[Effective until 7/1/2029]

(a) There is created the uninsured employers fund as an account in the general fund, which shall be invested pursuant to § 9-4-603. Moneys from the fund may be expended to fund activities authorized by this part. Any revenues deposited in this fund shall remain in the fund until expended for purposes consistent with this part, and shall not revert to the general fund on any June 30. Any appropriation for the fund shall not revert to the general fund on any June 30, but shall remain available for expenditure in subsequent fiscal years.
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Terms Used In Tennessee Code 50-6-801

  • Administrator: means the chief administrative officer of the bureau of workers' compensation of the department of labor and workforce development. See Tennessee Code 50-6-102
  • Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
  • 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
  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
(b) The uninsured employers fund may receive revenues that shall include all penalties assessed and collected from employers who fail to provide workers’ compensation coverage or who fail to qualify as self-insurers pursuant to this chapter, and any other amounts that may be appropriated. In addition, when deemed necessary in the discretion of the administrator and when the balance remaining in the uninsured employers fund is less than the amount of funds distributed by the bureau to provide benefits to injured workers in the previous fiscal year, the administrator may also withdraw up to twenty-five percent (25%) of the balance of funds remaining after the costs and expenditures provided by § 50-6-913(b) have been satisfied, from the employee misclassification education and enforcement fund to provide benefits under this part.
(c) Except for funds collected by the administrator or the administrator’s designee for penalties assessed for violations of § 50-6-412(a)(2) and (n), which must be deposited in the employee misclassification education and enforcement fund established by § 50-6-913, to be administered by the administrator, the remainder of the funds collected in § 50-6-412 must be deposited in the uninsured employers fund and must be used for payment of the costs incurred by the bureau of workers’ compensation to administer the assessment of and collection of the other penalties provided in § 50-6-412, and the costs of administering this part, including, but not limited to, lien fees or fees of third-party administrators.
(d) The bureau may use any revenues remaining in the uninsured employers fund that are not used for the purposes provided in subsection (c) to provide temporary disability benefits, medical benefits, or death benefits to an eligible employee who suffered an injury or death arising primarily within the course and scope of the employee’s employment with an employer who failed to secure the payment of compensation pursuant to this chapter at the time the eligible employee suffered the injury or death.

(1) The employee was employed by an employer who failed to secure payment of compensation pursuant to this chapter;
(2) The employee suffered an injury on or after July 1, 2015, primarily within the course and scope of employment, at a time when the employer had failed to secure the payment of compensation;
(3) The employee was a Tennessee resident on the date of injury;
(4) The employee provided notice to the bureau of the injury and of the failure of the employer to secure the payment of compensation within a reasonable period of time, but in no event more than one hundred eighty (180) days, after the date of the injury; and
(5) Except as provided in § 50-6-802(d) and (e), the employee secured a judgment for workers’ compensation benefits against the employer for the injury.
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