Workers’ Compensation Reform Scores Legislative Victory

Bill will create fairness in the system for both employer and employee

The Workers’ Compensation Reform Act of 2013, an initiative that is part of Governor Bill Haslam’s legislative agenda for the year, easily passed the House Consumer and Human Resources Committee this week.

Workers’ Compensation is an insurance program, adopted in Tennessee in 1919, that compensates employees for injuries they suffer on the job. Employers are required to carry workers’ compensation insurance to cover the costs of medical expenses and lost wages of employees when they suffer work-related injuries.

As introduced, the Workers’ Compensation Reform Act (House Bill 194) reforms the workers’ compensation system in Tennessee to provide more certainty for businesses while also protecting the interests of employees across the state.

If passed by the legislature, HB 194 will reduce the time it takes to receive permanent workers’ compensation benefits and improve injury medical treatment. In addition, the process for resolving workers’ comp disputes will be streamlined, allowing injured workers to receive compensation and return to work quicker.

According to critics, the current workers’ compensation process in Tennessee is unpredictable, cumbersome for determining benefits, and employees are often unable to receive benefits and return to work in a timely manner. Tennessee is one of only two states with a courts-based system. As a result, opponents of the system say, workers’ compensation premium rates for employers in Tennessee are higher than the national average.

The legislation will next be heard in the House Government Operations Committee on March 19th.