2026 Workers' Compensation Legislative Changes
This is a general overview of workers’ compensation legislation passed by the 2026 session of the 114th General Assembly. For a complete, detailed review of this information and all workers’ compensation bills introduced in this legislative session, please go to www.capitol.tn.gov.
Maximum & Minimum Benefit Changes
Temporary Benefits – The maximum weekly benefit rate for injuries occurring July 1, 2026 through June 30, 2027 is $1,488.30 or 110% of the state’s average weekly wage.
Permanent Benefits – The maximum weekly benefit rate for injuries occurring July 1, 2026 through June 30, 2027 is $1,353.00 or 100% of the state’s average weekly wage.
Minimum Weekly Benefit – The minimum weekly benefit rate for injuries occurring July 1, 2026 through June 30, 2027 for both temporary and permanent benefits is $202.95.
Source: US Department of Labor, Bureau of Labor Statistics
2026 Workers’ Compensation Law Update (BWC Administration Bill)
Public Chapter 705 (SB1861 by Johnson/HB1630 by Lamberth)
The following changes were made to the workers’ compensation law:
The purpose of this legislation is to continue the core goals of the 2013 Workers’ Compensation Reform Act. This bill authorizes the Bureau of Workers’ Compensation to use the Subsequent Injury and Vocational Recovery Fund to build and maintain a modernized technology system. From a practical perspective, this lays the groundwork for a more efficient claims process, improved data management, and better communication between the Bureau, employers, and injured workers.
The bill also updates several administrative provisions. These include clarifying the process for filing a motion with the Court of Workers’ Compensation Claims to obtain an order requiring a physician to provide a deposition. If a physician fails to comply with such an order, the physician may lose an exemption from appearing at trial. Additionally, the bill clarifies that the 10% whole‑body impairment rating requirement for extraordinary benefits may be met by combining impairment ratings from multiple authorized treating physicians when the ratings relate to injuries from the same incident.
Public Chapter 705 was signed by Governor Lee on April 14, 2026, and it is effective on July 1, 2026.
Attorney Fees In Unreasonably Denied Claims
Public Chapter 845 (SB1981 / HB2179)
This legislation underwent substantial changes prior to passage. In its final form, it focuses on attorney fees in workers’ compensation claims. For injuries occurring between July 1, 2026, and June 30, 2030, the Court of Workers’ Compensation Claims may award attorney fees and court costs at an expedited hearing if an employer unreasonably denies a claim or delays benefits. The intention is to discourage unnecessary denials and ensure injured workers can secure timely legal representation.
Public Chapter 845 was signed by Governor Lee on April 27, 2026, and it is effective on July 1, 2026.
Kratom Regulation & Workers’ Compensation Implications
Public Chapter 950 (SB1656 / HB1649)
Named in honor of Matthew Davenport, this law strengthens Tennessee’s response to kratom misuse following his death in 2024. It criminalizes knowingly possessing or distributing kratom, with penalties ranging from Class D to Class A felonies, with enhanced penalties when minors are involved. The law also requires kratom testing in overdose autopsies and includes kratom in toxicology screenings for suspected overdose deaths.
For workers’ compensation purposes, the bill classifies kratom as a regulated substance, extending workplace drug‑testing policies to include kratom.
Public Chapter 950 was signed by Governor Lee on May 7, 2026, and it is effective on July 1, 2026.
Tennessee Medical Cannabis Readiness Study
Public Chapter 789 (SB1603 / HB1972)
The bill clarifies that marijuana will not be automatically rescheduled under state law based on federal actions; any rescheduling must be expressly authorized by the Tennessee General Assembly and implemented through a defined regulatory structure.
Public Chapter 789 was signed by Governor Lee on April 23, 2026, and it is effective on July 1, 2026.
Emergency Responder Estate Appeals
Public Chapter 721 (SB2212 / HB2477)
This legislation expands procedural protections for families of emergency responders who die in the line of duty. It extends the deadline for an estate to file a workers’ compensation claim from three years after the date of death to three years after an official determination that the death was work‑related. It also increases the appeal period for denied claims from 90 days to one year and establishes a structured appeals process through the appropriate oversight board. These provisions apply retroactively to deaths occurring on or after March 1, 2020.
Public Chapter 721 was signed by Governor Lee on April 13, 2026, and it is effective on July 1, 2026.
Firefighter Cancer Presumption — Expanded Coverage
Public Chapter 600 (SB1616 / HB1489)
This bill adds arson investigators to the list of personnel eligible for the firefighter cancer presumption, recognizing that these investigators face similar carcinogenic exposures. This inclusion is intended to make it easier for qualifying workers to obtain benefits when they develop certain cancers associated with their job duties.
Public Chapter 600 was signed by Governor Lee on March 18, 2026, and it is effective upon signing.
Line‑of‑Duty Death Benefits For Municipal Linemen
(The Chance Carlton Act)
Public Chapter 942 (SB1907 / HB1464)
This act provides a $250,000 annuity, paid over five years, to the estates of municipal or local government electrical linemen who are killed on the job. It applies to claims filed on or after July 1, 2026. The act also establishes a formal review process through the Department of Finance and Administration for any denied claims. It reflects a significant increase in financial protections for families of workers in a high‑risk industry.
Public Chapter 942 was signed by Governor Lee on May 7, 2026, and it is effective on July 1, 2026.
Regulatory Freedom Act of 2026
Public Chapter 994 (SB2199 / HB1913)
This law increases transparency and accountability in Tennessee’s administrative rulemaking process. Agencies must publish proposed rules at least 45 days before public hearings and notify relevant trade associations. Detailed fiscal impact statements are required for rules expected to negatively affect regulated industries. If the projected economic impact exceeds one million dollars, approval from both legislative chambers is required. The law also clarifies timelines for emergency rules and establishes new reporting obligations.
Public Chapter 994 was signed by Governor Lee on May 19, 2026, and it is effective on January 1, 2027.
Reimbursement Parity for Chiropractors
Public Chapter 923 (SB0225 / HB0029)
This act prevents health insurers from reimbursing chiropractic physicians at different rates than medical doctors when they perform the same covered service within their licensed scope. It also prohibits the use of chiropractic‑specific billing codes or alternative methodologies designed to reduce reimbursement. TennCare and CoverKids are exempt from this law.
Public Chapter 923 was signed by Governor Lee on May 7, 2026, and it is effective on January 1, 2027.
FAIR Rx Act
Public Chapter 1111 (SB2040 / HB1959)
The FAIR Rx Act prohibits pharmacy benefits managers (PBMs) and health insurers from owning or controlling pharmacies beginning July 1, 2028. The law provides a transition period for divestiture and includes exemptions for hospitals, federal facilities, and employer‑based plans. Enforcement provisions empower the Tennessee Board of Pharmacy to penalize noncompliant entities up to $10,000 per day and to pursue injunctive relief.
Public Chapter 1111 was signed by Governor Lee on May 22, 2026, and it is effective upon signing.
Firearm Carry Authority For Judges
Public Chapter 1141 (SB2469 / HB2174)
This legislation expands firearm‑carry authority for certain judges. Judges who hold or qualify for an enhanced handgun permit may carry a firearm in any location where law enforcement officers may carry. The amended bill also clarifies that judges who complete the required training may openly carry and are not limited to concealed carry while performing judicial duties.
Public Chapter 1141 was signed by Governor Lee on May 22, 2026, and it is effective on July 1, 2026.
Questions? Contact wc.info@tn.gov