Frequently Asked Questions
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TN Labor Laws
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TN Labor Laws
Are there any legal restrictions against firing, suspending or disciplining employees?
Tennessee is known as an "EMPLOYMENT-AT-WILL" state. Generally, this means that an employer may legally hire, fire, suspend or discipline any employee at any time and for any reason - good or bad - or for no reason at all. However, an employer may not discriminate against any employee on the basis of the employee's race, sex, age, religion, color, national origin, or disability.
Also, under the Tennessee "WHISTLE BLOWER'S LAW", the employer may not take any reprisal against an employee who advises the employer that the business is in violation of a law and the employee either discloses, threatens to disclose, or testifies about the violation of law, or the employee objects to or refuses to participate in an employment act in violation of law. This law may be found at Tennessee Revised Statutes Title 50-1-304.
There are other exceptions to Tennessee's "EMPLOYMENT-AT-WILL" doctrine. Tennessee employees may not be disciplined or discharged at-will for:
- (Employer must also pay the employee wages during the jury service less what the court pays.)
Employees who are fired may still apply for unemployment insurance benefits. The Tennessee Department of Labor and Workforce Development’s Unemployment Insurance Division will determine eligibility. Further information may be found under the Unemployment Insurance section of this web site.
What if I have a complaint about unfair labor practices?
Americans with Disabilities Act - ADA:
Applicants for employment or employees having disabilities may be protected against employment discrimination by the Americans with Disabilities Act, or ADA. Those needing information about ADA may visit the Job Accommodation Network (JAN) Web site.
Family and Medical Leave Act - FMLA:
Under the Family and Medical Leave Act, or FMLA, employers having 50 or more employees must grant medical leave to some employees in certain circumstances without the threat of the loss of their job. Questions concerning the enforcement of FMLA matters should be directed to the FMLA section of the United States Department of Labor's Web site.
Can an employee be discharged while out sick even though they provide a doctor's statement?
There are no Tennessee laws regulating terminations. If the employee feels discrimination is involved, they are referred to either the Tennessee Human Rights Commission or the Equal Employment Opportunity Commission.
National Labor Relations Board - NLRB:
Questions concerning unfair labor practices where a union is involved should be directed to the National Labor Relations Board (NLRB) at their Web site.
How do I file a claim for discriminatory practices?
Discrimination:
Discrimination against employees is illegal under both Federal and State law. Employers may not discriminate against an employee on the basis of the employee's race, sex, age, religion, color, national origin or disability. Claims of discrimination in Tennessee should be forwarded either to the Tennessee Commission on Human Rights in Nashville Tennessee at (615) 741-5825, or to the Equal Employment Opportunity Commission (EEOC) in Nashville, Tennessee. You may visit the TCHR Web site and the EEOC Web site.
Pregnancy Discrimination:
Tennessee also has a specific pregnancy discrimination law (Tennessee Revised Statute Title 4-21-408) that prohibits an employer from discriminating against a pregnant employee. These complaints should be forwarded to TCHR or EEOC.
Last Wages Due Deceased Employee:
Under certain circumstances, Tennessee law allows employers to pay to the surviving spouse or children of a deceased employee the last wages and other benefits due the deceased employee without a court order. This law may be found at Tennessee Revised Statutes Title 30-2-103
Unauthorized Deductions from Paycheck:
Under Tennessee law deductions can only be taken out of pay if the employee has authorized it by a written statement.
Questions Concerning Overtime, Minimum Wage, or Salaried Employees:
Tennessee has no wage laws concerning overtime, minimum wage, or the regulation of salaried employees. The United States Department of Labor's Wage and Hour Division enforces the Fair Labor Standards Act regulating minimum wage, overtime and salaried employees. Further information concerning these matters may be found at the WH division of the Department of Labor web site.
Questions Concerning a Pension or 401(k) plan:
Questions concerning an employee's failure to be able to collect their pension or money from a 401(k) plan should be directed to the EBSA (formerly PWBA) section of the United States Department of Labor's web site.
Who enforces state labor laws?
The Tennessee Department of Labor and Workforce Development, Labor Standards Division, has jurisdiction to enforce the Following State Labor Laws:
Only questions that arise in each of the above areas should be directed to the Labor Standards Division. All other questions should be directed to the proper agency (see previous sections) or to an attorney or a labor, employment, or human resources consultant.
Does Tennessee require labor laws to be posted?
Yes. See "Required Posters" to view or for copies
Does TDLWD provide advice on garnishments, tax levies, or other similar withholdings from pay?
TDLWD does not have the authority to provide assistance or advice in this area.
