In Tennessee, all private sector employers with five or more employees must be covered by workers' compensation insurance. The only exceptions are the following:
• Common carriers in interstate business who are covered under federal law
• Casual employees working outside the usual course of the employer's business
• Employees in workplaces employing fewer than five workers (the employer may elect coverage)
• Volunteer ski patrollers and other voluntary services
All persons engaged in the construction industry must carry workers' compensation insurance, including primary, intermediate, and subcontractors, no matter how many persons the contractor employs.
An employee leasing company is considered the employer for purposes of workers' compensation and must cover its employees. A license will not be issued to an employee leasing company until it provides evidence of workers' compensation coverage.
Coverage is voluntary for the state and its political subdivisions (TN Code Sec. 50-6-101et seq.).