(a) The payment of workers’ compensation benefits to, or on behalf of, an injured employee pursuant to this part constitutes satisfaction of the judgment against the uninsured employer up to the amount paid. The bureau shall assume the rights of a creditor against the employer and may take action to collect the portion of the judgment that it satisfied on the employer’s behalf.
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Terms Used In Tennessee Code 50-6-803

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Employee: includes every person, including a minor, whether lawfully or unlawfully employed, the president, any vice president, secretary, treasurer or other executive officer of a corporate employer without regard to the nature of the duties of the corporate officials, in the service of an employer, as employer is defined in subdivision (11), under any contract of hire or apprenticeship, written or implied. See Tennessee Code 50-6-102
  • Employer: includes any individual, firm, association or corporation, the receiver or trustee of the individual, firm, association or corporation, or the legal representative of a deceased employer, using the services of not less than five (5) persons for pay, except as provided in §. See Tennessee Code 50-6-102
  • Lien: A claim against real or personal property in satisfaction of a debt.
(b) The bureau shall place a lien on the assets of the employer to recover money paid pursuant to this part by filing a notice of claim with the register of deeds of any county where the employer has assets. Upon filing the notice of claim with the appropriate official, the bureau shall be a secured creditor, and any lien secured pursuant to this part has first priority over all other liens with the exception of liens established for the collection of delinquent tax payments.
(c) The injured employee may collect the remaining portion of the judgment that was not satisfied by payment made pursuant to this part from the employer.
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