Lawmakers Seek Solutions to Workers' Comp Mandate

Rep. Judd Matheny (Tullahoma), chairman of the House Consumer and Employee Affairs Committee, recently called a special legislative panel to hear from individuals and groups affected by Public Chapter 1041.

Scheduled to take effect Dec. 31, the new law will require all sole proprietors, partners and LLC owners to carry workers’ compensation insurance on themselves.

NFIB members Heather Lawrence from Nashville and Jimmy Anderson from Gallatin joined Tennessee State Director Jim Brown in testifying for relief. Watch a replay of the Oct. 22 meeting on the General Assembly's Web site.

Our members believe an opt-out provision, similar to what corporate officers currently can do, would enable many small operators to stay in business in this turbulent economy.

Brown noted some small businesses believe the pending mandate to be duplicative, since some have occupational injury coverage in certain health insurance policies.

House and Senate members also heard from individuals representing the Home Builders Association of Tennessee and the commissioners of the departments of Commerce & Insurance and Labor & Workforce Development. 

The news is encouraging on several fronts, though to date no action has been taken.

With our members’ assistance the next few weeks, we will be evaluating the following ideas brought by legislators and others:

·          Delaying implementation of PC 1041 to allow time to find more permanent solutions. However, the law would still be in effect for a month or so. In the interim, the Department of Commerce & Insurance is working to enable workers’ comp premiums to be made in monthly payments in the assigned risk pool, alleviating some financial burden.

·          Lowering the minimum payroll requirement from $15,600 to $5,000, which some believe would be helpful to individuals with lower income levels

·          Creation of a deductible to lower premium amounts

·          Creation of an opt-out based on demonstration of health insurance with occupational injury and disability coverage

We agree with legislators and other groups that something must be done, perhaps stiffer penalties, to level the playing field for honest operators who are carrying workers’ comp on their employees.

Please send State Director Jim Brown and your lawmakers your feedback on these ideas as soon as possible.