Changes to Workers’ Compensation Laws Take Effect In Tennessee
October 11, 2011
A new law regarding workers’ compensation exemptions in the construction industry took effect earlier this month, allowing more individuals and companies to become eligible for the exemptions.
According to Channel 4 News, the new law allows businesses conducting commercial construction to opt-out of having workers’ compensation insurance provided that the businesses meet new ownership requirements of at least five individuals. Also, a person can qualify for exemption if he or she is associated with another business as long as all ownership requirements are met.
Another change is that exemptions are no longer automatic and must be either licensed through the Board of Licensing Contractors or be registered with the Secretary of State’s Office as a construction services provider. Each individual wishing to become exempt must also apply for the exemption with the Secretary of State’s Office at a cost of $100 per applicant for a two-year exemption. Those without a Tennessee Construction License will be charged $200 for the two-year exemption. A company can take neither of these steps until they have provided a Federal Employer Identification Number (FEIN) issued by the Internal Revenue Service.
Penalties for companies not in compliance with state workers’ compensation laws include large fines, as well as losing the right to conduct commercial construction business.
Founding attorney, Lee Coleman, with the Tennessee Workers’ Compensation Lawyers, at Hughes & Coleman, recently discussed many of the concerns business owners and employees may have regarding the impact workers’ compensation laws can have on their lives.
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