How Much Do Tennessee Workers’ Compensation Benefits Cost?

Learn about the many forms of workers’ compensation benefits available to employees who have been injured on the job, how the state determines the amount of those benefits, and how long they may continue.

If you were injured or became ill on the job in Tennessee, you may be entitled to benefits under the state’s workers’ compensation system. The benefits you get will be determined by the severity of your injuries, your ability to return to work, how much you were earning before you were injured, and other considerations specific to your situation. This page discusses how Tennessee’s most essential workers’ compensation payments, such as temporary and permanent disability benefits, are calculated. (Please keep in mind that certain benefits and criteria apply to injuries that occurred before to July 1, 2014; if you have concerns concerning earlier injuries, contact the Tennessee Department of Labor and Workforce Development or consult with a workers’ compensation lawyer.)

To be eligible for these benefits, you must quickly tell your employer about your injury (at least 15 days after the accident), submit a workers’ compensation claim within a year if the insurance company hasn’t voluntarily paid benefits, and demonstrate that your injury or sickness is work-related. (Tenn. Code Sections 50-6-201 and 50-6-203 (2021).)

Tennessee Temporary Disability Benefits

Temporary disability payments reimburse a percentage of your lost income while you recuperate from a work-related accident or illness and are unable to return to your normal employment or work at all. In Tennessee, unless your temporary impairment lasts at least 14 days, you will not get these benefits for the first seven days.

Total Temporary Disability

If your doctor determines that you will be unable to work during your recuperation, you may be eligible for temporary total disability (TTD) payments. The weekly benefit amount will be two-thirds of your typical weekly salary prior to your accident, up to a legal limit connected to Tennessee’s statewide average weekly wage in the year of your injury. The weekly maximum for injuries occurring between July 2020 and June 2021 is $1,093.40. There is also a minimum for the same year: $149.10. (For injuries in previous years, see the Tennessee Department of Labor and Workforce Development’s list of workers’ compensation rates.)

You may continue to get TTD benefits until you are able to return to work or have attained “maximum medical improvement” (MMI), which simply implies that you have either totally recovered or your condition is unlikely to improve further. (Tenn. Code Sections 50-6-205 and 50-6-207 (2021).)

Partial Disability on a Temporary Basis

If you can work throughout your rehabilitation time but your injuries prohibit you from earning as much as you did before, you may be eligible for temporary partial disability payments. This usually occurs when your doctor has placed limits on what you may accomplish, such as no heavy lifting, restricted standing, or only part-time employment.

Temporary partial disability payments are computed as two-thirds of the gap between your pre-injury earnings and your present earning capacity. For example, if you were earning $900 before to your accident but are now only earning $600 in a light-duty job, you would get $200 each week (two-thirds of the $300 difference). The weekly limit and minimum for these benefits are the same as for TTD benefits. (Tennessee Code 50-6-207 (2021).)

Tennessee Permanent Disability Benefits

When you attain MMI, you will be tested to see whether you have any long-term impairments as a consequence of your job accident or illness. You may be eligible for permanent disability compensation if you do. The level of your impairments will determine the amount of these payments.

Total and Permanent Disability

If your permanent impairments are severe enough to prevent you from working, you will be eligible for permanent total disability payments at the same weekly rate as TTD benefits (with the same maximum and minimum amounts). These payments will continue as long as you are unable to work and are not eligible for full Social Security retirement benefits. (See Tennessee Code 50-6-207(4) (2021).)

Partially Permanent Disability

If your persistent disabilities do not prohibit you from working entirely, you may be eligible for permanent partial disability (PPD) compensation. The amount of these benefits will be computed depending on the permanent impairment grade granted to you by your doctor. This score indicates the proportion of total bodily function lost as a result of your accidents or sickness.

In most cases, you will be paid two-thirds of your pre-injury salary for a number of weeks calculated by multiplying 450 by the percentage of your impairment rating. For example, if your injuries resulted in a 20% impairment rating and your pre-injury average weekly pay was $900, you would be paid $600 (two-thirds of $900) every week for 90 weeks (20% of 450), or $54,000 total. The minimum weekly PPD payment is the same as the TTD benefit, but the maximum is somewhat lower ($994 for injuries occurring in the fiscal year starting July 2020).

When the time of your initial PPD award expires, Tennessee law provides for the potential of enhanced PPD payments if you have not returned to work or are earning less than your pre-injury income (or 180 days after you reached MMI, if that comes later). A fresh petition for benefit determination must be filed. If it is granted, your initial award may be enhanced by a factor of 1.35, as well as other criteria such as your age, education, and the unemployment rate in the county where you worked.

In Tennessee, the total amount of compensation you may get for temporary and permanent partial disability is limited. Multiply 450 by the maximum weekly amount for the year of your injury to get the greatest overall benefit. (TTD payments obtained before to MMI do not count against this maximum total benefit, and the limit does not apply in situations of permanent complete disability.)

If the workers’ compensation judge agrees that it is in your best interests, you may be eligible to collect your PPD award in a lump payment. (Tennessee Code Sections 50-6-102, 50-6-207(3), and 50-6-229 (2021).)

Other Tennessee Workers’ Compensation Benefits

Workers’ compensation in Tennessee offers additional benefits in addition to temporary and permanent disability payments, such as:

Medical attention and travel. Unless your claim is refused, your employer’s insurance must pay for all reasonable and necessary medical treatment and supplies for your job accident or sickness. Traveling to and from doctor’s visits that are more than 15 miles distant may also be reimbursed (in the form of mileage). (See Tennessee Code 50-6-204(a), (b) (2021).)
Benefits upon death. Employees who die as a consequence of a work-related accident or sickness may be eligible for death benefits. The amount of these benefits is determined by the number of dependents and their link to the dead. A surviving spouse with at least one dependent kid, for example, will get the same weekly benefit as TTD (two-thirds of the employee’s pre-injury pay, up to the legal limit for the injury year); a surviving spouse without dependent children would receive half of that amount. Death benefits have the same total maximum as PPD benefits. Tennessee Code 50-6-102, 50-6-210 (2021).)
Funeral costs. Workers’ compensation will also cover up to $10,000 in funeral costs for an employee who died as a consequence of a working accident or sickness. Tennessee Code 50-6-204(c) (2021).)

Obtaining Assistance in Collecting Workers’ Compensation Benefits

If your employer’s insurance company refuses your workers’ compensation claim or fails to pay the benefits you are entitled to, you should consult with a workers’ compensation lawyer. A local attorney with competence in this area should be able to examine your claim and assist you in receiving the compensation you are entitled to under Tennessee law. See our article on dealing with a workers’ compensation lawyer for additional information.