Representative Carr Helping Small Businesses

November 19, 2009

Lascassas State Representative Joe Carr was instrumental in a bipartisan agreement dealing with workman’s comp laws. It deals with axing Public Chapter 1041 that deals with sole proprietors and partners engaged in the construction industry.

Small Business Sub-Committee Chair Joe Carr said, ““I have literally received dozens of telephone calls with regard to the financial burden this law will place on small businessmen and women when it takes effect at the beginning of the new year. Small businesses have been and will continue to be the economic engine that ushers in an economic recovery in Rutherford County and Tennessee. This is absolutely the wrong time to be implementing a law of this type.”

Public Chapter 1041 requires many sole proprietors and partners in the construction industry to carry workers’ compensation insurance on themselves. Testimony from meetings regarding the issue indicates many will be required to pay premiums exceeding 20% of their gross pay. This law will go into effect on December 31, 2009; therefore, individuals will need to make arrangements to comply with the law until the General Assembly reconvenes and is able to take action suspending it.

“As Chairman of the Small Business Sub-Committee, I have worked and will continue to work with Chairman Matheny, as well as members of the House and Senate, to fix this legislation so that it doesn’t pose and undue burden on our small business owners in Tennessee. I fully expect to be co-sponsoring legislation with Chairman Matheny to insure that legislation is passed suspending Public Chapter 1041 until such time as a more equitable workman’s compensation solution can be found,” said Chairman Joe Carr.

Currently there are amendments being filed to HB 1839 that would, upon passage, immediately suspend the new requirements that sole proprietors and partners engaged in the construction industry carry workers’ compensation coverage on themselves. Chairman Matheny expects his committee to hear the issue as one of its first orders of business.

According to House leadership, a suspension of Public Chapter 1041’s requirements until February 28, 2011, is the first of two steps expected to be taken in reconsidering the issue. The second step would be considering alternative ways to address gaps in coverage for workers in companies of all sizes in the various construction fields. Recommendations for alternatives have been collected from consumers and affected industries and are being examined. No legislative action implementing any alternatives is expected until the General Assembly convenes in 2011.

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