Not every job in Tennessee falls under the state workers' compensation law. Tennessee Code § 50-6-106 lists employments the law does not apply to. The list includes casual employment, domestic servants, farm and agricultural laborers, and cases where fewer than five persons are regularly employed, except as provided in § 50-6-902.
For farm employers and employers with fewer than five regular employees, the statute also gives a way in: the employer may accept the law by purchasing a workers' compensation insurance policy.
| Employment named in § 50-6-106 | What the statute says |
|---|---|
| Casual employment | A person who is not employed in the usual course of the employer's trade, business, profession, or occupation |
| Domestic servants | Domestic servants and employers of domestic servants are listed as not covered |
| Farm or agricultural laborers | Not covered, but the employer may accept the law by purchasing a workers' compensation policy |
| Fewer than five regular employees | Not covered, except as provided in § 50-6-902; the employer may accept the law by purchasing a policy |
| Withdrawing an acceptance | By canceling or not renewing the policy and providing notice to the employees |
| Volunteer ski patrol | Not covered if paid only in meals, lodging, or ski tow or lift use |
Source: Tennessee Code § 50-6-106.
The five-employee line and its exception
Many small Tennessee businesses ask whether they must carry workers' comp. Section 50-6-106 says the law does not apply in cases where fewer than five persons are regularly employed, but it points to an exception in § 50-6-902. If your business does construction work, read the rules for that industry before relying on the five-employee count: Tennessee construction business owners can exempt themselves from workers' comp, but every employee must still be covered.
The word "regularly" matters. Seasonal swings, part-time staff, and family members on payroll can make the count less obvious than it looks. Before deciding you are exempt, review your headcount with your agent and, if needed, the Bureau of Workers' Compensation.
Opting in on purpose
Farm employers and employers below the five-employee line may accept the law by buying a workers' compensation policy. The statute says that acceptance can be withdrawn at any time by canceling or not renewing the policy and providing notice to the employees. If you have opted in and later decide to drop the policy, the notice step is part of the statute.
Why a not-covered business still has risk
Being outside the workers' comp law does not make injuries go away. A farm, a household employer, or a very small business can still face medical bills and lost-wage claims after an injury. And a business that hires subcontractors can owe benefits to a subcontractor's injured employee: In Tennessee, a business that hires a subcontractor can owe workers' comp to the subcontractor's injured employee.
Related reading
- How to check whether a business has coverage: TDCI’s workers’ comp page says verify coverage online — a certificate may not warn you of cancellation.
- Where to buy coverage if the regular market says no: TDCI explains how Tennessee employers buy workers’ comp and reach the residual market.
- The state fund for injured workers of uninsured employers: Tennessee’s Uninsured Employers Fund caps benefits at $40,000 for workers hurt on the job without coverage.
- Injury notice and doctor panel rules: Tennessee workers generally have 15 days to report a job injury, and most employers then owe them a choice of three doctors.
This article is informational only. It summarizes Tennessee Code § 50-6-106 and does not promise coverage, eligibility, or a legal result for any employer or employee. Talk to the Bureau of Workers' Compensation or an attorney about your situation.
Related reading from All Seasons
- TDCI’s workers’ comp page says verify coverage online — a certificate may not warn you of cancellation.
- TDCI explains how Tennessee employers buy workers’ comp and reach the residual market.
- Tennessee construction business owners can exempt themselves from workers' comp, but every employee must still be covered.
- In Tennessee, a business that hires a subcontractor can owe workers' comp to the subcontractor's injured employee.
- Tennessee’s Uninsured Employers Fund caps benefits at $40,000 for workers hurt on the job without coverage.
- Tennessee workers generally have 15 days to report a job injury, and most employers then owe them a choice of three doctors.
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.
Does Tennessee workers' comp law cover farm workers?
Tennessee Code 50-6-106 says the law does not apply to farm or agricultural laborers, but their employers may accept it by purchasing a workers' compensation policy.
Do I need workers' comp with fewer than five employees?
The statute says the law does not apply where fewer than five persons are regularly employed, except as provided in 50-6-902. Construction businesses should check the separate rules.
Are household employees covered?
Domestic servants and employers of domestic servants are listed in 50-6-106 as employments the law does not apply to.
What is casual employment?
The statute describes it as a person who is not employed in the usual course of the employer's trade, business, profession, or occupation.
Can a small employer choose to be covered?
Yes. An employer with fewer than five regular employees, or a farm employer, may accept the law by purchasing a workers' compensation policy.
How does an employer withdraw after opting in?
By canceling or not renewing the policy and providing notice to the employees.
Are volunteer ski patrol members covered?
The law does not apply to a volunteer ski patrolperson who receives nothing other than meals, lodging, or the use of ski tow or ski lift facilities.
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.
