Who Needs Workers' Comp in Tennessee?
Tennessee requires employers with five or more employees to carry workers' compensation insurance under the Tennessee Workers' Compensation Law (T.C.A. Title 50, Chapter 6). Construction and mining employers with one or more employees must carry coverage regardless of headcount. Coal mining employers have specific additional requirements.
Penalties for Non-Compliance
Tennessee penalties include fines up to $5,000, criminal misdemeanor charges (Class A misdemeanor for willful violations), and stop-work orders. The Tennessee Bureau of Workers' Compensation enforces compliance. Uninsured employers are liable for all benefits owed plus civil penalties.
How Tennessee Rates Work
Tennessee uses NCCI class codes and is a competitive rating state. The state has undergone significant reforms in recent years, including establishment of the Bureau of Workers' Compensation and a specialized courts system. Tennessee generally has competitive rates, particularly for low-risk industries.
Common Tennessee Class Codes
| Code | Description | Risk Level |
|---|---|---|
| 8810 | Clerical Office Employees | Low |
| 8742 | Outside Salespersons | Low |
| 8031 | Hospitals | Medium |
| 9101 | Restaurant NOC | Medium |
| 3822 | Auto/Truck Body Manufacturing | Medium-High |
| 5403 | Carpentry NOC | Medium-High |
| 5551 | Roofing — All Kinds | High |