Tennessee Workers' Compensation Requirements for Employers

Coverage Thresholds and Who Must Carry

In Tennessee, any employer with one or more employees—full‑time, part‑time, or seasonal—must provide workers' compensation coverage, regardless of payroll size. The only exemption is for sole proprietors, partners, and corporate officers who do not receive a salary.

Insurance Options and Procurement

Employers can obtain coverage through three avenues: a private commercial policy, a self‑insured plan approved by the Tennessee Department of Labor and Workforce Development (TDLWD), or the State Fund, a nonprofit insurer that serves as the insurer of last resort. The State Fund offers a streamlined application and competitive rates for small businesses.

Payroll Reporting and Premium Calculation

Premiums are calculated on the employer's total payroll for the previous policy year, multiplied by a class‑specific rate set by the TDLWD. Employers must submit an annual payroll report by March 15 and pay the assessed premium by the deadline indicated on the bill, typically within 30 days of issuance.

Posting Requirements and Employee Notification

Employers must display the official Tennessee Workers' Compensation Poster in a conspicuous area where all employees can see it. The poster outlines basic rights, the employer's obligations, and the process for filing a claim. Additionally, new hires must receive a written notice of coverage within the first week of employment.

Claims Reporting and Return‑to‑Work Process

When an injury occurs, the employer must complete a First Report of Injury (FROI) within 24 hours and submit it to the employer's insurer or the State Fund. The insurer then issues a Form 100 (Employer's Report of Injury) to the employee and the TDLWD. Prompt medical treatment and a coordinated return‑to‑work plan are encouraged to reduce lost‑time costs.

Penalties for Non‑Compliance

Failure to secure coverage or file required reports can result in civil penalties ranging from $200 to $1,000 per day, plus possible criminal charges for willful violations. Uninsured employers may also be liable for the full cost of medical care and lost wages, which can exceed the cost of insurance premiums.

Key Differences from Neighboring States

Unlike Kentucky and Alabama, Tennessee does not offer a payroll threshold exemption; even a single employee triggers the coverage mandate. Tennessee also allows self‑insurance with fewer procedural hurdles than most states, provided the employer demonstrates sufficient financial stability.

Summary of Core Requirements