Covenant Transport has agreed to no longer use a form entitled "Notice of Waiver by Employee for Benefits Provided by the Tennessee Workers Compensation Law."
The trucking firm was sued by the state on grounds that the waiver is misleading and was not created by a state agency that oversees workers' compensation.
A hearing was set in the case on Tuesday afternoon before Chancellor Frank Brown, but an agreed order was signed instead.
Under the order, Covenant "has agreed immediately to cease and desist using, distributing or disseminating the waiver, and Covenant will not use, distribute or disseminate it or any similar document in the future."
Covenant is to review all workers' compensation claims in which the form may have been used.
The firm is to notify all employees who signed the form that it does not affect their rights to workers' compensation.
The suit was filed by James Neeley, commissioner of the Tennessee Department of Labor and Workforce Development.
The suit says a state official learned last June 30 that Covenant employee Jean Renel Lizaire had been presented by Covenant officials with a form entitled "Notice of Waiver by Employee for Benefits Provided by the Tennessee Workers Compensation Law."
The complaint said the waiver purports to be issued by the state.
The complaint said the state learned that other Covenant employees had been presented the same form and signed it.
Commissioner Neeley said he wrote to Covenant's chief executive officer on Dec. 18 asking about the waiver form, but got no answer.
The suit says, "Covenant's actions spread misinformation to Tennessee's workforce, undermining the important interests of the commissioner in enforcing the Workers' Compensation Law."
Roger Dickson, attorney for Covenant Transport, said, "We were wrong and we are going to put this behind us and go forward."