Will TDLWD provide me with legal representation or advice?
The TDLWD Legal Division provides legal services to TDLWD and its offices and employees only. The Legal Division does not offer legal representation, legal opinions or legal advice to the general public. It is recommended those individuals seeking personal counsel request the assistance of a private attorney or Legal Services Corporation.
As an employer must I provide a former or current employee with a copy of my employment personnel files?
There's no federal law or Tennessee law that requires the employer to do so. The employment file is the property of the employer. The employer is not required to furnish current or former employee’s whole file or specific things in the file.
However, the employer may choose to furnish a copy. If the employee files suit, they will be able to subpoena the file any way. An employer may charge for example, 50 cents a page, to cover time and cost to copy, payable up front in cash. Example, the person requesting the file should be told how many pages are in the file. If the file consists of fifty pages, they would have to present the employer with $25.00 before the file would be copied.
Tennessee Wage Regulation Act Title 50-2-101
What is the law concerning payment of final paychecks to employees?
Tennessee employees who are laid off, fired, or who quit must be paid their wages in full at the next regular payday, not to exceed 21 days from the date of their discharge or termination. Claims against an employer for late payment may be filed with the Labor Standards Division. The Tennessee Department of Labor and Workforce Development has the authority to enforce this law. You may review this law at Tennessee Revised Statutes Title 50-2-103(g)
Isn't my employer required to provide breaks and a meal period?
State law requires that each employee scheduled to work six (6) consecutive hours must have a thirty (30) minute meal or rest period, except in workplace environments that by their nature of business provides for ample opportunity to rest or take an appropriate break. The failure to give a (30) minute meal or rest period is a violation of State law only. There are no State or Federal requirements for additional breaks. The Federal Law does require breaks of less than 30 minutes in duration to be paid if the employer chooses to grant such breaks. Title 50-2-103 (h)
How often must my employer pay me?
All wages or compensation of employees in private employment is due and payable at least semi-monthly and notice of regular paydays must be posted by each employer in at least two conspicuous places. Title 50-2-103
My employer has just told me he is going to cut my pay. Can he do this without my approval?
An employee's pay can be cut with or without his approval as long as the employer tells the employee BEFORE any work is done. The employee cannot work without first knowing the amount of wages to be paid. Title 50-2-101
Under Tennessee Wage Regulation Act Title 50-2-101 – 50-2-108, an employer is prohibited from penalizing an employee or deducting any sum of money as a penalty or fine from the employee's wages.
Tennessee Wage Regulation Act Title 50–2–103 requires employers of private employments of 5 or more employees to establish and maintain regular pay periods at least twice monthly. Penalties may be accessed for violation of this section against those employers for missing a regularly scheduled payroll date and in paying their employees late.
Can my employer hold my paycheck until I return my uniform, etc.?
No. An employer cannot hold your paycheck for any reason.
Can my employer withhold the cost of my uniform, equipment, company loans, shortages and negligence, etc. from my paycheck?
No. Your employer cannot make any deductions from your paycheck without your consent to the deductions.
I work in the same job classification as a person of the opposite sex, but I am paid less. Is this legal?
No employer shall discriminate between employees in the same establishment on the basis of sex by paying one employee more or less than he pays to any employee of the opposite sex for comparable skill, effort and responsibility in which they are performed under similar working conditions. However, nothing prohibits wage deferential based on a seniority system, a merit system, a system which measures earnings by quality production or any other reasonable deferential which is based on a factor other than sex. Title 50-2-201 thru 207
If I complain about equal pay, whose wages would be adjusted?
An employer who is paying a wage deferential in violation of the act shall not reduce the wages of any employee in order to be in compliance.
Can an employer terminate an employee for a claim on equal pay?
No employer is allowed to terminate or discriminate against any employee who files a claim for equal pay.
Is an employer required by law to provide paid vacation, holidays, severance pay, sick pay or health insurance?
No. The State of Tennessee does not have a law that regulates fringe benefits. Company policy would be the determining factor. These and similar matters are also determined by an agreement between the employees and the employer, or their authorized representatives. Title 50-2-103 (3)
If an employer's policy provides a paid vacation and the employee's employment is terminated, is the employer required to compensate for any vacation time I have accrued but not used?
No. Unless the employer's policy or its labor agreement specifically requires compensation of unused "vacation pay or other compensatory time" to an employee upon his or her termination of employment, Tennessee Code Annotated § 50-2-103(a)(3) does not require that an employee's final wages include such compensation.
If an employee terminates voluntarily or involuntarily, does the employer have to pay all wages due at the time of termination?
