Workers Compensation in Tennessee
State-specific overview · Employment Law
Tennessee mandates workers' compensation for most employers but allows some private employers to opt out under strict conditions.
How Tennessee treats Workers Compensation
Tennessee requires coverage for employers with one or more employees, with limited exceptions for sole proprietors and partners. The state operates a traditional system where the employer's insurer pays benefits directly. Tennessee also allows certain employers to opt out of the system entirely, though they lose immunity from employee lawsuits if they do so.
The general definition of Workers Compensation
Insurance that provides medical benefits and wage replacement to employees injured during work.
Workers compensation is a form of insurance that employers are required to carry to protect employees who are injured or become ill as a result of their job. When an employee is hurt at work, workers compensation covers medical expenses, rehabilitation costs, and a portion of lost wages while the employee recovers. In exchange, the employee generally gives up the right to sue the employer for the injury. The system is designed to provide quick, predictable benefits without the need for a lawsuit. Benefits vary by state and depend on the severity of the injury.
Read the full Workers Compensation entry →This page is a plain-English reference and is not legal advice. State laws change frequently. For specific situations consult a licensed attorney in Tennessee.