New Tn.worker's comp laws

Discussion in 'Starting a Lawn Care Business' started by cclllc, Jan 13, 2010.

  1. cclllc

    cclllc LawnSite Senior Member
    Posts: 903

    Does anyone know anything about the new worker's comp laws trying to be passed in Tennessee?This pertains to everyone having to carry it regardless of the number of employees and even on the owners themselves.
  2. sehitchman

    sehitchman LawnSite Senior Member
    Posts: 780

    Look at it as a blessing, it will quickly weed out the people who don't charge enough and eliminate the "price only" competition.
  3. 1idejim

    1idejim LawnSite Fanatic
    Posts: 9,439

    in ca. a few years ago they passed a comp for contractors law for the roofers, that drove a lot of small roofing contractors out of business.

    i think that by creating laws of this nature the insurance companies have the small businessman buy the short hairs and that the premimums can go through the roof.

    my bond trippled this year, my old carrier was bought out by a larger company which sent me a for three times what i've been paying for 20+ years, no claims either.
  4. sehitchman

    sehitchman LawnSite Senior Member
    Posts: 780

    Good point, what did your state insurance commissioner have to say about the rate increase?
  5. 1wezil

    1wezil LawnSite Senior Member
    from tn
    Posts: 535

    Ya I have been hearing about it just more BS for the small business people. :dizzy:
  6. corey4671

    corey4671 LawnSite Silver Member
    Posts: 2,931

    the unintended consequences of government meddling. What this boils down to is that the insurance lobby is pushing for this in order to benefit from it AND the state benefits because they can fine people for not having the ins. See the state is taking over business licenses. You will not pay into your local city and county clerks anymore. You will pay to the state. My guess is in order to renew your bus license, you'll be required to show proof of coverage. Now this could blow up in the state's face. If people are required to show proof, they may just choose not to carry the coverage and not have a license either. Like I said,, unintended consequences of government meddling.
  7. Freedom Lawn Service

    Freedom Lawn Service LawnSite Member
    Posts: 15

    Here is what my insurance agent told me in regards this new law/legislation at the end of 2009:

    This new law/legislation does not pertain to lawn and landscape companies. There are other fields it does not apply to as well. The owner will not be required to carry workers comp on him/her self unless they have more then 5 full time employees.

    If you have 5 or few employees you don’t have to carry workers compensation. The variance to this is the owner is now considered an employee. So you and 4 others = the 5 total employees. But again this does not apply to lawn and landscape companies.

    Here is the loop hole they are working hard to fix: Let’s say I have 8 employees. I could open 2 different businesses and hire 4 employees by each company. This means I could have a moving business and a mowing business; the state will now require I carry worker’s comp in the future. If you have a large enough business to have 8 employees and you can’t pay worker's comp you have problems, just my thought on beating the system.
  8. corey4671

    corey4671 LawnSite Silver Member
    Posts: 2,931

    here's hoping your agent knows of what he speaks
  9. tnmtn

    tnmtn LawnSite Bronze Member
    from NE Tn.
    Posts: 1,019

    you may want to have your insurance agent do a little research on this. if you check with your local home buillders assoc. they can give you a pretty quick brief on it. it is definitly not a good law and will drive many small bussinesses to shut down. it has also changed the premium structure and will cost some bussinesses as much as 30% of their earnings. the house is supposed to be going over this week with answers coming to interested parties by friday. of course they will then have to vote on then implement the changes.
    good luck,
  10. betterlawnsandlandscaping

    betterlawnsandlandscaping LawnSite Senior Member
    Posts: 255

    That's a good way of looking at it!:walking: Fly by night people will come and go as always.

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