Tennessee employers have a new reason to document every workers' compensation decision. According to the Tennessee Bureau of Workers' Compensation's overview of 2026 legislation, Public Chapter 845 lets the Court of Workers' Compensation Claims award attorney fees and court costs at an expedited hearing if an employer unreasonably denies a claim or delays benefits. It applies to injuries occurring between July 1, 2026, and June 30, 2030.
| Item | Public Chapter 845 |
|---|---|
| Bills | SB1981 / HB2179 |
| Focus | Attorney fees in workers' compensation claims |
| Who may award fees | Court of Workers' Compensation Claims, at an expedited hearing |
| Trigger | Employer unreasonably denies a claim or delays benefits |
| Injury dates covered | July 1, 2026, through June 30, 2030 |
| Signed / effective | April 27, 2026 / July 1, 2026 |
Source: Tennessee Bureau of Workers' Compensation, 2026 Workers' Compensation Legislative Changes (posted July 10, 2026).
What changed
The Bureau notes the bill changed substantially before passage. In its final form, it focuses on attorney fees. An expedited hearing is an earlier-stage hearing that can take place before a claim is fully resolved, so the fee exposure can arrive early in a dispute. The Bureau describes the goal as discouraging unnecessary denials and making sure injured workers can secure timely legal representation.
What the law does not say
The Bureau's summary does not say every denial triggers fees. The standard in the summary is an unreasonable denial or delay, and the court decides. The provision also has an end date: it covers injuries through June 30, 2030.
What Tennessee employers can do now
- Report injuries to your carrier promptly and keep a dated record of what was reported and when.
- Ask your insurer or third-party administrator how it documents the reasons for a denial or a delay in benefits.
- Make sure the injured employee receives timely communication about the claim's status.
- Confirm your coverage is in force and verifiable: TDCI’s workers’ comp page says verify coverage online — a certificate may not warn you of cancellation.
- Review the current weekly benefit caps: Tennessee raised its workers’ comp weekly benefit caps for injuries on or after July 1, 2026.
Where this fits with other 2026 changes
Public Chapter 845 is one item in a busy year for Tennessee workers' compensation. Other updates include proposed drug-free workplace rule changes (Tennessee wants to add kratom to its drug-free workplace rules, with a workers’ comp hearing on Nov. 10.) and the Medical Payment Committee's dispute docket (Tennessee’s workers’ comp Medical Payment Committee meets Nov. 3 to hear medical bill disputes.). If you are shopping for coverage or have been declined, start with TDCI explains how Tennessee employers buy workers’ comp and reach the residual market.
This article is informational and is not legal advice. Talk with your carrier, your attorney, or the Bureau about a specific claim.
Related reading from All Seasons
- TDCI’s workers’ comp page says verify coverage online — a certificate may not warn you of cancellation.
- Tennessee raised its workers’ comp weekly benefit caps for injuries on or after July 1, 2026.
- TDCI explains how Tennessee employers buy workers’ comp and reach the residual market.
- Tennessee wants to add kratom to its drug-free workplace rules, with a workers’ comp hearing on Nov. 10.
- Tennessee’s workers’ comp Medical Payment Committee meets Nov. 3 to hear medical bill disputes.
Free policy review
All Seasons Insurance Group offers a free personal policy review. Call 865-263-1400 or visit asigtn.com/get-a-quote/. This article is informational only and does not promise coverage or eligibility; your policy forms control. Seasons change. So should your coverage.
What does Public Chapter 845 do?
According to the Tennessee Bureau of Workers' Compensation, it lets the Court of Workers' Compensation Claims award attorney fees and court costs at an expedited hearing if an employer unreasonably denies a claim or delays benefits.
Which injuries does it cover?
Injuries occurring between July 1, 2026, and June 30, 2030.
When did it take effect?
The Bureau says Public Chapter 845 was signed by Governor Lee on April 27, 2026, and is effective July 1, 2026.
Does every denied claim lead to attorney fees?
No. The Bureau's summary describes an unreasonable denial or delay of benefits, and the court decides whether that standard is met.
What is the purpose of the law?
The Bureau says the intention is to discourage unnecessary denials and ensure injured workers can secure timely legal representation.
What bill numbers were involved?
The Bureau lists Public Chapter 845 as SB1981 / HB2179.
What should employers do now?
Report injuries promptly, keep dated records, ask your carrier how denial and delay reasons are documented, and keep injured employees informed about claim status.
How can All Seasons help after reading this?
Call 865-263-1400 or visit asigtn.com/get-a-quote/ for a free personal policy review. Informational only; no coverage promises. Seasons change. So should your coverage.
