, ch. 875, 66 Stat. 663 [repealed], and any payments previously made by the division of employment security to a claimant who was seeking or received simultaneous benefits under the Veterans' Readjustment Assistance Act of 1952 [repealed] are validated;
  2. (B) In addition, a claimant shall be disqualified from obtaining the advantage of a waiting period for any week with respect to which, or a part of which, the claimant has received, or is seeking, unemployment benefits under an unemployment compensation law of another state or of the United States; however, if the appropriate agency of the other state or of the United States finally determines that the claimant is not entitled to the unemployment benefits, this disqualification shall not apply. The disqualification imposed by this subdivision (a)(6)(B) shall not apply to any claimant who is seeking or who has received benefits provided for by the Veterans' Readjustment Assistance Act of 1952 [repealed];
7. (7) For the week or weeks in which the administrator finds that the claimant has made any false or fraudulent representation or intentionally withheld material information for the purpose of obtaining benefits contrary to this chapter and for not less than four (4) nor more than the fifty-two (52) next following weeks, beginning with the week following the week in which the findings were made, as determined by the administrator in each case according to the seriousness of the facts. In addition, the claimant shall remain disqualified from future benefits so long as any portion of the overpayment or interest on the overpayment is still outstanding. In the event an overpayment of benefits results from the application of this disqualifying provision, the overpayment of benefits shall not be chargeable to any employer's account for experience rating purposes;
8. (8)
  1. (A) For any week with respect to which a claimant is receiving or is entitled to receive a pension, which includes a governmental or other pension, retirement or retired pay, annuity, or any other similar periodic payment, under a plan maintained or contributed to by a base period or chargeable employer as follows: The weekly benefit amount payable to the claimant for that week shall be reduced, but not below zero (0):
    1. (i) By the entire prorated weekly amount of the pension if one hundred percent (100%) of the contributions to the plan were provided by a base period or chargeable employer; provided, that no reduction shall be made if one hundred percent (100%) of the pension is rolled into an individual retirement account (IRA); and
    2. (ii) By no part of the pension if any contributions to the plan were provided by the claimant during the claimant's base period;
  2. (B) No reduction shall be made under this subdivision (a)(8) by reason of the receipt of a pension if the services performed by the claimant during the base period for the employer, or remuneration received for the services, did not affect the claimant's eligibility for, or increase the amount of, the pension, retirement or retired pay, annuity, or similar payment. The conditions specified by this subsection (a) shall not apply to pensions paid under the Social Security Act (42 U.S.C. § 301 et seq.), or the Railroad Retirement Act of 1974, or the corresponding provisions of prior law. Payments made under those acts shall be treated solely in the manner specified by subdivisions (a)(8)(A)(i) and (ii);
  3. (C) For purposes of this subdivision (a)(8), if any reduced benefit payment for any week is not a multiple of one dollar ($1.00), it shall be computed to the next lower multiple of one dollar ($1.00);
  4. (D) Any annuities, pensions or retirement pay that is disqualifying pursuant to this section and is payable at the option of the claimant on either a lump sum or periodic basis shall be treated as though it were paid on the periodic basis specified;
  5. (E) For purposes of this subdivision (a)(8), an individual shall be deemed entitled to receive a pension if a determination has been made by appropriate officials of the individual's vested right to a pension for any week in which the individual is entitled to receive benefits under this chapter;
9. (9)
  1. (A) For any week for which a claimant receives the claimant's regular wages for a vacation period under terms of a labor-management agreement or other contract of hire allocating the pay to designated week or weeks for vacation purposes, but if the remuneration for any week is less than the benefit that would be due the claimant for the week under this chapter, the claimant shall be entitled to receive for the week, if otherwise eligible, benefits reduced by the amount of the remuneration; provided, that the total amount of benefits, if not a multiple of one dollar ($1.00), shall be computed at the next lower multiple of one dollar ($1.00);
  2. (B) Subdivision (a)(9)(A) shall apply only if it is found by the administrator that employment will be available for the claimant with the employer at the end of a vacation period described in this subsection (a);
  3. (C) If an employee elects to take the employee's vacation at a period other than that designated in the agreement or contract of hire, any vacation pay shall be considered as having been paid for the vacation week or weeks designated in the agreement or contract of hire;
10. (10) If the administrator finds that a claimant has been discharged from the claimant's most recent work because such claimant's actions, not previously known or permitted by the employer, placed the claimant's employer in violation of the Fair Labor Standards Act (29 U.S.C. § 201 et seq.), the disqualification shall be for the duration of the ensuing period of unemployment and until the claimant has secured subsequent employment covered by an unemployment compensation law of this state, or another state, or of the United States, and was paid wages by the subsequent employment ten (10) times the claimant's weekly benefit amount;
11. (11) For any week with respect to which the claimant is receiving, or has received, remuneration in the form of wages in lieu of notice unless the claimant's employer has filed notice pursuant to § 50-1-602 as of July 1, 2012;
12. (12) If the claimant received a severance package from an employer that includes an equivalent amount of salary the employee would have received if the employee was working during that week unless the claimant's employer has filed notice pursuant to § 50-1-602 as of July 1, 2012;
13. (13) If the claimant was discharged from the claimant's most recent work through a layoff by the employer and the employer has offered the claimant the same job the claimant had prior to the layoff or a similar job with an equivalent level of compensation that the claimant had prior to the layoff. The disqualification shall be for the duration of the ensuing period of unemployment and until the claimant has secured subsequent employment covered by an unemployment compensation law of this state, another state, or the United States, and was paid wages by the subsequent employment ten (10) times the claimant's weekly benefit amount; or
14. (14) If the claimant has an offer of work withdrawn by an employer due to the claimant's refusal to submit to a drug test or the claimant's positive result from a drug test. The disqualification shall be for the duration of the ensuing period of unemployment and until the claimant has secured subsequent employment covered by an unemployment compensation law of this state, another state, or the United States, and was paid wages by the subsequent employment ten (10) times the claimant's weekly benefit amount.
(b) Definitions. The following definitions apply with respect to the following subdivisions of this section:
1. (1) For purposes of subdivisions (a)(1) and (2), “most recent work” means employment with:
  1. (A) Any employer covered by an unemployment compensation law of this state, another state, or the United States for whom the claimant last worked and voluntarily quit without good cause connected with the claimant's work;
  2. (B) Any employer covered by an unemployment compensation law of this state, another state, or the United States for whom the claimant last worked and was discharged for misconduct connected with the claimant's work; or
  3. (C) Any employer covered by an unemployment compensation law of this state, another state, or the United States for whom the claimant last worked and earned wages equal to or exceeding ten (10) times the claimant's weekly benefit amount or, if the wages paid are less than ten (10) times the claimant's weekly benefit amount, it shall be considered as the “most recent work” when a preponderance of evidence establishes that the intent of the hiring agreement was to provide for regular permanent employment. Short term employment shall be considered most recent work if the employment is traditionally a part of the claimant's chosen profession;
2. (2) For purposes of subdivision (c)(2), “suitable employment” means, with respect to a claimant, work of a substantially equal or higher skill level than the claimant's past adversely affected employment as defined for purposes of the Trade Act of 1974 (19 U.S.C. § 2101 et seq.), and wages for the work at not less than eighty percent (80%) of the claimant's average weekly wage as determined for the purposes of the Trade Act of 1974;
3. (3) For purposes of subdivision (a)(2):
  1. (A) “Misconduct” includes, but is not limited to, the following conduct by a claimant:
    1. (i) Conscious disregard of the rights or interests of the employer;
    2. (ii) Deliberate violations or disregard of reasonable standards of behavior that the employer expects of an employee;
    3. (iii) Carelessness or negligence of such a degree or recurrence to show an intentional or substantial disregard of the employer's interest or to manifest equal culpability, wrongful intent or shows an intentional and substantial disregard of the employer's interests or of the employee's duties and obligations to the employee's employer;
    4. (iv) Deliberate disregard of a written attendance policy and the discharge is in compliance with such policy;
    5. (v) A knowing violation of a regulation of this state by an employee of an employer licensed by this state, which violation would cause the employer to be sanctioned or have the employer's license revoked or suspended by this state; or
    6. (vi) A violation of an employer's rule, unless the claimant can demonstrate that:
      1. (a) The claimant did not know, and could not reasonably know, of the rule's requirements; or
      2. (b) The rule is unlawful or not reasonably related to the job environment and performance;
  2. (B) “Misconduct” also includes any conduct by a claimant involving dishonesty arising out of the claimant's employment that constitutes an essential element of a crime for which the claimant was convicted;
  3. (C) “Misconduct” also includes any conduct constituting a criminal offense for which the claimant has been convicted or charged that:
    1. (i) Involves dishonesty arising out of the claimant's employment; or
    2. (ii) Was committed while the claimant was acting within the scope of employment; and
  4. (D) “Misconduct” does not include:
    1. (1) Inefficiency, or failure to perform well as the result of inability or incapacity;
    2. (2) Inadvertence or ordinary negligence in isolated instances; or
    3. (3) Good faith errors in judgment or discretion; and
4. (4) For purposes of subdivision (a)(11), “wages in lieu of notice” means wages paid under circumstances where the employer, not having given an advance notice of separation to the employee, and irrespective of the length of service of the employee, makes a payment to the employee equivalent to the wages the employee could have earned had the employee been permitted to work during the period of notice.
(c) Qualifications. Notwithstanding any other law to the contrary:
1. (1) Benefits shall not be denied under this chapter to any otherwise eligible claimant for separation from employment pursuant to a labor-management contract or agreement, or pursuant to an established employer plan, program, policy, layoff or recall that permits the claimant (employee), because of lack of work, to accept a separation from employment. However, benefits shall be denied a claimant for separation from employment resulting from the claimant's acceptance of an employer's program that provides incentives to employees for voluntarily terminating their employment;
2. (2) No otherwise eligible claimant shall be denied benefits for any week because of leaving work to enter training approved under § 236(a)(1) of the Trade Act of 1974 (19 U.S.C. § 2296(a)(1)), provided the work left is not suitable employment, as defined in § 236(e) of the Trade Act of 1974 (19 U.S.C. § 2296(e)), or because of the application to any such week in training of provisions in this law or any applicable federal unemployment compensation law relating to active search for work, availability for work or refusal to accept suitable work;
3. (3) Benefits shall not be reduced or denied under this chapter to any otherwise eligible claimant due to such claimant's enrollment in any institution of higher education; and
4. (4) Benefits shall not be reduced or denied under this chapter to an otherwise eligible claimant for separation from employment due to the claimant's failure or refusal to receive a COVID-19 vaccine, as defined in § 14-1-101.
(d) Overpayments.
1. (1) Any person who is overpaid any amounts as benefits under this chapter is liable to repay those amounts, except as otherwise provided by this subsection (d) or by § 50-7-304(b)(2).
2. (2) Upon written request by any person submitted to the administrator within ninety (90) days from the date of determination of the overpayment, the administrator shall waive repayment of the overpaid amounts if the person proves to the satisfaction of the administrator that all of the following conditions exist:
  1. (A) The overpayment was not due to fraud, misrepresentation or willful nondisclosure on the part of the person;
  2. (B) The overpayment was received without fault on the part of the person; and
  3. (C) The recovery of the overpayment from the person would be against equity and good conscience.
3. (3)
  1. (A) The administrator may waive the collection of any overpayment that is due to fraud, misrepresentation or willful nondisclosure on the part of the person who was overpaid and that is outstanding after the expiration of six (6) years from the date of determination of the overpayment.
  2. (B) The administrator may waive the collection of any overpayment that is not due to fraud, misrepresentation or willful nondisclosure on the part of the person who was overpaid and that is outstanding after the expiration of six (6) years from the date of determination of the overpayment.
  3. (C) If a waiver is given by the administrator pursuant to subdivision (d)(3)(A) or (d)(3)(B), such waiver shall only be made by the administrator in accordance with § 4-4-120 and procedures established pursuant to such section.
4. (4) Any person who is overpaid any amounts as benefits under this chapter has the right to appeal the determination of overpayment. A person may request a waiver of overpayment in accordance with the conditions of subdivision (d)(2). Upon determination that a person has been overpaid, the person shall be given timely notice of the person's right to appeal the determination of overpayment in accordance with § 50-7-304, and the person's right to request a waiver of overpayment in accordance with subdivision (d)(2). The notice shall indicate that there is a determination of overpayment, the reasons for the determination, the person's rights to contest the determination or request a waiver of the overpayment, and the time period during which the appeal must be filed or the waiver request must be submitted. A recovery of overpayment by reduction of benefits as to a subsequent claim shall not occur until notice is provided to a person, previously determined to be overpaid, of the person's right to request a waiver of overpayment in accordance with subdivision (d)(2).
(e)
1. (1) Back Pay Awards. For unemployment insurance benefit purposes, the amount of back pay constitutes wages paid in the period for which it was awarded. Any employer who is a party to a back pay award settlement due to loss of wages is required to report to the division of employment security within thirty (30) days of the ruling:
  1. (A) The amount of the award settlement;
  2. (B) The name and social security number of the recipient; and
  3. (C) The calendar weeks for which the back pay was awarded.
2. (2) It is the intent of the general assembly that no overpayment of benefits shall be established as a result of a back pay award.

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50-7-302(a)(5)(A)(iii)

§ 50-7-303. Disqualification for benefits. [Effective until July 1, 2024. See the version effective on July 1, 2024.]

(a) Disqualifying Events. A claimant shall be disqualified for benefits:
1. (1)
  1. (A)
    1. (i) If the administrator finds that the claimant has left the claimant's most recent work voluntarily without good cause connected with the claimant's work. Except as otherwise provided in subdivision (a)(1)(A)(ii)(b), the disqualification shall be for the duration of the ensuing period of unemployment and until the claimant has secured subsequent employment covered by the unemployment compensation law of this state, another state, or the United States, and was paid wages by the subsequent employment ten (10) times the claimant's weekly benefit amount. This disqualification shall not apply to a claimant who left the claimant's work in good faith to join the armed forces of the United States;
    2. (ii)
      1. (a) A claimant who has left the claimant's most recent work due to sickness, disability, or pregnancy shall be considered to have left voluntarily without good cause for purposes of disqualification under subdivision (a)(1)(A)(i);
      2. (b) Notwithstanding subdivision (a)(1)(A)(ii)(a), a claimant who has left the claimant's most recent work due to sickness, disability, or pregnancy shall become eligible for unemployment compensation upon providing proof satisfactory to the administrator that the claimant:
        
        (1) Was forced to leave the claimant's most recent work because the claimant was sick, disabled, or pregnant and such evidence is supported by competent medical proof;
        
        (2) Provided written notification to the claimant's most recent employer that the claimant was forced to leave as described in this subdivision (a)(1)(A)(ii) as soon as it was reasonably practical to do so;
        
        (3) Was able to return to the claimant's most recent work, and such evidence is supported by competent medical proof;
        
        (4) Returned to the claimant's most recent work and offered to work and perform the claimant's former duties once the claimant was able, and the employer did not reemploy the claimant; and
        
        (5) Is otherwise eligible to receive benefits under this chapter;
    3. (iii) Nothing in subdivision (a)(1)(A)(ii) shall entitle a claimant, retroactively or otherwise, to receive benefits for the period in which a claimant is unable to work;
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    14-3-101(a)
  2. (B) The disqualification provided in subdivision (a)(1)(A) shall not apply to a claimant who left employment because the claimant’s spouse is a member of the armed services of the United States, the spouse is the subject of a military transfer, and the claimant left employment to accompany the claimant’s spouse; provided, however, that any benefits payable under this subdivision (a)(1)(B) shall be paid from the state’s general revenue funds and the payment of any such benefits shall not adversely affect the employer’s experience rating for purposes of determining premiums;
  3. (C) The disqualification provided in subdivision (a)(1)(A) does not apply to a claimant who left employment because the claimant's employer required its employees to receive a COVID-19 vaccine, as defined in § 14-1-101, and the claimant failed or refused to receive the immunization or vaccination;
  1 Backlink
  - 50-7-403(d)(1)(B)(i)
2. (2)
  1. (A) If the administrator finds that a claimant has been discharged from the claimant's most recent work for misconduct connected with the claimant's work, the disqualification shall be for the duration of the ensuing period of unemployment and until the claimant has secured subsequent employment covered by an unemployment compensation law of this state, another state, or the United States, and was paid wages by the subsequent employment ten (10) times the claimant's weekly benefit amount;
  2. (B)
    1. (i) A discharge resulting from a positive result from a drug test for drugs administered in conformity with chapter 9 of this title shall be deemed to be a discharge for misconduct connected with the claimant's work;
    2. (ii) A discharge resulting from an alcohol test administered in conformity with chapter 9 of this title, where the claimant's blood alcohol concentration level is equal to or greater than ten-hundredths of one percent (0.10%) by weight for non-safety-sensitive positions, and four-hundredths of one percent (0.04%), as determined by blood or breath testing, for safety-sensitive positions, shall be deemed to be a discharge for misconduct connected with work;
    3. (iii) A discharge resulting from a refusal to take a drug test or an alcohol test authorized by chapter 9 of this title shall be deemed to be a discharge for misconduct connected with work where it is based upon substantial and material evidence of the employee's refusal;
    4. (iv) As regards an injured employee, refusal shall not be presumed from failure to take the test during a period of approved medical leave;
  3. (C) A discharge shall be deemed to be a discharge for misconduct connected with the claimant's work when it results after a claimant entered into a written agreement with an employer to obtain a license or certification by a specified date as a condition of employment and subsequently the claimant willfully fails without good cause to obtain such license or certification by the specified date;
3. (3)
  1. (A) If the administrator finds that the claimant has failed without good cause either to apply for available, suitable work, when so directed by the employment office or the administrator, or to accept suitable work when offered, or to return to the claimant's customary self-employment, if any, when so directed by the administrator. The disqualification shall continue for the week in which the failure occurred, and for the duration of the ensuing period of unemployment and until the claimant has secured subsequent employment covered by an unemployment compensation law of this state, another state, or the United States, and was paid wages by the subsequent employment ten (10) times the claimant's weekly benefit amount. In determining whether or not any work is suitable for a claimant, the administrator shall consider the degree of risk involved to the claimant's health, safety and morals, the claimant's physical fitness and prior training, the claimant's experience and prior earnings, the claimant's length of unemployment and prospects for securing local work in the claimant's customary occupation, and the distance of the available work from the claimant's residence. Work is suitable if the work meets all the other criteria of this subdivision (a)(3) and if the gross weekly wages for the work equal or exceed the following percentages of the claimant's average weekly wage for insured work paid to the claimant during that quarter of the claimant's base period in which the claimant's wages were highest:
    1. (i) One hundred percent (100%), if the work is offered during the first thirteen (13) weeks of unemployment;
    2. (ii) Seventy-five percent (75%), if the work is offered during the fourteenth through the twenty-fifth week of unemployment;
    3. (iii) Seventy percent (70%), if the work is offered during the twenty-sixth through the thirty-eighth week of unemployment; and
    4. (iv) Sixty-five percent (65%), if the work is offered after the thirty-eighth week of unemployment. This subdivision (a)(3) shall not be construed as requiring a claimant to accept employment below the federal minimum wage;
    4 Backlinks
    
    50-7-302(a)(4)(G)
    50-7-302(a)(4)(H)
    50-7-302(a)(4)(D)
    50-7-302(a)(4)(E)
  2. (B) Notwithstanding any other provisions of this chapter, no work shall be deemed suitable and benefits shall not be denied under this section to any otherwise eligible claimant for refusing to accept new work under any of the following conditions:
    1. (i) If the position offered is vacant due directly to a strike, lockout or other labor dispute;
    2. (ii) If the wages, hours or other conditions of the work offered are substantially less favorable to the claimant than those prevailing for similar work in the locality; or
    3. (iii) If, as a condition of being employed, the claimant would be required to join a company union or to resign from or refrain from joining any bona fide labor organization;
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    50-7-305(d)(5)
  5 Backlinks
4. (4)
  1. (A) For any week with respect to which the administrator finds that the claimant's total or partial unemployment is due to a labor dispute, other than a lockout that is in active progress at the factory, establishment or other premises at which the claimant is or was last employed; provided, that this subdivision (a)(4) shall not apply if it is shown to the satisfaction of the administrator that:
    1. (i) The claimant is not participating in the labor dispute that caused the claimant's total or partial unemployment;
    2. (ii) The claimant does not belong to a grade or class of workers of which immediately before the commencement of the labor dispute there were members employed at the premises at which the labor dispute occurs, any of whom are participating in the dispute; and
    3. (iii) The claimant was indefinitely separated from employment prior to the labor dispute and is otherwise eligible for benefits. Subdivision (a)(4)(A)(ii) notwithstanding, persons who were separated before the commencement of the labor dispute, and who were eligible for benefits as a result of the separation, shall continue to be eligible for benefits as long as they do not participate in the labor dispute and remain otherwise eligible. For purposes of this subdivision (a)(4)(A)(iii), an “indefinite separation” means that the relationship between the employee and employer has been severed without a reasonably definite recall date;
  2. (B) If, in any case, separate branches of work that are commonly conducted as separate businesses in separate premises are conducted in separate departments of the same premises, each department shall, for the purposes of this subsection (a), be deemed to be a separate factory, establishment or other premises;
  3. (C) Disqualification imposed by this subdivision (a)(4) shall be for the duration of the labor dispute or until the claimant has secured employment covered by an unemployment compensation law of this state, another state, or the United States, and was paid by subsequent employment ten (10) times the claimant's weekly benefit amount. The subsequent employment must meet the definition of “most recent work” as set forth in subsection (b);
  1 Backlink
  - 50-7-304(b)(1)(B)
5. (5) For any week with respect to which the claimant is receiving, or has received, remuneration in the form of compensation for temporary partial disability under the workers' compensation law of any state or under a similar law of the United States;
6. (6)
  1. (A) For any week with respect to which, or a part of which the claimant has received, or is seeking, unemployment benefits under an unemployment compensation law of another state or of the United States; however, if the appropriate agency of the other state or of the United States finally determines that the claimant is not entitled to the unemployment benefits, this disqualification shall not apply. The disqualification imposed by this subdivision (a)(6)(A) shall not apply to any claimant who is seeking or who has received benefits provided for by the Veterans' Readjustment Assistance Act of 1952, Act of July 16, 1952, ch. 875, 66 Stat. 663 [repealed], and any payments previously made by the division of employment security to a claimant who was seeking or received simultaneous benefits under the Veterans' Readjustment Assistance Act of 1952 [repealed] are validated;
  2. (B) In addition, a claimant shall be disqualified from obtaining the advantage of a waiting period for any week with respect to which, or a part of which, the claimant has received, or is seeking, unemployment benefits under an unemployment compensation law of another state or of the United States; however, if the appropriate agency of the other state or of the United States finally determines that the claimant is not entitled to the unemployment benefits, this disqualification shall not apply. The disqualification imposed by this subdivision (a)(6)(B) shall not apply to any claimant who is seeking or who has received benefits provided for by the Veterans' Readjustment Assistance Act of 1952 [repealed];
7. (7) For the week or weeks in which the administrator finds that the claimant has made any false or fraudulent representation or intentionally withheld material information for the purpose of obtaining benefits contrary to this chapter and for not less than four (4) nor more than the fifty-two (52) next following weeks, beginning with the week following the week in which the findings were made, as determined by the administrator in each case according to the seriousness of the facts. In addition, the claimant shall remain disqualified from future benefits so long as any portion of the overpayment or interest on the overpayment is still outstanding. In the event an overpayment of benefits results from the application of this disqualifying provision, the overpayment of benefits shall not be chargeable to any employer's account for experience rating purposes;
8. (8)
  1. (A) For any week with respect to which a claimant is receiving or is entitled to receive a pension, which includes a governmental or other pension, retirement or retired pay, annuity, or any other similar periodic payment, under a plan maintained or contributed to by a base period or chargeable employer as follows: The weekly benefit amount payable to the claimant for that week shall be reduced, but not below zero (0):
    1. (i) By the entire prorated weekly amount of the pension if one hundred percent (100%) of the contributions to the plan were provided by a base period or chargeable employer; provided, that no reduction shall be made if one hundred percent (100%) of the pension is rolled into an individual retirement account (IRA); and
    2. (ii) By no part of the pension if any contributions to the plan were provided by the claimant during the claimant's base period;
  2. (B) No reduction shall be made under this subdivision (a)(8) by reason of the receipt of a pension if the services performed by the claimant during the base period for the employer, or remuneration received for the services, did not affect the claimant's eligibility for, or increase the amount of, the pension, retirement or retired pay, annuity, or similar payment. The conditions specified by this subsection (a) shall not apply to pensions paid under the Social Security Act (42 U.S.C. § 301 et seq.), or the Railroad Retirement Act of 1974, or the corresponding provisions of prior law. Payments made under those acts shall be treated solely in the manner specified by subdivisions (a)(8)(A)(i) and (ii);
  3. (C) For purposes of this subdivision (a)(8), if any reduced benefit payment for any week is not a multiple of one dollar ($1.00), it shall be computed to the next lower multiple of one dollar ($1.00);
  4. (D) Any annuities, pensions or retirement pay that is disqualifying pursuant to this section and is payable at the option of the claimant on either a lump sum or periodic basis shall be treated as though it were paid on the periodic basis specified;
  5. (E) For purposes of this subdivision (a)(8), an individual shall be deemed entitled to receive a pension if a determination has been made by appropriate officials of the individual's vested right to a pension for any week in which the individual is entitled to receive benefits under this chapter;
9. (9)
  1. (A) For any week for which a claimant receives the claimant's regular wages for a vacation period under terms of a labor-management agreement or other contract of hire allocating the pay to designated week or weeks for vacation purposes, but if the remuneration for any week is less than the benefit that would be due the claimant for the week under this chapter, the claimant shall be entitled to receive for the week, if otherwise eligible, benefits reduced by the amount of the remuneration; provided, that the total amount of benefits, if not a multiple of one dollar ($1.00), shall be computed at the next lower multiple of one dollar ($1.00);
  2. (B) Subdivision (a)(9)(A) shall apply only if it is found by the administrator that employment will be available for the claimant with the employer at the end of a vacation period described in this subsection (a);
  3. (C) If an employee elects to take the employee's vacation at a period other than that designated in the agreement or contract of hire, any vacation pay shall be considered as having been paid for the vacation week or weeks designated in the agreement or contract of hire;
10. (10) If the administrator finds that a claimant has been discharged from the claimant's most recent work because such claimant's actions, not previously known or permitted by the employer, placed the claimant's employer in violation of the Fair Labor Standards Act (29 U.S.C. § 201 et seq.), the disqualification shall be for the duration of the ensuing period of unemployment and until the claimant has secured subsequent employment covered by an unemployment compensation law of this state, or another state, or of the United States, and was paid wages by the subsequent employment ten (10) times the claimant's weekly benefit amount;
11. (11) For any week with respect to which the claimant is receiving, or has received, remuneration in the form of wages in lieu of notice unless the claimant's employer has filed notice pursuant to § 50-1-602 as of July 1, 2012;
12. (12) If the claimant received a severance package from an employer that includes an equivalent amount of salary the employee would have received if the employee was working during that week unless the claimant's employer has filed notice pursuant to § 50-1-602 as of July 1, 2012;
13. (13) If the claimant was discharged from the claimant's most recent work through a layoff by the employer and the employer has offered the claimant the same job the claimant had prior to the layoff or a similar job with an equivalent level of compensation that the claimant had prior to the layoff. The disqualification shall be for the duration of the ensuing period of unemployment and until the claimant has secured subsequent employment covered by an unemployment compensation law of this state, another state, or the United States, and was paid wages by the subsequent employment ten (10) times the claimant's weekly benefit amount; or
14. (14) If the claimant has an offer of work withdrawn by an employer due to the claimant's refusal to submit to a drug test or the claimant's positive result from a drug test. The disqualification shall be for the duration of the ensuing period of unemployment and until the claimant has secured subsequent employment covered by an unemployment compensation law of this state, another state, or the United States, and was paid wages by the subsequent employment ten (10) times the claimant's weekly benefit amount.
(b) Definitions. The following definitions apply with respect to the following subdivisions of this section:
1. (1) For purposes of subdivisions (a)(1) and (2), “most recent work” means employment with:
  1. (A) Any employer covered by an unemployment compensation law of this state, another state, or the United States for whom the claimant last worked and voluntarily quit without good cause connected with the claimant's work;
  2. (B) Any employer covered by an unemployment compensation law of this state, another state, or the United States for whom the claimant last worked and was discharged for misconduct connected with the claimant's work; or
  3. (C) Any employer covered by an unemployment compensation law of this state, another state, or the United States for whom the claimant last worked and earned wages equal to or exceeding ten (10) times the claimant's weekly benefit amount or, if the wages paid are less than ten (10) times the claimant's weekly benefit amount, it shall be considered as the “most recent work” when a preponderance of evidence establishes that the intent of the hiring agreement was to provide for regular permanent employment. Short term employment shall be considered most recent work if the employment is traditionally a part of the claimant's chosen profession;
2. (2) For purposes of subdivision (c)(2), “suitable employment” means, with respect to a claimant, work of a substantially equal or higher skill level than the claimant's past adversely affected employment as defined for purposes of the Trade Act of 1974 (19 U.S.C. § 2101 et seq.), and wages for the work at not less than eighty percent (80%) of the claimant's average weekly wage as determined for the purposes of the Trade Act of 1974;
3. (3) For purposes of subdivision (a)(2):
  1. (A) “Misconduct” includes, but is not limited to, the following conduct by a claimant:
    1. (i) Conscious disregard of the rights or interests of the employer;
    2. (ii) Deliberate violations or disregard of reasonable standards of behavior that the employer expects of an employee;
    3. (iii) Carelessness or negligence of such a degree or recurrence to show an intentional or substantial disregard of the employer's interest or to manifest equal culpability, wrongful intent or shows an intentional and substantial disregard of the employer's interests or of the employee's duties and obligations to the employee's employer;
    4. (iv) Deliberate disregard of a written attendance policy and the discharge is in compliance with such policy;
    5. (v) A knowing violation of a regulation of this state by an employee of an employer licensed by this state, which violation would cause the employer to be sanctioned or have the employer's license revoked or suspended by this state; or
    6. (vi) A violation of an employer's rule, unless the claimant can demonstrate that:
      1. (a) The claimant did not know, and could not reasonably know, of the rule's requirements; or
      2. (b) The rule is unlawful or not reasonably related to the job environment and performance;
  2. (B) “Misconduct” also includes any conduct by a claimant involving dishonesty arising out of the claimant's employment that constitutes an essential element of a crime for which the claimant was convicted;
  3. (C) “Misconduct” also includes any conduct constituting a criminal offense for which the claimant has been convicted or charged that:
    1. (i) Involves dishonesty arising out of the claimant's employment; or
    2. (ii) Was committed while the claimant was acting within the scope of employment; and
  4. (D) “Misconduct” does not include:
    1. (1) Inefficiency, or failure to perform well as the result of inability or incapacity;
    2. (2) Inadvertence or ordinary negligence in isolated instances; or
    3. (3) Good faith errors in judgment or discretion; and
4. (4) For purposes of subdivision (a)(11), “wages in lieu of notice” means wages paid under circumstances where the employer, not having given an advance notice of separation to the employee, and irrespective of the length of service of the employee, makes a payment to the employee equivalent to the wages the employee could have earned had the employee been permitted to work during the period of notice.
(c) Qualifications. Notwithstanding any other law to the contrary:
1. (1) Benefits shall not be denied under this chapter to any otherwise eligible claimant for separation from employment pursuant to a labor-management contract or agreement, or pursuant to an established employer plan, program, policy, layoff or recall that permits the claimant (employee), because of lack of work, to accept a separation from employment. However, benefits shall be denied a claimant for separation from employment resulting from the claimant's acceptance of an employer's program that provides incentives to employees for voluntarily terminating their employment;
2. (2) No otherwise eligible claimant shall be denied benefits for any week because of leaving work to enter training approved under § 236(a)(1) of the Trade Act of 1974 (19 U.S.C. § 2296(a)(1)), provided the work left is not suitable employment, as defined in § 236(e) of the Trade Act of 1974 (19 U.S.C. § 2296(e)), or because of the application to any such week in training of provisions in this law or any applicable federal unemployment compensation law relating to active search for work, availability for work or refusal to accept suitable work;
3. (3) Benefits shall not be reduced or denied under this chapter to any otherwise eligible claimant due to such claimant's enrollment in any institution of higher education; and
4. (4) Benefits shall not be reduced or denied under this chapter to an otherwise eligible claimant for separation from employment due to the claimant's failure or refusal to receive a COVID-19 vaccine, as defined in § 14-1-101.
(d) Overpayments.
1. (1) Any person who is overpaid any amounts as benefits under this chapter is liable to repay those amounts, except as otherwise provided by this subsection (d) or by § 50-7-304(b)(2).
2. (2) Upon written request by any person submitted to the administrator within ninety (90) days from the date of determination of the overpayment, the administrator shall waive repayment of the overpaid amounts if the person proves to the satisfaction of the administrator that all of the following conditions exist:
  1. (A) The overpayment was not due to fraud, misrepresentation or willful nondisclosure on the part of the person;
  2. (B) The overpayment was received without fault on the part of the person; and
  3. (C) The recovery of the overpayment from the person would be against equity and good conscience.
3. (3)
  1. (A) The administrator may waive the collection of any overpayment that is due to fraud, misrepresentation or willful nondisclosure on the part of the person who was overpaid and that is outstanding after the expiration of six (6) years from the date of determination of the overpayment.
  2. (B) The administrator may waive the collection of any overpayment that is not due to fraud, misrepresentation or willful nondisclosure on the part of the person who was overpaid and that is outstanding after the expiration of six (6) years from the date of determination of the overpayment.
  3. (C) If a waiver is given by the administrator pursuant to subdivision (d)(3)(A) or (d)(3)(B), such waiver shall only be made by the administrator in accordance with § 4-4-120 and procedures established pursuant to such section.
4. (4) Any person who is overpaid any amounts as benefits under this chapter has the right to appeal the determination of overpayment. A person may request a waiver of overpayment in accordance with the conditions of subdivision (d)(2). Upon determination that a person has been overpaid, the person shall be given timely notice of the person's right to appeal the determination of overpayment in accordance with § 50-7-304, and the person's right to request a waiver of overpayment in accordance with subdivision (d)(2). The notice shall indicate that there is a determination of overpayment, the reasons for the determination, the person's rights to contest the determination or request a waiver of the overpayment, and the time period during which the appeal must be filed or the waiver request must be submitted. A recovery of overpayment by reduction of benefits as to a subsequent claim shall not occur until notice is provided to a person, previously determined to be overpaid, of the person's right to request a waiver of overpayment in accordance with subdivision (d)(2).
(e)
1. (1) Back Pay Awards. For unemployment insurance benefit purposes, the amount of back pay constitutes wages paid in the period for which it was awarded. Any employer who is a party to a back pay award settlement due to loss of wages is required to report to the division of employment security within thirty (30) days of the ruling:
  1. (A) The amount of the award settlement;
  2. (B) The name and social security number of the recipient; and
  3. (C) The calendar weeks for which the back pay was awarded.
2. (2) It is the intent of the general assembly that no overpayment of benefits shall be established as a result of a back pay award.

