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Misclassification in State Costs Insurers $300 Million a Year, Report Says

Thursday, February 13, 2020 | 310 | 0 | 55 min read

Insurance carriers in Tennessee lost almost $300 million in one year because of the growing use of labor brokers and misclassification of workers, the Tennessee Bureau of Workers' Compensation said in a new report. And collecting fines against unscrupulous employers has proven difficult. The bureau's compliance program assessed more than $4.5 million in penalties in fiscal 2019 but collected only $1.8 million, the report notes. It's all part of a growing problem, especially in the construction industry. “Failure to comply with workers’ compensation laws has gained re...

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