Legislative Update: Tennessee Workers Compensation Law
Last month, I reported on a bill passed by the Tennessee legislature that temporarily suspends the requirement that independent contractors in the construction industry obtain workers’ compensation coverage on themselves. The requirement had been in effect for less than a month before being suspended due to its “unintended” financial consequences on small construction contractors. Now, lawmakers are considering another bill, one that would amend the requirement permanently. See SB 3591 by Ketron/HB 3163 by Curtiss, Pitts.
By Consumer Consignments Are No Longer a Commercial Matter
In In Re Music City RV, LLC, the Bankruptcy Court for the Middle District of Tennessee certified to the Tennessee Supreme Court the question of whether a consumer’s consignment of a recreational vehicle (RV) to a dealer for the purpose of selling the RV is a transaction covered under the UCC. Nine individuals, including Dudley King, consigned their RV to Music City for sale. Thereafter, an involuntary Chapter 7 bankruptcy was filed against Music City. The Chapter 7 Trustee argued that the RVs on the Music City consignment lot were property of the bankruptcy estate.
New Tennessee Workers’ Compensation Law Delayed
Independent contractors engaged in the construction industry can ignore-for now-a new law requiring them to carry workers’ compensation on themselves. On January 22, 2010, the Governor signed into law Public Chapter No. 1, temporarily suspending the new requirement.