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50-7-302(a)(5)(A)(iii)

§ 50-7-304. Procedure for claims and appeals.

(a) Filing. Claims for benefits shall be made in accordance with regulations the commissioner prescribes. Each employer shall post and maintain, in places readily accessible to individuals performing services for the employer, printed statements concerning benefit rights, claims for benefits and other matters relating to the administration of this chapter that the commissioner prescribes by regulation. Each employer shall supply to the individuals copies of the printed statements or other materials relating to claims for benefits when and if the commissioner prescribes by regulation. If the commissioner, as a result of the regulations or otherwise, elects to supply the printed statements or other materials to any employer or employers, it will be done without cost to the employer or employers.
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- 50-7-217(c)
(b) Determinations.
1. (1)
  1. (A) Monetary Determination. A representative designated by the commissioner, and referred to as the “agency representative,” shall promptly examine the claim and, on the basis of the facts found by the agency representative, shall either determine whether or not the claim is valid monetarily and, if valid, the week with respect to which benefits shall commence, the weekly benefit amount payable and the maximum duration of the benefit. The claimant shall be furnished a copy of the monetary determination showing the amount of wages paid the claimant by each employer during the claimant's base period and the employers by whom the wages were paid, the claimant's benefit year, weekly benefit amount, and the maximum amount of benefits that may be paid to the claimant for unemployment during the benefit year. When a claimant is ineligible due to lack of earnings in the claimant's base period, the monetary determination shall so designate. The claimant shall be allowed ninety (90) days from the mailing date, or in-person delivery of the claimant's monetary determination to the claimant, within which to protest the claimant's monetary determination.
  2. (B) Nonmonetary Determination. Further, the agency representative shall then review the claim deemed valid monetarily and render a determination on the nonmonetary issues presented, except that in any case in which the payment or denial of benefits will be determined by § 50-7-303(a)(4), the agency representative shall promptly transmit the agency representative's full findings of fact with respect to § 50-7-303(a)(4) to the commissioner, who, on the basis of the evidence submitted and additional evidence that the commissioner may require, shall affirm, modify or set aside the findings of fact and transmit to the agency representative a decision upon the issues involved under § 50-7-303(a)(4), which shall be deemed to be the nonmonetary determination of the agency representative. Any questions or issues involved in any nonmonetary determination may be referred by the commissioner to an unemployment hearing officer, who shall make the unemployment hearing officer's determination with respect to the nonmonetary determination in accordance with the procedure described in subdivision (c)(1). The agency representative shall promptly give written notice to the claimant and all other interested parties of the nonmonetary determination and the reasons for the determination. The nonmonetary determination of the agency representative shall become final, unless an interested party files an appeal from the nonmonetary determination within fifteen (15) calendar days after the date of mailing of the written notification of the nonmonetary determination to the last known address of the party, or within fifteen (15) calendar days after the date the written notification is given to the party, whichever first occurs.
  3. (C) Reconsideration. At any time within one (1) year from the date of the making of any monetary or nonmonetary determination, the agency representative may, for good cause, reconsider the agency representative's decision, unless an interested party has appealed the monetary or nonmonetary determination and the appeals tribunal has accepted jurisdiction, and shall promptly give written notice to the claimant and all other interested parties of the agency representative's amended monetary or nonmonetary determination and the reason for the amended determination.
2. (2) Payment — Overpayments — Employer Response to Request for Separation Information — Employer Charges for Overpayment.
  1. (A)
    1. (i) Payment. Benefits shall be paid promptly in accordance with the agency decision or any decision of the appeals tribunal, the commissioner’s designee or a reviewing court.
    2. (ii) The payment shall be made upon the issuance of the decision unless and until the decision has been modified or reversed by a subsequent decision. The payment shall be made regardless of the pendency of any application for reconsideration, filing of an appeal, or a petition for judicial review.
    3. (iii) If and when the decision has been modified or reversed, benefits shall be paid or denied for weeks of unemployment thereafter in accordance with the modifying or reversing decision.
  2. (B) Overpayments. If no fraud or misrepresentation on the part of the claimant is involved and a subsequent decision adverse to the claimant results because of the employer's failure to respond as described in subdivision (b)(2)(C) or results because the employer did not appear for a scheduled hearing before the appeals tribunal or the commissioner’s designee, no overpayment will be established and the claimant will not be required to repay any benefits paid prior to the decision. Otherwise, the claimant will be charged with any benefits paid, and shall be liable to have the payments deducted from future benefits payable under this chapter, or shall be liable to repay the commissioner, for deposit in the unemployment compensation fund, a sum equal to the amount so received, and the sum shall be collectible in the manner provided in § 50-7-404(b), for collection of past due premiums.
  3. (C) Employer Response to Request for Separation Information. If a separation issue exists, the separating employer will be asked to supply information describing circumstances leading to the separation. The information must be received by the agency within seven (7) days from the date the agency request for information is mailed to the separating employer. In the absence of the response, the decision of entitlement will be based on the claimant's statement and other information available to the agency. The separating employer may supply information to the agency prior to a request for information being mailed from the agency if the employer expects a separation issue to arise with regard to an employee.
  4. (D) Employer Charges for Overpayments. If the decision approving the claim is finally reversed, no premium paying employer's account shall be charged with any benefits so paid. The separating employer who fails to respond as described in subdivision (b)(2)(C) or who did not appear for a scheduled hearing before the appeals tribunal or the commissioner’s designee will be charged with that portion of benefits paid that are attributable to wages paid in its employment during the base period.
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    50-7-403(d)(1)(B)(i)
  5. (E) Offset expenses and fees.
    1. (i) In addition to any remedies authorized by this chapter, the department may offset any covered unemployment compensation debt, as defined in 26 U.S.C. § 6402, due to the department against any federal income tax refund due to the department's claimant debtor in accordance with § 6402 of the Internal Revenue Code (26 U.S.C. § 6402) and the federal Treasury Offset Program (31 CFR Part 285) or any successor program.
    2. (ii) Any fee or administrative expense imposed by the United States department of the treasury or the United States department of labor in connection with such offset shall be the responsibility of the debtor.
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      50-7-501(a)(1)(I)
    3. (iii) Following such offset, the amount of credit to which a debtor is entitled shall not exceed the amount of the credit received by the department.
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  - 50-7-303(d)(1)
(c) Appeals.
1. (1) In the case of an appeal that has been filed pursuant to subdivision (b)(1) and that has not been withdrawn, an unemployment hearing officer shall first afford all interested parties reasonable opportunity for a fair hearing, and the unemployment hearing officer shall affirm, modify or set aside the findings of fact and decision of the agency representative. The unemployment hearing officer promptly shall give written notice to all interested parties of the unemployment hearing officer's decision and the reasons for the decision. The decision of the unemployment hearing officer shall be deemed to be the final decision of the commissioner, unless further appeal is initiated pursuant to subsection (e) within fifteen (15) calendar days after the date of mailing of the written notification of the decision to the last known address of each interested party, or within fifteen (15) calendar days after the date the written notification of the decision is given to each interested party, whichever first occurs. In the absence of an appeal to the commissioner’s designee and within thirty (30) calendar days after the date of mailing of the written notification of the decision to the last known address of each interested party or within thirty (30) calendar days after the date the written notification of the decision is given to each interested party, whichever first occurs, the unemployment hearing officer may reconsider the unemployment hearing officer's decision and thereupon promptly shall give written notice to the claimant and all other interested parties of the amended decision and the reasons for the decision. The amended decision of the unemployment hearing officer shall be deemed to be the final decision of the commissioner, unless further appeal is initiated pursuant to subsection (e) within fifteen (15) calendar days after the date of mailing of the written notification of the decision to the last known address of each interested party, or within fifteen (15) calendar days after the date the written notification of the decision is given to each interested party, whichever first occurs.
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  - 50-7-404(i)(3)(B)
2. (2) Notwithstanding any other provision of this chapter, the time limit provided in subdivision (b)(1) for an appeal to the appeals tribunal may be extended for good cause by the appeals tribunal, and the time limit provided in subdivision (c)(1) for an appeal to the commissioner’s designee may be extended for good cause by the commissioner’s designee. In determining whether or not good cause exists for extending the time limits, the appeals tribunal and the commissioner’s designee shall consider the length of the delay, the reason for the delay, and the prejudice or lack of prejudice to the parties.
(d) Unemployment Hearing Officers. To hear and decide disputed claims, the commissioner shall appoint one (1) or more unemployment hearing officers selected in accordance with § 50-7-605. No person shall participate on behalf of the commissioner or the commissioner's designee in any case in which the person is an interested party. The commissioner may designate any regular qualified employee or employees of the department of labor and workforce development as temporary or acting unemployment hearing officers who shall serve as hearing officers without additional salary and for the period of time the commissioner designates. All reimbursement for travel expenses shall be in accordance with the comprehensive travel regulations as promulgated by the department of finance and administration and approved by the attorney general and reporter. All permanently and temporarily appointed unemployment hearing officers will constitute a part of the unemployment compensation division. The commissioner shall provide the designees designated to hear second stage appeals and the unemployment hearing officers with proper facilities and assistants for the execution of their functions. The department shall hold annual training for all unemployment hearing officers. Such training shall include updates on any new laws or regulations involving employment security law enacted by the state or federal government.
(e) Commissioner’s Designees.
1. (1) The commissioner shall designate Tennessee licensed attorneys within the department of labor and workforce development to adjudicate appeals of the decisions of the unemployment hearing officer. The individuals so designated shall be referred to as the commissioner's designees and will constitute a part of the department of labor and workforce development's legal division.
2. (2) The commissioner's designees may on their own motion affirm, modify, or set aside any decision of an unemployment hearing officer on the basis of the evidence previously submitted in the case, or direct the taking of additional evidence, or may permit any of the parties to the decision to initiate further appeals before it. The commissioner's designee shall permit the further appeal by any of the parties interested in a decision of an unemployment hearing officer. The commissioner may remove to a designee or transfer to another unemployment hearing officer proceedings of any claim pending before an unemployment hearing officer. The commissioner's designee shall promptly give written notice to all interested parties of the designee's findings and decision. Any decision of the commissioner's designee shall be the final decision of the commissioner.
(f) Procedure. The manner in which disputed claims shall be presented, the reports required from the claimant and from employers, and the conduct of hearings and appeals shall be in accordance with regulations prescribed by the commissioner for determining the rights of the parties, whether or not the regulations conform to common law or statutory rules of evidence and other technical rules of procedure; provided, that proof of misconduct may include personnel records and other business records that are in the possession of a claimant's employer and that are relevant to a claim, and such records shall be admissible and may constitute evidence of misconduct, regardless of whether such evidence is hearsay or whether corroborated by direct witness testimony, if such evidence is accompanied by an affidavit of its custodian or other qualified person certifying the evidence as a business record. A full and complete record shall be kept of all proceedings in connection with a disputed claim. All testimony at any hearing upon a disputed claim shall be recorded, but need not be transcribed, unless the disputed claim is appealed to chancery court. Notwithstanding § 4-5-312(c) or any other provision to the contrary, the appeals tribunal and the commissioner’s designee may, for good cause, hold all or part of the hearing by telephone conference. In determining good cause, the appeals tribunal and commissioner’s designee shall consider the wishes of the parties and such factors as the physical security risk to the participants or the department's staff, the travel distance to the hearing location for either or both parties, the relative hardship or convenience to the parties, the complexity of the issues and any other factor relevant to having a fair hearing.
(g) Witness Fees. Witnesses subpoenaed pursuant to this section shall be allowed fees at the rates fixed by the commissioner; provided, that the rates shall not be less than the per diem and mileage rates fixed by the laws of the state in other civil cases. The fees are deemed a part of the expense of administering this chapter.
(h) Appeal to Courts. Any decision of the commissioner, in the absence of any application by any interested party for rehearing of that decision, shall become final ten (10) calendar days after the date of mailing of the written notification of the decision to the last known address of each interested party or within ten (10) calendar days after the date the written notification of the decision is given to each interested party, whichever first occurs. In the written notification shall be an explanation that further appeals shall be conducted within thirty (30) days of the commissioner's final decision by filing a petition for judicial review in the chancery court of the county of the party's residence and that the petition shall be against the commissioner of labor and workforce development. Judicial review of any decision of the commissioner shall be permitted only after any party claiming to be aggrieved by the decision has exhausted the administrative remedies provided by this chapter.
(i) Court Review.
1. (1) Within thirty (30) days after the decision of the commissioner has become final, any party aggrieved by the decision may secure judicial review of the decision by filing a petition for judicial review in the chancery court of the county of the party's residence against the commissioner for review of the decision, except that any petition for judicial review of tax liability must be filed in the chancery court of Davidson County. In the case of a petition filed by an aggrieved party who is not a resident of the state, within thirty (30) days after the decision of the commissioner’s designee has become final, a nonresident party may secure judicial review of the decision by filing a petition for judicial review against the commissioner in the chancery court of the county where the employer is located, except that any petition for judicial review of tax liability must be filed in the chancery court of Davidson County. Any other party to the proceeding before the commissioner’s designee shall be made a defendant to the petition and duly served with process. For the purposes of this subsection (i), the parties to the proceeding before the commissioner’s designee shall be deemed to include the original claimant or applicant for benefits, and each and every employer from whom the claimant received, during the claimant's base period, any wages for insured work, whether or not the party appeared and participated in the proceeding before the commissioner’s designee; and all the parties shall be deemed necessary parties to any petition for judicial review filed pursuant to this subsection (i). In such action, the petition shall distinctly state the grounds upon which the review is sought, and shall be served through the normal processes of the court upon the commissioner or the attorney general and reporter. Immediately upon the filing of the petition, the petitioner shall cause to be forwarded to the commissioner, for informational purposes, a copy of the petition, which shall be in addition to the copy of the petition served by the court at the time of service of the process. With the commissioner's answer, which shall be filed within thirty (30) days from the date the commissioner or the attorney general and reporter is served with the process, the commissioner shall file in the court a complete transcript of the record, which shall contain all documents and papers, a transcript of all testimony taken in the matter and findings of fact and conclusions of law by the commissioner’s designee.
2. (2) The chancellor may affirm the decision of the commissioner or the chancellor may reverse, remand or modify the decision if the rights of the petitioner have been prejudiced because the administrative findings, inferences, conclusions or decisions are:
  1. (A) In violation of constitutional or statutory provisions;
  2. (B) In excess of the statutory authority of the agency;
  3. (C) Made upon unlawful procedure;
  4. (D) Arbitrary or capricious or characterized by abuse of discretion or clearly unwarranted exercise of discretion; or
  5. (E) Unsupported by evidence that is both substantial and material in the light of the entire record.
3. (3) In determining the substantiality of evidence, the chancellor shall take into account whatever in the record fairly detracts from its weight, but the chancellor shall not substitute the chancellor's judgment for that of the commissioner’s designee as to the weight of the evidence on questions of fact. No decision of the commissioner’s designee shall be reversed, remanded or modified by the chancellor, unless for errors that affect the merits of the final decision of the commissioner’s designee. The petition for judicial review shall be heard by the chancellor either at term time or vacation as a matter of right, any other statute of this state to the contrary notwithstanding.
4. (4) It shall not be necessary in any judicial proceedings under this section to enter exceptions to the ruling of the commissioner’s designee, but the petition shall distinctly state the grounds upon which the action of the commissioner’s designee is deemed erroneous. An appeal may be taken from the judgment and decree of the chancery court having jurisdiction of these controversies to the Tennessee court of appeals, in the same manner, but not inconsistent with this chapter, as provided in other civil cases.
5. (5) In any judicial proceeding under this subsection (i), the appellant or petitioner shall give bond for costs, or in lieu of bond take the oath prescribed by law for paupers.
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  - 50-7-708(b)(1)
6. (6) Upon the final determination of the judicial proceedings, the commissioner’s designee shall enter an order in accordance with the final judicial determination.
(j) Notice of Health Insurance. The commissioner, in performing the duties established in this section, shall provide to every individual at the time the individual first inquires about unemployment compensation benefits the following notice:
1. You may be entitled to have the state of Tennessee pay the premium for your ongoing health insurance. For more information, contact your local department of human services.
(k) Conclusiveness of Findings. No finding of fact or law, judgment, conclusion, or final order made with respect to a claim for unemployment compensation under this chapter may be conclusive in any separate or subsequent action or proceeding in another forum, except proceedings under this chapter, regardless of whether the prior action was between the same or related parties or involved the same facts.

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§ 50-7-305. Extended benefits program.

(a) As used in this section, unless the context otherwise requires:
1. (1) “Eligibility period” of a claimant means the period consisting of the weeks in the claimant's benefit year that begin in an extended benefit period and, if the claimant's benefit year ends within the extended benefit period, any weeks thereafter that begin in that period;
2. (2) “Exhaustee” means a claimant who, with respect to any week of unemployment in the claimant's eligibility period:
  1. (A)
    1. (i) Has received, prior to that week, all of the regular benefits that were available to the claimant under this chapter or any other state law, including dependents' allowances and benefits payable to federal civilian employees and ex-servicemembers under 5 U.S.C. chapter 85, in the claimant's current benefit year that includes that week;
    2. (ii) For the purposes of subdivision (a)(2)(A)(i), a claimant shall be deemed to have received all of the regular benefits that were available to the claimant although, as a result of a pending appeal with respect to wages that were not considered in the original monetary determination in the claimant's benefit year, the claimant may subsequently be determined to be entitled to added regular benefits;
  2. (B) The claimant's benefit year having expired prior to that week, has no, or insufficient, wages on the basis of which the claimant could establish a new benefit year that would include that week; and
  3. (C)
    1. (i) Has no right to unemployment benefits or allowances, as the case may be, under the Railroad Unemployment Insurance Act (45 U.S.C. § 351 et seq.), the Trade Expansion Act of 1962 (19 U.S.C § 1801 et seq.), the Automotive Products Trade Act of 1965 (19 U.S.C. § 2001 et seq.), and other federal laws that are specified in regulations issued by the United States secretary of labor; and
    2. (ii) Has not received and is not seeking unemployment benefits under the unemployment compensation law of Canada; but if the claimant is seeking the benefits and the appropriate agency finally determines that the claimant is not entitled to benefits under that law, the claimant is considered an exhaustee;
3. (3)
  1. (A) “Extended benefit period” means a period that:
    1. (i) Begins with the third week after a week for which there is a state “on” indicator; and
    2. (ii) Ends with either of the following weeks, whichever occurs later:
      1. (a) The third week after the first week for which there is a state “off” indicator; or
      2. (b) The thirteenth consecutive week of that period;
  2. (B) No extended benefit period may begin by reason of a state “on” indicator before the fourteenth week following the end of a prior extended benefit period that was in effect with respect to this state;
4. (4) “Extended benefits” means benefits, including benefits payable to federal civilian employees and to ex-servicemembers pursuant to 5 U.S.C. chapter 85, payable to a claimant under this section for weeks of unemployment in the claimant's eligibility period;
5. (5) “Off indicator.” There is a state “off” indicator for a week if, for the period consisting of that week and the immediately preceding twelve (12) weeks, either subdivision (a)(6)(A) or (B) was not satisfied;
6. (6)
  1. (A) “On indicator.” There is a state “on” indicator for a week if:
    1. (i) The rate of insured unemployment under the state law for the period consisting of that week and the immediately preceding twelve (12) weeks:
      1. (a) Equaled or exceeded one hundred twenty percent (120%) of the average of the rates for the corresponding thirteen-week period ending in each of the preceding calendar years; and
      2. (b) Equaled or exceeded five percent (5%);
    2. (ii) The rate of insured unemployment under the state law for the period consisting of that week and the immediately preceding twelve (12) weeks equaled or exceeded six percent (6%) regardless of the rate of insured unemployment in the previous two (2) years;
    3. (iii) With respect to weeks of unemployment beginning on or after February 1, 2009, and ending on or before December 5, 2009, or until the week ending four (4) weeks prior to the last week of unemployment for which one hundred percent (100%) federal sharing is available under § 2005(a) of the American Recovery and Reinvestment Act of 2009, Pub. L. No. 111-5, without regard to the extension of federal sharing for certain claims as provided under § 2005(c) of the American Recovery and Reinvestment Act of 2009:
      1. (a) The average rate of total unemployment (seasonally adjusted), as determined by the United States secretary of labor, for the period consisting of the most recent three (3) months for which data for all states are published before the close of such week equals or exceeds six and one-half percent (6.5%); and
      2. (b) The average rate of total unemployment in the state (seasonally adjusted), as determined by the United States secretary of labor, for the three-month period referred to in subdivision (a)(6)(A)(i), exceeds one hundred and ten percent (110%) of such average for either or both of the corresponding 3-month periods ending in the two (2) preceding calendar years; or
    4. (iv) Notwithstanding subdivision (a)(6)(D), effective with respect to compensation for weeks of unemployment in which there is one hundred percent (100%) federal sharing authorized by federal law for weeks of unemployment beginning after December 17, 2010, and ending on or before December 31, 2011, or until the week ending four (4) weeks prior to the last week of unemployment for weeks of unemployment established in federal law permitting this subdivision (a)(6)(A)(iv):
      1. (a) The average rate of total unemployment (seasonally adjusted), as determined by the United States secretary of labor, for the period consisting of the most recent three (3) months for which data for all states are published before the close of such week equals or exceeds six and one-half percent (6.5%); and
      2. (b) The average rate of total unemployment in the state (seasonally adjusted), as determined by the United States secretary of labor, for the three-month period referred to in subdivision (a)(6)(A)(i), equals or exceeds one hundred and ten percent (110%) of such average for any or all of the corresponding three-month periods ending in the three (3) preceding calendar years;
  2. (B) There is a state “off” indicator for a week only if, for the period consisting of such week and the immediately preceding twelve (12) weeks, none of the options specified in subdivision (a)(6)(A) result in an “on” indicator;
  3. (C) Notwithstanding any provision of this section, any week for which there would otherwise be a state “on” indicator shall continue to be such a week and shall not be determined to be a week for which there is a state “off” indicator;
  4. (D) No benefits shall be payable under this section based upon the average rate of total unemployment unless the American Recovery and Reinvestment Act of 2009 provides full federal funding of extended unemployment compensation and until such time as the commissioner of labor and workforce development certifies to the department of finance and administration that the mechanism and resources necessary for the prompt and efficient payment of such benefits are in place, except that in no event shall such certification fail to meet the deadline imposed by the American Recovery and Reinvestment Act of 2009 for the payment of such benefits in order to receive federal funding under the American Recovery and Reinvestment Act of 2009;
7. (7) “Rate of insured unemployment,” for purposes of subdivisions (a)(6) and (7), means the percentage derived:
  1. (A) By dividing the average weekly number of claimants filing claims for regular state compensation in this state for weeks of unemployment with respect to the most recent thirteen (13) consecutive-week period, as determined by the administrator on the basis of the administrator's reports to the United States secretary of labor;
  2. (B) By the average monthly employment covered under this chapter for the first four (4) of the most recent six (6) completed calendar quarters ending before the end of the thirteen-week period;
8. (8)
  1. (A) “Regular benefits” means benefits payable to a claimant under this chapter or under any other state law, including benefits payable to federal civilian employees and to ex-servicemembers pursuant to 5 U.S.C. chapter 85, other than extended benefits. “Regular benefits” does not include additional benefits; and
  2. (B) “Additional benefits” means benefits payable to exhaustees by reason of conditions of high unemployment or by reason of other special factors under any state law; and
9. (9) “State law” means the unemployment insurance law of any state, approved by the United States secretary of labor under the Internal Revenue Code of 1954, § 3304 (26 U.S.C. § 3304).
(b) Except when the result would be inconsistent with the other provisions of this section, as provided in the regulations of the administrator, the provisions of this chapter that apply to claims for, or the payment of, regular benefits shall apply to claims for, and the payment of, extended benefits.
(c) A claimant shall be eligible to receive extended benefits with respect to any week of unemployment in the claimant's eligibility period only if the commissioner finds that with respect to that week:
1. (1) The claimant is an exhaustee;
2. (2) The claimant has satisfied the requirements of this chapter for the receipt of regular benefits that are applicable to claimants claiming extended benefits, including not being subject to a disqualification for the receipt of benefits; and
3. (3) For weeks of unemployment beginning after September 25, 1982, the claimant has been paid wages by an employer who was subject to this chapter during the base period of the claimant's current benefit year in an amount that equals or exceeds forty (40) times the claimant's weekly benefit amount for total unemployment.
(d)
1. (1) Notwithstanding any other provisions of this section, a claimant shall be ineligible for payment of extended benefits for any week of unemployment in the claimant's eligibility period if the administrator finds that during the period:
  1. (A) The claimant failed to accept any offer of suitable work or failed to apply for any suitable work to which the claimant was referred by the commissioner; or
  2. (B) The claimant failed to actively engage in seeking work as prescribed under subdivision (d)(6).
2. (2) Any claimant who has been found ineligible for extended benefits by reason of subdivision (d)(1) shall also be denied benefits beginning with the first day of the week following the week in which the failure occurred and until the claimant has been employed in employment covered by an unemployment compensation law of this state, another state, or the United States, in each of four (4) subsequent weeks, whether or not consecutive, and has earned remuneration equal to not less than four (4) times the extended weekly benefit amount.
3. (3) For purposes of this subsection (d), “suitable work” means, with respect to any claimant, any work that is within the claimant's capabilities; provided, that the gross average weekly remuneration payable for the work:
  1. (A) Must exceed the sum of:
    1. (i) The claimant's extended weekly benefit amount as determined under subsection (f);
    2. (ii) Plus the amount, if any, of supplemental unemployment benefits as defined in § 501(c)(17)(D) of the Internal Revenue Code of 1954 (26 U.S.C. § 501(c)(17)(D)), payable to the claimant for the week; and
  2. (B) Pay wages not less than the higher of:
    1. (i) The minimum wage provided by § 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. § 206(a)(1)), without regard to any exemption; or
    2. (ii) The applicable state or local minimum wage.
4. (4)
  1. (A) No claimant shall be denied extended benefits for failure to accept an offer of or apply for any job that meets the definition of “suitable work” as described in this subsection (d), if:
    1. (i) The position was not offered to the claimant in writing or was not listed with the employment service;
    2. (ii) The failure could not result in a denial of benefits under the definition of “suitable work” for regular benefit claimants in § 50-7-303(a)(3) to the extent that the criteria of suitability in that section are not inconsistent with subdivision (d)(3); or
    3. (iii) The claimant furnishes satisfactory evidence to the administrator that the claimant's prospects for obtaining work in the claimant's customary occupation within a reasonably short period are good.
  2. (B) If the evidence requested by subdivision (d)(4)(A)(iii) is deemed satisfactory for purposes of this subsection (d), the determination of whether any work is suitable with respect to the claimant shall be made in accordance with the definition of “suitable work” for regular benefit claimants in § 50-7-303(a)(3) without regard to the definition specified by subdivision (d)(3).
5. (5) Notwithstanding subsection (b) to the contrary, no work shall be deemed to be suitable work for a claimant that does not accord with the labor standard provisions required by § 3304(a)(5) of the Internal Revenue Code of 1954 (26 U.S.C. § 3304(a)(5)), and set forth under § 50-7-303(a)(3)(B).
6. (6) For the purposes of subdivision (d)(1)(B), a claimant shall be treated as actively engaged in seeking work during any week if:
  1. (A) The claimant has engaged in a systematic and sustained effort to obtain work during that week; and
  2. (B) The claimant furnishes tangible evidence that the claimant has engaged in that effort during that week.
7. (7) The employment service shall refer any claimant entitled to extended benefits under this section to any suitable work that meets the criteria prescribed in subdivision (d)(3).
(e) The weekly extended benefit amount payable to a claimant for a week of total unemployment in the claimant's eligibility period shall be an amount equal to the weekly benefit amount payable to the claimant during the claimant's applicable benefit year.
(f) Total extended benefit amount:
1. (1) The total extended benefit amount payable to any eligible individual with respect to the applicable benefit year shall be the least of the following amounts:
  1. (A) Fifty percent (50%) of the total amount of regular benefits (including dependents' allowances) that were payable to an eligible claimant in the eligible claimant's applicable benefit year;
  2. (B) Thirteen (13) times the eligible claimant's weekly benefit amount (including dependents' allowances) that was payable to an eligible claimant for a week of total unemployment in the applicable benefit year; or
  3. (2)
    1. (A) Effective with respect to weeks beginning in a high unemployment period, subdivision (f)(1) shall be applied by substituting:
      1. (i) The amount “eighty percent (80%)” for the amount “fifty percent (50%)” in subdivision (f)(1)(A); and
      2. (ii) The figure “twenty” for the figure “thirteen” in subdivision (f)(1)(B);
    2. (B) For purposes of this subdivision (f)(2), “high unemployment period” means any period during which an extended benefit period would be in effect if subdivision (a)(6)(A)(iii) were applied by substituting the amount “eight percent (8%)” for the amount “six and one-half percent (6.5%)” in subdivision (a)(6)(A)(iii)(a);
  4. (3) Notwithstanding subdivision (a)(1), for purposes of this subsection (f) an individual's eligibility period shall include any eligibility period provided for in § 2005(b) of the American Recovery and Reinvestment Act of 2009, Pub. L. No. 111-5;
  5. (4) Total extended benefits payable on an interstate claim filed under the interstate benefit payment plan shall be limited to the first two (2) weeks of the interstate claim, unless both the agent state and the liable state are in an extended benefit period.
(g)
1. (1) Whenever an extended benefit period is to become effective in this state as a result of a state “on” indicator, or an extended benefit period is to be terminated in this state as a result of a state “off” indicator, the commissioner shall make an appropriate public announcement.
2. (2) Computations required by subdivision (a)(4) shall be made by the administrator, in accordance with regulations prescribed by the United States secretary of labor.
(h) Notwithstanding any other provisions of this chapter, if the benefit year of any claimant ends within an extended benefit period, the remaining balance of extended benefits that the claimant would, but for this section, be entitled to receive in that extended benefit period, with respect to weeks of unemployment beginning after the end of the benefit year, shall be reduced, but not below zero (0), by the product of the number of weeks for which the claimant received any amounts as trade readjustment allowances within that benefit year, multiplied by the claimant's weekly benefit amount for extended benefits.
(i) Notwithstanding any other provision of this chapter, the governor may trigger off an extended benefit period in order to provide the payment of federal benefits whenever a program of benefits financed by the federal government becomes available to individuals who have exhausted their regular benefits.