The employer is required to pay all wages or compensation due the terminated employee on the next regular payday following the date of termination or 21 days thereafter, whichever comes last.
If the employer refuses payment of wages, what can the employee do?
Anyone who has a problem collecting wages can file a wage claim with the Tennessee Department of Labor and Workforce Development's Division of Labor Standards. If the circumstances are such that we are unable to help, the complainant is referred to court.
If an employee is still employed and the employer is not paying the employee correctly and they file a wage claim, can they be terminated?
There is no Tennessee law which prevents an employer from firing an employee because they file a complaint with our office, unless the complaint was equal pay.
Who determines how many hours a part-time employee may work and how long may an employee be consider part-time?
The employer sets the number of hours and makes the decision when the employee becomes a permanent employee.
My employer has just told me that I am going to be paid by direct deposit. Can he do this?
Yes, an employer can change the method of payment to direct deposit. However, the choice of the financial institution must be that of the employee.
Child Labor Act Title 50-5-101 – 115
My child is 15 and wants to work. Where do I get a work permit?
The state of Tennessee does not require work permits. The minor needs to provide the prospective employer with a copy one of the following documents as proof of age; birth certificate, driver license, state issued ID, or a copy of their passport.
What is the age a child can go to work? Are there any restrictions?
In Tennessee, a minor must be 14 years of age before they can work. Some of the restrictions for 14 and 15-year-old minors are:
WHEN SCHOOL IS IN SESSION:
Can work no more than 3 hours per day
Can work no more than 18 hours a week
Can work no later than 7:00 p.m.
WHEN SCHOOL IS NOT IN SESSION:
Can work no more than 8 hours a day
Can work no more than 40 hours per week
Can work no later than 9:00 p.m.
Breaks for minors under age 18:
Any minor scheduled to work 6 hours must have a thirty (30) minute rest or meal break no exceptions.
Are these restrictions the same for 16 and 17 year olds?
No. There are no limitations on the number of hours that 16 and 17-year-old minors work. They cannot be required to work during school hours; nor can they work past 10:00 p.m. on nights preceding school days (Sunday through Thursday nights), unless their parents or guardians sign a Parental Consent Form. The Parental Consent Form would allow them to work no later than 12:00 midnight three of those nights while school is in session.
The Child Labor Act prohibits minors, whether they are 14 to 15 or 16 to 17 year olds from employment in certain occupations. A copy of the Child Labor Act may be obtained upon request. Note: State and Federal Laws conflict. Therefore, we have quoted the stricter of the two laws.
Prevailing Wage Act Title 12-4-401 (Part 4)
I am working on a state-funded Prevailing Wage Project? I am performing the duties of a carpenter but not being paid the correct wages. Can you help me?
Yes. All contractors on state-funded projects are required to post the wage rate on the job-site and pay the correct rate of pay for each craft they perform.
Does the Department of Labor and Workforce Development make on-site inspections?
Yes. On-site inspections are made and employees are interviewed to see if they are being paid the correct rate for the job they are performing. We check to be sure that the wage rate is posted for all employees to verify they are paid the correct wage rates.
Who sets the prevailing wage rates?
The Prevailing Wage Commission sets the rates on highway projects every year and on building projects every other year. Both are based on a survey of each industry. For Current Highway Rates or Current Building Rates and Regions see web site.
If a contractor has not paid the prevailing wage rate, what can be done?
All claims are investigated and if violations are found, the contractor is required to pay the prevailing wage plus any back wages due.
The Division of Labor Standards may be contacted by calling 615-741-2858 (option 3).
The new employer premium rate for all other industries, including Manufacturing Sector 32, is 2.7%.
An experience-rated employer is an employer who has been liable to pay unemployment insurance premiums for 36 consecutive months ending on December 31. An experience-rated employer’s premium rate is determined by two factors: the employer’s reserve ratio and the level of the Unemployment Insurance Trust Fund.
An employer’s reserve ratio is determined by taking the total premiums the employer has paid as of December 31 and subtracting from that all benefits charged against that employer as of December 31. The difference is then divided by the employer’s average payroll for the last three years. The resulting figure is the employer’s reserve ratio percent. An employer’s premium rate is the rate that corresponds with his reserve ratio on the effective Premium Table.
The level of the Trust Fund determines which of six (6) Premium Tables will be used to determine an employer’s premium rate.
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How does my business file quarterly reports?
