Rep. Joe Pitts (D-Clarksville)
The law in question, sponsored by Republican House Leader Jason Mumpower of Bristol and Republican state Sen. Bill Ketron of Murfreesboro, went into effect on Dec. 31. Some building and small-business groups have said the new workers’ compensation policies are too costly for their members, especially at a time when the construction industry is in a downturn.
“Mr. Ketron and Mr. Mumpower are more worried about helping their big business buddies than on helping the self-employed guy out here trying to make ends meet,” Tennessee Democratic Party Chairman Chip Forrester said. “The workers’ compensation bill they shepherded through the legislature may put some small-business owners in a real financial bind or even out of business.”
Sen. Tim Barnes (D-Clarksville)
State Rep. Pitts and state Sen. Barnes have introduced a bill delaying the new workers’ compensation law, which forces general contractors to carry the insurance on subcontractors and other workers who were not otherwise covered. As written, the new law also applies to sole proprietors and partnerships with six or fewer employees.
“They can’t pay when they are an industry that has been devastated by this recession and their income has shrunk dramatically,” said Jim Brown, Tennessee director of the National Federation of Independent Businesses, during a recent television interview with WSMV-TV in Nashville.
Efforts by Pitts and Barnes to delay implementation of the law were scuttled last year. The General Assembly, however, will convene tomorrow, Tuesday, Jan. 12, a special session dealing with education reforms and the workers’ compensation issue.
Many lawmakers agree the law is flawed and hope it can be delayed until all concerns can be addressed.
“I hope this next session will focus on real concerns for the state and not be a venue to score cheap political points for the November elections,” Forrester said. “We have too much riding on the future of this state to waste time on grandstanding and nonsense.”
Tags: Bill Ketron, Homebuilders Association, Insurance, Joe Pitts, NFIB, Special Session, Tennessee Contractors, Tim Barnes, Workers Compensation
Now I’m all for sticking it to big business insurance companies and what not, but I think a key player in this issue is being ignored in the discussion. What happens to the workers? If a construction worker gets hurt on the job and there is no compensation insurance, will they get anything? I might be a little ignorant about how these matters work, so if there are other avenues of them getting compensation please let me know. I still feel that leaving out workers from the conversation is not only problematic for the issue at hand, but a bad political move, as traditionally workers have been the Democratic base. I know we live in a right-to-work-state, or better put a right-to-fire-for-no-reason-state, where the union doesn’t have any power, but does this mean you will completely ignore the workers’ interests?
Chris,
In this case its the individual subcontractors (workers) who are getting shafted. I am a subcontractor myself who works alone and I carry health insurance on myself that includes coverage for on-the-job injuries. But this bill requires me to purchase an addtional workers’ comp policy for no reason and the the cheapest policy I have found is $4300. Believe me, taking a needless $4300 hit is tough in the current condidtion of the economy. Me and the other subs I know are having a tough time just scraping by as it is. Bill Ketron and his pro-big business/big insurance friends did this, and it only helps insurance salesman like Ketron. The homebuilders association (mega builders) pushed for it too because they want to force the small guys out of business. Its a win-win for the insurance/big builder lobby. Ketron should be ashamed, but he hasn’t even offered a way to fix it.
I could understand requiring a waiver be signed by the employee. I could understand having a requirement that businesses above a certain size get insurance. But this is silly, to require a sole contractor or small partnership to get workers comp insurance.
If we really wanted to solve this problem, we would make sure that WORKERS are protected. This is about protecting businesses, not protecting workers.
Contrators as well as Subs should be required to have some type of an umbrella med coverage or work comp ins when hiriing anyone to work. If the worker becomes injured as a result of the work, he or she can sue regardless of insurance, which could unfortunatly wipe out one’s business. I do not agree with delaying this bill. I do sympathize with anyone that has to purchase due to the warped, inflated amount of any type of health coverage. That is the bigger issue.
stephanie,
I am a subcontractor and I have medical coverage for on-the-job injuries. Its cheap to add to your personal health insurance policy. I AM COVERED. What this bill does is require unnecessary expensive insurance so that insurance agents like Bill Ketron can line their pockets at our expense. If they wanted a mandate, just mandate that subs must do like I have done - have health coverage that includes on-the-job coverage. Its that simple. Ketron and the republicans are just used this issue to help out their bottom lines and pleasing their big business donors.