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§ 50-7-306. Seasonal employment.

(a) As used in this section:
1. (1) “Active seasonal period” means the regularly recurring period of twenty-six (26) consecutive weeks or less within a calendar year as approved by the department in which a seasonal employer customarily carries on all work operations;
2. (2) “Inactive seasonal period” means the period within a calendar year in which there is a customary cessation of all work operations and is other than the active seasonal period;
3. (3) “Non-seasonal wages” mean wages earned in employment other than seasonal employment;
4. (4) “Reasonable assurance” means a written notice that the employee will be employed by the seasonal employer in the same or similar capacity during the following active seasonal period;
5. (5) “Seasonal employer” means an employer who customarily employs workers only during a regularly recurring period of twenty-six (26) consecutive weeks or less within a calendar year and has been determined to be a seasonal employer by the department;
6. (6) “Seasonal employment” means employment within the active seasonal period, as approved by the department;
7. (7) “Seasonal wages” means remuneration earned during seasonal employment by a seasonal worker who has received actual written notice prior to performing any seasonal work in the active seasonal period that the wages are potentially excludable from the base period as defined in § 50-7-218; and
8. (8) “Seasonal worker” means an individual who has earned seasonal wages from a seasonal employer during the approved active seasonal period.
(b) Determination of Seasonal Employer Status. Effective July 1, 2020:
1. (1) No employer shall be considered a seasonal employer until the department issues a written determination that an applicant is a seasonal employer;
2. (2) An application for a seasonal employer determination must be made on forms prescribed by the department and must be received by the department between September 1 and October 31 each year;
3. (3) At the time of application, the employer shall have an experience rating pursuant to § 50-7-403(b)(1)(A); shall have no unpaid liability, including lien fees, penalties, or interest charges; and shall have not been delinquent in submitting any premium and wage reports or payment required under this chapter in the four (4) quarters preceding the application;
4. (4) Upon application for seasonal employer status, the department shall determine whether the employer is seasonal and, if seasonal, the employer's active seasonal period. The determination will be effective January 1 through December 31 of the following calendar year and shall not have any retroactive effect;
5. (5) The determination shall include the beginning and ending dates of the seasonal employer's active seasonal period. If the beginning or ending date for the active seasonal period falls within any calendar week, the entire week is counted as within the active seasonal period;
6. (6) Any seasonal employer determination rendered with respect to an employer pursuant to this section shall be final and conclusive upon the employer for all purposes and in all proceedings whatsoever unless the employer has timely filed with the division of employment security a written application for review and redetermination in accordance with § 50-7-404(h);
7. (7) The department may, on its own motion, reconsider the active seasonal period and seasonal employer status of any seasonal employer;
8. (8) The department shall terminate the employer's seasonal employer status upon receipt of a written request from the seasonal employer requesting termination of the seasonal employer status; and
9. (9) If any seasonal worker performs services for the same seasonal employer outside the employer's designated active seasonal period and in excess of twenty-six (26) consecutive weeks in a calendar year, the seasonal employer is disqualified as a seasonal employer and all wages paid by the seasonal employer to all seasonal workers shall be considered non-seasonal wages.
(c) Notification to Seasonal Workers. Effective July 1, 2020:
1. (1) A seasonal employer shall conspicuously display the department's seasonal determination on the employer's premises;
2. (2) Each seasonal worker or prospective seasonal worker shall receive written notice from the seasonal employer prior to the beginning of each active seasonal period that the seasonal wages are potentially excludable from the base period as defined in § 50-7-218. The notice shall:
  1. (A) Be provided prior to the performance of any service for the seasonal employer;
  2. (B) Advise the seasonal worker of the beginning and ending dates of the active seasonal period; and
  3. (C) Contain the department's contact information for any inquiries by the seasonal workers; and
3. (3) The employer shall provide the seasonal worker with written notice of any subsequent change in the employee's status as a seasonal worker.
(d) Payment of Benefits to Seasonal Workers. Effective July 1, 2020:
1. (1) Wages from seasonal employment shall not be included in the base period as defined in § 50-7-218 for any week of unemployment commencing during the inactive seasonal period between two (2) successive active seasonal periods, if the claimant performs the services in an active seasonal period and a reasonable assurance is provided that the claimant will perform the service for the seasonal employer during the following active seasonal period;
2. (2) If benefits are denied to a seasonal worker for any week solely as a result of subdivision (d)(1) and the seasonal worker is not offered an opportunity to perform in the next active seasonal period for which there was a reasonable assurance of employment, the seasonal worker is entitled to retroactive payment of benefits for each week that the seasonal worker previously filed a timely claim for benefits; and
3. (3) Wages from seasonal employment shall be included in the base period as defined in § 50-7-218 for any week of unemployment commencing during the employer's active seasonal period.

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67-4-2109(a)(6)(A)(ii)(b)

Part 4 Premiums

§ 50-7-401. Payment.

(a) Premiums shall accrue and become payable by each employer for each calendar year in which the employer is subject to this chapter, with respect to wages paid for employment, as defined in § 50-7-207, occurring during the calendar year; provided, that any employer who uses an accrual basis of accounting may report wages when earned so long as the reporting method is consistent. The premiums shall become due and be paid by each employer to the administrator for the fund in accordance with regulations the commissioner prescribes, and shall not be deducted, in whole or in part, from the wages of individuals who perform services for the employer. Neither shall payments in lieu of premiums be deducted in whole or in part from the wages of individuals who perform services for employers making the payments.
(b) In the payment of any premium, a fractional part of a cent shall be disregarded unless it amounts to one-half cent (½ ¢) or more, in which case it shall be increased to one cent (1¢).

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§ 50-7-402. Rate of premiums.

(a) Each employer shall pay premiums equal to five and one-half percent (5.5%) of wages paid by the employer during each calendar year with respect to employment, except as provided in § 50-7-403.
(b) Notwithstanding subsection (a), effective on and after July 1, 1982, any governmental employer referred to in § 50-7-207(b)(3)(A) and (B), who chooses to be a taxpaying, premium paying, employer, as opposed to one who elects to make payments in lieu of premiums, will pay premiums equal to one and one-half percent (1.5%) of wages paid by the employer during each calendar year with respect to employment, except as provided in § 50-7-403.

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50-7-403(h)(1)

§ 50-7-403. Experience rating for employers.

(a) Except as provided in [former] § 62-43-113(b)(2)(A)(ii) [repealed] of the Tennessee Employee Leasing Act pertaining to staff leasing companies and the clients of the staff leasing companies, for each twelve-month period beginning July 1, employers shall be classified, in accordance with the experience in the payment of premiums and with respect to benefits charged against their accounts, in order that premium rates may be assigned that will reflect the benefit and premium experience.
(b)
1. (1) Except as provided in [former] § 62-43-113(b)(2)(A)(ii) [repealed] of the Tennessee Employee Leasing Act pertaining to staff leasing companies and the clients of the staff leasing companies, there shall be two (2) methods used in determining the experience rating of an employer. In each method, the benefit and premium experience is to be determined from the reserve ratio. Subdivision (b)(1)(A) shall apply to any employer whose individual account has been chargeable with benefits and subject to premiums throughout the thirty-six (36) consecutive calendar month period ending on the computation date, as defined in subdivision (k)(1), and shall continue to apply until the employer has not had a payroll subject to premiums for nine (9) consecutive calendar quarters. Any other employer subject to premiums and chargeable with benefits shall be considered a new employer and shall be subject to the applicable new employer rate as provided in subdivision (b)(1)(B).
  1. (A) The reserve ratio of each employer subject to this subdivision (b)(1) shall be determined by totaling all premiums paid by that individual employer for all years during which that employer has been subject to this chapter and subtracting the total of all benefits charged to the account of that employer for all years. The difference shall be divided by the average taxable payroll of that employer for the three (3) most recent calendar years, ending on the computation date. The resulting quotient shall be the reserve ratio for that employer. The employer premium rate shall be determined by matching the reserve ratio to the appropriate premium rate in premium rate table 1, 2, 3, 4, 5 or 6 in subsection (g).
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    50-7-306(b)(3)
  2. (B)
    1. (i) Prior to July 1, 2004, the reserve ratio assigned to all new employers shall be determined by ascertaining which of the Standard Industrial Classification (SIC) Codes applies to the employer's industry or business. The SIC Codes and the code numbers of the industries or businesses within each classification are:
      1. 01–09 Agriculture
      2. 10–14 Mining
      3. 15–17 Construction
      4. 20–39 Manufacturing
      5. 40–49 Transportation
      6. 50–59 Trade
      7. 60–67 Finance, Insurance, Real Estate
      8. 70–89 Services
    2. A separate reserve ratio is determined for each classification by totaling all premiums paid by all employers within the same classification for all years during which these employers have been subject to this chapter and subtracting the total of all benefits charged to the accounts of those employers for all years. The difference shall be divided by the average taxable payrolls of those employers for the three (3) most recent calendar years, ending on the computation date. The new employer premium rate shall be two and seven-tenths percent (2.7%) for each twelve-month period beginning July 1, except when the industry or business of the new employer falls within a classification of the SIC Code that has a reserve ratio of minus four percent (-4%) or less. In those instances only, the new employer premium rates shall be determined for each twelve-month period beginning July 1, by matching the reserve ratios to the appropriate premium rates in premium rate table 1, 2, 3, 4, 5 or 6 of subsection (g). This new employer premium rate will be assigned for each tax rate year beginning July 1, until the employer's individual account has been chargeable with benefits and subject to premiums throughout the thirty-six (36) consecutive calendar month period ending on the computation date.
    3. (ii) Effective July 1, 2004, the premium rate assigned to each new employer for each twelve-month period beginning July 1 shall be two and seven-tenths percent (2.7%) except when the industry or business of the new employer falls within a two-digit classification of the North American Industry Classification System (NAICS) that has a reserve ratio of less than zero percent (0%). In those instances only, the new employer rates shall be determined for each twelve-month period beginning July 1 by matching the reserve ratio of a 2-digit NAICS in which the employer's industry or business is classified to the appropriate premium rates in premium rate table 1, 2, 3, 4, 5 or 6 of subsection (g). This new employer premium rate will be assigned for each tax rate year beginning each July 1, until the employer's individual account has been chargeable with benefits and subject to premiums throughout the thirty-six (36) consecutive calendar month period ending on the computation date. The reserve ratio of each two-digit NAICS is determined for each classification by:
      1. (a) Totaling all premiums paid by all employers within the same classification, who were active anytime within the thirty-six (36) consecutive months ending on the previous December 31, for all years during which these employers have been subject to this chapter; and
      2. (b) Subtracting the total of all benefits charged to the accounts of those employers for all years; and
      3. (c) Dividing the difference by the average taxable payrolls of those employers for the three (3) most recent calendar years ending on the previous December 31.
      4. The two-digit NAICS and the code numbers and the industries or businesses within each classification are:
        
        11 Agriculture, Forestry, Fishing, Hunting
        
        21 Mining
        
        22 Utilities
        
        23 Construction
        
        31 Manufacturing — food, beverage, tobacco products, textile, apparel, leather and allied product manufacturing
        
        32 Manufacturing — wood, paper, printing and related support services, petroleum and coal products, chemical, plastics and rubber, nonmetallic mineral product manufacturing
        
        33 Manufacturing — primary metal, fabricated metal, machinery, computer and electronic products, electrical equipment, appliances and components, transportation equipment, furniture and related products, miscellaneous manufacturing
        
        42 Wholesale Trade
        
        44 Retail Trade — motor vehicle and parts dealers, furniture and home furnishings, electronics and appliances, building material and garden equipment, food and beverage, health and personal care, gasoline stations, clothing and clothing accessories stores
        
        45 Retail Trade — sporting goods, hobby, book and music stores, general merchandise, miscellaneous store retailers, nonstore retailers
        
        48 Transportation and Warehousing — air, rail, water, truck, transit and ground passenger, pipeline, scenic and sightseeing transportation, support activities for transportation
        
        49 Transportation and Warehousing — postal service, couriers and messengers, warehousing and storage
        
        51 Information — publishing, motion picture and sound recording, broadcasting and telecommunications, information services and data processing
        
        52 Finance and Insurance
        
        53 Real Estate and Rental and Leasing
        
        54 Professional, Scientific and Technical Services
        
        55 Management of Companies and Enterprises
        
        56 Administrative and Support and Waste Management and Remediation Services
        
        61 Educational Services
        
        62 Health Care and Social Assistance
        
        71 Arts, Entertainment and Recreation
        
        72 Accommodation and Food Services
        
        81 Other Services, except Public Administration
    4. (iii)
      1. (a) Notwithstanding subdivision (b)(1)(B)(ii), the department, in determining the experience rating for new employers in operation at least three (3) years immediately preceding the date of becoming a liable employer in Tennessee, shall allow, upon election of the employer, for an interstate transfer of the employer's experience rating.
      2. (b) The employer shall provide the department with an authenticated account history from information accumulated from operations from the state from which the employer relocated in order to compute a Tennessee new employer premium rate.
      3. (c) This subdivision (b)(1)(B)(iii) shall apply to all employers relocating into Tennessee on or after July 1, 2014.
      4. (d) In the event that the unemployment trust fund balance is lower than or equal to seven hundred million dollars ($700,000,000), then the commissioner, in the commissioner's sole discretion, may suspend the use of this subdivision (b)(1)(B)(iii) to determine the new employer experience rating for employers relocating to Tennessee. The rate shall revert to the industry rate designated at the time of the suspension of this subdivision (b)(1)(B)(iii).
      5. (e) Notwithstanding any other law to the contrary, this subdivision (b)(1)(B)(iii) shall not apply to the extent that compliance with such provisions would violate federal law or cause the department a loss of federal funding.
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    62-43-109(d)(2)
  3. (C) After January 1, 1954, premiums paid up to and including January 31 shall be deemed to have been paid for the period ending December 31 of the previous calendar year, if the premiums are based on wages paid during the period ending December 31 of the previous calendar year. Benefits will be charged to employers' accounts on the basis of benefits paid during each calendar year ending on the computation date.
2. (2) Mergers and Successorships. Effective for transfers made on or after January 1, 2006, premium and benefit experience, as provided in subsections (a) and (b)(1), shall only be transferred in accordance with this subdivision (b)(2).
  1. (A)
    1. (i) In the event of a merger of employers or employing units and the resulting employer is a new entity, the combined taxable payroll, benefit and premium experience of the employers or employing units involved shall be computed as of the effective date of the merger to determine a new reserve ratio and premium rate applicable to the resulting employer.
    2. (ii) In the event that any person or employing unit acquires or has acquired all or a distinct, severable, identifiable and segregable portion of the business of an employer and continues or has continued the acquired portion of the business of the predecessor, the successor shall be eligible to succeed to that part of the taxable payroll, benefit and premium experience of the predecessor that is attributable solely to that portion of the business that was acquired; provided, that:
      1. (a) Any and all of the predecessor employer's outstanding liabilities under this chapter are paid;
      2. (b) The parties have filed with the division of employment security a written agreement transferring the taxable payroll, benefit and premium experience, or portion of the taxable payroll, benefit and premium experience. The agreement must be executed by all of the employers or employing units involved, and must be notarized and filed during the calendar quarter in which the acquisition occurs or during the calendar quarter immediately following that quarter; and
      3. (c) The administrator does not determine, pursuant to the factors in subdivision (b)(2)(F), that a substantial purpose of the transfer of trade or business was to obtain a reduced liability for premiums.
  2. (B)
    1. (i) In the event that there is only one (1) transferring employer and the successor, at the time of the acquisition, is not already an employer, as defined in § 50-7-205, the reserve ratio and premium rate applicable to the predecessor employer, with respect to the period immediately preceding the date of the transfer, applies to the successor employer for the calendar quarter in which the acquisition takes place, and remains in effect until adjusted as provided in subsections (g) and (j). In the event that the successor, at the time of the acquisition, is an employing unit, as defined in § 50-7-206, but not an employer, as defined in § 50-7-205, the successor shall, as of the first day of the calendar year during which the transfer is made, become an employer under this chapter, and the successor's premium rate, from January 1 of the year in which the acquisition takes place until the first day of the calendar quarter during which the acquisition takes place, shall be the applicable new employer premium rate as provided in subdivision (b)(1)(B).
    2. (ii) In the event that the successor is already an employer at the time of the acquisition, the reserve ratio applicable at the time of the acquisition to the successor employer shall continue to be applicable until the end of the rate year in which the succession occurs.
    3. (iii) Commencing with the next premium rate year after an employer has transferred a distinct, severable, identifiable and segregable portion of the employer's business, the reserve ratio and premium rate of the predecessor employer shall be based on the portion of the taxable payroll, benefit and premium experience remaining to the credit of the predecessor employer after the transfer.
  3. (C) Notwithstanding any other law, this subdivision (b)(2)(C) shall apply regarding assignment of premium rates and transfers of benefit and premium experience of an employer's trade or business, or a portion of an employer's trade or business, to another employer, if, at the time of the transfer, there is any common ownership, management or control of the two (2) employers. In such cases, the benefit and premium experience attributable to the transferred trade or business shall be transferred to the employer to whom the trade or business is so transferred. The reserve ratios and premium rates of both employers shall be recalculated and made effective immediately upon the date of the transfer of the trade or business. For the purposes of this section:
    1. (i) “Trade or business” includes the employer's workforce;
    2. (ii) “Common ownership, management or control” includes any individual who has at least a ten percent (10%) ownership interest in or participates in the management or control of the predecessor's trade or business, and who has a relative who has a ten percent (10%) ownership interest in or participates in the management or control of the successor's trade or business; and
    3. (iii) For purposes of this subdivision (b)(2)(C), “relative” means spouse, child, stepchild, adopted child, grandchild, son-in-law, daughter in-law, parent, step-parent, parent-in-law, grandparent, brother, sister, half brother, half sister, step-brother, step-sister, brother-in-law, sister-in-law, aunt, uncle, nephew and niece.
  4. (D) If, following a transfer of experience under subdivision (b)(2)(C), the administrator, pursuant to the factors in subdivision (b)(2)(F), determines that a substantial purpose of the transfer of trade or business was to obtain a reduced liability for premiums, the experience rating factors of the employers involved shall be combined into a single account and a single premium rate assigned to the account as of the date of the transfer.
  5. (E) If a person or employing unit is not an employer under this chapter at the time the person or employing unit acquires the trade or business of an employer, the unemployment experience of the acquired business shall not be transferred to the person or employing unit, if the administrator, pursuant to the factors in subdivision (b)(2)(F), finds that the person or employing unit acquired the business solely or primarily for the purpose of obtaining a lower rate of premiums. Instead, the person or employing unit shall be assigned the applicable new employer rate under subdivision (b)(1)(B).
  6. (F) In determining whether a business was acquired, or a transfer of a trade or business, or portion of a trade or business, was made solely or primarily or substantially for the purpose of obtaining a lower rate of premiums, the administrator shall use objective factors, which may include the cost of acquiring the business, whether the person or employing unit continued the business enterprise of the acquired business, how long the business enterprise was continued, or whether a substantial number of new employees were hired for performance of duties unrelated to the business activity conducted prior to acquisition.
  7. (G) Enforcement. Any person or employing unit that knowingly violates or attempts to violate this section, or knowingly advises another person or employing unit to violate this section, shall be subject to the following penalties and punishments:
    1. (i) Both the predecessor and successor employers:
      1. (a) Shall be assigned the applicable premium rate under the laws of this chapter, and shall immediately owe the department the difference between the premiums determined by the applicable premium rate and the premiums actually paid, plus any interest due as provided in § 50-7-404(a); and
      2. (b) Shall pay, in addition to their applicable premium rate, a penalty rate of two percent (2%) of the taxable payroll for each quarter, beginning on the date of the infraction and continuing throughout the three (3) premium rate years following the first July 1 after the date on which the department made the determination of the infraction. Revenue from the penalty rate shall be deposited into the unemployment compensation special administrative fund, established under § 50-7-503, and shall not be included in the determination of an employer's reserve ratio as provided in subdivision (b)(1)(A);
    2. (ii) Any person found in violation of this section, against whom the penalties as set forth in subdivision (b)(2)(G)(i) are not enforceable, is subject to a civil money penalty of not more than fifty thousand dollars ($50,000). In making the assessment, the administrator shall give due consideration to the appropriateness of the penalty with respect to the size of the business of the person or employing unit charged, the gravity of the violation, the good faith of the person or employing unit, and the person or employing unit's history of previous violations. The penalty shall be deposited in the unemployment compensation special administrative fund, established under § 50-7-503; and
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      50-7-503(a)(1)
    3. (iii) In addition to the penalties imposed by subdivisions (b)(2)(G)(i) and (ii), any violation of this subdivision (b)(2) may be prosecuted as a Class A misdemeanor under title 40, chapter 35.
  8. (H) For purposes of this subdivision (b)(2):
    1. (i) “Knowingly” means having actual knowledge of or acting with deliberate ignorance or reckless disregard for the prohibition involved;
    2. (ii) “Violates or attempts to violate” means, but is not limited to, intent to evade, misrepresentation or willful nondisclosure; and
    3. (iii) “Person” has the meaning given that term by § 7701(a)(1) of the Internal Revenue Code of 1986 (26 U.S.C. § 7701(a)(1)).
  9. (I) The administrator shall establish procedures to identify the transfer or acquisition of a business for purposes of this subdivision (b)(2).
  10. (J) This subdivision (b)(2) shall be interpreted and applied in a manner that meets the minimum requirements contained in any guidance or regulations issued by the United States department of labor.
  11. (K) As provided in [former] § 62-43-113(b)(2)(A)(ii)(b) [repealed] of the Tennessee Employee Leasing Act, a staff leasing company shall not be considered a successor employer, within the meaning of this section, to any client and shall not acquire the experience history of any client with whom there is not any common ownership, management or control. Upon terminating the relationship with the staff leasing company, the client shall not be considered a successor employer, within the meaning of this chapter, to the staff leasing company and shall not acquire any portion of the experience history of the aggregate reserve account of the staff leasing company with whom there is not any common ownership, management or control.
  12. (L) Nothing in this section shall be construed to authorize or require the refund of any sums lawfully paid into the unemployment compensation fund created by Acts 1936 (1st E.S.), ch. 1, § 9(a), [repealed], and by Acts 1947, ch. 29, § 9(A), as amended, § 6901.9(A) of the Code Supplement of 1950 or by § 50-7-501(a).
  1 Backlink
  - 50-7-205(2)
(c) Nothing in this section shall be construed to grant any employer, or individuals in any employer's service, or otherwise, prior claim or rights to the amounts paid by the employer into the fund either on behalf of the employer or on behalf of the claimants.
(d)
1. (1)
  1. (A) Benefits paid to a claimant for the year 1941 and subsequent years are to be charged to the accounts of the claimant's employers in the base period, the amount of the charges, chargeable to the account of each employer, to be that portion of the total benefits paid the claimant as the wages paid the claimant by the employer in the base period are to the total wages paid the claimant during the claimant's base period for insured work by all the claimant's employers in the base period.
  2. (B)
    1. (i) Except as provided in § 50-7-304(b)(2)(D), no employer's account shall be charged hereunder for any benefits paid to a former employee who left the employment of the employer under conditions that result in the imposition of a disqualification under § 50-7-303(a)(1), (a)(2), or (a)(4), or that would have resulted in a disqualification under such subdivision except for a following period of bona fide employment by another employing unit. However, if the employer fails to establish that fact, by submitting the information as the administrator may require, within fifteen (15) calendar days after the date of mailing of written notification by the administrator, that the claimant has first filed a claim for benefits to the last known address of the employer, or within fifteen (15) calendar days after the date the written notification is given to the employer, whichever first occurs, the employer's account will be charged for the benefit payments.
    2. (ii) No employer's account shall be charged for any benefits paid to a former employee who left the employer to enter training approved under the Trade Act of 1974; provided, that the work left is not suitable employment as defined under § 236(e) of the Trade Act of 1974 (19 U.S.C. § 2296).
    3. (iii) The noncharging provisions referred to in subdivisions (d)(1)(B)(i) and (ii) do not apply to eligible employers who elect to reimburse the state for benefits paid in lieu of premiums, as provided by the federal Unemployment Tax Act (26 U.S.C. § 3301 et seq.), or this chapter.
  3. (C)
    1. (i) Benefits paid to an individual who, during the individual's base period, was paid wages for part-time employment with an employer shall not be used as a factor in determining the future premium rate of the employer if the employer continues to give employment to the claimant to the same extent while the claimant is receiving benefits as during the base period. However, if the employer fails to establish that fact, by submitting information the administrator requires, within fifteen (15) calendar days after the date of mailing of written notification by the administrator, that the claimant has first filed a claim for benefits to the last known address of the employer or within fifteen (15) calendar days after the date the written notice is given to the employer, whichever first occurs, the employer's account will be charged for the benefit payments.
    2. (ii) The noncharging provision referred to in subdivision (d)(1)(C)(i) does not apply to eligible employers who elect to reimburse the state for benefits paid in lieu of premiums, as provided by the federal Unemployment Tax Act (26 U.S.C. § 3301 et seq.), or this chapter.
2. (2) One-half (½) of extended benefits paid to a claimant for the year 1971 and subsequent years are to be charged to the accounts of the claimant's employers in the base period in the same manner provided for the charging of regular benefits with respect to calendar year 1941 and subsequent years hereinbefore set forth.
3. (3) Benefits paid based on wage credits that are required to be transferred from the state under the wage combining plan referred to in § 50-7-706(a) may not be noncharged except to the extent permitted by both this chapter and the federal Unemployment Tax Act (26 U.S.C. § 3301 et seq.).
4. (4) Notwithstanding any other provisions of this chapter, no employer's experience rating account shall be charged, and no employer shall be liable for payments in lieu of premiums, with respect to any benefits or extended benefits that are reimbursed to the state by the federal government.
5. (5) Unemployment insurance benefits paid to claimants for unemployment that is directly caused by a major natural disaster declared by the president of the United States pursuant to the Disaster Relief Act of 1974 and the Disaster Relief and Emergency Assistance Amendments of 1988 will not be charged to the account of any base-period premium paying employer of the individuals, if the individuals would have been eligible for disaster unemployment assistance with respect to that unemployment but for their receipt of unemployment insurance benefits.
6. (6) Any employer that elects to make payments in lieu of premiums into the unemployment compensation fund as provided in this subdivision (d)(6) shall not be liable to make the payments with respect to the benefits paid to any claimant whose base-period wages include wages for previously uncovered services, as defined in § 50-7-213, to the extent that the unemployment compensation fund is reimbursed for the benefits pursuant to § 121 of Pub. L. No. 94-566, entitled the Unemployment Compensation Amendments of 1976.
7. (7) Benefits paid to any claimant whose base-period wages include wages for previously uncovered services, as defined in § 50-7-213, shall not be charged to any taxpaying employers (premium paying employers as distinguished from the employers that are eligible to elect and who do elect to make reimbursement payments in lieu of premiums) account to the extent that the unemployment compensation fund is reimbursed for the benefits pursuant to § 121 of Pub. L. No. 94-566, entitled the Unemployment Compensation Amendments of 1976.
8. (8) [Repealed effective July 1, 2022.]
(e) The standard rate of premiums payable shall be five and one-half percent (5.5%) with respect to nongovernmental employers and one and one-half percent (1.5%) with respect to governmental employers, except as provided in this section.
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- 50-7-204(3)(A)
(f) In the event that the division of employment security has not received before April 1 reports giving the necessary payroll information to determine an employer's reserve ratio applicable for the next premium rate year, the taxable payroll of the most recent calendar year in which the employer submitted all reports due with an increase of fifty percent (50%) will be used in computing the reserve ratio applicable for the next premium rate year if the employer has a plus reserve on the most recent computation date. For those employers with a minus reserve as of the most recent computation date, the payroll of the most recent calendar year in which the employer submitted all reports will be reduced by fifty percent (50%). However, no employer with a zero (0) or plus reserve will be assigned a rate based on a minus reserve, and no employer with a minus reserve will be assigned a rate greater than the highest rate in the applicable premium table set forth in subsection (g).
(g) Variations from the standard rate of premiums for employers other than those referred to in § 50-7-207(b)(3)(A) and (B) shall be determined, beginning January 1, 2009, by the reserve ratio of each employer in accordance with premium rate chart for nongovernmental employers tables 1, 2, 3, 4, 5 or 6 as set forth in this subsection (g), depending on the provisions of subsection (j); provided, however, that beginning January 1, 2009, there shall be imposed an additional premium of six-tenths of one percent (0.6%) on all rates in tables 1, 2 and 3, until such time as the unemployment trust fund balance equals or exceeds six hundred fifty million dollars ($650,000,000), as determined in accordance with subsection (j), at which time such additional premium shall expire.
Variations from the standard rate of contributions for governmental employers referred to in § 50-7-207(b)(3)(A) and (B) shall be determined by the reserve ratio of each governmental employer in accordance with the premium rate chart for governmental employers set forth below.
1. PREMIUM RATE CHART FOR GOVERNMENTAL EMPLOYERS
2. Reserve Ratio PercentPremium Rate Percent
3. 8.0 and over0.3
4. 7.0 and less than 8.00.4
5. 6.0 and less than 7.00.6
6. 5.0 and less than 6.00.8
7. 4.0 and less than 5.01.0
8. 3.0 and less than 4.01.2
9. 2.0 and less than 3.01.4
10. 1.5 and less than 2.01.5
11. 1.0 and less than 1.51.6
12. 0.5 and less than 1.01.7
13. 0.0 and less than 0.51.8
14. Less than 0.0 and more than -3.52.0
15. -3.5 and more than -7.02.2
16. -7.0 and more than -10.02.4
17. -10.0 and more than -13.02.7
18. -13.0 and under3.0
(h) Benefits paid to employees of nonprofit organizations shall be financed in accordance with this subsection (h). For the purpose of this subsection (h), a nonprofit organization is an organization, or group of organizations, described in § 501(c)(3) of the Internal Revenue Code (26 U.S.C. § 501(c)(3)), that is exempt from income tax under § 501(a) of the Internal Revenue Code (26 U.S.C. § 501(a)).
1. (1) Any nonprofit organization that, pursuant to § 50-7-205(5) is, or becomes, subject to this chapter on or after January 1, 1972, shall pay premiums under §§ 50-7-401, 50-7-402 and this section, unless it elects, in accordance with this subdivision (h)(1), to pay to the administrator for the unemployment fund an amount equal to the amount of regular benefits and of one-half (½) of the extended benefits paid, that is attributable to service in the employ of the nonprofit organization, to claimants for weeks of unemployment that begin during the effective period of the election.
  1. (A) Any nonprofit organization that becomes subject to this chapter after January 1, 1972, may elect to become liable for payments in lieu of premiums for a period of not less than twelve (12) months ending with a taxable year and beginning with the date on which the subjectivity begins by filing a written notice of its election with the administrator not later than thirty (30) days immediately following the date of the determination of the subjectivity.
  2. (B) Any nonprofit organization that makes an election in accordance with subdivision (h)(1)(A) will continue to be liable for payments in lieu of premiums until it files with the administrator a written notice terminating its election not later than thirty (30) days prior to the beginning of the taxable year for which the termination first becomes effective.
  3. (C) Any nonprofit organization that has been paying premiums under this chapter for a period subsequent to January 1, 1972, may change to a reimbursable basis by filing with the administrator, not later than thirty (30) days prior to the beginning of any taxable year, a written notice of election to become liable for payments in lieu of premiums. The election shall not be terminable by the organization for that taxable year and the next taxable year.
  4. (D) The administrator may, for good cause, extend the period within which the notice of election, or a notice of termination, must be filed and may permit an election to be retroactive, but not any earlier than with respect to benefits paid after December 31, 1969.
  5. (E) The administrator, in accordance with regulations the commissioner prescribes, shall notify in writing each nonprofit organization of any determination that the administrator may make of its status as an employer and of the effective date of any election that it makes and of any termination of the election. The determinations shall be subject to review and redetermination in accordance with § 50-7-404(h).
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    50-7-404(h)(1)(A)
  6. (F) For the purposes of this subsection (h), “taxable year” means the period beginning January 1, 1972, through June 30, 1973, and thereafter the period beginning July 1 and extending through June 30 of the following year.
2. (2) Payments in lieu of premiums shall be made in accordance with this subdivision (h)(2), including either subdivision (h)(2)(A) or (B), which follows:
  1. (A) At the end of each calendar quarter, or at the end of any other period as determined by the administrator, the administrator shall bill each nonprofit organization, or group of organizations, that has elected to make payments in lieu of premiums for an amount equal to the full amount of regular benefits, plus one-half (½) of the amount of extended benefits paid during the quarter or other prescribed period that is attributable to service in the employ of the organization; or
  2. (B)
    1. (i) Each nonprofit organization that has elected payments in lieu of premiums may request permission to make the payments as provided in this subdivision (h)(2). The method of payment shall become effective upon approval by the administrator;
    2. (ii) At the end of each calendar quarter, or at the end of such other period as determined by the administrator, the administrator shall bill each nonprofit organization for an amount representing one (1) of the following:
      1. (a) For years after 1972, the percentage of its total payroll for the immediately preceding calendar year that the administrator determines. The determination shall be based each year on the average benefit costs attributable to service in the employ of nonprofit organizations during the preceding calendar year; or
      2. (b) For any organization that did not pay wages throughout the four (4) calendar quarters of the preceding calendar year, the percentage of its payroll during the year that the administrator determines;
    3. (iii) At the end of each taxable year, the administrator may modify the quarterly percentage of payroll thereafter payable by the nonprofit organization in order to minimize excess or insufficient payments;
    4. (iv) At the end of each taxable year, the administrator shall determine whether the total of payments for the year made by a nonprofit organization is less than, or in excess of, the total amount of regular benefits, plus one-half (½) of the amount of extended benefits paid to claimants during the taxable year based on wages attributable to service in the employ of the organization. Each nonprofit organization whose total payments for the year are less than the amount so determined shall be liable for payment of the unpaid balance to the fund in accordance with subdivision (h)(2)(C). If the total payments exceed the amount so determined for the taxable year, all or a part of the excess may, at the discretion of the administrator, be refunded from the fund or retained in the fund as part of the payments that may be required for the next taxable year.
  3. (C) Payment of any bill rendered under subdivision (h)(2)(A) or (h)(2)(B) shall be made not later than thirty (30) calendar days after the date the bill is mailed to or given to the organization, whichever occurs first, unless the organization has timely filed with the division of employment security a written application for review and redetermination in accordance with § 50-7-404(h);
  4. (D) Payments made by any nonprofit organization under this subsection (h) shall not be deducted or deductible, in whole or in part, from the remuneration of individuals in the employ of the organization;
  5. (E) The amount due specified in any bill shall be conclusive on the organization, unless the organization has timely filed with the division of employment security a written application for review and redetermination in accordance with § 50-7-404(h); and
  6. (F) Past-due payments of amounts in lieu of premiums shall be subject to the same interest and penalties that, pursuant to § 50-7-404, apply to the past-due premiums.
3. (3) If any nonprofit organization is delinquent in making payments in lieu of premiums as required under subdivision (h)(2), the administrator may terminate the organization's election to make payments in lieu of premiums as of the beginning of the next taxable year, and the termination shall be effective for that and the next taxable year.
4. (4) Each employer that is liable for payments in lieu of premiums shall pay to the administrator for the fund the amount of regular benefits, plus the amount of one-half (½) of extended benefits paid that are attributable to service in the employ of the employer. If benefits paid to a claimant are based on wages paid by more than one (1) employer and one (1) or more of the employers are liable for payments in lieu of premiums, the amount payable to the fund by each employer that is liable for the payments shall be determined in accordance with subdivision (h)(4)(A) or (h)(4)(B):
  1. (A) Proportionate allocation, when fewer than all base-period employers are liable for reimbursement. If benefits paid to a claimant are based on wages paid by one (1) or more employers who are liable for payments in lieu of premiums and on wages paid by one (1) or more employers who are liable for premiums, the amount of benefits payable by each employer that is liable for payments in lieu of premiums shall be an amount that bears the same ratio to the total benefits paid to the individual as the total base-period wages paid to the claimant by the employer bear to the total base-period wages paid to the claimant by all of the claimant's base-period employers; or
  2. (B) Proportionate allocation, when all base-period employers are liable for reimbursement. If benefits paid to a claimant are based on wages paid by two (2) or more employers that are liable for payments in lieu of premiums, the amount of benefits payable by each employer shall be an amount that bears the same ratio to the total benefits paid to the claimant as the total base-period wages paid to the claimant by the employer bear to the total base-period wages paid to the claimant by all of the claimant's base-period employers.
5. (5)
  1. (A)
    1. (i) Two (2) or more employers that have become liable for payments in lieu of premiums, in accordance with subdivision (h)(1), may file a joint application to the administrator for the establishment of a group account for the purpose of sharing the cost of benefits paid that are attributable to service in the employ of the employers.
    2. (ii) Each application shall identify and authorize a group representative to act as the group's agent for the purposes of this subdivision (h)(5).
    3. (iii) Upon the administrator's approval of the application, the administrator shall establish a group account for the employers effective as of the beginning of the calendar quarter in which the administrator receives the application and shall notify the group's representative of the effective date of the account.
    4. (iv) The account shall remain in effect for not less than two (2) years and thereafter until terminated at the discretion of the administrator or upon application by the group.
    5. (v) Upon establishment of the account, each member of the group shall be liable for payments in lieu of premiums with respect to each calendar quarter in the amount that bears the same ratio to the total benefits paid in the quarter that are attributable to service performed in the employ of all members of the group as the total wages paid for service in employment by the member in the quarter bear to the total wages paid during the quarter for service performed in the employ of all members of the group.
    6. (vi) The commissioner shall prescribe regulations the commissioner deems necessary with respect to applications for establishment, maintenance and termination of group accounts that are authorized by this subdivision (h)(5)(A), for addition of new members to, and withdrawal of active members from, the accounts, and for the determination of the amounts that are payable under this subdivision (h)(5)(A) by members of the group and the time and manner of the payments.
  2. (B) For the purpose of this chapter, this state, the different designated entities of this state, and each of its political subdivisions are regarded as individual governmental entities, and each governmental entity is individually accorded the option of electing to pay premiums or make payments in lieu of premiums to the full extent provided in this section.
  3. (C) Insofar as these governmental employers are concerned and insofar as newly covered nonprofit organizations becoming liable as a result of this chapter on or after January 1, 1978, are concerned, “taxable year” means the period beginning January 1, 1978, through June 30, 1979, and thereafter the period beginning July 1 and extending through June 30 of the following year; provided, that any employing unit becoming an employer as a result of § 50-7-205(4) (state and local governmental entities) is liable to pay premiums as set forth in this chapter, unless it elects in accordance with this section to pay to the administrator for the unemployment fund, an amount equal to the amount of regular benefits and the amount of extended benefits paid that are attributable to service in the employ of the governmental employer to claimants for weeks of unemployment that begin during the effective period of the election with the exception of benefits or extended benefits reimbursed to the state by the federal government pursuant to applicable law.
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(i) State-owned institutions of higher education and state-owned hospitals that are employers under § 50-7-205(4) are accorded the same options relating to the payment of premiums or reimbursement for benefits paid as those accorded nonprofit organizations under subsection (h).
(j)
1. (1) The administrator shall, on June 30 and December 31 of each year, make and publish findings as to the balance in the unemployment compensation trust fund. The balance the administrator finds in the trust fund shall determine the appropriate premium table applicable for the subsequent six-month period as to all employers who qualify under subdivision (b)(1) for a premium rate based on subdivision (b)(1)(A).
  1 Backlink
  - 50-7-108(a)
2. (2) This section shall not apply to those employers referred to in § 50-7-207(b)(3)(A) and (B).
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(k) As used in this chapter:
1. (1) “Computation date” means December 31 of each calendar year with respect to rates of premiums applicable for the twelve-month period beginning with the following July 1;
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  - 62-43-109(d)(1)(A)
2. (2) “Premium rate year” means the period of time beginning July 1 of any year and ending on June 30 of the succeeding year; and
3. (3) “Taxable payroll” means the total amount of taxable wages paid for employment by an employer during a twelve-month period ending on December 31.
(l) The administrator shall promptly notify each employer of the employer's rate of premiums as determined for any period pursuant to this section, and shall also provide for periodic notification to each employer of benefits paid and chargeable to the employer's account, or the status of the employer's account, and the administrator shall further make rules and regulations necessary to make this section effective.
(m)
1. (1) If the administrator finds that an employer's business is closed solely because of the entrance of one (1) or more of the owners, officers, partners, or the majority stockholder, into the armed forces of the United States or of any of its allies, or of the United Nations, after July 1, 1950, the employer's account shall not be terminated; and, if the business is resumed within two (2) years after the discharge or release from active duty in the armed forces of that person or persons, the employer's experience shall be deemed to have been continuous throughout the period.
2. (2) The reserve ratio of the employer shall be the total premiums paid by the employer, minus all benefits, including benefits paid to any claimant during the period such employer was in the armed forces, based upon the wages paid by the employer prior to the employer's entrance into the forces, divided by the employer's average taxable payroll for the three (3) most recent calendar years ending on the computation date during the whole of which respectively the employer has been in business.
3. (3) This subsection (m) does not authorize cash refunds; any adjustments required under this subsection (m) shall be only by credit against premiums due or to be due by the employer.
(n)
1. (1) Any premium rate determination rendered with respect to an employer pursuant to this chapter shall be final and conclusive upon the employer for all purposes and in all proceedings whatsoever unless the employer has timely filed with the division of employment security a written application for review and redetermination in accordance with § 50-7-404(h).
2. (2) Subdivision (n)(1) does not change any cutoff dates as set forth in other sections of the law for filing reports or claims for refund giving the information necessary for computation of rates.