"Premium Reports" (LB-0456) and "Wage Reports" (LB-0851) are mailed to employers each calendar quarter. If you do not receive a quarterly report, you are not relieved of your responsibility to submit reports and pay premiums due on time. You can obtain reports by calling the Employer Accounts Office in your area or by calling Employer Services at (615) 741-2486. Tennessee employers are required to use the "Premium Report" to report the amount of total gross wages and total taxable wages paid to all employees, as well as the number of employees working for the employer as of the 12th of the each month of the applicable quarter. Employers are also required to report each employee’s social security number, name and total gross wages on the "Wage Report".
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What is the definition of "wages"?
All remuneration paid for personal services from whatever source is considered to be "wages" for unemployment insurance purposes. Examples of such remuneration, or compensation, are salaries, commissions, bonuses, drawing accounts, fees, certain gifts, deferred compensation, employee contributions to a cafeteria plan, employee-reported tips, allocated tips and vacation pay. Payments made to employees in a medium other than cash are also considered to be "wages", except for meals, lodging, and clothing when furnished for the employer’s convenience and on the employer’s premises.
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What are "taxable wages"?
Taxable Wages: For Tennessee unemployment insurance purposes, "taxable wages" are defined as the first $7,000 paid to each employee in a calendar year.
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When are my quarterly reports due?
Employers are required to report payroll and pay the total unemployment insurance premiums due for each quarter by the end of the month following the end of the quarter (i.e. Apr. 30, Jul. 31, Oct. 31, and Jan. 31).
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What is magnetic media reporting?
Magnetic media reporting is the filing of individual employee wage information on magnetic tape (cartridge or reel), 3.5" diskette, or electronic filing by modem. Tennessee Employment Security Law requires Tennessee employers or their agents reporting more than 250 employees to submit quarterly wage information on magnetic media. Click on "Magnetic media reporting" above to access specifications for each type.
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How is my employer account charged for benefits paid to my former employees?
If you are the only employer who paid wages to the benefit claimant for covered employment in his/her base period, you are the only employer with potential liability for benefits paid on the claim. However, if the claimant was paid wages for covered employment by more than one employer in his/her base period, the liability for benefit payments is prorated. Each employer is then responsible for a percentage of each payment, which is equal to the percentage of the total base period wages paid to the claimant by that employer.
Example:
Total base period wages = $10,000
Covered base period wages paid by Employer A = $5,000 (50%)
Covered base period wages paid by Employer B = $2,500 (25%)
Covered base period wages paid by Employer C = $2,500 (25%)
If the claimant was paid an unemployment check in the amount of $200, each employer’s charge is as follows:
Employer A = $100 (50%)
Employer B = $50 (25%)
Employer C = $50 (25%)
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If I have questions about my employer account, who should I call?
If you have questions about your employer account you can contact the Employer Accounts Office nearest you or the appropriate unit in the central office.
AREA EMPLOYER ACCOUNT OFFICES
Memphis
Humboldt
Nashville
Columbia
Chattanooga
Cookeville
Knoxville
Elizabethton
CENTRAL OFFICE
Employer Services
Employer Accounting
Wage Records
Report Audit
Delinquency Control
Toll-Free Number 1-800-344-8337 (Inside Tennessee)
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What is a successor or same party of interest successor?
A successor is an employer who either acquires all of the organization, trade, business, or substantially all the assets of another employer or employers, or acquires a distinct, severable, identifiable, and segregable portion of the business of another employer or employers and continues that portion of the business.
A predecessor is an employer whose business or portion of the business was acquired by a successor.
A successor that is either directly or indirectly controlled by legally enforceable means, or otherwise, by an individual, type of organization, or an employing unit having a commonality of beneficial interest or interests as those of the predecessor shall be considered a "same party(ies) of interest" successor. A "same party(ies) of interest" successor acquires the experience rating factors and the liability for current or delinquent unpaid premiums, interest, penalties, and other remaining liabilities of the predecessor.
A successor shall be considered the "same party(ies) of interest" as the predecessor, unless shown otherwise, when the successor is a relative by blood or marriage of the predecessor and whenever the successor is a corporation in which a relative of the predecessor has at least a 10 percent ownership interest.
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How do I terminate/cancel my account?
Once you have established liability as an employer, you are subject to the unemployment insurance law for at least two calendar years, regardless of the number of employees, as long as you employ workers. However, you may request termination of coverage as of January 1 of any calendar year if you employed workers or paid wages to a lesser extent than required by law for the purpose of liability for the previous calendar year.
Such request must be submitted, in writing to our Employer Services Unit, before April 1 of the year the termination is to be effective.
How do my premiums paid to Tennessee affect my Federal Unemployment Tax (FUTA)?
