Tennessee House Bill HB1685

Tennessee 2025-2026 Regular Session

• Introduced: 1/14/26
• Refer: 1/21/26

Caption

AN ACT to amend Tennessee Code Annotated, Title 50, Chapter 6, relative to workers' compensation.

Summary

HB1685 creates a new workers’ compensation insurance category for construction services providers called a “zero estimated exposure policy.” Under the bill, a construction services provider that claims no employees and zero estimated exposure may obtain this type of policy, and the insurer must require a signed attestation confirming that the application is accurate, that the applicant has no employees, and that the applicant will notify the insurer within 60 days if that changes. The bill also requires the provider to give written notice and a copy of the policy to entities it directly contracts with for construction or improvement services. The bill further requires recipients of that notice to keep the notification and policy for three years, with an exception for homeowners contracting for construction of a single-family residence or improvements to a primary residence, who do not have to retain the documents. It also amends existing workers’ compensation reporting provisions to require disclosure of the total estimated exposure amount and classification codes associated with a zero estimated exposure policy. The act is scheduled to take effect July 1, 2027.

Impact

HB1685 would amend Tennessee Code Annotated Title 50, Chapter 6 by adding a new section governing zero estimated exposure policies and by updating workers’ compensation reporting requirements for construction services providers. In practice, it would create a formal compliance framework for contractors who represent that they have no employees and no workers’ compensation exposure, while also imposing notice, recordkeeping, and fraud-related attestation requirements on insurers, contractors, and downstream contracting entities. The bill primarily affects construction services providers, insurers, and entities that contract for construction or improvement work, including homeowners in limited circumstances.

Sentiment

Based on the bill text and the absence of recorded committee discussion or votes in the provided materials, the available sentiment appears neutral and procedural rather than contested. The measure is framed as an administrative and compliance update to workers’ compensation law, with no documented opposition or support in the supplied record. Its delayed effective date suggests a transition period for affected parties to adjust to the new requirements.

Contention

The main potential point of contention is the bill’s treatment of construction services providers that claim zero employees and zero exposure, because it creates a formal pathway that could be used legitimately by sole proprietors or small contractors but could also raise concerns about misclassification or underreporting. Another possible issue is the burden placed on contractors and entities receiving the notice, which must retain the documents for three years, though homeowners are exempt from that retention duty. The bill also relies on sworn attestations and references criminal fraud provisions, indicating concern about false applications and enforcement.