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§ 50-7-404. Collection of premiums — Interest — Procedure when employer in default — Priorities — Adjustments — Refunds.

(a) Interest on Past-Due Premiums. Premiums unpaid on the date on which they are due and payable, as prescribed by the commissioner, shall bear interest at the rate of one percent (1.0%) prior to July 1, 1983, and one and one-half percent (1.5%) thereafter, for each month or any portion of a month from and after that date until payment plus accrued interest is received by the commissioner. Interest collected pursuant to this subsection (a) shall be paid into the unemployment compensation special administrative fund.
2 Backlinks
- 50-7-403(b)(2)(G)(i)(a)
- 50-7-503(a)(1)
(b) Collection.
1. (1) If, after due notice, any employer defaults in any payment of premiums, interest on premiums, penalties, or costs prescribed in this chapter, the amount due, including additionally incurred premiums, interest, penalties and costs, shall be a lien in favor of the department of labor and workforce development upon the assets of the employer. The lien shall commence upon the date the premiums, interest, or penalties become due and shall continue until the original and any subsequent premiums, interest, penalties, costs or assessments are paid in full. The lien shall attach to all interest in property either real or personal, tangible or intangible, in this state then owned, or subsequently acquired by the employer, and shall be enforced by original attachment issued by any court having jurisdiction of the amount claimed to be due, as provided by § 66-21-101. The definition of “assessment” is provided for in subdivisions (c)(1)-(3).
2. (2)
  1. (A) The commissioner shall cause a notice of the lien to be recorded in the office of the county register of deeds in the county or counties in which the employer's business or residence is located, or in any county in which the employer has an interest in property. The notice shall be recorded in the same manner as liens recorded in that office. Recordation shall constitute notice of both the original and all subsequent liabilities of the same taxpayer.
  2. (B) There shall be no fees collected by the county register at the time the notice is recorded, but the county register shall extend credit to the department for the fees that are chargeable and submit the county register's bill at the end of each month to the department in order to obtain payment.
  3. (C) The lien created in this chapter shall have the same priority, in relation to other liens and security interests created under Tennessee law, as the lien described in § 67-1-1403.
  4. (D) Any lien of record in favor of the Tennessee department of employment security shall inure to the Tennessee department of labor and workforce development as a successor in interest to the Tennessee department of employment security by virtue of the Tennessee Workforce Development Act of 1999, compiled in title 4, chapter 3, part 14.
3. (3)
  1. (A) In addition to the remedy provided for in subdivision (b)(2), it is further expressly provided as follows: if after due notice, any employer defaults in payment of premiums or interest on the premiums, the amount due may be collected by civil action in the name of the commissioner, and the employer adjudged in default shall pay the costs of the action; furthermore, and in addition to all other remedies delineated in subdivision (b)(2), the commissioner is expressly authorized to issue, under the commissioner's hand and seal, a distress warrant against the delinquent employer for the amount of the premiums and any interest on the premiums that may be due and unpaid as of the date of the issuance.
  2. (B) The distress warrant shall be returnable within thirty (30) days from its date and shall have the same effect as other distress warrants authorized by law for the collection of delinquent taxes or revenue owed to the state or any agency of the state.
  3. (C) Civil actions brought under this section to collect premiums or interest on the premiums from an employer shall be heard by the court at the earliest possible date and shall be entitled to preference upon the calendar of the court over all other civil actions except cases involving the Workers' Compensation Law, compiled in chapter 6 of this title, or state revenue.
  4. (D) The collection of all premiums shall be barred and any lien for the premiums shall be cancelled and extinguished, unless the premiums are collected or suit for the collection has been instituted within six (6) years from the due date of the premiums as prescribed by the commissioner; however, the period of limitations on collection of premiums or interest on the premiums shall be suspended for the period the assets of the employer are in control or custody of the court in any proceeding before any court of the United States or of any state, as defined in § 50-7-210, and six (6) months thereafter.
4. (4) Distress warrants issued under the authority of this chapter for the collection of premiums, payments in lieu of premiums, interest or penalties arising out of this chapter may, in the discretion of the commissioner, be addressed to and delivered to an employee or representative of the department for the purpose of execution, and the employee or representative shall have the same power and authority as a sheriff for the purpose of levying and executing the distress warrant. The employee or representative shall be entitled to the same fees and costs as would accrue to a sheriff for those services. The fees and costs shall be paid to the department for return to the United States department of labor as miscellaneous receipts.
5. (5)
  1. (A) If the commissioner or the commissioner's delegate determines that the collection of premiums under this title will be jeopardized by delay, the commissioner shall, whether or not premiums accrued have become due, immediately assess the premiums together with all interest, penalties, and costs.
  2. (B) The amount of the assessment shall then become immediately due and payable, and immediate notice and demand shall be made by the commissioner or the commissioner's delegate for the payment of the assessment.
6. (6) The employees or representatives shall not be subject to civil suit as a result of performing or attempting to perform the duties specified in this subsection (b).
7. (7)
  1. (A) In addition to any remedies authorized by this chapter, the department may offset any covered unemployment compensation debt due to the department against any federal income tax refund due to the department’s taxpayer debtor in accordance with § 6402 of the Internal Revenue Code (26 U.S.C. § 6402), and the federal Treasury Offset Program (compiled in 31 CFR part 285), or any successor program.
  2. (B) The department may exercise this right of setoff if the obligation of the debtor was the result of:
    1. (i) Past due contributions due to the state's unemployment fund that remain uncollected and the state has determined the taxpayer debtor to be liable for those contributions; or
    2. (ii) Any penalties and interest assessed by the department on a debt contemplated by this subdivision (b)(7).
  3. (C) Any fee or administrative expense imposed by the United States department of the treasury or the United States department of labor in connection with such offset shall be the responsibility of the debtor.
  4. (D) Following such offset, the amount of credit to which a debtor is entitled shall not exceed the amount of the credit received by the department.
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- 50-7-304(b)(2)(B)
- 50-7-713(a)
(c) Failure to Make Reports and Pay Premiums; Duty and Power of the Commissioner.
1. (1) If any employing unit fails to make and file any report as and when required by the terms and provisions of this chapter, or by any rule or regulation of the commissioner, for the purpose of determining the amount of premiums due by the employing unit under this chapter, or if any report that has been filed is deemed by the commissioner to be incorrect or insufficient, and the employing unit after having been mailed written notice, to its last known address, by the commissioner to file the report, or a corrected or sufficient report, as the case may be, shall fail to file the report within thirty (30) days after the date of the filing of the notice, the commissioner may:
  1. (A) Determine the amount of premiums due from the employing unit on the basis of the information that may be readily available to the commissioner, which determination shall be prima facie correct;
  2. (B) Assess the employing unit with the greater of the amount of premiums so determined or fifty dollars ($50.00); and
  3. (C) Immediately give written notice, by certified mail, to the employing unit of the determination, assessment and damages, if any, added and assessed, demanding payment of the assessment and damages, together with interest and penalty, as herein provided on the amount of premiums from the date when the premiums were due and payable.
2. (2) The determination and assessment shall be final and conclusive on the employing unit thirty (30) calendar days after the date of mailing of written notice of the determination and assessment to the last known address of the employing unit, or not later than thirty (30) calendar days after the date the written notice is given to the employing unit, whichever first occurs, unless the employing unit has timely filed with the department a written application for review and redetermination in accordance with subsection (h). Any premium or deficiencies in premiums found to be due by the department in the redetermination shall be assessed and paid, together with interest, penalty and assessed damages, if any, within fifteen (15) calendar days after the date of mailing of written notice of the redetermination and assessment and demand for payment of the assessment by the department to the last known address of the employing unit, or not later than fifteen (15) calendar days after the date the written notice is given to the employing unit, whichever first occurs. Any employer who neglects or refuses to file a quarterly wage report and a quarterly premium report, or who intentionally files an incomplete quarterly wage report or an incomplete quarterly premium report within the time required by this chapter, or by any rule or regulation of the commissioner, shall pay a penalty of ten dollars ($10.00) for each month, or portion of a month, the report is due; however, the total penalty for each report shall not exceed fifty dollars ($50.00).
3. (3)
  1. (A) Except as otherwise provided in subdivision (c)(3)(B), beginning January 1, 2019, and each quarter thereafter, each employer, and every person or organization who reports wages on employees on behalf of one (1) or more subject employers, shall file the wage and premium reports electronically, in a format prescribed by the commissioner.
  2. (B)
    1. (i) If the electronic filing requirement imposed by subdivision (c)(3)(A) creates a hardship upon the employer, person, or organization subject to the requirement, the employer, person, or organization may submit an affidavit to the commissioner containing a statement made under the penalty of perjury that the employer, person, or organization would suffer an undue hardship by filing the wage and premium reports electronically, and the commissioner may allow the employer, person, or organization to file the wage and premium reports in a paper format. Any employer, person, or organization, who does not have prior approval to file in a paper format, and who is required to file the reports electronically but neglects or refuses to do so, will be considered to have filed an incomplete wage and premium report and shall be assessed a penalty pursuant to subdivision (c)(2).
    2. (ii) The affidavit required by subdivision (c)(3)(B)(i) must be submitted within the first quarter, beginning January 1, 2019, and annually thereafter.
(d) Forfeiture of Right to Do Business Upon Noncompliance.
1. (1) An employer liable for premiums under this chapter who fails to make and file the employer's returns and reports as required, or who fails to pay any premiums when due under the this chapter, shall forfeit the employer's right to do business in this state until the employer complies with all the provisions of this chapter and until the employer enters into a bond with sureties, to be approved by the commissioner, in an amount not to exceed all contributions estimated to become due by the employer under this chapter for any three-month period, conditioned to comply with this chapter and to pay all premiums legally due or to become due by the employer, and the commissioner may proceed by injunction to prevent the continuance of the business upon the failure by the employer, by applying to a court of competent jurisdiction for an injunction and any temporary injunction enjoining the continuance of the business may be granted after reasonable notice not less than ten (10) days by any judge or chancellor now authorized by law to grant injunctions.
2. (2) This subsection (d) is to be deemed as cumulative and in addition to any other provisions of this chapter relating to the collection of premiums by the commissioner.
(e) Priorities Under Legal Dissolution or Distributions. In the event of any distribution of an employer's assets pursuant to an order of any court under the laws of this state, including any receivership, assignment for benefit of creditors, adjudicated insolvency, composition, or similar proceeding, premiums then or thereafter due shall have the same priority as now provided by the state for the payment of debts and taxes due it. In the event of an employer's adjudication in bankruptcy, judicially confirmed extension proposal, or composition, under the federal Bankruptcy Act of 1898 [repealed], premiums then or thereafter due shall be entitled to the priority as is provided in § 64(a) of that act (11 U.S.C. § 104(a) [repealed]).
(f) Adjustment or Refund.
1. (1) If, not later than three (3) years after the date of payment of any premium or interest on the premium, an employer who has paid the premium or interest on the premium makes application for an adjustment of the premium in connection with subsequent premium payments, or for a refund of the premiums because the adjustment cannot be made, and the commissioner determines that the premiums or interest, or any portion of the premiums or interest, was erroneously collected, the commissioner shall allow the employer to make an adjustment, without interest, in connection with subsequent premium payments by the employer, or if the adjustment cannot be made, the commissioner shall refund the amount, without interest, from the fund; provided, that when an employer has erroneously paid to this state premiums or interest that should have been paid as contributions or interest under the unemployment compensation law of some other state, or of the United States, the commissioner may refund to the employer the amount of the premium or interest erroneously paid without interest, and without regard to any period of limitation, upon satisfactory proof to the commissioner that the contributions have been paid to the other state, or to the United States; and provided, further, that in no case shall an adjustment or refund be made with respect to premiums paid on wages that have been included in the determination of an eligible claimant for benefits, unless and until it is shown to the satisfaction of the commissioner that the determination was due entirely to the fault or mistake of the department. For like cause, and within the same period, adjustment or refund may be made on the commissioner's own initiative. Any refund of the interest erroneously paid, which was paid into the unemployment compensation special administrative fund provided for in this chapter, shall be refunded from the fund. When an adjustment or refund to any employer has been approved, the experience rating record provided for in § 50-7-403 shall be corrected, but no premium rate assigned to an employer shall be changed as a result of the adjustment or refund unless the application for the refund has been filed on or before the final day of February immediately preceding the premium rate year. Nothing in this subsection (f) shall be construed to deny any refund required under § 50-7-207(c)(1).
2. (2) Employers lawfully electing to make payments in lieu of premiums shall be entitled to refunds, if:
  1. (A) The commissioner finds that the payment in lieu of premiums was made in error;
  2. (B) If the claim for refund is based on benefits originally paid that were subsequently determined to be improperly paid and the claimant has repaid the commissioner for the benefits; and
  3. (C) The claim for refund has been filed with the commissioner within three (3) years from the date the payment in lieu of premiums was originally made.
2 Backlinks
- 50-7-207(c)(1)
- 50-7-503(a)(4)(B)
(g) Collection of Premiums on Public Contracts.
1. (1) Any person, firm or corporation entering into a formal contract with the state or any county, municipality or political subdivision, or any public board, department, commission or institution that is a part thereof for construction or maintenance of public buildings, works or projects in which the total contract sum shall equal or exceed one hundred thousand dollars ($100,000) and the time of performance is more than six (6) months, shall notify the department in writing of the name of all subcontractors who will furnish or who are furnishing labor in performance of the contract and whose subcontracts are in the amount of ten thousand dollars ($10,000) or more, the notice to be given not less than thirty (30) days prior to paying the subcontractor the final five percent (5%) of the subcontract; and the contractor shall retain the final five percent (5%) for thirty (30) days following the notice or until there is compliance with subdivision (g)(2).
2. (2) The department may, within thirty (30) days following the filing of notice pursuant to subdivision (g)(1), notify the contractor of premiums and interest required or believed to be required under this chapter and owed by the subcontractor by reason of performance of the subcontract or any part of the contract, and the contractor shall then, within the limits provided for in subdivision (g)(1), which is five percent (5%) of the subcontract amount, retain the amount claimed to be due by the subcontractor or require that the subcontractor furnish bond for the amount to the department or make such other arrangement for satisfaction of the obligation of the subcontractor as are satisfactory to and protect the rights of the department.
3. (3) If the contractor fails to give notice as provided in this subsection (g), the contractor will be primarily liable for the obligations of the subcontractor that are described in subdivisions (g)(1) and (2), limited to five percent (5%) of the subcontract amount, and the obligation shall continue for a period of ninety (90) days from the date upon which a request is subsequently filed with the department by the contractor for final determination of the obligation of any subcontractor, or for one (1) year from the date upon which the final payment is received by the contractor from the state, county, municipality, political subdivision or any public board, department, commission or institution that is a part thereof, if notice of the claim is presented by the department within that time to the contractor.
4. (4) The contractor will not be liable for obligations of the subcontractor unless notice is given by the department as provided in either subdivision (g)(2) or (g)(3).
(h) Redeterminations. A person may file an application for review and redetermination by the department of certain determinations made by the department under this part only in accordance with the following:
1. (1) A nonprofit organization or person other than a nonprofit organization may file an application for review and redetermination by the department of:
  1. (A) Any determination made by the department concerning the status of a nonprofit organization as an employer and of which the organization is sent written notice pursuant to § 50-7-403(h)(1)(E);
  2. (B) Any determination made by the department concerning the status of any person other than a nonprofit organization as an employer and of which the person is sent written notice;
  3. (C) Any bill rendered by the department under subdivision (g)(2) with respect to payments in lieu of premiums due from a nonprofit organization and of which the organization is sent written notice pursuant to subdivision (g)(2);
  4. (D) Any determination and assessment of premiums and damages, if any, made by the department under subsection (c) with respect to an employing unit and of which the employing unit is sent written notice pursuant to subsection (c);
  5. (E) Any determination made by the department concerning a premium rate assigned to an employer pursuant to this chapter and of which the employer is sent written notice; or
  6. (F) Any determination of seasonal employer status;
2. (2) An application for review and redetermination shall be in writing and shall state the reason or reasons that the employer submits justifies a change in the initial determination, bill or assessment;
3. (3) An application for review and redetermination must be filed with the department within thirty (30) calendar days after the date of mailing of written notice of the initial determination, bill or assessment, to the last known address of the person or not less than thirty (30) calendar days after the date the written notice is given to the person, whichever first occurs. In the absence of timely filing of the application, any determination, bill or assessment described in subdivision (h)(1) shall be final and conclusive on that person; and
4. (4)
  1. (A) In the case of an application for review and redetermination timely and properly filed with the department in accordance with this subsection (h), the department shall review and reconsider the determination, the amount due specified in the bill or the assessment, shall issue a redetermination, and shall notify the person in writing within ninety (90) calendar days after the application for review and redetermination was so filed with the department. The redetermination shall become a final order of the commissioner and not subject to further review, unless an appeal is filed to the appeals tribunal pursuant to § 50-7-304 within twenty (20) calendar days after the date the written notification of the redetermination is given or mailed to the last known address of the interested party;
  2. (B) Any premium, payment in lieu of premiums, deficiencies in premiums, or deficiencies in payments in lieu of premiums found to be due by the department in the redetermination shall be assessed and paid together with interest, penalty and assessed damages, if any, within fifteen (15) calendar days after the date of mailing of written notice of the redetermination and assessment and demand for payment of the assessment by the department to the last known address of the person, or not later than fifteen (15) calendar days after the date the written notice is given to the person, whichever occurs first.
5 Backlinks
(i) Discharge of Liens.
1. (1) If the commissioner is not joined as a party, a judgment in any civil action or suit, or a judicial sale pursuant to the judgment with respect to property on which the department has or claims a lien under this title:
  1. (A) Shall be made subject to and without disturbing the lien of the department, if notice of the lien has been filed in the place provided by law for the filing at the time the action or suit is commenced; or
  2. (B) If a judicial sale of property pursuant to a judgment in any civil action or suit to which the department is not a party discharges a lien of the department arising under this title, the department may claim, with the same priority as its lien had against the property sold, the proceeds, exclusive of costs, of the sale at any time before the distribution of the proceeds is ordered.
2. (2)
  1. (A) Notwithstanding subdivision (i)(1), a sale of property on which the department has or claims a lien, or a title derived from enforcement of a lien, under this title, made pursuant to an instrument creating a lien on the property, pursuant to a confession of judgment on the obligation secured by such an instrument, or pursuant to a nonjudicial sale under a statutory lien on the property shall, except as otherwise provided, be made subject to and without disturbing the lien or title, if notice of the lien was filed or the title recorded in the place provided by law for the filing or recording more than thirty (30) days before the sale and the department is not given notice of the sale in the manner prescribed in subdivision (i)(2)(B).
  2. (B) Special Rules.
    1. (i) Notice of Sale. Notice of sale to which subdivision (i)(2)(A) applies shall be given, in accordance with regulations prescribed by the commissioner, in writing, by registered or certified mail or by personal service, not less than twenty-five (25) days prior to the sale, to the commissioner or the commissioner's delegate.
    2. (ii) Consent to Sale. Notwithstanding the notice requirement of subdivision (i)(1), a sale described in subdivision (i)(2)(A) of the property shall discharge or divert the property of the lien or title of the department if the department consents to the sale of the property free of the lien or title.
    3. (iii) Sale of Perishable Goods. Notwithstanding the notice requirement of this section, a sale described in subdivision (i)(2)(A) of the property liable to perish or become greatly reduced in price or value by keeping, or that cannot be kept without great expense, shall discharge or divert the property of the lien or title of the department if notice of the sale is given, in accordance with regulations prescribed by the commissioner, in writing, by registered or certified mail or by personal service, to the commissioner or the commissioner's delegate before the sale. The proceeds, exclusive of costs, of the sale shall be held as a fund subject to the liens and claims of the department, in the same manner and with the same priority as the liens and claims had with respect to the property sold, for not less than thirty (30) days after the date of the sale.
3. (3) Right to Redeem.
  1. (A) In the case of real property to which subdivision (i)(2)(A) applies, to satisfy a lien prior to that of the department, the commissioner or the commissioner's delegate may redeem the property within the period allowable for redemption under law.
  2. (B) Amount to be Paid. In any case in which the department redeems real property pursuant to § 50-7-304(c)(1), the amount to be paid for the property shall be the amount paid by the purchaser, plus six percent (6%) interest per annum.
  3. (C) Certificate of Redemption.
    1. (i) In General. In any case in which real property is redeemed by the department pursuant to subdivision (i)(3), the commissioner or the commissioner's delegate shall execute a certificate of redemption therefor.
    2. (ii) Filing. The commissioner or the commissioner's delegate shall, without delay, cause the certificate to be duly recorded in the proper registry of deeds.
    3. (iii) Effect. A certificate of redemption executed by the commissioner or the commissioner's delegate shall constitute prima facie evidence of the regularity of the redemption and shall, when recorded, transfer to the department all the rights, title and interest in and to the property acquired by the person from whom the department redeems the property by virtue of the sale of the property.
(j) Revocation of Charter or Authority to Conduct Business for Nonpayment.
1. (1) The commissioner is empowered to certify to the secretary of state the name of any corporation or limited liability company permitted to conduct business in the state that meets the definition of employer or employing unit for the purposes of this chapter, and that fails or refuses to file any quarterly report or to pay any fees, premiums, penalties or interest required in this chapter; however, no certification shall be issued until the report, fees, premiums, penalties or interest has remained delinquent for a period of ninety (90) days.
2. (2) At the time of the certification to the secretary of state, the commissioner shall give notice to the corporation or limited liability company of the action taken. Then, in the case of a corporation, the charter of the corporation or its domestication in the state shall stand as automatically revoked and the secretary of state shall note the revocation in its records. In the case of a limited liability company, the secretary of state shall administratively dissolve the limited liability company and shall note the dissolution in its records.
3. (3)
  1. (A) In the case of a corporation, at any time after the date of the revocation, the charter may be reinstated upon the filing of all reports and the payment of all fees, premiums, penalties and interest due the state; and in the case of a limited liability company, the certificate of dissolution may be cancelled upon the filing of all reports and the payment of all fees, premiums, penalties and interest due the state; provided, that the title has not been taken by another corporation or limited liability company, and that proof is furnished sufficient to the commissioner that no third party will be injured by the reinstatement or cancellation, unless proof has been furnished sufficient to the secretary of state upon requesting the reinstatement or cancellation.
  2. (B) A corporation whose charter has been revoked or a limited liability company that has been administratively dissolved pursuant to subdivisions (j)(1) and (2) may apply to the secretary of state for reinstatement or cancellation by presenting a certificate from the commissioner certifying that the corporation or limited liability company has satisfied the requirements set forth in subdivision (j)(3)(A).
(k) A client of a staff leasing company shall be jointly and severally liable with the staff leasing company for state unemployment premiums, unless the client is relieved of the joint and several liability as provided under [former] § 62-43-113(b)(2)(B) [repealed] of the Tennessee Employee Leasing Act.

3 Backlinks

§ 50-7-405. Period, election and termination of employer's coverage.