In order to be eligible for a 5.4 percent offset credit against the 6.2 percent FUTA tax that you pay to the IRS, you must pay state unemployment insurance premiums for the previous year in full by January 31.
If the state premiums are not paid, you must pay the full 6.2 percent FUTA tax. However, this will not relieve you from state premiums.
Unemployment Questions - Benefit Charges
I am considering discharging one of my employees. What information will I need to provide to the unemployment office if this employee files a claim for benefits?
I have a probationary employee that is not working out. If I discharge him, will he be eligible for unemployment compensation?
I hired an individual to fill-in for someone. When I no longer have work for the temporary employee, will I be charged if he files for unemployment compensation?
I told this employee at the time of hire that this would be a temporary job. Will he still be eligible for benefits when the job is completed?
I never employed this individual, so how can I be charged?
I am considering discharging an employee. What type of information will the Department of Labor and Workforce Development require of me in order to keep this employee from drawing benefits from my reserve account?
A former employee has quit my employment. When someone voluntarily quits do I have any liability for benefit charges?
I am considering discharging one of my employees. What information will I need to provide to the unemployment office if this employee files a claim for benefits?
In the case of a discharge, the burden of proof lies on the employer to prove that a former employee was guilty of willful work-related misconduct. Below are some examples of issues our department looks for in the adjudication of a claim for benefits.
Absenteeism/Tardiness
Violation of Company Policy
Poor Work Performance
Drugs/Intoxicants
Refused Work Shift
Falsification of Application
Stealing
I have a probationary employee that is not working out. If I discharge him, will he be eligible for unemployment
Tennessee law does not recognize probationary employment. If you discharge this individual, you will have to prove willful misconduct in order to protect your reserve account from charges.
I hired an individual to fill-in for someone. When I no longer have work for the temporary employee, will I be charged if he files for unemployment compensation?
Yes.
Regardless of the length of time someone works for your business or the circumstances under which they are hired you will be liable for benefits paid.
I told this employee at the time of hire that this would be a temporary job. Will he still be eligible for benefits when the job is completed?
Yes.
Even though it was made known at the time of hire that this was a temporary job, as soon as work is not available, he becomes eligible to apply for unemployment compensation and your reserve account becomes liable for charges if he is approved for benefits.
I never employed this individual, so how can I be charged?
If you acquire the experience rating and reserve account of another employer through a successorship, you become liable for the benefit charges that are charged against that predecessor employer's account. For more information about the transfer of reserves from one account to another, please visit the Employer Services portion of this web site.
I am considering discharging an employee. What type of information will the Department of Labor and Workforce Development require of me in order to keep this employee from drawing benefits from my reserve account?
Each separation is adjudicated based upon the individual circumstances surrounding a claimant's discharge. Some typical examples of the information we require is as follows:
A. Discharge for absenteeism/tardiness:
1. What were the dates of the last incident of the absenteeism or tardiness?
2. Did the claimant provide medical evidence of illlness during the absence/tardy?
3. Did the claimant notify anyone that he would be absent/tardy? If so, when were you notified?
4. Were there any prior warnings of absences/tardiness? If yes, please give dates, types of warnings, and who issued the warnings. Please provide a copy of these warnings and a copy of your absenteeism/tardiness policy.
5. Was the claimant aware of the absenteeism/tardiness policy? If so, how was the claimant made aware of this policy?
6. Describe in detail the final incident which prompted you to terminate this individual.
B. Discharge for poor work performance:
1. Describe the final incident that led to the discharge.
2. What were the standards expected of the claimant?
3. Did the claimant ever meet these standards?
4. Did the claimant make an attempt to conform to the standards?
5. Were there previous warnings for failure to meet the standards? If yes, provide copies of the warnings.
C. Discharge for violation of company policy:
1. Provide a copy of the company policy that was violated.
2. What did the claimant do that violated this policy.
3. How was the claimant made aware of this policy?
4. Were there any prior violations and warnings? If so, please provide a copy.
5. Were there any violations of this policy by other employees that did not result in discharge?
6. Was the claimant discharged at the time the infraction occurred? If not, please explain the time delay.
D. Discharge for insubordination:
1. Describe the insubordinate act.
2. When and where was the act committed?
3. Had the claimant previously shown insubordinate behavior? If yes, please describe these incidents.
4. Was the claimant warned that such behavior was not permitted? If yes, provide copies of these warnings.
A former employee has quit my employment. When someone voluntarily quits do I have any liability for benefit charges?
