One Step Closer to Administrative Workers’ Compensation in Tennessee

As one of only two states remaining where workers’ compensation matters are still hashed out in the courts, Tennessee may be sticking out like a sore thumb. Back in the Fall of 2012, we highlighted the Krohm/Bryant Report as being the shot across the bow for workers’ compensation reform in Tennessee. In his State of the State Address, on January 28, 2013, Governor Haslam announced the loading of the next round of ammunition, “The Tennessee Workers’ Compensation Improvement Act of 2013.” Incorporating the vast majority of the Krohm/Bryant recommendations, the proposed legislation will, as promised, fundamentally change the Tennessee workers’ compensation system.

Foremost, the legislation would create a Court of Workers’ Compensation Claims within the Tennessee Department of Labor where employees would file their new claims. The primary, anticipated beneficial effect of this new administrative vehicle will be the streamlining of the system to compensate employees and return them to work as quickly as possible. However, there are well-founded grumblings in the judiciary that it will certainly lead to the loss of judgeships at the Circuit and Chancery levels throughout the State. In addition to overseeing the new Court, the Tennessee Department of Labor will manage a new Ombudsman program that will provide unrepresented employees and businesses guidance in the new administrative environment. Most importantly, the proposed Act will purportedly remove the tilt and liberal construction of workers’ compensation in favor of the employee and establish a new standard for causation for all injuries: the injury must arise primarily out of employment. It remains to be seen, but it is much closer to reality than ever before with the GOP holding a supermajority in Tennessee’s legislature.