(a) Any employing unit that is or becomes an employer subject to this chapter within any calendar year shall be subject to this chapter during the whole of the calendar year.
(b)
1. (1)
  1. (A) Except as otherwise provided in this section, an employing unit other than one covered under § 50-7-205(5) shall cease to be an employer subject to this chapter only as of January 1 of any calendar year only if it files with the administrator, prior to April 1 of the year, a written application for termination of coverage, and the administrator finds that there were no twenty (20) different days, each day being in a different week within the preceding calendar year, within which the employing unit employed one (1) or more individuals in employment subject to this chapter, and that there was no calendar quarter in either the current or preceding calendar year during which the employing unit paid one thousand five hundred dollars ($1,500) or more in wages for service in employment, or if an agricultural employer, the administrator finds there were no twenty (20) different days, each day being in a different week within the preceding calendar year, within which the employing unit employed ten (10) or more individuals in employment subject to this chapter, and that there were no calendar quarters in either the current or preceding calendar year during which the employing unit paid twenty thousand dollars ($20,000) or more in wages for service in employment, or, if a domestic employer, the administrator finds there were no calendar quarters in either the current or preceding calendar year during which the employing unit paid one thousand dollars ($1,000) or more in cash wages for service in employment. During any calendar year, if the administrator deems advisable, the administrator, on the administrator's own motion, may file an application for termination of coverage on behalf of any employer who, during any preceding year, was liable for premiums under the terms of this chapter but who:
    1. (i) Has removed from the state;
    2. (ii) Has discontinued the business conducted by the employer at the time the employer became liable under the terms of this chapter;
    3. (iii) Has been adjudged bankrupt or insolvent;
    4. (iv) Has not, if other than an agricultural or domestic employer, in the preceding or current calendar year for some portion of a day in each of twenty (20) different weeks, whether or not the weeks were consecutive, had in employment one (1) or more individuals, regardless of whether the same individuals were employed in each day, and that there was no calendar quarter in either the current or preceding calendar year during which the employing unit paid one thousand five hundred dollars ($1,500) or more in wages for service in employment;
    5. (v) Has not, if an agricultural employer, in the preceding or current calendar year for some portion of a day in each of twenty (20) different weeks, whether or not the weeks were consecutive, had in employment ten (10) or more individuals, regardless of whether the same individuals were employed in each day, and there were no calendar quarters in either the current or preceding calendar year during which the employing unit paid twenty thousand dollars ($20,000) or more in wages for service in employment; or
    6. (vi) If a domestic employer, has no calendar quarters in either the current or preceding calendar year during which the employing unit paid one thousand dollars ($1,000) or more in cash wages for service in employment.
  2. (B) The application for termination of coverage filed by the administrator on the administrator's own motion shall be acted upon in the same manner as though the application had been filed by the employer.
2. (2)
  1. (A) Except as otherwise provided in this section, an employing unit that became an employer through the application of § 50-7-205(5) shall cease to be an employer subject to this chapter only as of January 1 of any calendar year only if it files with the administrator, prior to April 1 of such year, a written application for termination of coverage, and the administrator finds that there were no twenty (20) different days, each day being in a different week within the preceding calendar year, within which the employing unit employed four (4) or more individuals in employment subject to this chapter. During any calendar year, if the administrator deems advisable, the administrator on the administrator's own motion, may file an application for termination of coverage on behalf of any employer who, during any preceding year, was liable for contributions or reimbursement of benefits paid and charged to the employer's account under the terms of this chapter, but who has:
    1. (i) Removed from the state;
    2. (ii) Discontinued the business conducted by the employer at the time the employer became liable under the terms of this chapter;
    3. (iii) Been adjudged bankrupt or insolvent; or
    4. (iv) Not for some portion of a day in each of twenty (20) different weeks, whether or not the weeks were consecutive, had in employment four (4) or more individuals, regardless of whether the same individuals were employed in each day.
  2. (B) The application for termination of coverage filed by the administrator on the administrator's own motion shall be acted upon in the same manner as though the application had been filed by the employer.
(c) Any employing unit that is, or becomes, an employer only by virtue of § 50-7-205(3) shall, in addition to the foregoing requirements of this section, cease to become an employer subject to this chapter only as of January 1 of any calendar year, only if the administrator finds, in addition to the findings prescribed by this section, that within the preceding calendar year no services in employment were performed for the employer with respect to which the employer was liable for any federal tax against which credit may be taken for contributions required to be paid to a state unemployment compensation fund.
(d)
1. (1) An employing unit, not otherwise subject to this chapter, that files with the administrator its written election to become an employer subject to this chapter for not less than two (2) calendar years, shall, with the written approval of the election by the administrator, become an employer subject to this chapter to the same extent as all other employers, as of the date stated in the approval, and shall cease to be subject to this chapter as of January 1 of any calendar year, subsequent to the two (2) calendar years, only if it files with the administrator, prior to April 1 of that year, a written notice to that effect, except as otherwise provided by this section.
2. (2) Any employing unit, for which services that do not constitute employment, as defined in this chapter, are performed, may file with the administrator a written election that all the services performed by individuals in its employ in one (1) or more distinct establishments or places of business shall be deemed to constitute employment for all the purposes of this chapter for not less than two (2) calendar years. Upon the written approval of the election by the administrator, the services shall be deemed to constitute employment subject to this chapter from and after the date stated in the approval. The services shall cease to be deemed employment subject to this chapter as of January 1 of any calendar year subsequent to the two (2) calendar years, only if the employing unit files with the administrator, prior to April 1 of that year, a written notice to that effect, except as otherwise provided by this section.
3. (3) Elective coverage by political subdivisions:
  1. (A) Any political subdivision of this state may elect to cover, under this chapter, service performed by employees in all of the hospitals and institutions of higher education, as defined in § 50-7-207(f)(6) and (7), operated by the political subdivision. Election is to be made by filing with the administrator a notice of the election at least thirty (30) days prior to the effective date of the election. The election may exclude any services described in § 50-7-207(c)(5). Any political subdivision electing coverage under this subdivision (d)(3) shall make payments in lieu of premiums with respect to benefits attributable to the employment as provided with respect to nonprofit organizations in § 50-7-403(h);
  2. (B) Section 50-7-207(c)(9) with respect to benefit rights based on service for state and nonprofit institutions of higher education shall be applicable also to service covered by an election under this section;
  3. (C) The amounts required to be paid in lieu of premiums by any political subdivision under this section shall be billed and payment made as provided in § 50-7-403(h) with respect to similar payments by nonprofit organizations; and
  4. (D) An election under this section may be terminated by filing with the administrator written notice not later than thirty (30) days preceding the last day of the calendar year in which the termination is to be effective. The termination becomes effective as of the first day of the next ensuing calendar year with respect to services performed after that date.
2 Backlinks
- 50-7-205(7)
- 50-7-213(c)(1)

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§ 50-7-406. Rating system for reorganized businesses.

The division of employment security shall attempt to develop a system of rating employers that will ensure that an employer who goes out of business and reorganizes as a new business with substantially the same owners shall not be rated as a new employer, but the business shall retain the same rating it maintained under the old business.

§ 50-7-407. Continuous part-time employment — “Reimbursing employer” defined.

(a) Notwithstanding any other provision of this chapter to the contrary, if a claimant employed by a reimbursing employer on a continuous part-time basis continues to be employed by the reimbursing employer while separated from other employment and is eligible for benefits, any benefits paid will not be considered attributable to the service with the reimbursing employer.
(b) For the purposes of this section, “reimbursing employer” means an eligible employer who elects to reimburse the state for benefits paid in lieu of premiums, as provided by the Federal Unemployment Tax Act (26 U.S.C. § 3301 et seq.), or this chapter.

§ 50-7-408 — 50-7-450. [Reserved.]

§ 50-7-451. Job skills program — Job skills fee — Job skills fund — Grants — Reports to general assembly.

(a)
1. (1) The Tennessee job skills program is created in the department of economic and community development as a workforce development incentive program to enhance employment opportunities and to meet the needs of existing and new industries in this state.
2. (2) The program shall give priority to the creation and retention of high wage jobs and focus on employers in industries that promote high-skill, high-wage jobs in high-technology areas, emerging occupations or skilled manufacturing jobs.
3. (3) At least seventy percent (70%) of the Tennessee job skills funds, as provided in subsection (b), that are spent on Tennessee job skills grants shall be used for assisting existing employers.
(b)
1. (1) The Tennessee job skills fund is established as a separate account in the general fund.
2. (2) The Tennessee job skills fund is composed of:
  1. (A) Money transferred into the Tennessee job skills fund from Tennessee job skills fees collected for calendar quarters occurring through December 31, 2001;
  2. (B) Gifts, grants, and other donations received by the department of economic and community development for the Tennessee job skills fund; and
  3. (C) Funds appropriated by the general assembly for the Tennessee job skills fund.
3. (3) Money in the Tennessee job skills fund may be used by the department of economic and community development for program administration, marketing expenses, and program evaluation; however, the expenses shall not exceed five percent (5%) of the total amount appropriated for the program in any fiscal year.
4. (4)
  1. (A) Amounts remaining in the Tennessee job skills fund at the end of each fiscal year shall not revert to the general fund.
  2. (B) Moneys in the Tennessee job skills fund shall be invested by the state treasurer pursuant to title 9, chapter 4, part 6, for the sole benefit of the Tennessee job skills fund, and interest accruing on investments and deposits of the fund shall be returned to the fund and remain part of the Tennessee job skills fund.
5. (5) It is the intent of the general assembly that, to the extent practicable, money from the Tennessee jobs skills program shall be spent in all areas of the state.
(c)
1. (1) The general assembly shall annually, in the general appropriations act, appropriate the amount to be available in that fiscal year for Tennessee job skills grants. It is the legislative intent that new commitments for Tennessee job skills grants made by the commissioner of economic and community development from the Tennessee job skills fund program shall not exceed appropriations made for such purposes. It is further the legislative intent that in each fiscal year the Tennessee job skills program be managed so that actual expenditures and obligations to be recognized at the end of the fiscal year shall not exceed any available reserves and appropriations of the programs.
2. (2) The commissioner of economic and community development shall annually report to the finance, ways and means committees of the house of representatives and the senate and the commerce committee of the house of representatives, the commerce and labor committee of the senate and the office of legislative budget analysis on the status of the Tennessee job skills appropriation. The report shall incorporate the information required to be filed by each employer who receives a Tennessee job skills grant pursuant to subsection (d), as well as including information concerning the amount of each grant authorized and each commitment accepted since the previous report and the name of the employer receiving the benefit of the grant or commitment, the total outstanding grants and commitments and the total unobligated appropriation.
3. (3) The following employers may apply for a Tennessee job skills grant from the Tennessee job skills fund:
  1. (A) One (1) or more employers to secure training for demand occupations, emerging occupations, or manufacturing occupations;
  2. (B) One (1) or more employers acting in partnership with an employer organization, labor organization, or community-based organization to secure training for demand occupations, emerging occupations, or manufacturing occupations; and
  3. (C) One (1) or more employers acting in partnership with a consortium composed of more than one (1) provider to secure training for demand occupations, emerging occupations, or manufacturing occupations.
4. (4) All Tennessee job skills grant applications must contain the following:
  1. (A) The number and kinds of jobs available;
  2. (B) The skills and competencies required for the identified jobs;
  3. (C) The starting wages to be paid to trainees on successful completion of the project;
  4. (D) The goals, objectives, and outcome measurements for the project;
  5. (E) The proposed curriculum for the project;
  6. (F) The projected cost per person enrolled, trained, hired and retained in employment; and
  7. (G) Any other information deemed necessary by the department of economic and community development.
5. (5) Tennessee job skills grants from the Tennessee job skills fund shall be awarded only to employers who certify that:
  1. (A) A job or job opening exists or will exist at the end of the project for which the Tennessee job skills grant is sought;
  2. (B) Job openings will be filled by participants in the project; and
  3. (C) The starting wage for a new job created through the project will be equal to or greater than the prevailing starting wage for that occupation in the local labor market area.
(d) Each employer who receives a Tennessee job skills grant pursuant to this section shall file a final report with the department of economic and community development at the conclusion of the Tennessee job skills grant period that contains the following information:
1. (1) The number of participants in the project who are employed at the conclusion of the project;
2. (2) The number of participants in the project who are not employed at the end of the project;
3. (3) The starting wage of each participant employed; and
4. (4) Any other information required by the department of economic and community development.
(e) The department of economic and community development shall adopt rules and regulations in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, to implement this section. Prior to the formal submission of rules and regulations in accordance with the Uniform Administrative Procedures Act, the department of economic and community development shall submit draft rules and regulations to the finance, ways and means committee of the senate and the finance, ways and means committee of the house of representatives. The committees shall comment on the rules and regulations within sixty (60) days.
(f) The department of economic and community development shall report annually to the finance, ways and means committee of the senate and the finance, ways and means committee of the house of representatives on the Tennessee jobs skills program. On February 1, 2002, and every year thereafter, the comptroller of the treasury shall report to the finance, ways and means committee of the senate and the finance, ways and means committee of the house of representatives on the utilization of the funds.
(g) As used in this section, unless the context otherwise requires:
1. (1) “Demand occupation” means an occupation in which, as a result of business development, there is or will be positive job growth to job replacement ratios within the next twelve (12) to twenty-four (24) months, according to the best available sources of state and local labor market information;
2. (2) “Emerging occupation” means an occupation that arises from forces related to technological changes in the workplace and the work of which cannot be performed by workers from other occupations without customized education or training; and
3. (3) “Existing employer,” when used in reference to an employer's eligibility for a Tennessee job skills grant, as described in this section, means an employer that has been liable to pay unemployment insurance premiums under this chapter for more than one (1) year.

§ 50-7-452. Including with employer's annual premium rate notice a statement of benefits charged to employer's experience rating account.

By January 1, 2013, at the request of the employer, the department shall begin including with an employer's annual premium rate notice the statement of benefits charged to the employer's experience rating account that affected that annual premium rate. The department shall include on the annual premium rate notice how an employer may opt in to having that additional information included with the notice.

Part 5 Funds

§ 50-7-501. Unemployment compensation fund.

(a) Establishment and Control.
1. (1) There is established as a special fund, within the state treasury, an unemployment compensation fund, which shall be administered by the administrator of the division of employment security exclusively for the purposes of this chapter. This fund shall consist of all:
  1. (A) Premiums collected under this chapter;
  2. (B) Interest earned upon any money in the fund;
  3. (C) Property or securities acquired in lieu of premiums or other liabilities to the fund;
  4. (D) Earnings of the property or securities;
  5. (E) Money recovered on losses sustained by the fund;
  6. (F) Money credited to this state's account in the unemployment trust fund pursuant to § 903 of the Social Security Act (42 U.S.C. § 1103);
  7. (G) Money received from employers who elect to make reimbursement of benefits paid and chargeable to them in lieu of paying premiums as provided in § 50-7-403(h) and (i);
  8. (H) Money received from the federal government pursuant to § 204 of the Federal-State Extended Unemployment Compensation Act of 1970; and
  9. (I) Fees and administrative expenses collected under § 50-7-304(b)(2)(E)(ii) and penalties collected under § 50-7-715(b)(1).
2. (2) All money in the fund shall be commingled and undivided.
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(b) Accounts and Deposits.
1. (1) The state treasurer shall be the ex officio treasurer and custodian of the fund. Within the accounting system of the state, the fund shall be divided into three (3) separate accounts:
  1. (A) A clearing account;
  2. (B) An unemployment trust fund account; and
  3. (C) A benefit account.
2. (2) All money payable to the fund, upon receipt of the money, shall be immediately deposited into the state treasury to the credit of the clearing account. Refunds payable pursuant to § 50-7-404 may be paid from the clearing account upon warrants originating in the office of the administrator and approved by the commissioner or a duly designated agent and countersigned by the state treasurer.
3. (3) All other collected funds in the clearing account shall be immediately transferred to and deposited with the secretary of the treasury of the United States to the credit of the account of this state in the unemployment trust fund established and maintained pursuant to § 904 of the Social Security Act (42 U.S.C. § 1104). The benefit account shall consist of all moneys requisitioned from this state's account in the unemployment trust fund.
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- 50-7-204(3)
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(c) Withdrawals. Money shall be requisitioned from the state’s account in the unemployment trust fund and shall be used exclusively for the payment of benefits, including extended benefits authorized by § 50-7-305; for refunds pursuant to § 50-7-404; and for the payment of fees authorized under the Treasury Offset Program described in § 6402 of the Internal Revenue Code (26 U.S.C. § 6402), and 31 CFR part 285, except that money credited to this state’s account pursuant to § 903 of the Social Security Act (42 U.S.C. § 1103), by the Employment Security Administration Financing Act of 1954, shall be used for the purpose of paying benefits as provided in this section, and for any purposes for which an appropriation may be made, which general appropriations act shall specifically comply with all the requirements of § 903 of the Social Security Act (42 U.S.C. § 1103), by the Employment Security Administration Financing Act of 1954. The administrator shall, from time to time, requisition from the unemployment trust fund amounts, not exceeding the amounts standing to this state’s account in the fund, the administrator deems necessary for the payment of benefits for a reasonable future period, the limits of which shall be specified by the administrator. Upon receipt of the moneys, the state treasurer shall deposit the moneys in the benefit account and all warrants for the payment of benefits shall be issued in the manner prescribed in this section and shall be payable by the state treasurer solely from the benefit account. Expenditures of the moneys in the benefit account and refunds from the clearing account shall not be subject to any law requiring specific appropriations or other formal release by state officers of money in their custody. All warrants for the payment of benefits and refunds shall originate in the office of the administrator and shall be approved by the commissioner or a duly designated agent and shall be countersigned by the state treasurer. Any balance of moneys requisitioned from the unemployment trust fund that remains unclaimed or unpaid in the benefit account after the expiration of the period for which the sums were requisitioned shall either be deducted from estimates for, and may be utilized for the payment of, benefits during succeeding periods, or, in the discretion of the administrator, shall be redeposited with the secretary of the treasury of the United States, to the credit of this state’s account in the unemployment trust fund, as provided in subsection (b).
(d) Management of Funds upon Discontinuance of Unemployment Trust Fund. Subsections (a), (b) and (c), to the extent that they relate to the unemployment trust fund, shall be operative only so long as the unemployment trust fund continues to exist and so long as the secretary of the treasury of the United States continues to maintain for this state a separate book account of all funds deposited in the fund by this state for benefit purposes, together with this state's proportionate share of the earnings of the unemployment trust fund, from which no other state is permitted to make withdrawals. If, and when, the unemployment trust fund ceases to exist, or the separate book account is no longer maintained, all moneys, properties or securities in the fund belonging to the unemployment compensation fund of this state shall be transferred to the state treasurer, who shall hold, invest, transfer, sell, deposit and release the moneys, properties or securities as the general assembly may direct in accordance with this chapter; provided, that the moneys shall be invested in the following readily marketable classes of securities, bonds or other interest-bearing obligations of the United States, or in such securities as the sinking fund of this state may now or hereafter be invested; and provided further, that investment shall at all times be so made that all the assets of the fund shall always be readily convertible into cash when needed for the payment of benefits. The state treasurer shall dispose of securities or other properties belonging to the unemployment compensation fund only under the direction of the commissioner.

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50-7-715(b)(1)

§ 50-7-502. Unemployment compensation administration fund.

(a)
1. (1) There is created in the state treasury a special fund to be known as the unemployment compensation administration fund.
2. (2) All moneys that are deposited or paid into this fund are appropriated and made available to the commissioner.
3. (3) All moneys in this fund shall be expended solely for the purpose of defraying the cost of administration of this chapter, and no other purpose whatsoever.
4. (4) The fund shall consist of all money appropriated and allotted by this state, and all moneys received from the United States, or any agencies of the United States, or from any other source, for that purpose.
5. (5) All moneys in this fund shall be deposited, administered and disbursed in the same manner and under the same conditions and requirements that are provided by law for other special funds in the state treasury.
6. (6) Any balances in this fund shall not lapse at any time, but shall be continuously available to the commissioner for expenditure consistent with this chapter.
7. (7) The moneys received from any agency of the United States, or any other state or agency, as compensation for services or facilities supplied to the agency or agencies shall be paid into this fund on the same basis as expenditures are made for the services or facilities from the fund or account.
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(b) All moneys received from the United States secretary of labor or the secretary's successors for the administration of this chapter shall be expended solely for the purposes and in the amounts found necessary by the United States secretary of labor or the secretary's successors, for the proper and efficient administration of this chapter.
(c) It is the policy of this state that any moneys received from the United States secretary of labor or the secretary's predecessors or successors under the Social Security Act, Title III (42 U.S.C. § 501 et seq.), or any unencumbered balances in the unemployment compensation administration fund as of that date, or any moneys granted after that date to this state pursuant to the Wagner-Peyser Act (29 U.S.C. § 49 et seq.), or any moneys appropriated and allocated by this state or its political subdivisions, and matched by the moneys granted to this state pursuant to the Wagner-Peyser Act, which, because of any action or contingency, have been lost or have been expended for purposes other than, or in amounts in excess of, those found necessary by the United States secretary of labor or the secretary's successors for the proper administration of the fund, shall be replaced by the state within a reasonable time to the unemployment compensation administration fund for expenditure as provided in subsection (a).
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- 50-7-503(a)(4)(A)

§ 50-7-503. Unemployment compensation special administrative fund.

(a)
1. (1) There is created in the state treasury a fund to be known as the “unemployment compensation special administrative fund,” which shall consist of interest collected on delinquent payments pursuant to § 50-7-404(a), the penalty rate payments collected under § 50-7-403(b)(2)(G)(i)(b), the civil money penalties collected under § 50-7-403(b)(2)(G)(ii), penalties collected in accordance with § 50-7-715(b)(2), and interest collected in accordance with § 50-7-715(c)(1).
2. (2) Annual estimates of expenditures and requirements from this fund shall be set forth in the budget document, and estimates approved by the general assembly shall be appropriated from this fund as a specific appropriation item in each year's general appropriations act.
3. (3) No sum sufficient appropriation shall be made from this fund that may add to estimates approved and appropriated by the general assembly, except for subdivisions (a)(1) and (2).
4. (4) The moneys deposited with the fund may be used for the following purposes:
  1. (A) Replacements in the unemployment compensation administration fund as provided in § 50-7-502(c);
  2. (B) Refunds pursuant to § 50-7-404(f) of interest erroneously collected; and
  3. (C) Meeting necessary expenses for the administration of this chapter, including, but not limited to, automation expenses, as approved by the commissioner of finance and administration, the information systems council, and any other entity as required by law.
(b)
1. (1) Interest earned on this fund shall be credited to and augment this fund.
2. (2) The balance of this fund and the balance of the unemployment compensation trust fund shall be considered for purposes of establishing the applicable premium table pursuant to § 50-7-403(j).

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§ 50-7-504. Nonliability of state for benefits.

(a) Benefits shall be deemed to be due and payable under this chapter only to the extent provided in this chapter and to the extent that moneys are available for the benefits to the credit of the unemployment compensation fund, and neither the state nor the commissioner shall be liable for any amount in excess of those sums.
(b) However, for the purpose of continuing the payment of benefits provided by this chapter, the commissioner is authorized to secure an advance of funds from the federal government, pursuant to and subject to the terms of the Social Security Act, Title XII (42 U.S.C. § 1321 et seq.), and/or 26 U.S.C. § 3302, or related acts when and if the commissioner deems the trust fund is insufficient to pay the benefits provided in this chapter for the ensuing six (6) months.

§ 50-7-505. Assessment for payment of interest — Interest paid on advancement fund.

(a) In addition to all other premiums due under this chapter, if on any June 1, the fund has utilized during the preceding eight-month period or it has been determined that during the next four-month period ending on September 30, the fund will utilize moneys advanced under 42 U.S.C. § 1321 and interest is or will be due on the moneys advanced, each employer, except any employer who has not had benefits charged against the employer's account during the two-year period ending on the preceding December 31, and who has not had a negative balance in the employer's account during the same two-year period, shall be assessed an amount that will be used exclusively for the payment of interest due on the advance.
(b) The rate at which each such employer liable under subsection (a) will be assessed shall be determined by dividing the interest that will be due on the next September 30, by ninety-five percent (95%) of the total taxable wages paid during the preceding calendar year ending on December 31 by those employers liable under subsection (a).
(c) In order to determine the assessment of each employer liable under subsection (a), multiply the rate as determined in subsection (b) by each such employer's total taxable wages paid during the preceding calendar year ending on December 31.
(d) Each employer liable under subsection (a) shall be notified of the amount due as a result of subsection (a) on or before June 30. The amount shall be considered delinquent if not paid on or before July 31. Amounts that are unpaid on the day following the date due and payable shall bear interest at the same rate as for regular premiums.
(e) The amount of the assessment will not be included in the determination of an employer's experience rating.
(f) There is created in the state treasury a special fund, to be known as the interest paid on advancement fund (IPA fund).
(g) All moneys collected under this section shall be deposited into the IPA fund and are appropriated and made available exclusively to the commissioner of labor and workforce development for use in paying interest owed on advancements.
(h) All remedies applicable to the collection of employer premiums are applicable to this section.
(i) Any interest required to be paid on advances under the Social Security Act, Title XII (42 U.S.C. § 1321 et seq.), shall be paid in a timely manner and shall not be paid, directly or indirectly, by an equivalent reduction in unemployment premiums or otherwise, from amounts in the unemployment fund.

§ 50-7-506. Investment and securing of funds — Interest.

(a) All moneys in the state treasury in funds created by this chapter shall be invested and secured under title 9, chapter 4, parts 1-4 and 6-8; provided, that in the event of any conflict between this section and § 50-7-501(b), § 50-7-501(b) shall control.
(b) The state treasurer shall periodically review the balances in the various funds created pursuant to this chapter and allocate the interest as is payable pursuant to title 9, chapter 4, parts 1-4 and 6-8.
(c) The state treasurer shall pro rata reduce interest allocations to all funds for which interest is paid pursuant to this section, if necessary, to compensate for any account or fund having a negative balance for the period for which interest allocations are made.

Part 6 Administration

§ 50-7-601. Unemployment compensation bureau — Division of the Tennessee state employment service.

(a) There is created and established in the division of employment security a coordinate bureau to be designated as the unemployment compensation bureau. The bureau shall be a separate administrative unit with respect to personnel and budget, except insofar as the commissioner may find that separation is impracticable. The bureau shall exercise all the powers, perform the duties, and be subject to all the limitations prescribed in this chapter, except those pertaining to overall administration of the division vested in the administrator or except those pertaining to the overall supervision of the department vested in the commissioner, and those provided in this section for the division of the Tennessee state employment service.
(b) There is also created within the department of labor and workforce development the division of Tennessee state employment service, the latter being more fully described in § 50-7-608. The division shall be a separate administrative entity with respect to personnel and budget, except insofar as the commissioner may find that separation impracticable. The division shall be subject to the supervision and control of the commissioner within the provisions of this chapter.

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4-3-1408(a)

§ 50-7-602. Authority and duties of commissioner.

(a) It is the duty of the administrator to administer this chapter. The commissioner has the power and authority to adopt, amend or rescind rules and regulations, to employ persons, make expenditures, require reports, make investigations, and take other action the commissioner deems necessary or suitable to that end.
(b) The rules and regulations shall be effective as provided in the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
(c) The commissioner shall determine the commissioner's own organization and methods of procedure in accordance with this section, and shall have an official seal, which shall be judicially noticed.
(d) Not later than February 1 of each year, the commissioner shall submit to the governor a report covering the administration and operation of this chapter during the preceding twelve-month period ending on September 30, and shall make recommendations for amendments to this chapter the commissioner deems proper.
(e) The report shall include a balance sheet of the moneys in the fund in which there shall be provided, if possible, a reserve against the liability in future years to pay benefits in excess of the then current premiums, which reserve shall be set up by the commissioner in accordance with accepted actuarial principles on the basis of statistics of employment, business activity and other relevant factors for the longest possible period.
(f) Whenever the commissioner believes that a change in premium or benefit rates will become necessary to protect the solvency of the fund, the commissioner shall promptly so inform the governor and the general assembly, and make recommendations with respect to the change in premium or benefit rates.

§ 50-7-603. Regulations and rules.

Regulations and rules may be adopted, amended or rescinded by the commissioner as provided in the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.

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50-7-207(c)(2)

§ 50-7-604. Publications.

The commissioner shall cause to be printed for distribution to the public the text of this chapter, the commissioner's regulations and general rules, the commissioner's annual reports to the governor, to be printed for distribution biennially, and any other material the commissioner deems relevant and suitable and shall furnish the material to any person upon application for the material.

§ 50-7-605. Personnel.

(a)
1. (1) Subject to this chapter, the commissioner is authorized to appoint, fix the compensation and prescribe the duties and powers of officers, accountants, attorneys, experts and other persons necessary in the performance of the commissioner's duties.
2. (2) All positions except those provided for in § 50-7-714 shall be filled by persons selected and appointed on a nonpartisan merit basis.
3. (3) The commissioner shall provide for the holding of examinations to determine the qualifications of applicants for the positions so classified, and, except for temporary appointments not to exceed six (6) months in duration, shall appoint the personnel on the basis of efficiency and fitness as determined in the examinations.
4. (4) The commissioner shall not appoint or employ any person who is an officer or committee member of any political party organization or who holds, or is a candidate for, any elective public office.
5. (5) The commissioner may delegate to any person so appointed the power and authority the commissioner deems reasonable and proper for the effective administration of this chapter, and may, in the commissioner's discretion, require bond of any person handling moneys or signing checks or warrants under this chapter, and the premiums on the bond shall be paid from the administrative fund.
(b) The provisions of this section as to the holding of examinations and the making of appointments on the basis of the examinations shall be inoperative so long as the state has in effect a civil service system applicable to the department of labor and workforce development.

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50-7-304(d)

§ 50-7-606. State unemployment compensation advisory council.

(a) The commissioner shall appoint a state unemployment compensation advisory council composed of an equal number of employer representatives and employee representatives who may fairly be regarded as representative because of their vocation, employment or affiliations, and of members representing the general public that the commissioner may designate.
(b) This council shall aid the commissioner in formulating policies and discussing problems related to the administration of this chapter and in assuring impartiality and freedom from political influence in the solution of the problems.
(c) The advisory council shall serve without compensation, but shall be reimbursed for any necessary expense.
(d) All reimbursement for travel expenses shall be in accordance with the comprehensive travel regulations as promulgated by the department of finance and administration and approved by the attorney general and reporter.
(e) In addition to any other meetings the state advisory council may have with the commissioner for those purposes included in subsection (b), the state advisory council shall meet at least twice a year with the administrator. At such meetings the administrator shall advise the council on the status of all operations of the division and the programs administered within the division. Members of the advisory council shall not be reimbursed for necessary expenses in attending such meetings.

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4-29-249(a)(24)

§ 50-7-607. Employment stabilization.

The commissioner, with the advice and aid of the advisory council, and through the appropriate divisions, shall take all appropriate steps to:
1. (1) Reduce and prevent unemployment;
2. (2) Encourage and assist in the adoption of practical methods of vocational training, retraining and vocational guidance;
3. (3) Investigate, recommend, advise and assist in the establishment and operation, by municipalities, counties, school districts and the state, of reserves for public work to be used in times of business depression and unemployment;
4. (4) Promote the reemployment of unemployed workers throughout the state in every other way that may be feasible; and
5. (5) To these ends, carry on and publish the results of investigations and research studies.

§ 50-7-608. State employment service.

(a)
1. (1) The commissioner shall establish and maintain free public employment offices for the Tennessee state employment service in the number and in the places necessary for the proper administration of this chapter, and for the purposes of performing the duties that are within the purview of the act of congress entitled “An Act to provide for the establishment of a national employment system and for the cooperation with the states in the promotion of such system and for other purposes,” approved June 6, 1933, 48 Stat. 113; 29 U.S.C. § 49(c).
2. (2) It is the duty of the commissioner to cooperate with and, subject to the approval of the governor, to enter into any necessary and desirable agreements with any official or agency of the United States having powers or duties under the act referenced in subdivision (a)(1), or any subsequent act of congress, and to do and perform all things necessary to secure to this state the benefits of the act referenced in subdivision (a)(1), or any subsequent acts of congress in the promotion and maintenance of a system of public employment offices.
3. (3) The act referenced in subdivision (a)(1), is accepted by this state, in conformity with section 4 of that act, and this state will observe and comply with the requirements of the act referenced in subdivision (a)(1).
4. (4) The department is designated and constituted the agency of this state for the purpose of that act.
5. (5) The commissioner shall appoint the director, and other officers and employees of the Tennessee state employment service.
6. (6) The commissioner may cooperate with or enter into agreements with the railroad retirement board with respect to the establishment, maintenance and the use of free employment service facilities.
(b)
1. (1) All moneys received by this state under that act of congress, as amended, shall be paid into the special employment service account in the unemployment compensation administration fund, and these moneys are made available to the commissioner to be expended as provided by this section and by the act referenced in subdivision (a)(1).
2. (2) For the purpose of establishing and maintaining free public employment offices, the commissioner is authorized to enter into agreements with the railroad retirement board, or any other agency of the United States charged with the administration of an unemployment compensation law, with any political subdivisions of this state, or with any private, nonprofit organization, and, as a part of the agreement, the commissioner may accept moneys, services or quarters as a contribution to the employment service account.