When someone voluntarily quits your business, an investigation is conducted to ascertain the reason the claimant quit. If it is determined that the claimant had a good work-related reason to quit, you are liable for benefit charges. Listed below are examples of the information we require in order to adjudicate voluntary quit issues:
A. Claimant voluntarily quit due to working conditions:
1. Were there any changes in the working conditions agreed upon at the time of hire? If so, please explain.
2. Were the changes permanent or temporary? And if temporary, for what period of time?
3. Did the changed working conditions affect other employees? If yes, please explain.
4. What affects did the changes have upon the claimant's production?
5. What action did management take toward resolving the problem?
B. Claimant voluntarily quit due to a medical condition:
1. Did the claimant provide a medical statement showing the necessity for leaving work?
2. Did this condition result in a physical disability?
3. Was the illness or injury work-related? If yes, is the claimant receiving any type of Worker's Compensation?
4. Did the claimant reapply for usual duties after being released by his doctor to return to work?
5. Did you offer the claimant work that he could perform if he had light duty restrictions?
NOTE: Pregnancy is considered an illness under Employment Security Law.
C. Claimant voluntarily quit in lieu of discharge:
1. Was the claimant given a quit or be discharged ultimatum?
NOTE: When someone voluntarily quits in lieu of being discharged, it is treated as if the claimant actually was discharged.
2. Give the details of the final incident that caused the discharge.
3. What specific rule, policy, or common labor practice did the claimant violate?
4. Was the claimant aware of these rules?
5. How was the claimant made aware of these rules?
6. Were there any prior incidents or warnings? Please provide a copy of the warnings or a detailed account of prior incidents.
7. Were any actions taken to correct the situation before the discharge?
Unemployment Insurance - Benefit Audit
Can someone work and draw unemployment benefits?
If I receive an audit card does that mean the employee is drawing unemployment.
Can I inquire as to whether someone is drawing unemployment benefits?
How can I report someone who is working and drawing unemployment benefits?
If my business is a party to a back pay award is that award reportable?
Can one work and collect benefits?
In some circumstances, yes. The most common situation would be an individual who is working, but earning less than the weekly benefit amount. In that instance they would normally draw an amount less than their normal weekly benefit amount.
Information on the benefit cross match audit and instructions for completing the audit card.
Can I inquire as to whether someone is drawing unemployment benefits?
An individual’s claim for unemployment benefits is considered confidential unless under appeal. Therefore, in most instances you will not be given information regarding someone drawing unemployment.
Guidelines on the release of claims information.
If I receive an audit card does that mean the employee is drawing unemployment?
No. It means that they drew unemployment for the weeks that are listed on the card. They may or may not be currently drawing at the present. Click here for more information on the benefit cross match audit and instructions for completing the audit card.
Information on the benefit cross match audit and instructions for completing the audit card.
How can I report someone who is working and drawing unemployment benefits?
You may contact us by writing:
Benefit Payment Control Unit
P.O. Box 24150
Nashville, Tennessee 37202-4150
or by phone at:
615-741-2606 or
toll free in Tennessee at
1-800-344-8337.
You may also email the information to us. The information will be sent to an Unemployment Benefit Auditor who will review the information given as well as contacting the current employer. If it appears that an overpayment may exist, the claimant will be called in for a hearing regarding a possible overpayment.
If my business is a party to a back pay award is that award reportable?
Yes, In most instances, back pay constitutes wages and is reportable.
More on reporting back pay.
Workers' Compensation Questions
Benefit Review
The Workers' Compensation Division has representatives that can assist employers, employees, and insurance carriers. If you have questions or problems relating to a workers' compensation injury, call 1-800-332-2667 (within Tennessee) or 615/532-4812. If the representative cannot resolve the issues, a Workers' Compensation Specialist can assist in resolving disputes and settling claims at no cost to the employer or employee.
The role of the Representative is:
To be the "first line of assistance" in cases with problems and/or disputes.
To examine claims to insure accurate processing of benefits to injured employees.
To advise employees and employers of rights and requirements under workers' compensation laws.
To visit and consult with employers to verify coverage and compliance with safety requirements and to insure posting of the Tennessee Workers' Compensation Insurance Notice.
To explain to all interested parties the laws, rules, and policies governing workers' compensation.
A Workers' Compensation Specialist will also conduct a benefit review conference for all injuries occurring on or after January 1, 1997, that do not reach a final settlement and where the parties do not waive this requirement. A benefit review conference is a non-adversarial mediation that takes place with the Specialist mediating the case between the employee and the employer/insurance carrier.
The role of the Specialist is:
To resolve/arbitrate the question of compensability in disputed workers' compensation cases.
