New Tennessee Workers’ Compensation Law

Earlier this summer, Tennessee Governor Phil Bredesen signed a new Tennessee Workers’ Compensation law. The new law will limit employers’ liability for injuries suffered by employees during voluntary recreational, social or athletic activities. 

While this law limits workers’ comp cases in Tennessee, employers in other states should be cautious about permitting recreational or sports activities on company property.

The law highlights a dilemma for many employers – how to promote a healthy lifestyle without incurring additional liability for sports-related injuries and deaths.

The new law was sparked by the lawsuit Gooden V. Coors Technical Ceramic Co. In that case, Mr. Gooden collapsed with a fatal heart attack while playing basketball on the employer’s premises during an unpaid break. The court found that an employee’s death on the employer’s premises was a workers’ comp case – even though the basketball game was entirely voluntary.

Because the employer provided the basketball hoop, supervisors sometimes participated in games and the games occurred on company property, the court found that the death was covered under workers’ comp.

Under the new Tennessee workers’ comp law, an injury sustained during voluntary recreational, social or athletic activities including competitions, parties, picnics and exercise programs is not a workers’ comp injury.

However, some events are still covered under the Tennessee Workers’ Comp law. An event is covered by workers’ comp if it meets one or more of the following conditions: 

• Participation is required
• Participation produces a direct benefit to the employer (beyond improvement in employee health and morale)
• The activity takes place during work hours  is part of the employee’s duties
• The injury occurred due to unsafe conditions of facilities designated by, furnished by or maintained by the employer 

Although the new Tennessee Workers’ Comp Law reduces employers’ liability, it does not eliminate it completely. In similar cases, there have been issues regarding when a sporting activity is “impliedly required” – meaning when employees understood that they would be treated poorly, if they did not participate. To combat this issue, employers should make it absolutely clear to every employee that participation in any athletic event is strictly voluntary.