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50-7-601(b)

§ 50-7-609. Assistant or deputy commissioner.

(a) The commissioner of labor and workforce development may appoint an assistant or deputy commissioner for the division of employment security, and may delegate to the person so appointed the responsibility and authority in connection with the administration of this chapter, the commissioner may, from time to time, deem necessary, reasonable and proper for the effective and efficient administration of the division, including, but not limited to, the coordination of the unemployment compensation bureau of the division and the Tennessee state employment service.
(b) Neither this chapter nor title 8, chapter 30 shall apply to the appointment of the assistant or deputy commissioner provided for in this section, or to the assistant or deputy commissioner's tenure of office, it being the express intent that the assistant or deputy commissioner shall serve in that capacity solely at the will of the commissioner.

§ 50-7-610. Contracts for administration of programs.

Any political subdivision of the state may contract for the administration of an unemployment compensation program following the established procedures of the division of employment security required by the terms of this chapter without the necessity of public bidding, as required by any public or private act or charter restriction, if the contract is entered into pursuant to a plan authorized and approved by any organization of governmental entities representing cities or counties.

§ 50-7-611. Child support deduction.

(a)
1. (1) An individual filing a new claim for unemployment compensation shall, at the time of filing the claim, disclose whether or not the individual owes child support obligations as defined under subsection (g).
2. (2) If the individual discloses that the individual owes child support obligations, and is determined to be eligible for unemployment compensation, the administrator shall notify the state or local child support enforcement agency enforcing the obligation that the individual has been determined eligible for unemployment compensation.
(b) Notwithstanding any other provision of this chapter, the administrator shall deduct and withhold from any unemployment compensation payable to an individual that owes child support obligations as defined under subsection (g):
1. (1) The amount specified by the individual to the administrator to be deducted and withheld under this subsection (b), if neither subdivision (b)(2) nor (3) is applicable;
2. (2) The amount, if any, determined pursuant to an agreement submitted to the commissioner under § 454(19)(B)(i) of the Social Security Act (42 U.S.C. § 654(19)(B)(i)), by the state or local child support enforcement agency, unless subdivision (b)(3) is applicable; or
3. (3) Any amount otherwise required to be deducted and withheld from the unemployment compensation pursuant to legal process as that term is defined in § 462(e) of the Social Security Act [repealed], properly served upon the commissioner.
(c)
1. (1) Any amount deducted and withheld under subsection (b) shall be paid by the administrator to the appropriate state or local child support enforcement agency.
2. (2) In counties having a population of seven hundred thousand (700,000) or more, according to the 1980 federal census or any subsequent federal census, the amount deducted shall be paid by the administrator to the appropriate local child support enforcement agency.
(d) Any amount deducted and withheld under subsection (b) shall for all purposes be treated as if it were paid to the individual as unemployment compensation and paid by the individual to the state or local child support enforcement agency in satisfaction of the individual's child support obligations.
(e) For purposes of subsections (a)-(d), “unemployment compensation” means any compensation payable under this chapter, including amounts payable by the commissioner pursuant to an agreement under any federal law providing for compensation, assistance or allowances with respect to unemployment.
(f) This section applies only if appropriate arrangements have been made for reimbursement by the state or local child support enforcement agency for the administrative costs incurred by the administrator under this section that are attributable to child support obligations being enforced by the state or local child support enforcement agency.
(g) “Child support obligations,” as used in this section, means only obligations that are being enforced pursuant to a plan described in § 454 of the Social Security Act (42 U.S.C. § 654), that has been approved by the secretary of health and human services under Title IV, Part D of the Social Security Act (42 U.S.C. § 651 et seq.).
(h) “State or local child support enforcement agency,” as used in this section, means any agency of a state or a political subdivision thereof operating pursuant to a plan described in subsection (g).

§ 50-7-612. Food stamp overissuance deduction.

(a) An individual filing a new claim for unemployment compensation shall, at the time of filing the claim, disclose whether or not the individual owes an overissuance, as defined in § 13(c)(1) of the Food Stamp Act of 1977 (7 U.S.C. § 2022(c)(1)), of food stamp benefits. The administrator shall notify the state food stamp agency enforcing such obligation of any individual who discloses that such individual owes food stamp overissuances and who is determined to be eligible for unemployment compensation.
(b) The administrator shall deduct and withhold from any unemployment compensation payable to the individual who owes an uncollected overissuance of food stamp benefits:
1. (1) The amount specified by the individual to the administrator to be deducted and withheld under this subsection (b);
2. (2) The amount, if any, determined pursuant to an agreement submitted to the state food stamp agency under § 13(c)(3)(A) of the Food Stamp Act of 1977 (7 U.S.C. § 2022(c)(3)(A)); or
3. (3) Any amount otherwise required to be deducted and withheld from unemployment compensation pursuant to § 13(c)(3)(B) of the Food Stamp Act of 1977 (7 U.S.C. § 2022(c)(3)(B)).
(c) Any amount deducted and withheld under this section shall be paid by the administrator to the appropriate state food stamp agency.
(d) Any amount deducted and withheld under subsection (b) shall for all purposes be treated as if it were paid to the individual as unemployment compensation and be treated as if it were paid by the individual to the state food stamp agency as repayment of the individual's uncollected overissuance of food stamp benefits.
(e) For purposes of this section, “unemployment compensation” means any compensation payable under this chapter, including amounts payable by the commissioner pursuant to an agreement under federal law providing for compensation, assistance, or allowances with respect to unemployment.
(f) This section applies only if arrangements have been made for reimbursement by the state food stamp agency for the administrative costs incurred by the commissioner under this section that are attributable to the repayment of uncollected overissuances to the state food stamp agency.

§ 50-7-613. Receiving notices electronically and submitting separation information electronically — Electronic appeals.

By July 1, 2012, the department shall implement an internet-based system that allows employers to receive separation notices from the department electronically and to submit separation information electronically to the department. The system shall also have the capability to allow an employer to initiate an appeal electronically.

Part 7 Enforcement

§ 50-7-701. Records and reports — Evidence — Privilege — Cost.

(a)
1. (1)
  1. (A) Each employing unit shall keep true and accurate work records, for the periods of time and containing the information the commissioner prescribes. The records shall be open to inspection and be subject to being copied by the commissioner or the commissioner's authorized representative at any reasonable time and as often as necessary.
  2. (B) The commissioner, the commissioner’s designee or an unemployment hearing officer may require from a claimant all necessary information to process the claimant's claim and may require from any employing unit any sworn or unsworn reports, with respect to persons employed by it, that any of them deem necessary for the effective administration of this chapter.
  3. (C) Information thus obtained pursuant to the administration of this chapter shall be held confidential and shall not be published or be open to public inspection in any manner revealing the individual's or the employing unit's identity, other than to:
    1. (i) The extent necessary for the proper presentation of a claim for unemployment insurance benefits;
    2. (ii) Public employees in the performance of their public duties and to their duly authorized agents and contractors for the purpose of performing such duties; provided, that the safeguard and security requirements of 20 CFR 603.9(b) and (c) are met;
    3. (iii) State and local child support agencies for the enforcement, collection and establishment of child support obligations, for the location of child support obligors, and for the establishment of paternity. Information disclosed to the state and local child support agencies may be provided by them to their duly authorized agents, working under contract or otherwise; provided, that the information provided to the agents is limited to only information on individuals who are child support obligors or who are sought for establishing paternity, and the information is used only for the purposes of establishing and collecting child support obligations, locating child support obligors, and establishing paternity. Any agent of a state or local child support agency who receives information under this section shall be required to comply with all regulations, restrictions and safeguards provided in § 303(e)(1)(B) of the Social Security Act (42 U.S.C. § 503(e)(1)(B)), as determined in regulations issued by the United States secretary of labor;
    4. (iv) Any party or the party's legal representative at a hearing before an unemployment hearing officer or the commissioner’s designee to the extent necessary for the proper presentation of a claim. Any documents, records, affidavits, testimony, or other information introduced into the record at any hearing before an unemployment hearing officer or the commissioner’s designee shall not be held confidential and shall be open to public inspection, unless expressly prohibited by other state or federal law or by administrative or judicial protective order. Hearings before an unemployment hearing officer or the commissioner’s designee will be open to the public, subject to rules the agency prescribed in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, and applicable federal law;
    5. (v) The bureau of TennCare, the office of inspector general, and their duly authorized agents and contractors, for the sole purpose of investigating the eligibility of TennCare enrollees and applicants; provided, that the information disclosed to the agents shall only include TennCare enrollee and applicant information, and that the information shall be used only for the following purposes: verification of eligibility for TennCare, verification of TennCare enrollee access to health insurance other than through TennCare, and determination of whether the enrollee is being charged and is paying correct TennCare premium amounts. It is further provided that, before any agent or contractor may have access to the information, the agent or contractor shall execute an agreement with the bureau of TennCare or the office of inspector general, warranting that any information obtained as provided in this section shall remain confidential, shall not be disclosed by the agent or contractor to third parties or subcontractors, and that the agent or contractor shall limit the use to the purposes set forth in this section. The agreement shall further require that the contractor or agent return or destroy all confidential information received during the course of the contract or agency, and use appropriate safeguards to prevent use or disclosure other than as provided for by law and by the contract or agency agreement. Nothing in this subdivision (a)(1)(C)(v) shall be construed to prevent the office of inspector general from sharing the information with other public agencies, including law enforcement agencies, in the performance of the official duties of the office of inspector general and those agencies, as may be otherwise provided by law; or
    6. (vi) To the individual or employing unit to whom the records relate, or to their agents with a written authorization from the individual or employing unit.
  4. (D) Any employee or commissioner’s designee or any employee of the commissioner or any public employee or contractor of a public employee in the performance of the public employee's or contractor's public duties or any employee, official or agent of a state or local child support agency, or employees of duly authorized agents of, or contractors with, the bureau of TennCare or the office of inspector general, who has received the information who violates this section commits a Class C misdemeanor.
2. (2) Information obtained by the division of employment security pursuant to the Social Security Act, § 1137 (42 U.S.C. § 1320b-7), as added by § 2651 of the Deficit Reduction Act of 1984 (Pub. L. No. 98-369), shall be held confidential in accordance with subdivision (a)(1), § 1137(a)(5) of the Social Security Act (42 U.S.C. § 1320b-7(a)(5)) and regulations described in § 1137(a)(5)(B) of the Social Security Act (42 U.S.C. § 1320b-7(a)(5)(B)).
(b) Neither the commissioner, a commissioner’s designee, nor any employee of the department shall be required by any process to appear in any court to give evidence as to the contents of any official record of the division maintained pursuant to this chapter, but the evidence of nonconfidential records may be introduced by deposition of any of them, which must be taken in the office of the department where the record is filed. The evidence also may be taken by interrogatories propounded to any of them, or by affidavit executed by any of them. Any subpoena or subpoena duces tecum issued contrary to this subsection (b) may be disregarded by any person or persons.
(c) All letters, reports, communications, or any other matters, either oral or written, from the employer or employee or former employee, to each other, or to the department, or to or by any of the agents, representatives or employees of any of them, which shall have been written, spoken, sent, delivered or made in connection with the requirements and administration of this chapter, shall be absolutely privileged, and shall not be made the subject matter or basis for any suit for libel or slander in any court.
(d) The cost of disclosure of information, other than for the proper administration of a claim, shall be paid by the requestor in accordance with 20 CFR 603.8(d).

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§ 50-7-702. Oaths and witnesses — Disputed claims — Evidence.

In the discharge of the duties imposed by this part, an unemployment hearing officer, the commissioner, the commissioner’s designee, and any duly authorized representative of any of them shall have power to administer oaths and affirmations, take depositions, certify to official acts, and issue subpoenas to compel the attendance of witnesses, and the production of books, papers, correspondence, memoranda and other records deemed necessary as evidence in connection with a disputed claim or the administration of this part.

§ 50-7-703. Subpoenas — Refusal to obey — Penalty.

In case of contumacy by or refusal to obey a subpoena issued to any person, any court of this state within the jurisdiction of which the inquiry is carried on, or within the jurisdiction of which the person guilty of contumacy or refusal to obey is found or resides or transacts business, upon application by the commissioner or the commissioner’s designee, an unemployment hearing officer, or any duly authorized representative of any of them, shall have jurisdiction to issue to the person an order requiring that person to appear before the commissioner, the commissioner’s designee, an unemployment hearing officer, or any duly authorized representative of any of them, there to produce evidence if so ordered, or there to give testimony touching the matter under investigation or in question. Any failure to obey the order of the court may be punished by the court as a contempt of the court, and, in addition to the contempt proceeding, any person who without just cause fails or refuses to attend and testify or to answer any lawful inquiry or to produce books, papers, correspondence, memoranda and other records, if it is in the person's power so to do, in obedience to a subpoena of the commissioner, the commissioner’s designee, an unemployment hearing officer or any duly authorized representative of any of them, commits a Class C misdemeanor.

§ 50-7-704. Protection against self-incrimination.

No person shall be excused from attending and testifying or from producing books, papers, correspondence, memoranda and other records before the commissioner, an unemployment hearing officer, or any duly authorized representative of any of them, or in obedience to the subpoena of any of them in any cause or proceeding before the commissioner or an unemployment hearing officer, on the ground that the testimony or evidence, documentary or otherwise, required of the person may tend to incriminate the person or subject the person to a penalty or forfeiture; but no individual shall be prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, matter or thing concerning which the individual is compelled after having claimed the individual's privilege against self-incrimination, to testify or produce evidence, documentary or otherwise, except that the individual so testifying shall not be exempt from prosecution and punishment for perjury committed in so testifying.

§ 50-7-705. Federal-state cooperation.

(a) In the administration of this chapter, the commissioner shall cooperate with the United States department of labor to the fullest extent consistent with this chapter, and shall take action, through the adoption of appropriate rules, regulations, administrative methods and standards, necessary to secure to this state and its citizens all advantages available under the Social Security Act (42 U.S.C. § 301 et seq.), that relate to unemployment compensation, the federal Unemployment Tax Act (26 U.S.C. § 3301 et seq.), the Wagner-Peyser Act (29 U.S.C. § 49 et seq.), and the Federal-State Extended Unemployment Compensation Act of 1970, found at 26 U.S.C. § 3304 note.
(b) In the administration of § 50-7-305, which is enacted to conform with the requirements of the Federal-State Extended Unemployment Compensation Act of 1970, the commissioner shall take action necessary to:
1. (1) Ensure that § 50-7-305 is interpreted and applied to meet the requirements of the Federal-State Extended Unemployment Compensation Act of 1970 found at 26 U.S.C. § 3304 note, as interpreted by the United States department of labor; and
2. (2) Secure to this state the full reimbursement of the federal share of extended benefits paid under this chapter that are reimbursable under the Federal-State Extended Unemployment Compensation Act of 1970.
(c) The commissioner may afford reasonable cooperation with every agency of the United States or of any state charged with administration of any unemployment insurance law.

§ 50-7-706. Reciprocal arrangements and cooperation.

(a) The commissioner shall participate in any arrangements for the payment of compensation on the basis of combining an individual's wages and employment covered under this chapter with the individual's wages and employment covered under the unemployment compensation laws of other states that are approved by the United States secretary of labor, in consultation with the state unemployment compensation agencies as reasonably calculated to assure the prompt and full payment of compensation in such situations and that include provisions for:
1. (1) Applying the base period of a single state law to a claim involving the combining of an individual's wages and employment covered under two (2) or more state unemployment compensation laws; and
2. (2) Avoiding the duplicate use of wages and employment by reason of the combining.
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- 50-7-403(d)(3)
(b) The commissioner is authorized to enter into reciprocal arrangements with appropriate and duly authorized agencies of other states or of the federal government, or both, whereby:
1. (1) Services performed by an individual for a single employing unit for which services are customarily performed by the individual in more than one (1) state shall be deemed to be services performed entirely within any one (1) of the states in which:
  1. (A) Any part of the individual's service is performed;
  2. (B) The individual has the individual's residence; or
  3. (C) The employing unit maintains a place of business; provided, that there is in effect, as to the services, an election by an employing unit with the acquiescence of the individual, approved by the agency charged with the administration of the state's unemployment compensation law, pursuant to which services performed by the individual for the employing unit are deemed to be performed entirely within that state;
2. (2) Potential rights to benefits accumulated under the unemployment compensation laws of one (1) or more states or under one (1) or more such laws of the federal government, or both, may constitute the basis for the payment of benefits through a single appropriate agency;
3. (3) Wages or services, upon the basis of which an individual may become entitled to benefits under an unemployment compensation law of another state or of the federal government, shall be deemed to be wages for insured work for the purpose of determining the individual's rights to benefits under this chapter, and wages for insured work, on the basis of which an individual may become entitled to benefits under this chapter, shall be deemed to be wages or services on the basis of which unemployment compensation under the law of another state or of the federal government is payable, but no such arrangement shall be entered into, unless it contains provisions for reimbursements to the fund for the benefits paid under this chapter upon the basis of the wages or services, and provisions for reimbursements from the fund for the compensation paid under the other law upon the basis of wages for insured work, that the commissioner finds will be fair and reasonable to all affected interests; and
4. (4) Premiums due under this chapter with respect to wages for insured work shall, for the purposes of §§ 50-7-401 — 50-7-403, be deemed to have been paid to the fund as of the date payment was made as contributions therefor under another state or federal unemployment law, but no such arrangement shall be entered into unless it contains provisions for the reimbursement to the fund of the premiums deemed paid that the commissioner finds will be fair and reasonable as to all affected interests.
(c)
1. (1) Reimbursements paid from the fund pursuant to subdivision (b)(3) shall be deemed to be benefits for the purpose of this chapter.
2. (2) The commissioner is authorized to make to other states or federal agencies, and to receive from other state or federal agencies, reimbursements from or to the fund, in accordance with arrangements entered into pursuant to subsection (b).
(d) To the extent permissible under the laws and constitution of the United States, the commissioner is authorized to enter into or cooperate in arrangements whereby facilities and services provided under this chapter and facilities and services provided under the unemployment compensation law of any foreign government may be utilized for the taking of claims and the payment of benefits under the Tennessee Employment Security Law, compiled in this chapter, or under a similar law of the foreign government.
(e) If a claimant has been overpaid benefits under the laws of another state and that state certifies to the department the facts involved and that the individual is liable under its law to repay the benefits and requests the department to recover the overpayment, the commissioner is authorized to deduct from future benefits payable to the claimant in either the current or any subsequent benefit year an amount equivalent to the amount of the overpayment determined by that state.

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50-7-205(8)

§ 50-7-707. Destruction of records.

Destruction of records maintained by the division of employment security shall be accomplished pursuant to the terms of title 10, chapter 7, part 3; provided, that the records shall be retained for a period of time at least as long as may be necessary in order to comply with applicable federal law.

§ 50-7-708. Protection of rights and benefits — Penalty for violations.

(a)
1. (1) No agreement by an individual to waive, release or commute the individual's rights to benefits, or any other rights under this chapter, shall be valid.
2. (2) No agreement by any individual in the employ of any person or concern to pay all or any portion of an employer's premiums, required under this chapter from the employer, shall be valid.
3. (3) No employer shall directly or indirectly make, require or accept any deduction from wages to finance the employer's premiums required from the employer, or require or accept any waiver of any right under this chapter by any individual in the employer's employ.
4. (4) Any employer, or officer or agent of any employer, who violates this subsection (a) commits a Class C misdemeanor.
(b)
1. (1) No individual claiming benefits shall be charged fees of any kind in any proceedings under this chapter by the commissioner’s designee, the commissioner, or the commissioner's representatives, or by any court or any officer of the court; provided, that this subdivision (b)(1) shall not limit or affect the requirements of § 50-7-304(i)(5) with respect to giving bond for costs incident to the filing of a petition for certiorari for judicial review of any decision of the commissioner. Excluding attorney's fees, the uncharged fees shall be deemed a part of the expenses of administering this chapter.
2. (2) Any individual claiming benefits in any proceedings before the commissioner’s designee, the commissioner, or the commissioner's representatives, may be represented by counsel or other duly authorized agents. No counsel or agent shall either charge or receive from the individual for services rendered in representing the individual in the administrative proceedings more than any amount approved by the commissioner’s designee. Any counsel or agent seeking compensation for the services shall submit a written application to the commissioner's designee for prior approval of the compensation supported by details and information that the commissioner’s designee requires.
3. (3) Any individual claiming benefits in any proceedings before a court may be represented by counsel. No counsel shall either charge or receive from the individual for services rendered in representing the individual in the judicial proceedings more than an amount approved by the court before which the matter is pending. Any counsel seeking compensation for the services shall submit a written application, if required, to the court for prior approval of the compensation supported by details and information that court requires.
4. (4) Any person who violates this subsection (b) commits, for each offense, a Class C misdemeanor.
(c) No assignment, pledge or encumbrance of any right to benefits that are or may become due or payable under this chapter shall be valid. The rights to benefits shall be exempt from levy, execution, attachment or any other remedy whatsoever provided for the collection of debt. Benefits received by any individual, so long as they are not mingled with other funds of the recipient, are exempt from any remedy whatsoever for the collection of all debts, except debts incurred for necessaries furnished to the individual or the individual's spouse or dependents during the time when the individual was unemployed. No waiver of any exemption provided for in this subsection (c) is valid.
(d) In the case where a claimant has duly filed a claim for benefits and the claimant dies after the close of a week of unemployment in which the claimant was eligible and for which benefits are payable under this chapter, the division of employment security may designate any person who might in its judgment properly receive the benefits, and a receipt or an endorsement from the person so designated shall fully discharge the fund from liability for the benefits.

§ 50-7-709. Misrepresentation to obtain benefits — Penalty.

(a) It is an offense for any person or entity to knowingly make a false statement or representation or fail to disclose a material fact, to obtain or increase any benefit or other payment under this chapter, either for the person's own benefit or for the benefit of any other person.
(b) Each false statement or representation or failure to disclose a material fact constitutes a separate offense.
(c) All prosecutions for offenses defined by this section shall be commenced within two (2) years after the commission of the offense.
(d)
1. (1) A violation of this section is a Class C misdemeanor.
2. (2) A second or subsequent violation of this section is a Class E felony; provided, that the second or subsequent violation of this section occurs after a conviction has been obtained for the previous violation.
3. (3) A first or subsequent violation of this section where the person has a prior conviction for a similar offense in another jurisdiction is a Class E felony; provided, that the second or subsequent violation occurs after a conviction has been obtained for the previous violation.
4. (4) Subdivision (d)(2) or (d)(3) shall only apply if at least one (1) of the required offenses occurs on or after January 1, 2010.

§ 50-7-710. Misrepresentation to obtain benefits under other than Tennessee law — Penalty.

(a) It is an offense for any person to knowingly make a false statement or representation of a material fact or fail to disclose a material fact with intent to defraud by obtaining or increasing any benefit under the unemployment compensation law of any other state of the United States or of the federal government or of any of its territories, or of a foreign government, either for the person's own benefit or for the benefit of any other person.
(b) Each false statement or representation or failure to disclose a material fact constitutes a separate offense.
(c)
1. (1) A violation of this section is a Class C misdemeanor.
2. (2) A second or subsequent violation of this section is a Class E felony; provided, that the second or subsequent violation of this section occurs after a conviction has been obtained for the previous violation.
3. (3) A first or subsequent violation of this section where the person has a prior conviction for a similar offense in another jurisdiction is a Class E felony; provided, that the second or subsequent violation occurs after a conviction has been obtained for the previous violation.
4. (4) Subdivision (c)(2) or (c)(3) shall only apply if at least one (1) of the required offenses occurs on or after January 1, 2010.

§ 50-7-711. Misrepresentation to prevent benefit payments or to evade premium liability — Penalty.

(a) Any employing unit, or any officer or agent of an employing unit, or any other person who makes a false statement or representation knowing it to be false, or who knowingly fails to disclose a material fact, to prevent or reduce the payment of benefits to any individual entitled to benefits, or to avoid becoming or remaining subject to this chapter, or to avoid or reduce any premium or other payment required from an employing unit under this chapter, or who willfully fails or refuses to make the premiums or other payments, or to furnish any reports required under this chapter, or to produce or permit the inspection or copying of records as required under this chapter, commits a Class E felony.
(b) Each false statement or representation or failure to disclose a material fact, and each day of the failure or refusal constitutes a separate offense.

§ 50-7-712. Violations — Class E felony.

(a) Any person who willfully violates this chapter or any order, rule or regulation under this chapter, the violation of which is made unlawful, or the observance of which is required under the terms of this chapter, and for which a penalty is neither prescribed elsewhere in this chapter nor provided by any other applicable statute, commits a Class E felony.
(b) Each day the violation continues constitutes a separate offense.

§ 50-7-713. Receiving payment for nondisclosure or misrepresentation of material fact — Class E felony.

(a) Any person who, by reason of the nondisclosure or misrepresentation by the person, or by another, of a material fact, irrespective of whether the nondisclosure or misrepresentation was known or fraudulent, has received any sum as benefits under this chapter while any conditions for the receipt of benefits imposed by this chapter were not fulfilled in the person's case, or while the person was disqualified from receiving benefits, shall, in the discretion of the administrator, either be liable to have the sum deducted from any future benefits payable to the person under this chapter or shall be liable to repay to the administrator for the unemployment compensation fund, a sum equal to the amount so received by the person, and the sum shall be collectible in the manner provided in § 50-7-404(b) for the collection of past-due premiums.
(b) Furthermore, any person who knowingly and willfully violates this section commits a Class E felony.

§ 50-7-714. Prosecutions — Representation in court.

(a)
1. (1) All criminal actions for violations of this chapter, or any rules or regulations issued pursuant to this chapter, shall be prosecuted by the district attorney general of the judicial district in which the violation occurs, or the attorney general and reporter, in which case a prosecutor shall be dispensed with and no prosecutor need be marked on the indictment for the violation.
2. (2) The grand juries of the state are given inquisitorial powers over the violations of this chapter.
(b) In the event any criminal actions for the violation of this chapter or any rules or regulations issued pursuant to this chapter should, in the opinion of the appropriate district attorney general, be initiated by a criminal warrant for the purpose of providing the accused a preliminary hearing to determine probable cause, the appropriate district attorney general or assistant district attorney general shall sign the warrant.

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50-7-605(a)(2)

§ 50-7-715. Repayment of unemployment benefits as a result of a violation of this chapter — Interest on amount due — Appeal does not toll interest — Application of moneys received.

(a) Any person who has received unemployment benefits by knowingly misrepresenting, misstating, or failing to disclose any material fact, or by making a false statement or false representation without a good faith belief as to the correctness of the statement or representation, after a determination by the commissioner that such a violation has occurred, shall be required to repay the amount of benefits received.
(b)
1. (1) The commissioner shall assess a penalty equal to fifteen percent (15%) of the overpaid benefits as described in subsection (a), to comply with the requirements of 42 U.S.C. § 503(a)(11). Moneys collected by this penalty shall be deposited into the unemployment compensation fund as provided in § 50-7-501.
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  - 50-7-501(a)(1)(I)
2. (2)
  1. (A) For overpayments made prior to July 1, 2016, the commissioner shall further assess a penalty equal to seven and one-half percent (7.5%) of the overpaid benefits described in subsection (a).
  2. (B) For overpayments made on or after July 1, 2016, the commissioner shall further assess a penalty equal to fifteen percent (15%) for the first instance of overpaid benefits described in subsection (a). “First instance” means all consecutive claim weeks of unemployment benefits paid within a benefit year to any person when such benefits were received by knowingly misrepresenting, misstating, or failing to disclose any material fact. The commissioner shall further assess a penalty equal to thirty-five percent (35%) for the second and each subsequent instance of overpaid benefits as described in subsection (a).
  3. (C) Monies collected by penalties set out in this subdivision (b)(2) shall be used to defray the costs of deterring, detecting, or collecting overpayments. The penalty provided in this subdivision (b)(2) is in addition to the penalty provided in subdivision (b)(1).
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(c)
1. (1) In addition to the requirements of subsections (a) and (b), the commissioner shall assess interest at a rate of no more than one and one-half percent (1.5%) per month on the total amount due that remains unpaid for a period of thirty (30) or more calendar days after the date on which the commissioner sends notice of the commissioner's determination that a violation has occurred to the last known address of the claimant. For purposes of this subdivision (c)(1), “total amount due” includes the unemployment benefits received pursuant to subsection (a) and the penalties provided for in subsection (b).
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2. (2) A pending appeal of the order of the commissioner shall not suspend the assessment of interest on unemployment benefits obtained in violation of this chapter.
(d) Moneys received by the department in repayment of unemployment benefits and payment of penalties and interest pursuant to this section shall first be applied to the unemployment benefits received, then to any penalties due, and then to any interest due.

Part 8 Tennessee Works Act of 2012

§ 50-7-801. Short title.

This part shall be known and may be cited as the “Tennessee Works Act of 2012.”

§ 50-7-802. Tennessee Works pilot program — Purpose.

(a) There is hereby established the Tennessee works pilot program to provide job training designed to attract new businesses to the state and to assist in the expansion or retention of existing businesses in this state.
(b) The purpose of the Tennessee works pilot program is to:
1. (1) Enhance this state's economic growth and vitality by offering assistance to privately owned businesses and industries in training a new workforce and by creating new jobs and retaining and upgrading existing jobs;
2. (2) Provide technical education and training as a component of this state's economic development efforts;
3. (3) Be flexible and responsive to the training needs of business and industry in this state; and
4. (4) Offering on-the-job training programs to support existing employees and dislocated workers.

§ 50-7-803. Part definitions.

As used in this part:
1. (1) “Department” means the department of labor and workforce development;
2. (2) “Dislocated worker” means an individual who:
  1. (A) Has been terminated or laid off, or who has received a notice of termination or layoff from employment, including an individual:
    1. (i) Currently eligible for unemployment insurance benefits; or
    2. (ii) Who has exhausted entitlement to unemployment insurance benefits;
  2. (B) Has been terminated or laid off, or has received a notice of termination or layoff from employment as a result of any permanent closure of, or any substantial layoff at, a plant, facility, or enterprise, including a facility at which the employer has made a general announcement that the facility will close within one hundred eighty (180) days;
  3. (C) Was self-employed, but is unemployed as a result of general economic conditions in the community in which the individual resides or because of natural disasters; or
  4. (D) Is a displaced homemaker;
3. (3) “Displaced homemaker” means an individual who has been:
  1. (A) Providing unpaid services to the individual's family members in the home; and
  2. (B) Dependent on the income of another family member but is no longer supported by that income;
4. (4) “Eligible business” means a business determined by the department to be eligible for Tennessee works pilot program grants;
5. (5) “Eligible training expenses” means expenses determined by the department to be eligible for grants awarded through the Tennessee works pilot program; and
6. (6) “Trade adjustment assistance funds” means funds distributed in accordance with the federal Trade Adjustment Assistance Reform Act of 2002, compiled in title 19 of the United States Code.

§ 50-7-804. Administration — Reimbursable screening for potential employment of grants to private businesses.

(a) The department shall administer the Tennessee works pilot program by awarding reimbursable training grants to privately owned businesses for the purpose of screening for potential employment of new and existing employees in this state.
(b)
1. (1) Tennessee works pilot program training grants will be awarded to eligible businesses seeking to make new hires during or after the screening period. Such grants shall be used for the eligible training expenses of a dislocated worker:
  1. (A) Who is a first-time unemployment insurance claimant. The claimant shall continue to receive unemployment insurance benefits during the screening period; or
  2. (B) Whose job is lost due to workforce offshoring by the worker's former employer and who is currently under a valid trade petition approved by the United States department of labor.
2. (2)
  1. (A) A Tennessee works pilot program screening period shall last for up to, but no more than, eight (8) weeks. At any time during the screening period or after the screening period, the employer may elect to employ a dislocated worker on a full-time basis.
  2. (B)
    1. (i) If an employer elects to employ the dislocated worker and to provide additional on the job training (OJT) to the dislocated worker, then the employer will be eligible to receive a wage offset in return for providing additional OJT to the dislocated worker. The employment and training of a dislocated worker pursuant to this subdivision (b)(2)(B)(i) shall be in accordance with the department's existing OJT program and the department's rules and policies regarding the existing OJT program.
    2. (ii) A dislocated worker shall no longer be eligible to receive unemployment insurance benefits or trade adjustment compensation if the dislocated worker is employed and receiving OJT pursuant to subdivision (b)(2)(B)(i). If the employer does not retain the dislocated worker following the OJT period and the dislocated worker is otherwise eligible to receive unemployment insurance benefits, then the dislocated worker can, upon filing a claim, resume receipt of unemployment insurance benefits.
3. (3) An employer shall no longer be eligible for grants through the Tennessee works pilot program if the employer does not demonstrate a pattern of continued employment of dislocated workers following the end of the OJT period.
(c) Trade adjustment assistance funds shall only be awarded:
1. (1) Through the Tennessee works pilot program pursuant to subdivision (b)(1)(B); and
2. (2) To be used in limited cases as an option to expedite employment where the conditions described in subdivision (b)(1)(B) exist.