To conduct benefit review conferences for the purpose of trying to resolve disputed issues through the process of mediation.
To review and approve or reject proposed settlement agreements in disputed workers' compensation cases.
The Reform Act of 1996 authorizes the Commissioner of Labor and Workforce Development, or his designee (workers' compensation specialist), to approve proposed settlements between the parties if:
The settlement has been signed by the parties; and,
The Commissioner of Labor and Workforce Development or a workers' compensation specialist has determined the employee is receiving, substantially, the benefits provided by law or is in the best interest of the employee; and,
The settlement agreement is reviewed by a specialist not associated with the employee's case.
A settlement approved by the Tennessee Department of Labor and Workforce Development shall be entitled to the same standing as a judgment of a court of record.
Workers' Compensation Questions
Case Management and Utilization Review
Medical Case Management
The purpose of this program is to coordinate the medical care services provided to employees claiming benefits under the Law.
Employers may, at their own expense, utilize case management. If utilized by employer, employee must cooperate.
At least one face-to-face visit between the case manager and the employee will be required within 14 calendar days after referral. Documentation of this meeting must be provided to the Medical Director of the Division of Workers' Compensation.
Case Management services shall include, but not be limited to:
Development of a treatment plan to provide appropriate medical services.
Monitoring the treatment and medical progress.
Assessing whether medical services are appropriate and delivered in a cost-effective manner, based on acceptable medical standards.
Ensuring that the injured employee is following the prescribed medical care plan.
Formulating a plan for return to work, with due regard for the employee's recovery, restrictions, and limitations, if any.
Utilization Review
The purpose of utilization review, together with medical case management, is two-fold:
To ensure that quality medical care services are available to injured and disabled employees.
To establish cost control mechanism to ensure cost-effective delivery of medical care services and to control increasing medical costs in workers' compensation cases.
The "UR" system provides for:
Review of selected outpatient and inpatient health care providers; and
Pre-admission review of all hospital admissions, except for emergency services.
Utilization review is required in every case which exceeds $5,000 in total medical costs.
Utilization review services must be provided or contracted for by:
Each insurer who provides workers' compensation insurance in Tennessee.
Every self-insured employer.
The insured employer may choose to provide the services on its own or though a third party administrator.
A health care provider who is found to have rendered excessive or inappropriate services may be subjected to:
Forfeiture of the right to payment for the services rendered;
Payment of civil penalty of up to $1,000;
Temporary or permanent suspension of the right to provide medical care services for workers' compensation claims.
What is case management?
Case management is the ongoing facilitation and coordination of medical care services provided to an injured employee. This is done to promote the most cost-effective medical treatment without compromising the patient's quality of care.
What is utilization review and when is it required?
Utilization review is the evaluation, by an outside source, of the necessity, appropriateness, efficiency, and quality of medical care services provided to an injured employee. Utilization review is required:
If outpatient care results in medical costs in excess of $5,000.00.
For pre-admission of all hospital admissions except for emergency services, which shall begin within one (1) working day of all emergency hospital admissions.
Workers' Compensation Questions
Claims
FIRST REPORT OF WORK INJURY, FORM C20
The Workers’ Compensation Division has released a new version of the Tennessee First Report of Work Injury, Form C20. The form has been modified to meet Occupational Safety and Health Administration (OSHA) requirements and the International Association of Industrial Accident Boards and Commissions (IAIABC) standards for Electronic Data Interchange (EDI).
OSHA REQUIREMENTS: The OSHA 200 log has been replaced with the OSHA 300 log. The OSHA 101 form has been replaced with the OSHA 301 "Injury and Illness Incident Report".
Historically, the "Tennessee First Report of Work Injury" (First Report) has been an allowable substitute for the OSHA 101 form. The First Report has been revised to meet the new OSHA requirements so that the substitution can continue. Use of the revised First Report will eliminate the need for filing the OSHA 301.
OSHA requires employers to maintain a copy of either the First Report or the OSHA 301 on site and available to Tennessee Occupational Safety and Health Administration (TOSHA) representatives.
TENNESSEE OSHA
WHEN AN EMPLOYEE IS INJURED, THE EMPLOYER SHOULD:
Fill out a Form C-20, First Report of Work Injury.
It is mandatory to offer the injured employee a panel of three physicians. If you do not have a panel, call your insurance carrier and develop one. Post the panel so your employees will know who they are allowed to see if they are injured. A signed C-42, "Agreement Between Employer/Employee Choice of Physician" is the employer's proof that the employee was offered a choice of physicians. A copy of this completed form must be provided to the employee. The employer must keep the original form on file and upon request provide a copy to the Division of Workers' Compensation.
