Tenn. collects record in workers’ comp penalties

The Tennessee Department of Labor and Workforce Development announced a record penalty collection of $1,012,161 assessed against employers for non-compliance with the insurance requirements of the state’s workers’ compensation law during fiscal year 2007.

State law mandates that the state’s Uninsured Employers Fund ensure that companies properly qualify as a self-insured employer or have workers’ compensation coverage in compliance with the law.

For the fiscal year 2007, the UEF collected $1,012,161 compared with $873,258 in 2005 and just $427,663 in 2004.

According to Commissioner James Neeley, a significant increase in penalties occurred after the 2004 Workers Compensation Reform Act which allowed the department to hire more staff and increase the number of investigations.