Governor Haslam’s Workers’ Compensation Reform Bill goes into full effect in Tennessee on July 1st and applies to any worker injured after June 30th.
- Insurance companies will have even more opportunity to deny coverage based on pre-existing conditions. The law now provides that all injuries must arise “primarily out of and in the course and scope of employment,” so the injured worker must prove that the employment “contributed more than 50% in causing the injury, considering all causes.”
- Permanent partial disability (PPD) benefits, which are supposed to provide compensation for future earnings loss due to an injury, will be dramatically scaled back. PPD awards will be based solely on the impairment rating, multiplied by 450 weeks:
- An injured worker with a 5% impairment rating will receive only 22.5 weeks of benefits for PPD.
- If he or she does not return to work, or returns to work earning less, only marginal increases of 1.35 to 1.45 times the impairment rating are available. For example, a worker with a 5% rating who can’t return to work might be entitled to 30 to 32.6 weeks of benefits.
Thankfully, there is an “escape” clause in the new law that will allow for much larger PPD awards up to 450 weeks for a few workers, if at least three of four factors are proven:
- Limited education
- 55 or older
- No transferable job skills
- No reasonable employment opportunities locally.
For most workers, however, benefits for permanent disability will be very limited, no matter how devastating the effect of a serious injury is on his or her ability to earn a living in the future.
Better workers compensation benefits may be available through Georgia:
Georgia law may provide better benefits to an injured worker than Tennessee, and in some situations a claim can be filed in either state. If the accident occurred in Georgia there may be jurisdiction in Georgia. Even if the accident occurred outside Georgia, if the worker was hired in Georgia and the employer has a place of business there or if the worker lives in Georgia, the claim can be brought in Georgia.
If there is any possibility of dual jurisdiction in Georgia, call us.
Workers injured on the job should not blindly accept an insurance company’s decision to handle a workers compensation case as a Tennessee case. If there might be jurisdiction in Georgia, call us immediately!
Here are just two examples of dual jurisdiction in Tennessee and Georgia:
- A Tennessee company that routinely sends service technicians into Georgia to serve or repair equipment, such as heat and air units, industrial machinery or plumbing may be subject to Georgia workers compensation law if the accident occurs in Georgia.
- A Tennessee trucking company that hires workers through its terminal in Georgia will be subject to Georgia workers compensation laws regardless of where the accident occurs.