Inform the employee of the name and telephone number of the insurance carrier/adjuster.
Submit a statement of the employee's wages to the insurance carrier. The statement should show the gross wages earned each week for the past fifty-two (52) weeks. If employed less than 52 weeks, the statement should show number of weeks worked and gross wages earned each week. Include overtime, bonuses, etc.
File the First Report of Work Injury with your insurer within one working day of knowledge of injury. A wage statement should accompany the First Report or be sent to the insurer as soon as possible. The claim must be reported to your insurer even if you feel the claim is not compensable. The insurer can investigate and deny the claim if appropriate.
WHEN AN INJURY OCCURS THE INSURER MUST:
Make personal or telephone contact with the employer and the injured employee within two (2) working days of notice of injury.
Accept or deny the claim within fifteen (15) days of the knowledge of the injury. You must notify the employer and the claimant of your decision within fifteen (15) days.
Issue compensation payment to the claimant no later than fifteen (15) days after notice of injury. All workers' compensation benefits must be issued timely (on or before due date).
Send a copy of the First Report and the Notice of First Payment or Notice of Denial to the Division of Workers' Compensation no later than fourteen (14) days after notice of injury.
Effective February 28, 1998, Chapter 0800-2-14, Claims Handling Standards, were added to the General Rules and Regulations of the Tennessee Department of Labor and Workforce Development, Division of Workers' Compensation. Additional information on filing this information can be found under Electronic Date Interchange (EDI).
The purpose of the Claims Handling Standards is to assure that employees sustaining an injury arising out of and in the scope of employment are treated fairly and to assure that workers' compensation claims are handled in an appropriate and uniform manner. The provisions shall apply to all employers in the State of Tennessee subject to the provisions of the Workers' Compensation Law.
CLAIMS HANDLING STANDARDS OVERVIEW
EMPLOYERS SHALL:
Report verbally or in writing all known reported accidents to their insurer within one working day of knowledge of injury.
Submit a statement of the employee’s wages to the insurance carrier. The statement should show the gross wages earned each week for the past fifty-two (52) weeks. If employed less than 52 weeks, the statement should show number of weeks worked and gross wages earned each week. Include overtime, bonuses, etc.
FILING REQUIREMENTS
Every insurer shall file with the Division a report of accident on Form C-20 (Tennessee Employer’s First Report of Work Injury) pursuant to Rule 0800-2-1-.06.
A wage statement to insure the correct rate of compensation shall be filed with the Division and shall accompany the Form C-22 (Notice of First Payment of Compensation) or Form C-23 (Notice of Denial of Benefits). Filings shall be made pursuant to Rule 0800-2-1-.07.
Form C-23 (Notice of Denial) shall be filed with the Division within ten (10) days of denial and a copy of Form C-23 shall be provided to the claimant within the same time frame.
REQUIRED CONTACTS
Upon verbal or written notice of any injury from an employer, the insurer shall make verbal or written contact with the claimant within two (2) working days to confirm facts of the claim, history of prior claims, work history, wages, and job duties. This may include a recorded statement.
Insurers shall make personal or telephone contact with the employer within two (2) working days of notice of accident to verify accident details. Insurers and employers shall obtain a description of the job and prior claim information of the claimant within five (5) working days. All pertinent witnesses shall be contacted by the insurer as they become known.
Insurers shall contact physicians who have rendered medical services to a claimant within seventy-two (72) hours of verbal or written notice to confirm injury and treatment and make preliminary compensatory determination.
All aspects of contacting and attempts to contact insureds, the claimant and physicians shall be documented within the insurer’s file.
COMPENSABILITY DETERMINATION
Decisions on workers’ compensation insurance coverage and compensability shall be made within fifteen (15) days of verbal or written notice of accident. All pertinent documents of the division of workers’ compensation shall be filed within fifteen (15) days of verbal or written notice of accident. Claimants and employers shall be notified of the decision of compensability within fifteen (15) days of verbal or written notice of accident.
Denial of a claim shall be supported with documented results of the investigation. Form C-23 (Notice of Denial) shall be filed with the Division within ten (10) days of denial and a copy of Form C-23 shall be provided to the claimant within the same time frame.
If an insurer denies a claim, the insurer shall provide documentation which meets the statutory criteria for denial on Form C-23 upon request by the Division, employer, claimant, and/or their legal representatives.
PAYMENT OF BENEFITS
Compensation payments for an injury shall be received by the claimant no later than fifteen (15) days after notice of injury.
All workers’ compensation benefits shall be issued timely to assure
