NFIB is monitoring the legislation's progress in anticipation of more information. Tennessee would be the third state to adopt an alternative workers' compensation system.
Tennessee State Sen. Mark Green introduced a bill that would
create an opt-out system for businesses in the state.
The “Tennessee Option” has been described as a hybrid of
similar alternate systems put in place in Texas and Oklahoma. The model borrows
ideas from the most successful aspects of the Texas non-subscription and
Oklahoma option, allowing businesses in Tennessee to create their own plans for
employee injury benefits and compensation that meet minimum state requirements.
Proponents of the bill expect businesses that create their own
individual plans will save money in the free market. In addition, workers may
be able to receive their compensation benefits sooner, according to supporters
of the bill.
“For employees, the benefits come faster,” says NFIB/Tennessee
state director Jim Brown. “There’s no wait. The experience, the proponents say,
is that the workers can get back on the job quicker. It’s more of a streamlined
system to get workers back on the job.”
At the same time, many questions remain unanswered. Opponents
of the alternative workers’ compensation system argue that there is liability
exposure for nonsubscribers in Texas. Green’s bill also has a limited liability
exposure aimed to protect employees and their families. However, the impact on
businesses in other states has not been fully realized.
What NFIB Members Can Expect
Currently, NFIB has not taken a position on the proposed system
following survey results that asked members if they favored or opposed an
alternative system similar to those in Texas and Oklahoma.
“We’re neutral,” says Brown. “We’re very mindful of both sides’
arguments. We aren’t turning away from this.”
NFIB is monitoring the legislation’s progress in anticipation
of more information. Tennessee would be the third state to adopt an alternative
workers’ compensation system.
“It’s an interesting issue for our members,” says Brown. “They
have mixed views on it and there’s a steep learning curve for everyone no matter
where you are. That’s why it’s so critical to be engaged and read up on the
information that NFIB will provide. … It’s new territory and we need to
understand it.”
Brown says that more debate is likely to come over the specific
provisions in the proposed alternative option.
“There are going to be important discussions about employee
rights,” Brown explains. “There are going to be important discussion about time
reporting for injuries. There’s going to be some robust discussion on those
parts of the legislation.”
