Members of the General Assembly unanimously approved House Bill 539, sponsored by State Rep. Dan Howell (R-Georgetown), which protects companies from frivolous lawsuits related to worker’s compensation claims.
This measure requires the Department of Labor and Workforce Development to use the 20-factor test used by the Internal Revenue Service to determine whether an employer-employee relationship exists. Tennessee currently uses the ABC test, which has been problematic for many businesses, said officials. Approximately 34 states have already implemented the 20-factor test.
“Tennessee has grown a strong business climate, but it can be even better if we align with the IRS 20-factor employer-employee test,” said Rep. Howell. “It is imperative that Tennessee adopts this policy, which has been upheld by the Supreme Court, so we can continue to be the best state in the nation to live, work, and raise a family.”
For the full text of House Bill 539, click here.