AN ACT to amend Tennessee Code Annotated, Title 50, Chapter 6, relative to workers' compensation.
Summary
SB1981 amends Tennessee’s workers’ compensation law to expand when the Court of Workers’ Compensation Claims may award attorneys’ fees and costs against an employer. The bill allows fee awards not only when an employer fails to provide medical or related treatment required by a settlement, order, or judgment, but also when an employer unreasonably denies a claim or unreasonably delays starting benefits owed to an employee or dependent. Covered benefits include medical benefits, temporary or permanent disability benefits, and death benefits.
The bill also specifies that, at an expedited hearing, the judge may award attorneys’ fees and costs immediately if the employer’s unreasonable conduct is found, and must do so without waiting for a later compensation hearing if the evidence of unreasonableness is clear and convincing. These provisions apply only to injuries occurring between July 1, 2026, and June 30, 2030, and the act takes effect July 1, 2026.
Impact
The bill amends Tennessee Code Annotated § 50-6-226(d) within Title 50, Chapter 6, broadening the circumstances under which workers’ compensation claimants may recover attorneys’ fees and litigation costs. It affects employers, employees, dependents, workers’ compensation insurers/administrators, and the Court of Workers’ Compensation Claims by creating a stronger financial consequence for unreasonable claim denials or delays in initiating benefits. The change is prospective only and applies to injuries on or after the effective date, with a sunset-like application window through June 30, 2030.
Sentiment
The bill appears to have been received positively and passed overwhelmingly at every recorded stage, including unanimous committee approval and unanimous or near-unanimous floor votes. The lack of recorded opposition suggests broad legislative support for strengthening remedies available to injured workers when employers unreasonably deny or delay benefits. The final enactment indicates the measure was viewed as a targeted procedural and remedial change rather than a controversial overhaul of the workers’ compensation system.
Contention
No major contention is reflected in the available committee or floor vote history, as all recorded votes were unanimous or overwhelmingly favorable. The main policy issue implicit in the bill is the balance between protecting injured workers from unreasonable benefit delays and increasing potential fee exposure for employers who contest claims. The clear-and-convincing standard for immediate fee awards at expedited hearings may have been intended to limit disputes over when fees are awarded, but no specific objections or competing viewpoints are included in the record provided.