§ 50-7-805. Funding — Organizations ineligible for grants.

(a) The Tennessee works pilot program established under this part shall be funded solely with funds received by the state from the United States department of labor and shall be subject to the availability of such funds and all laws governing the use of the funds.
(b) No Tennessee works pilot program grant shall be awarded to:
1. (1) Any state entity;
2. (2) Any county, city, town, or other political subdivision of this state; or
3. (3) Any organization or group of organizations, described in § 501(c)(3) of the Internal Revenue Code (26 U.S.C. § 501(c)(3)), that is exempt from income tax under § 501(a) of the Internal Revenue Code (26 U.S.C. § 501(a)).

§ 50-7-806. Rules.

The department has authority to adopt rules to effectuate this part. The rules shall be adopted in accordance with the rulemaking provisions of the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. The department may also adopt emergency rules as determined to be necessary to effectuate this chapter, in accordance with the Uniform Administrative Procedures Act. No rule shall be adopted without prior hearing and notice as provided under the Uniform Administrative Procedures Act.

§ 50-7-807. Report concerning findings and recommendations.

On or before January 1, 2014, the department shall report to the commerce and labor committee of the senate and the business and utilities committee of the house of representatives concerning the department's findings and recommendations concerning the Tennessee works pilot program.

Part 9 Work Share Programs [Effective December 1, 2023.]

§ 50-7-901. Part definitions. [Effective December 1, 2023.]

As used in this part:
1. (1) “Affected group” means two (2) or more employees designated by an employer to participate in a shared work plan;
2. (2) “Approved plan” means an employer's voluntary written plan for reducing unemployment under which a specified group of employees shares the work remaining after their normal weekly hours of work are reduced, which plan meets the requirements of § 50-7-904, and which plan has been approved in writing by the administrator;
3. (3) “Fringe benefits” includes advantages, such as health insurance for hospital, medical, dental, and other services; retirement benefits under defined benefit pension plans as defined in the federal Employee Retirement Income Security Act of 1974 (ERISA)(29 U.S.C. § 1001 et seq.); and paid vacation and holidays, sick leave, or other compensable time that are incidents of employment in addition to the cash remuneration earned;
4. (4) “Normal weekly hours of work” means the normal hours of work for full-time and permanent part-time employees in the affected group when their employing unit is operating on its normal, full-time basis, not to exceed forty (40) hours and not including overtime;
5. (5) “Shared work benefits” means the unemployment compensation benefits payable to employees in an affected group under an approved plan as distinguished from the unemployment benefits otherwise payable under other parts of this chapter;
6. (6) “Shared work employer” means:
  1. (A) An employer with a shared work plan in effect; or
  2. (B) An individual who, or an employing unit that, succeeds to or acquires an organization, trade, or business with a shared work plan and adopts the plan if the individual or employing unit ratifies, in writing, the previously approved plan; and
7. (7) “Subgroup” means a group of employees that constitutes at least ten percent (10%) of the employees in an affected group.

§ 50-7-902. Applicability. [Effective December 1, 2023.]

(a) Except as otherwise provided in this part, provisions of this chapter that are applicable to unemployment benefits claimants apply to shared work benefits claimants.
(b) An individual who files an initial claim for shared work benefits must be provided, if eligible, a monetary determination of entitlement to shared work benefits by the administrator and must serve a waiting period of one (1) week.

§ 50-7-903. Construction. [Effective December 1, 2023.]

This part does not preclude an otherwise eligible claimant from drawing total or partial unemployment benefits when the claimant has exhausted the claimant's shared work benefits.

§ 50-7-904. Participation — Approval criteria. [Effective December 1, 2023.]

(a) An employer wishing to participate in a shared work program shall submit a signed written shared work benefits plan to the administrator for approval.
(b) The administrator shall approve a shared work benefits plan only if the following criteria are met:
1. (1) The plan:
  1. (A) Applies to and identifies the specified affected group; and
  2. (B) Includes an estimate of the number of layoffs that might occur absent participation in the shared work program;
2. (2) The employees in the affected group or groups are identified by name, social security number, and other information required by the administrator;
3. (3) The usual weekly hours of work for employees in the affected group or groups are reduced by not less than ten percent (10%) and not more than forty percent (40%);
4. (4) Health benefits and retirement benefits under defined benefit pension plans, as defined in the federal Employee Retirement Income Security Act of 1974 (ERISA)(29 U.S.C. § 1001 et seq.), and other fringe benefits will continue to be provided to employees in the affected group or groups as though their work weeks had not been reduced. However, if the employer reduces the level of benefits under this subdivision (b)(4) for employees who are not in the shared work group, then the level of benefits may be reduced by a like amount for the employer's shared work employees;
5. (5) The plan certifies that the aggregate reduction in work hours is in lieu of all layoffs that would have affected at least ten percent (10%) of the employees in the affected group or groups to which the plan applies and that would have resulted in an equivalent reduction in work hours;
6. (6) During the previous four (4) months, the workforce in the affected group has not been reduced by temporary layoffs of more than ten percent (10%) of the workers;
7. (7)
  1. (A) The plan applies to at least ten percent (10%) of the employees in the affected group; and
  2. (B)
    1. (i) If the plan applies to all employees in the affected group, then the plan provides equal treatment to all employees of the group; and
    2. (ii) If the affected group is divided into subgroups, then the plan provides equal treatment to employees within each subgroup;
8. (8) In the case of employees represented by an exclusive bargaining representative:
  1. (A) The plan is approved in writing by the collective bargaining agent. If the certification of an exclusive bargaining representative has been appealed, then the bargaining representative is considered to be the exclusive bargaining representative for work sharing plan purposes;
  2. (B) The plan must contain a certification by the employer that the employer has made the proposed plan available to:
    1. (i) Each employee in the affected group for inspection; or
    2. (ii) If applicable, to the exclusive bargaining representative; and
  3. (C) The plan must include:
    1. (i) A description of how the plan was made available; and
    2. (ii) If advance notice of the plan was not feasible, an explanation of why advance notice was not feasible;
9. (9) The plan includes a certified statement by the employer that the terms and implementation of the shared work plan are consistent with obligations the employer has under applicable federal and state laws. An employee who joins an affected group after the approval of the shared work plan is automatically covered under the previously approved plan, effective the week that the administrator receives written notice from the shared work employer that the employee has joined;
10. (10) On the most recent computation date preceding the date of submission of the shared work plan for approval, the total of all contributions paid on the employing unit's own behalf and credited to its account for all previous periods equaled or exceeded the regular benefits charged to its account for all previous periods;
11. (11) The plan does not serve as a subsidy of seasonal employment during the off-season nor as a subsidy of temporary part-time employment or intermittent employment; and
12. (12) The employer agrees to:
  1. (A) Furnish reports relating to the proper conduct of the plan;
  2. (B) Allow the administrator or the administrator's authorized representatives access to all records necessary to verify the plan before approval; and
  3. (C) Allow the administrator to monitor and evaluate application of the plan after approval.

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50-7-901(2)

§ 50-7-905. Written approval or rejection. [Effective December 1, 2023.]

(a) The administrator shall approve or reject a plan in writing within thirty (30) days of receipt.
(b) Only one (1) plan may be approved for any one (1) employer during a twelve-month period.
(c) The reason for rejection is final and non-appealable, but the employer may submit another plan for approval no earlier than fifteen (15) days from the date of the last rejection.

§ 50-7-906. Affected date — Termination. [Effective December 1, 2023.]

(a) A plan is effective on the date specified in the plan or on a date mutually agreed upon by the employer and the administrator, but no earlier than the date of approval of the plan by the administrator.
(b)
1. (1) A plan expires at the end of the twelfth full calendar month after its effective date or on the date specified in the plan if the date is earlier, as long as the plan is not previously revoked by the administrator.
2. (2) If a plan is revoked by the administrator, then the plan terminates on the date specified in the administrator's written order of revocation.

§ 50-7-907. Approval revocation. [Effective December 1, 2023.]

(a)
1. (1) The administrator may revoke approval of a plan for good cause.
2. (2) The revocation order must be in writing and specify the date the revocation is effective and the reasons for revocation.
3. (3) Good cause includes failure to comply with the assurances given in the plan, unreasonable revision of productivity standards for the affected group, conduct or occurrences tending to defeat the intent and effective operation of the plan, and violation of criteria on which approval of the plan was based.
(b) The administrator may take the revocation action at any time on the administrator's own motion, on the motion of any of the affected group's employees, or on the motion of the appropriate collective bargaining agent.
(c) The administrator shall review the operation of each qualified employer plan at least once during the twelve-month period that the plan is in effect to assure its compliance with this part.
(d) Revocation of a plan for good cause by the administrator precludes approval of a subsequent plan submitted by the revoked plan employer during the twelve-month period beginning on the date of the revocation order.

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50-7-908(b)(2)

§ 50-7-908. Operational plan — Modification. [Effective December 1, 2023.]

(a) The employer may modify an operational and approved shared work plan with the agreement of employee representatives if the modification is not substantial and is in conformity with the plan approved by the administrator, but the employer must promptly report the modifications to the administrator.
(b)
1. (1) If the hours of work are increased or decreased substantially beyond the level in the original plan or if any other conditions are changed substantially, then the administrator shall approve or disapprove the modifications without changing the expiration date of the original plan.
2. (2) If the substantial modifications do not meet the requirements for approval, then the administrator shall disallow that portion of the plan in writing as specified in § 50-7-907.

§ 50-7-909. Eligibility for compensation. [Effective December 1, 2023.]

(a) An individual is eligible to receive shared work benefits with respect to any week only if, in addition to monetary entitlement, the administrator finds that:
1. (1) During the week, the individual is employed as a member of an affected group under an approved shared work benefits plan that was approved before that week, and the plan is in effect with respect to the week for which the benefits are claimed; and
2. (2) During the week, the individual is able to work and is available for the normal work week with the shared work employer. However, an otherwise eligible individual shall not be denied benefits with respect to any week in which the individual is in training to enhance job skills, including employer-sponsored training or worker training funded under the Workforce Innovation and Opportunity Act (29 U.S.C. § 3101 et seq.), if the training has been approved by the administrator.
(b) Notwithstanding other provisions of this chapter to the contrary, an individual is deemed unemployed in any week for which remuneration is payable to the individual as an employee in an affected group for ninety percent (90%) or less than the individual's normal weekly hours of work as specified under the approved shared work benefits plan in effect for the week.
(c) Notwithstanding other provisions of this chapter to the contrary, an individual shall not be denied shared work benefits for any week by reason of the application of provisions relating to availability for work and active search for work with an employer other than the shared work employer.

§ 50-7-910. Benefits — Amount. [Effective December 1, 2023.]

(a) The shared work weekly benefit amount is the product of the regular weekly unemployment benefits amount multiplied by the percentage of reduction of at least ten percent (10%) in the individual's usual weekly hours of work.
(b) An individual may be eligible for shared work benefits or unemployment benefits, as appropriate, except that no individual is eligible for combined benefits in any benefit year in an amount more than the maximum entitlement established for unemployment benefits, nor is an individual eligible to be paid shared work benefits for more than the applicable maximum number of weeks described in § 50-7-301(d)(2), whether or not consecutive, in any benefit year pursuant to a shared work plan.
(c) The shared work benefits paid an individual are deducted from the maximum entitlement amount established for that individual's benefit year.
(d) Claims for shared work benefits are filed in the same manner as claims for unemployment benefits or as prescribed in rules by the administrator.

§ 50-7-911. Entitlement to benefits. [Effective December 1, 2023.]

(a) If an individual works in the same week for an employer other than the shared work employer, and the individual's combined hours of work for both employers are greater than ninety percent (90%) of the normal hours of work with the shared work employer, then the individual is not entitled to benefits under the shared work provisions of this part or the unemployment benefits provisions of this chapter.
(b)
1. (1) If an individual works in the same week for both the shared work employer and another employer and the individual's combined hours of work for both employers are equal to or less than ninety percent (90%) of the usual hours of work for the shared work employer, then the benefit amount payable for that week is the weekly unemployment benefits amount reduced by the same percentage that the combined hours are of the usual hours of work.
2. (2) A week for which benefits are paid under this section counts as a week of shared work benefits.
(c) If an individual, with the approval of the employer, did not work during any portion of the workweek, other than the reduced portion covered by the shared work plan, then the individual is not disqualified for the absence or deemed ineligible for shared work benefits for that reason alone.
(d) An individual who performs no services during a week for the shared work employer and is otherwise eligible is paid the full weekly unemployment benefit amount. Such week is not counted as a week with respect to which shared work benefits were received.
(e) An individual who does not work for the shared work employer during a week, but works for another employer and is otherwise eligible, is paid benefits for that week under the partial unemployment benefits provisions of this chapter. Such week is not counted as a week with respect to which shared work benefits were received.

§ 50-7-912. Shared work benefits. [Effective December 1, 2023.]

(a) Shared work benefits are charged to the employer's experience rating accounts in the same manner as unemployment benefits are charged under this chapter.
(b) Employers liable for payments in lieu of contributions must have shared work benefits attributed to service in their employ in the same manner as unemployment benefits are attributed.

§ 50-7-913. Extended benefits. [Effective December 1, 2023.]

An individual who has received all of the combined unemployment benefits and shared work benefits available in a benefit year is considered an exhaustee for purposes of extended benefits, as provided under § 50-7-305, and, if otherwise eligible under that section, is eligible to receive extended benefits.

Chapter 8 Marketplace Contractors

§ 50-8-101. Chapter definitions.

As used in this chapter:
1. (1) “Marketplace contractor” means any individual, corporation, partnership, sole proprietorship, or other business entity that:
  1. (A) Enters into an agreement with a marketplace platform to use the platform's online-enabled application, software, website, or system to receive connections to third-party individuals or entities seeking services in this state; and
  2. (B) In return for compensation from the third-party or marketplace platform, offers or provides services to the third-party individuals or entities upon being given an assignment or connection through the marketplace platform's online-enabled application, software, website, or system; and
2. (2) “Marketplace platform” means a corporation, partnership, sole proprietorship, or other business entity operating in this state that:
  1. (A) Offers an online-enabled application, software, website, or system that enables the provision of services by marketplace contractors to third-party individuals or entities seeking services; and
  2. (B) Neither directly nor through any related party derives any benefit from work performed by marketplace contractors other than a subscription or use fee for placing marketplace contractors in assignments or otherwise providing connections.

§ 50-8-102. Marketplace contractors and marketplace platforms — Employment relationships.

(a) A marketplace contractor is an independent contractor and not an employee of the marketplace platform for all purposes under state and local laws, rules, ordinances, and resolutions if the following conditions are set forth in a written agreement between the marketplace platform and the marketplace contractor:
1. (1) The marketplace platform and marketplace contractor agree in writing that the contractor is an independent contractor with respect to the marketplace platform;
2. (2) The marketplace platform does not unilaterally prescribe specific hours during which the marketplace contractor must be available to accept service requests from third-party individuals or entities. If a marketplace contractor posts the contractor's voluntary availability to provide services, the posting does not constitute a prescription of hours for purposes of this subdivision (a)(2);
3. (3) The marketplace platform does not prohibit the marketplace contractor from using any online-enabled application, software, website, or system offered by other marketplace platforms;
4. (4) The marketplace contractor may, at its discretion, enlist the help of an assistant to complete the services, and the marketplace platform may require the assistant to complete the marketplace platform's standard registration and vetting process. If the marketplace contractor enlists the help of an assistant, the marketplace contractor, not the marketplace platform, is responsible for paying the assistant;
5. (5) The marketplace platform does not restrict the marketplace contractor from engaging in any other occupation or business;
6. (6) The marketplace platform does not require marketplace contractors to use specific supplies or equipment;
7. (7) The marketplace platform does not control the means and methods for the services performed by a marketplace contractor by requiring the marketplace contractor to follow specified instructions governing how to perform the services. However, the marketplace platform may require that the quality of the services provided by the marketplace contractor meets specific standards and requirements;
8. (8) The agreement or contract between the marketplace contractor and the marketplace platform may be terminated by either the marketplace contractor or the marketplace platform with or without cause;
9. (9) The marketplace platform provides no medical or other insurance benefits to the marketplace contractor, and the marketplace contractor is responsible for paying taxes on all income derived as a result of services performed to third parties from the assignments or connections received from the marketplace platform; and
10. (10) All, or substantially all, payment to the marketplace contractor is based on performance of services to third parties who have engaged the services of the marketplace contractor through the marketplace platform.
(b) This section does not apply to any service that is the type of service identified in 26 U.S.C. § 3306(c)(7) or (c)(8).

§ 50-8-103. Applicability of chapter.

Nothing in this chapter applies to:
1. (1) A transportation network company, as defined in § 65-15-301; or
2. (2) A construction services provider, as defined in § 50-6-901.

§ 50-8-104. Remittance of tip to marketplace contractor.

If a third party uses a marketplace platform's online-enabled application, software, website, or system to engage the services of a marketplace contractor and the marketplace platform provides an option for third parties to include a tip in connection with the transaction, then the marketplace platform shall remit the tip to the marketplace contractor and shall not retain any amount of a tip or use it to cover the marketplace platform's obligations to the marketplace contractor.

Chapter 9 Drug-free Workplace Programs

§ 50-9-101. Legislative intent.

(a) It is the intent of the general assembly to promote drug-free workplaces in order that employers in this state be afforded the opportunity to maximize their levels of productivity, enhance their competitive positions in the marketplace and reach their desired levels of success without experiencing the costs, delays and tragedies associated with work-related accidents resulting from drug or alcohol abuse by employees. It is also the intent of the general assembly that employers obtaining certification as a drug-free workplace under rules promulgated by the bureau should be able to renew that certification on an annual basis without requiring repeated annual training of existing employees; provided, however, the employer certifies on a form prescribed by the bureau that all existing employees have undergone training at least once and have acknowledged annually in writing the existence of the employer's drug-free workplace policy. It is further the intent of the general assembly that drug and alcohol abuse be discouraged and that employees who choose to engage in drug or alcohol abuse face the risk of unemployment and the forfeiture of workers' compensation benefits.
(b) If an employer implements a drug-free workplace program in accordance with this chapter, which includes notice, education and procedural requirements for testing for drugs and alcohol pursuant to rules developed by the division, the covered employer may require the employee to submit to a test for the presence of drugs or alcohol and, if a drug or alcohol is found to be present in the employee's system at a level prescribed by statute or by rule adopted pursuant to this chapter, the employee may be terminated and forfeits eligibility for workers' compensation medical and indemnity benefits. However, a drug-free workplace program must require the covered employer to notify all employees that it is a condition of employment for an employee to refrain from reporting to work or working with the presence of drugs or alcohol in the employee's body and, if an injured employee refuses to submit to a test for drugs or alcohol, the employee forfeits eligibility for workers' compensation medical and indemnity benefits.
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- 50-9-105(a)(12)

§ 50-9-102. Applicability.

Sections 50-9-103 — 50-9-111 apply to a drug-free workplace program implemented pursuant to rules adopted by the administrator of the bureau of workers' compensation. The application of this chapter is subject to any applicable collective bargaining agreement. Nothing in the program authorized by this chapter is intended to authorize any employer to test any applicant or employee for alcohol or drugs in any manner inconsistent with federal constitutional or statutory requirements, including those imposed by the Americans with Disabilities Act (42 U.S.C. § 12101 et seq.) and the National Labor Relations Act (29 U.S.C. § 151 et seq.).

§ 50-9-103. Chapter definitions.

As used in this chapter, unless the context otherwise requires:
1. (1) “Alcohol” has the same meaning in this chapter when used in the federal regulations describing the procedures used for testing of alcohol by programs operating pursuant to the authority of the United States department of transportation, currently compiled at 49 CFR part 40. It is intended that the definition shall change as the department of transportation's regulations are revised;
2. (2) “Alcohol test” means an analysis of breath, or blood, or any other analysis that determines the presence and level or absence of alcohol as authorized by the United States department of transportation in its rules and guidelines concerning alcohol testing and drug testing;
3. (3) “Chain of custody” refers to the methodology of tracking specified materials or substances for the purpose of maintaining control and accountability from initial collection to final disposition for all such materials or substances, and providing for accountability at each stage in handling, testing and storing specimens and reporting test results;
4. (4) “Confirmation test,” “confirmed test” or “confirmed drug or alcohol test” means a second analytical procedure used to identify the presence of a specific drug or alcohol or metabolite in a specimen, which test must be different in scientific principle from that of the initial test procedure and must be capable of providing requisite specificity, sensitivity and quantitative accuracy;
5. (5) “Covered employer” means a person or entity that employs a person, is covered by the Workers' Compensation Law, compiled in chapter 6 of this title, maintains a drug-free workplace pursuant to this chapter and includes on the posting required by § 50-9-105 a specific statement that the policy is being implemented pursuant to this chapter. This chapter shall have no effect on employers who do not meet this definition;
6. (6) “Drug” means any controlled substance subject to testing pursuant to drug testing regulations adopted by the United States department of transportation. A covered employer shall test an individual for all such drugs in accordance with this chapter. The commissioner of labor and workforce development may add additional drugs by rule in accordance with § 50-9-111;
7. (7) “Drug or alcohol rehabilitation program” means a service provider that provides confidential, timely and expert identification, assessment and resolution of employee drug or alcohol abuse;
8. (8) “Drug test” or “test” means any chemical, biological or physical instrumental analysis administered by a laboratory authorized to do so pursuant to this chapter, for the purpose of determining the presence or absence of a drug or its metabolites pursuant to regulations governing drug testing adopted by the United States department of transportation or other recognized authority approved by rule by the commissioner of labor and workforce development;
9. (9) “Employee” means any individual who performs services for a covered employer for wages if the services performed by the individual qualify as an employer-employee relationship with the employer based upon consideration of the following twenty (20) factors as described in the twenty-factor test of Internal Revenue Service Revenue Ruling 87-41, 1987-1 C.B. 296:
  1. (A) Instructions. A worker who is required to comply with other persons' instructions about when, where, and how the worker is to work is ordinarily an employee. This control factor is present if the person or persons for whom the services are performed have the right to require compliance with instructions;
  2. (B) Training. Training a worker by requiring an experienced employee to work with the worker, by corresponding with the worker, by requiring the worker to attend meetings, or by using other methods indicates that the person or persons for whom the services are performed want the services performed in a particular method or manner;
  3. (C) Integration. Integration of the worker's services into the business operations generally shows that the worker is subject to direction and control. When the success or continuation of a business depends to an appreciable degree upon the performance of certain services, the workers who perform those services must necessarily be subject to a certain amount of control by the owner of the business;
  4. (D) Services rendered personally. If the services must be rendered personally, then presumably the persons for whom the services are performed are interested in the methods used to accomplish the work as well as in the results;
  5. (E) Hiring, supervising, and paying assistants. If the person or persons for whom the services are performed hire, supervise, and pay assistants, then that factor generally shows control over the workers on the job. However, if one (1) worker hires, supervises, and pays the other assistants pursuant to a contract under which the worker agrees to provide materials and labor and under which the worker is responsible only for the attainment of a result, then this factor indicates an independent contractor status;
  6. (F) Continuing relationship. A continuing relationship between the worker and the person or persons for whom the services are performed indicates that an employer-employee relationship exists. A continuing relationship may exist where work is performed at frequently recurring although irregular intervals;
  7. (G) Set hours of work. The establishment of set hours of work by the person or persons for whom the services are performed is a factor indicating control;
  8. (H) Full time required. If the worker must devote substantially full time to the business of the person or persons for whom the services are performed, then the person or persons have control over the amount of time the worker spends working and impliedly restrict the worker from doing other gainful work. An independent contractor is free to work when and for whom the independent contractor chooses;
  9. (I) Doing work on employer's premises. If the work is performed on the premises of the person or persons for whom the services are performed, then that factor suggests control over the worker, especially if the work could be done elsewhere. Work done off the premises of the person or persons receiving the services, such as at the office of the worker, indicates some freedom from control. However, this fact by itself does not mean that the worker is not an employee. The importance of this factor depends on the nature of the service involved and the extent to which an employer generally would require that employees perform those services on the employer's premises. Control over the place of work is indicated when the person or persons for whom the services are performed have the right to compel the worker to travel a designated route, to canvass territory within a certain time, or to work at specific places as required;
  10. (J) Order or sequence set. If a worker must perform services in the order or sequence set by the person or persons for whom the services are performed, then that factor shows that the worker is not free to follow the worker's own pattern of work but instead must follow the established routines and schedules of the person or persons for whom the services are performed. Often, because of the nature of an occupation, the person or persons for whom the services are performed do not set the order of the services or set the order infrequently. It is sufficient to show control, however, if the person or persons retain the right to do so;
  11. (K) Oral or written reports. A requirement that the worker submit regular or written reports to the person or persons for whom the services are performed indicates a degree of control;
  12. (L) Payment by hour, week, month. Payment by the hour, week, or month generally points to an employer-employee relationship; provided, that this method of payment is not just a convenient way of paying a lump sum agreed upon as the cost of a job. Payment made by the job or on straight commission generally indicates the worker is an independent contractor;
  13. (M) Payment of business or traveling expenses. If the person or persons for whom the services are performed ordinarily pay the worker's business or traveling expenses, then the worker is ordinarily an employee. An employer, to be able to control expenses, generally retains the right to regulate and direct the worker's business activities;
  14. (N) Furnishing of tools and materials. The fact that the person or persons for whom the services are performed furnish significant tools, materials, and other equipment tends to show the existence of an employer-employee relationship;
  15. (O) Significant investment. If the worker invests in facilities that are used by the worker in performing services and are not typically maintained by employees, such as the maintenance of an office rented at fair value from an unrelated party, then that factor tends to indicate that the worker is an independent contractor. However, lack of investment in facilities indicates dependence on the person or persons for whom the services are performed for the facilities and the existence of an employer-employee relationship;
  16. (P) Realization of profit or loss. A worker who can realize a profit or suffer a loss as a result of the worker's services, in addition to the profit or loss ordinarily realized by employees, is generally an independent contractor but the worker who cannot is an employee. For example, if the worker is subject to a real risk of economic loss due to significant investments or a bona fide liability for expenses, such as salary payments to unrelated employees, then that factor indicates that the worker is an independent contractor. The risk that a worker will not receive payment for the worker's services is common to both independent contractors and employees and does not constitute sufficient economic risk to support treatment as an independent contractor;
  17. (Q) Working for more than one firm at a time. If a worker performs more than de minimis services for multiple unrelated persons or firms at the same time, then that factor generally indicates that the worker is an independent contractor. However, a worker who performs services for more than one (1) person may be an employee of each of the persons, especially where such persons are part of the same service arrangement;
  18. (R) Making service available to general public. The fact that a worker makes the worker's services available to the general public on a regular and consistent basis indicates an independent contractor relationship;
  19. (S) Right to discharge. The right to discharge a worker is a factor indicating that the worker is an employee and the person possessing the right is an employer. An employer exercises control through the threat of dismissal, which causes the worker to obey the employer's instructions. An independent contractor cannot be fired so long as the independent contractor produces a result that meets the contract specifications; and
  20. (T) Right to terminate. If the worker has the right to end the worker's relationship with the person for whom the services are performed at any time the worker wishes without incurring liability, then that factor indicates an employer-employee relationship;
10. (10) “Employee assistance program” means an established program capable of providing expert assessment of employee personal concerns; confidential and timely identification services with regard to employee drug or alcohol abuse; referrals of employees for appropriate diagnosis, treatment and assistance; and follow-up services for employees who participate in the program or require monitoring after returning to work. If, in addition to those activities, an employee assistance program provides diagnostic and treatment services, these services shall in all cases be provided by the program;
11. (11) “Employer” means a person or entity that employs a person and that is covered by the Workers' Compensation Law, compiled in chapter 6 of this title;
12. (12) “Initial drug or alcohol test” means a procedure that qualifies as a “screening test” or “initial test” pursuant to regulations governing drug or alcohol testing adopted by the United States department of transportation or other recognized authority approved by rule by the administrator of the bureau of workers' compensation;
13. (13) “Job applicant” means a person who has applied for a position with a covered employer and who has been offered employment conditioned upon successfully passing a drug or alcohol test, and may have begun work pending the results of the drug or alcohol test;
14. (14) “Medical review officer” or “MRO” means a licensed physician, employed with or contracted with a covered employer, who has knowledge of substance abuse disorders, laboratory testing procedures and chain of custody collection procedures; who verifies positive, confirmed test results; and who has the necessary medical training to interpret and evaluate an employee's positive test result in relation to the employee's medical history or any other relevant biomedical information;
15. (15) “Reasonable-suspicion drug testing” means drug or alcohol testing based on a belief that an employee is using or has used drugs or alcohol in violation of the covered employer's policy drawn from specific objective and articulable facts and reasonable inferences drawn from those facts in light of experience. Among other things, the facts and inferences may be based upon:
  1. (A) Observable phenomena while at work, such as direct observation of drug or alcohol use or of the physical symptoms or manifestations of being under the influence of a drug or alcohol;
  2. (B) Abnormal conduct or erratic behavior while at work or a significant deterioration in work performance;
  3. (C) A report of drug or alcohol use, provided by a reliable and credible source;
  4. (D) Evidence that an individual has tampered with a drug or alcohol test during employment with the current covered employer;
  5. (E) Information that an employee has caused, contributed to or been involved in an accident while at work; or
  6. (F) Evidence that an employee has used, possessed, sold, solicited or transferred drugs or used alcohol while working or while on the covered employer's premises or while operating the covered employer's vehicle, machinery or equipment;
16. (16)
  1. (A) “Safety-sensitive position” means a position involving a safety-sensitive function pursuant to regulations governing drug or alcohol testing adopted by the United States department of transportation. For drug-free workplaces, the commissioner is authorized, with the approval of the advisory council on workers' compensation, to promulgate rules expanding the scope of safety-sensitive position to cases where impairment may present a clear and present risk to co-workers or other persons;
  2. (B) “Safety-sensitive position” means, with respect to any employer, a position in which a drug or alcohol impairment constitutes an immediate and direct threat to public health or safety, such as a position that requires the employee to carry a firearm, perform life-threatening procedures, work with confidential information or documents pertaining to criminal investigations or work with controlled substances; or a position in which a momentary lapse in attention could result in injury or death to another person; and
17. (17) “Specimen” means tissue, fluid or a product of the human body capable of revealing the presence of alcohol or drugs or their metabolites.

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§ 50-9-104. Testing for drugs or alcohol authorized — Conditions for testing — Effect of failure to comply.

(a) A covered employer may test a job applicant for alcohol or for any drug described in § 50-9-103; provided, that, for public employees, the testing shall be limited to the extent permitted by the Tennessee and federal constitutions. A covered employer may test an employee for any drug defined in § 50-9-103, and at any time set out in § 50-9-106. An employee who is not in a safety-sensitive position, as defined in § 50-9-103, may be tested for alcohol only when the test is based upon reasonable suspicion, as defined in § 50-9-103. An employee in a safety-sensitive position may be tested for alcohol use at any occasion described in § 50-9-106(a)(2)-(5), inclusive. In order to qualify as having established a drug-free workplace program that affords a covered employer the ability to qualify for the discounts provided under § 50-6-418 and deny workers' compensation medical and indemnity benefits and shift the burden of proof under § 50-6-110(c), all drug or alcohol testing conducted by covered employers shall be in conformity with the standards and procedures established in this chapter and all applicable rules adopted pursuant to this chapter. If a covered employer fails to maintain a drug-free workplace program in accordance with the standards and procedures established in this section and in applicable rules, the covered employer shall not be eligible for:
1. (1) Discounts under § 50-6-418;
2. (2) A shift in the burden of proof pursuant to § 50-6-110(c); or
3. (3) Denial of workers' compensation medical and indemnity benefits pursuant to this chapter. All covered employers qualifying for and receiving discounts provided under § 50-6-418 must be reported annually by the insurer to the division.
(b) The commissioner of labor and workforce development shall adopt a form pursuant to the commissioner's rulemaking authority, which form shall be used by the employer to certify compliance with this chapter. Substantial compliance in completing and filing the form with the commissioner shall create a rebuttable presumption that the employer has established a drug-free workplace program and is entitled to the protection and benefit of this chapter. Prior to granting any premium credit to an employer pursuant to § 50-6-418, all insurers and self-insured pools under chapter 6, part 4 of this title, shall obtain the form from the employer. No less frequently than monthly, insurers and self-insured pools shall submit the forms to the department of labor and workforce development. Any other employer desiring to establish a drug-free workplace shall file the form with the department.
(c) It is intended that any employer required to test its employees pursuant to the requirements of any federal statute or regulation shall be deemed to be in conformity with this section as to the employees it is required to test by those standards and procedures designated in that federal statute or regulation. All other employees of the employer shall be subject to testing as provided in this chapter in order for the employer to qualify as having a drug-free workplace program.

§ 50-9-105. Written policy statement.

(a) One (1) time only, prior to testing, a covered employer shall give all employees and job applicants for employment a written policy statement that contains:
1. (1) A general statement of the covered employer's policy on employee drug or alcohol use, which must identify:
  1. (A) The types of drug or alcohol testing an employee or job applicant may be required to submit to, including reasonable-suspicion drug or alcohol testing or drug or alcohol testing conducted on any other basis; and
  2. (B) The actions the covered employer may take against an employee or job applicant on the basis of a positive confirmed drug or alcohol test result;
2. (2) A statement advising the employee or job applicant of the existence of this section;
3. (3) A general statement concerning confidentiality;
4. (4) Procedures for employees and job applicants to confidentially report to a medical review officer the use of prescription or nonprescription medications to a medical review officer after being tested, but only if the testing process has revealed a positive result for the presence of alcohol or drug use;
5. (5) The consequences of refusing to submit to a drug or alcohol test;
6. (6) A representative sampling of names, addresses and telephone numbers of employee assistance programs and local drug or alcohol rehabilitation programs;
7. (7) A statement that an employee or job applicant who receives a positive confirmed test result may contest or explain the result to the medical review officer within five (5) working days after receiving written notification of the test result; that if an employee's or job applicant's explanation or challenge is unsatisfactory to the medical review officer, the medical review officer shall report a positive test result back to the covered employer; and that a person may contest the drug or alcohol test result pursuant to rules adopted by the department of labor and workforce development;
8. (8) A statement informing the employee or job applicant of the employee's responsibility to notify the laboratory of any administrative or civil action brought pursuant to this section;
9. (9) A list of all drug classes for which the employer may test;
10. (10) A statement regarding any applicable collective bargaining agreement or contract and any right to appeal to the applicable court;
11. (11) A statement notifying employees and job applicants of their right to consult with a medical review officer for technical information regarding prescription or nonprescription medication; and
12. (12) A statement complying with the requirements for notice under § 50-9-101(b).
(b) A covered employer shall ensure that at least sixty (60) days elapse between a general one-time notice to all employees that a drug-free workplace program is being implemented and the effective date of the program. The notice shall also indicate that on the effective date of the program that § 50-6-110(c) will apply to that employer.
(c) A covered employer shall include notice of drug and alcohol testing on vacancy announcements for positions for which drug or alcohol testing is required. A notice of the covered employer's drug and alcohol testing policy must also be posted in an appropriate and conspicuous location on the covered employer's premises, and copies of the policy must be made available for inspection by the employees or job applicants of the covered employer during regular business hours in the covered employer's personnel office or other suitable locations.
(d) Subject to any applicable provisions of a collective bargaining agreement or any applicable labor law, a covered employer may rescind its coverage under this chapter by posting a written and dated notice in an appropriate and conspicuous location on its premises. The notice shall state that the policy will no longer be conducted pursuant to this chapter. The employer shall also provide sixty (60) days' written notice to the employer's workers' compensation insurer of the rescission. As to employees and job applicants, the recession shall become effective no earlier than sixty (60) days after the date of the posted notice.
(e) The commissioner of labor and workforce development shall develop a model notice and policy for drug-free workplace programs.
(f) Any notice required by this section shall inform minors who are tested that the minor's parents or guardians will be notified of the results of tests conducted pursuant to this chapter.

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50-9-103(5)

§ 50-9-106. Required drug or alcohol tests.

(a) To the extent permitted by law, a covered employer who establishes a drug-free workplace is required to conduct the following types of drug or alcohol tests:
1. (1) Job Applicant Drug and Alcohol Testing. A covered employer must, after a conditional offer of employment, require job applicants to submit to a drug test and may use a refusal to submit to a drug test or a positive confirmed drug test as a basis for refusing to hire a job applicant. An employer may, but is not required to, test job applicants, after a conditional offer of employment, for alcohol. Limited testing of applicants, only if it is based on a reasonable classification basis, is permissible in accordance with division rule;
2. (2) Reasonable-Suspicion Drug and Alcohol Testing. A covered employer must require an employee to submit to reasonable-suspicion drug or alcohol testing. A written record shall be made of the observations leading to a controlled substances reasonable suspicion test within twenty-four (24) hours of the observed behavior or before the results of the test are released, whichever is earlier. A copy of this documentation shall be given to the employee upon request, and the original documentation shall be kept confidential by the covered employer pursuant to § 50-9-109 and shall be retained by the covered employer for at least one (1) year;
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  - 50-9-104(a)
3. (3) Routine Fitness-For-Duty Drug Testing.
  1. (A) A covered employer shall require an employee to undergo drug or alcohol testing if, as a part of the employer's written policy, the test is conducted as a routine part of a routinely scheduled employee fitness-for-duty medical examination, or is scheduled routinely for all members of an employment classification or group; provided, that a public employer may require scheduled, periodic testing only of employees who:
    1. (i) Are police or peace officers;
    2. (ii) Have drug interdiction responsibilities;
    3. (iii) Are authorized to carry firearms;
    4. (iv) Are engaged in activities that directly affect the safety of others;
    5. (v) Work in direct contact with inmates in the custody of the department of correction; or
    6. (vi) Work in direct contact with minors who have been adjudicated delinquent or who are in need of supervision in the custody of the department of children's services;
  2. (B) This subdivision (a)(3) does not require a drug or alcohol test if a covered employer's personnel policy on July 1, 1998, does not include drug or alcohol testing as part of a routine fitness-for-duty medical examination. The test shall be conducted in a nondiscriminatory manner. Routine fitness-for-duty drug or alcohol testing of employees does not apply to volunteer employee health screenings, employee wellness programs, programs mandated by governmental agencies, or medical surveillance procedures that involve limited examinations targeted to a particular body part or function;
4. (4) Follow-Up Drug Testing. If the employee in the course of employment enters an employee assistance program for drug-related or alcohol-related problems, or a drug or alcohol rehabilitation program, the covered employer must require the employee to submit to a drug and alcohol test, as appropriate, as a follow-up to the program, unless the employee voluntarily entered the program. In those cases, the covered employer has the option to not require follow-up testing. If follow-up testing is required, it must be conducted at least once a year for a two-year period after completion of the program. Advance notice of a follow-up testing date must not be given to the employee to be tested; and
5. (5) Post-Accident Testing. After an accident that results in an injury, as defined in chapter 3 of this title, and the rules promulgated under chapter 3 of this title, the covered employer shall require the employee to submit to a drug or alcohol test in accordance with this chapter.
(b) This chapter does not preclude an employer from conducting any lawful testing of employees for drugs or alcohol that is in addition to the minimum testing required under this chapter.

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50-9-104(a)

§ 50-9-107. Testing subject to department of transportation procedures — Verification — Chain of custody procedures — Costs — Discrimination on grounds of voluntary treatment prohibited.

(a) All specimen collection and testing for drugs and alcohol under this chapter shall be performed in accordance with the procedures provided for by the United States department of transportation rules for workplace drug and alcohol testing compiled at 49 CFR part 40.
(b) A covered employer may not discharge, discipline, refuse to hire, discriminate against or request or require rehabilitation of an employee or job applicant on the sole basis of a positive test result that has not been verified by a confirmation test and by a medical review officer.
(c) A covered employer that performs drug testing or specimen collection shall use chain-of-custody procedures established by regulations of the United States department of transportation or such other recognized authority approved by rule by the commissioner of labor and workforce development governing drug testing.
(d) A covered employer shall pay the cost of all drug and alcohol tests, initial and confirmation, that the covered employer requires of employees. An employee or job applicant shall pay the costs of any additional drug or alcohol tests not required by the covered employer.
(e) A covered employer shall not discharge, discipline or discriminate against an employee solely upon the employee's voluntarily seeking treatment, while under the employ of the covered employer, for a drug-related or alcohol-related problem if the employee has not previously tested positive for drug or alcohol use, entered an employee assistance program for drug-related or alcohol-related problems or entered a drug or alcohol rehabilitation program. Unless otherwise provided by a collective bargaining agreement, a covered employer may select the employee assistance program or drug or alcohol rehabilitation program if the covered employer pays the cost of the employee's participation in the program. However, nothing in this chapter is intended to require any employer to permit or provide a rehabilitation program.
(f) If drug or alcohol testing is conducted based on reasonable suspicion, the covered employer shall promptly detail in writing the circumstances that formed the basis of the determination that reasonable suspicion existed to warrant the testing. A copy of this documentation shall be given to the employee upon request and the original documentation shall be kept confidential by the covered employer pursuant to § 50-9-109, and shall be retained by the covered employer for at least one (1) year.

§ 50-9-108. Drug or alcohol use not a disability — Drug or alcohol use “cause” for firing or failure to hire — Miscellaneous provisions.

(a) An employee or job applicant whose drug or alcohol test result is confirmed as positive in accordance with this section shall not, by virtue of the result alone, be deemed to have a disability as defined under federal, state or local disability discrimination laws.
(b) A covered employer who discharges or disciplines an employee or refuses to hire a job applicant in compliance with this section is considered to have discharged, disciplined or refused to hire for cause.
(c) No physician-patient relationship is created between an employee or job applicant and a covered employer or any person performing or evaluating a drug or alcohol test, solely by the establishment, implementation or administration of a drug or alcohol testing program. This section in no way relieves the person performing the test from responsibility for acts of negligence in performing the tests.
(d) Nothing in this section shall be construed to prevent a covered employer from establishing reasonable work rules related to employee possession, use, sale or solicitation of drugs or alcohol, including convictions for offenses relating to drugs or alcohol, and taking action based upon a violation of any of those rules.
(e) This section does not operate retroactively, and does not abrogate the right of an employer under state law to lawfully conduct drug or alcohol tests, or implement lawful employee drug-testing programs. This chapter shall not prohibit an employer from conducting any drug or alcohol testing of employees that is otherwise permitted by law.
(f) If an employee or job applicant refuses to submit to a drug or alcohol test, the covered employer is not barred from discharging or disciplining the employee or from refusing to hire the job applicant; however, this subsection (f) does not abrogate the rights and remedies of the employee or job applicant as otherwise provided in this section.
(g) This section does not prohibit an employer from conducting medical screening or other tests required, permitted or not disallowed by any statute, rule or regulation for the purpose of monitoring exposure of employees to toxic or other unhealthy substances in the workplace or in the performance of job responsibilities. The screening or testing is limited to the specific substances expressly identified in the applicable statute, rule or regulation, unless prior written consent of the employee is obtained for other tests. The screening or testing need not be in compliance with the rules adopted by the department of labor and workforce development and department of health. If applicable, the drug or alcohol testing must be specified in a collective bargaining agreement as negotiated by the appropriate certified bargaining agent before the testing is implemented.
(h) No cause of action shall arise in favor of any person based upon the failure of an employer to establish a program or policy for drug or alcohol testing.

§ 50-9-109. Confidentiality of records — Parental notification.

(a) All information, interviews, reports, statements, memoranda and drug or alcohol test results, written or otherwise, received by the covered employer through a drug or alcohol testing program are confidential communications and may not be used or received in evidence, obtained in discovery or disclosed in any public or private proceedings, except in accordance with this section or in determining compensability under this chapter.
(b) Covered employers, laboratories, medical review officers, employee assistance programs, drug or alcohol rehabilitation programs and their agents who receive or have access to information concerning drug or alcohol test results shall keep all information confidential. Release of the information under any other circumstance is authorized solely pursuant to a written consent form signed voluntarily by the person tested, unless the release is compelled by a hearing officer or a court of competent jurisdiction pursuant to an appeal taken under this section, relevant to a legal claim asserted by the employee or is deemed appropriate by a professional or occupational licensing board in a related disciplinary proceeding. The consent form must contain, at a minimum:
1. (1) The name of the person who is authorized to obtain the information;
2. (2) The purpose of the disclosure;
3. (3) The precise information to be disclosed;
4. (4) The duration of the consent; and
5. (5) The signature of the person authorizing release of the information.
(c) Information on drug or alcohol test results for tests administered pursuant to this chapter shall not be released or used in any criminal proceeding against the employee or job applicant. Information released contrary to this section is inadmissible as evidence in the criminal proceeding.
(d) This section does not prohibit a covered employer, agent of the employer or laboratory conducting a drug or alcohol test from having access to employee drug or alcohol test information or using the information when consulting with legal counsel in connection with actions brought under or related to this section, or when the information is relevant to its defense in a civil or administrative matter. Neither is this section intended to prohibit disclosure among management as is reasonably necessary for making disciplinary decisions relating to violations of drug or alcohol standards of conduct adopted by an employer.
(e) A covered employer shall notify the parents or legal guardians of a minor of the results of any drug or alcohol testing program conducted pursuant to this chapter. Notwithstanding any other provisions of this section, an employer is authorized to disclose the results to parents and guardians and an employer shall not be liable for any disclosure permitted by this subsection (e).

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§ 50-9-110. Prerequisites for processing test specimens — Licensure of testing laboratory.

(a) A laboratory may not analyze initial or confirmation test specimens unless:
1. (1) The laboratory is licensed and approved by the department of health, using criteria established by the United States department of health and human services as guidelines for modeling the state drug-free testing program pursuant to this section, or the laboratory is certified by the United States department of health and human services, the College of American Pathologists or other recognized authority approved by rule by the commissioner of labor and workforce development; and
2. (2) The laboratory complies with the procedures established by the United States department of transportation for a workplace drug test program or other recognized authority approved by the commissioner of labor and workforce development.
(b) Confirmation tests may only be conducted by a laboratory that meets the requirements of subdivisions (a)(1) and (2) and is certified by either the Substance Abuse and Mental Health Services Administration or the College of American Pathologists — Forensic Urine Testing Programs.

§ 50-9-111. Rules and regulations — Guidelines for state testing program.

(a) The administrator of the bureau of workers' compensation is authorized to adopt rules, using the rules and guidelines adopted by the department of health and criteria established by the United States department of health and human services and the United States department of transportation as guidelines for modeling the state drug and alcohol testing program, concerning, but not limited to:
1. (1) Standards for licensing drug and alcohol testing laboratories and suspension and revocation of the licenses;
2. (2) Body specimens and minimum specimen amounts that are appropriate for drug or alcohol testing;
3. (3) Methods of analysis and procedures to ensure reliable drug or alcohol testing results, including the use of breathalyzers and standards for initial tests and confirmation tests;
4. (4) Minimum cut-off detection levels for alcohol, each drug or metabolites of the drug for the purposes of determining a positive test result;
5. (5) Chain-of-custody procedures to ensure proper identification, labeling and handling of specimens tested; and
6. (6) Retention, storage and transportation procedures to ensure reliable results on confirmation tests and retests.
(b) The administrator of the bureau of workers' compensation is authorized to adopt relevant federal rules concerning drug and alcohol testing as a minimum standard for testing procedures and protections that the administrator may exceed. The rules shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
(c) The administrator of the bureau of workers' compensation shall consider drug testing programs and laboratories operating as a part of the College of American Pathologists — Forensic Urine Drug Testing Programs in issuing guidelines or promulgating rules relative to recognized authorities in drug testing.
(d) The administrator is authorized to set education program requirements for drug-free workplaces by rules promulgated in accordance with the requirements of the Uniform Administrative Procedures Act. The requirements shall not be more stringent than the federal requirements for workplaces regulated by the United States department of transportation rules. The requirements shall not require an employer to provide annual education or awareness training for each employee if all existing employees have undergone such training at least once and have acknowledged annually in writing the existence of the employer's drug-free workplace policy.

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§ 50-9-112. Temporary employment agencies exempt from drug-free workplace requirements.

A temporary employment agency shall not be required by rule, regulation or policy of the department of labor and workforce development to implement a drug-free workplace pursuant to this chapter.

§ 50-9-113. State and local government construction contracts.

(a) Each employer with five (5) or more employees receiving pay who contracts with the state or any local government to provide construction services or who is awarded a contract to provide construction services or who provides construction services to the state or local government shall submit an affidavit stating that the employer has a drug-free workplace program that complies with this chapter, in effect at the time of the submission of a bid at least to the extent required of governmental entities. Any private employer that certifies compliance with the drug-free workplace program, only to the extent required by this section, shall not receive any reduction in workers' compensation premiums and shall not be entitled to any other benefit provided by compliance with the drug-free workplace program set forth in this chapter. Nothing in this section shall be construed to reduce or diminish the rights or privileges of any private employer who has a drug-free workplace program that fully complies with this chapter. For purposes of compliance with this section, any private employer shall obtain a certificate of compliance with the applicable portions of the Drug-free Workplace Act from the department of labor and workforce development. No local government or state governmental entity shall enter into any contract or award a contract for construction services with an employer who does not comply with this section.
(b) If it is determined that an employer subject to this section has entered into a contract with a local government or state agency and the employer does not have a drug-free workplace pursuant to this section, the employer shall be prohibited from entering into another contract with any local government or state agency until the employer can prove compliance with the drug-free workplace program pursuant to this section. If the same employer again contracts with any local government or state agency and does not have a drug-free workplace program pursuant to this section, then the employer shall be prohibited from entering into another contract with any local government or state agency for not less than three (3) months from the date the violation was discovered and verified and shall be prohibited from entering into another contract until the employer complies with the drug-free workplace program pursuant to this section. If the same employer for a third time contracts with any local government or state agency and does not have a drug-free workplace program pursuant to this section, then the employer shall be prohibited from entering into another contract with any local government or state agency for not less than one (1) year from the date the violation was discovered and verified and shall be prohibited from entering into another contract until the employer complies with the drug-free workplace program pursuant to this section.
(c) A written affidavit by the principal officer of a covered employer provided to a local government at the time the bid or contract is submitted stating that the employer is in compliance with this section shall absolve the local government of all further responsibility under this section and any liability arising from the employer's compliance or failure of compliance with this section.
(d) For the purposes of this section, “employer” does not include any utility or unit of local government. “Employer” includes any private company or corporation.

§ 50-9-114. Information to be included within bid or procurement specifications for construction services — Contesting a contract.

(a) The state or any local government, including departments, divisions, or agencies thereof, shall include within any bid or procurement specifications for construction services the following information:
1. (1) A statement as to whether the governmental entity issuing a construction service bid or other procurement specification operates a drug-free workplace program as certified under this chapter or operates any other programs that provide for testing of employees for workplace use of drugs or alcohol;
2. (2) If operating such a program, a statement that describes the government entity's drug-free workplace or alcohol and drug testing program; and
3. (3) A statement that all bidders or proposals for construction services are required to submit an affidavit as part of their bid, that attests that the bidder operates a drug-free workplace program or other drug or alcohol testing program with requirements at least as stringent as that of the program operated by the governmental entity.
(b) Unless suit is filed in chancery court, employers shall have seven (7) calendar days to contest a contract entered into by employers subject to this section with a local government or state government. Employers that do not contest the contracts within seven (7) calendar days by filing suit in chancery court shall waive their rights to challenge the contracts for violating this section. The contracts shall be contested in chancery court in the county where the contract was entered. The trial of the alleged violation of this section shall be expedited by giving it priority over all cases on the trial docket, except workers' compensation cases.

§ 50-9-115. Report of healthcare practitioner who tests positive for any drug or refuses to submit to drug test.

Notwithstanding this chapter, a covered employer who has employees who are healthcare practitioners for the purposes of § 63-1-126 shall report a healthcare practitioner who tests positive for any drug on any government or private sector preemployment or employer-ordered confirmed drug test, or who refuses to submit to a drug test, to the department of health and the practitioner's licensing or certifying board as required by § 63-1-126.

§ 50-9-116. Consideration of prescriptions issued within six months prior to positive confirmed drug result.

(a) As used in this section:
1. (1) “Issued” means the date that the licensed physician physically wrote or electronically transmitted the prescription to the pharmacy; and
2. (2) “Valid prescription” means a prescription that is written or electronically sent by a licensed practitioner for the individual subject to a drug test pursuant to this chapter and filled in a licensed pharmacy.
(b) Notwithstanding this chapter to the contrary, the medical review officer shall only consider prescriptions issued within six (6) months prior to a positive confirmed drug result for purposes of determining a valid prescription and immunity from actions authorized by this chapter following a positive confirmed drug result.

Chapter 10 Tennessee Pregnant Workers Fairness Act

§ 50-10-101. Short title.

This chapter shall be known and may be cited as the “Tennessee Pregnant Workers Fairness Act.”

§ 50-10-102. Chapter definitions.

As used in this chapter:
1. (1) “Commissioner” means the commissioner of labor and workforce development;
2. (2) “Employer” means a person employing fifteen (15) or more employees;
3. (3) “Reasonable accommodation” may include:
  1. (A) Making existing facilities used by employees readily accessible and usable;
  2. (B) Providing more frequent, longer, or flexible breaks;
  3. (C) Providing a private place, other than a bathroom stall, for the purpose of expressing milk;
  4. (D) Modifying food or drink policy;
  5. (E) Providing modified seating or allowing the employee to sit more frequently if the job requires standing;
  6. (F) Providing assistance with manual labor and limits on lifting;
  7. (G) Authorizing a temporary transfer to a vacant position;
  8. (H) Providing job restructuring or light duty, if available;
  9. (I) Acquiring or modifying of equipment, devices, or an employee's work station;
  10. (J) Modifying work schedules; and
  11. (K) Allowing flexible scheduling for prenatal visits; and
4. (4) “Undue hardship” means an action requiring significant difficulty or expense.

§ 50-10-103. Reasonable accommodations for pregnant workers — Medical certification.

(a) An employer is not required to do the following unless the employer does or would do so for another employee or a class of employees that need a reasonable accommodation:
1. (1) Hire new employees that the employer would not have otherwise hired;
2. (2) Discharge an employee, transfer another employee with more seniority, or promote another employee who is not qualified to perform the new job;
3. (3) Create a new position, including a light duty position for the employee,
4. unless a light duty position would be provided for another equivalent employee;
5. (4) Compensate an employee for more frequent or longer break periods, unless the employee uses a break period that would otherwise be compensated; or
6. (5) Construct a permanent, dedicated space for expressing milk.
(b) It is an unlawful employment practice for an employer to:
1. (1) Fail or refuse to make reasonable accommodations for medical needs arising from pregnancy, childbirth, or related medical conditions of an applicant for employment or an employee, unless the employer demonstrates that the accommodation would impose an undue hardship on the operation of the business of the employer;
2. (2) Require an employee to take leave under a leave law or policy adopted by the employer if another reasonable accommodation can be provided to the known limitations for medical needs arising from the employee's pregnancy, childbirth, or related medical conditions; or
3. (3) Take adverse action against an employee in the terms, conditions, or privileges of employment for requesting or using a reasonable accommodation to the known limitations for medical needs arising from the employee's pregnancy, childbirth, or related medical conditions, including, but not limited to, counting an absence related to pregnancy under no fault attendance policies.
(c) An employer may, if required of other employees with medical conditions, request that an employee with a medical need relating to pregnancy, childbirth, or related medical conditions provide medical certification from a healthcare professional if the employee is requesting a reasonable accommodation related to temporary transfer to a vacant position, job restructuring, or light duty, or an accommodation that requires time away from work. During the time period in which an employee is making good faith efforts to obtain medical certification, an employer must begin engaging in a good faith interactive process with the employee to determine if a reasonable accommodation can be provided absent undue hardship. An employer shall not take adverse action against an employee related to the employee's need for accommodation while the employee is engaging in good faith efforts to obtain medical certification.

§ 50-10-104. Enforcement — Rules — Civil action.

(a) The commissioner shall enforce this chapter and may promulgate rules necessary to effectuate this chapter in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
(b) Any person adversely affected by an act in violation of this chapter may bring a civil action in the chancery court or circuit court in the jurisdiction where the alleged violation occurred. In the action, a court may issue back pay, compensatory damages, prejudgment interest, reasonable attorney's fees, and any legal or equitable relief that will effectuate the purpose of this chapter.
(c) A civil action under this chapter must be commenced no later than one (1) year from the date of termination of employment or the date of the adverse employment action. An employee is not required to pursue an action in chancery or circuit court, and may bring an action in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.

Chapter 11 Tennessee Registered Apprenticeship Program Act

§ 50-11-101. Short title.

This chapter is known and may be cited as the “Tennessee Registered Apprenticeship Program Act.”

§ 50-11-102. Chapter definitions.

As used in this chapter:
1. (1) “Apprentice” means a worker who:
  1. (A) Is at least sixteen (16) years of age; and
  2. (B) Is employed to learn an apprenticeable occupation as defined in 29 CFR 29.4;
2. (2) “Apprenticeship”:
  1. (A) Means a program for the recruitment, selection, employment, and training of apprentices that is developed pursuant 29 CFR Parts 29 and 30, and the rules of the office of apprenticeship; and
  2. (B) [Deleted by 2022 amendment.]
3. (3) “Apprenticeship agreement” means a written agreement between an apprentice and a sponsor that contains the terms and conditions of the apprentice's employment and training consistent with 29 CFR 29.7 and this chapter;
4. (4) “Apprenticeship council” means the Tennessee apprenticeship council established pursuant to § 50-11-105;
5. (5) “Apprenticeship intermediary” means an entity that provides required technical instruction to an apprentice;
6. (6) “Cancellation” means the termination of the registration of a pre-apprenticeship or apprenticeship at the request of the sponsor;
7. (7) “Commissioner” means the commissioner of labor and workforce development;
8. (8) “Deregistration” means termination of the registration of a pre-apprenticeship or apprenticeship by the office of apprenticeship;
9. (9) “Employer” means a person employing an apprentice;
10. (10) “Office of apprenticeship” means the Tennessee office of apprenticeship established pursuant to § 50-11-103;
11. (11) “On-the-job training” means training provided by an employer that:
  1. (A) Is provided to a paid apprentice who is engaged in productive work in an occupation, and the work provides knowledge or skills essential to the full and adequate performance of the occupation;
  2. (B) Is made available through an apprenticeship that provides reimbursement to the employer of up to fifty percent (50%) of the apprentice's wage rate for the purpose of covering the employer's costs of providing the training and additional supervision related to the training, except as provided in 29 U.S.C. § 3174(c)(3)(H); and
  3. (C) Is limited in duration as appropriate to the occupation for which the apprentice is being trained, based on the content of the training, the apprentice's prior work experience, and the apprentice's service strategy, as appropriate;
12. (12) “Pre-apprenticeship” means a program or set of services, in partnership with a registered apprenticeship program, designed to prepare individuals to enter and succeed in a registered apprenticeship program;
13. (13) “Required technical instruction” means an organized and systematic form of instruction, other than on-the-job training, that:
  1. (A) Is designed to provide an apprentice with knowledge of the subjects related to the apprentice's occupation; and
  2. (B) Is given in a classroom, through occupational or industrial courses, through correspondence courses, or through other forms of self-study;
14. (14) “Sponsor” means a person operating a pre-apprenticeship or apprenticeship; and
15. (15) “State registration agency” means the Tennessee agency responsible for registering pre-apprenticeships, apprenticeships, and apprentices, and for reviewing pre-apprenticeships and apprenticeships for compliance with state law and the state plan for equal employment opportunities.
16. (16) [Deleted by 2022 amendment.]

§ 50-11-103. Creation of the office of apprenticeship.

(a) There is established the Tennessee office of apprenticeship within the department of labor and workforce development, which is Tennessee's state apprenticeship agency in accordance with 29 U.S.C. § 50, and 29 CFR Parts 29 and 30. The office of apprenticeship is established for the following purposes:
1. (1) To serve as the state registration agency;
2. (2) To establish labor standards necessary to safeguard the welfare of apprentices;
3. (3) To establish rules regarding the registration of pre-apprenticeships, apprenticeships, and apprentices; and
4. (4) To resolve disputes between parties to an apprenticeship agreement.
(b) The office of apprenticeship is operated by the commissioner or the commissioner's designee. The commissioner or the commissioner's designee may appoint a director for the office of apprenticeship. The director shall serve at the pleasure of the commissioner, manage the office of apprenticeship, and perform duties as are necessary to effectuate the intent of this chapter.
(c) No later than December 31, 2021, the commissioner or the commissioner's designee shall submit to the United States secretary of labor and the administrator of the national office of apprenticeship, an application to recognize the Tennessee office of apprenticeship as a state apprenticeship agency pursuant to 29 CFR 29.13(a)-(c).

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50-11-102(10)

§ 50-11-104. Duties.

(a) The office of apprenticeship shall develop a nationally recognized state apprenticeship completion credential, as described in 29 CFR 29.5, for completing a registered apprenticeship program.
(b) The office of apprenticeship shall establish competency-based apprenticeship frameworks based on the regional and statewide compendia of valuable credentials.
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- 50-11-106(b)
(c) The office of apprenticeship may approve apprenticeship programs that are mandated by state or federal law as a result of the sponsor receiving funds or resources from the state, or funds or resources from the federal government, that require the creation of an apprenticeship program in accordance with a federal grant administered by this state.
(d) The commissioner may promulgate rules on behalf of the office of apprenticeship as necessary to effectuate the intent of this chapter pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. A rule promulgated pursuant to this chapter must conform to the published apprenticeship guidelines in 29 CFR Parts 29 and 30.
(e) The office of apprenticeship shall consider advice provided by the apprenticeship council when completing the office's duties as set forth in this section.
(f) A sponsor may apply to register a pre-apprenticeship or apprenticeship with the office of apprenticeship. A registered apprenticeship must include, at a minimum:
1. (1) On-the-job training from an employer;
2. (2) Related technical instruction from an apprenticeship intermediary; and
3. (3) The opportunity for an apprentice to earn a portable, nationally recognized industry credential.
(g) A sponsor of a registered pre-apprenticeship or registered apprenticeship is responsible for the administration and supervision of on-the-job training and related technical instruction for each apprentice in the registered pre-apprenticeship or registered apprenticeship.

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50-11-105(e)(1)

§ 50-11-105. Tennessee apprenticeship council.

(a) There is established the Tennessee apprenticeship council, which is an advisory council composed of individuals representing employer and employee organizations that are familiar with apprenticeable occupations.
(b) The apprenticeship council consists of eleven (11) members, as follows:
1. (1) The commissioner of labor and workforce development, or the commissioner's designee;
2. (2) The commissioner of education, or the commissioner's designee;
3. (3) The chancellor of the Tennessee board of regents, or the chancellor's designee;
4. (4) The executive director of the Tennessee higher education commission, or the executive director's designee;
5. (5) Three (3) members representing employer organizations, appointed by the governor, at least one (1) of whom represents a private sector employer organization and one (1) of whom represents a public sector employer organization;
6. (6) Three (3) members representing employee organizations, appointed by the governor, at least one (1) of whom represents a private sector employee organization and one (1) of whom represents a public sector employee organization; and
7. (7) One (1) member who is a public representative knowledgeable about apprenticeships and apprenticeable occupations, appointed by the governor.
(c) The terms for initial members begin on July 1, 2021. The terms of the initial eleven (11) appointments are three (3) years for three (3) members, four (4) years for four (4) members, and five (5) years for four (4) members, as designated by the governor in the governor's initial appointments. As the terms for the initial members expire, successors are appointed for five-year terms.
(d) Whenever a vacancy on the apprenticeship council exists, the governor shall appoint a member for the remainder of the unexpired term.
(e) The apprenticeship council shall:
1. (1) Advise the office of apprenticeship regarding the duties set forth in § 50-11-104; and
2. (2) Provide community outreach and education regarding the benefits of apprenticeship.

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50-11-102(4)

§ 50-11-106. Activities not prohibited.

(a) This chapter does not:
1. (1) Require a sponsor of a pre-apprenticeship or apprenticeship to register with the office of apprenticeship;
2. (2) Affect funds duly distributed to a state agency, college or university, or other entity receiving state or federal funds in support of apprenticeship activities; or
3. (3) Affect the department of education's status as the eligible agency to receive and administer career and technical education funding under the federal Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. § 2301 et seq.).
(b) The office of apprenticeship, with the consent of the sponsor, shall permit the apprenticeship intermediary to provide the required technical instruction and technical assistance, including the implementation of the competency frameworks established in § 50-11-104(b) that are aligned to the on-the-job training for apprenticeship programs registered or certified by the office of apprenticeship.