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HB 2179

Workers Compensation - As enacted, adds a requirement that an award of attorneys' fees and costs incurred when an employer unreasonably denies a workers' compensation claim or unreasonably fails to timely initiate any of the benefits associated with the claim must be based on a finding by the workers' compensation judge that the employer's conduct was unreasonable; makes related changes. - Amends TCA Title 50, Chapter 6.

114th Regular Session (2025-2026) Introduced by Justin Lafferty

Bill eliminates employer recovery of attorney fees and subrogation liens when they contest workers' injuries using non-panel medical opinions, penalizing medical dispute practices.

Comp. became Pub. Ch. 845
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Bill Summary · HB 2179

Legislative bill overview

HB 2179 modifies Tennessee workers' compensation law to prevent employers and their insurance carriers from recovering attorney's fees and subrogation liens when employees receive settlements from third parties, but only if the employer contested the injury's medical causation, permanency, or extent using a medical opinion different from the employee's panel physician. The bill essentially creates a financial penalty for employers who dispute injury claims using alternative medical evidence.

Why is this important

This bill directly affects how workers' compensation disputes are resolved and who bears financial costs when injured workers successfully sue third parties responsible for their injuries. It could influence employer behavior in contesting injury claims and may shift litigation costs, potentially affecting insurance premiums, claim settlement practices, and dispute resolution strategies across Tennessee businesses.

Potential points of contention

  • Employer perspective: Employers and insurers argue this discourages legitimate medical dispute review and penalizes standard cost-containment practices; creates incentive to accept all injury claims without medical verification
  • Employee perspective: Workers' advocates contend employers currently use multiple medical opinions to deny legitimate claims and keep subrogation proceeds that should partially compensate injured workers
  • Insurance market impact: May increase workers' compensation insurance costs if carriers lose recovery mechanisms, potentially passed to employers through higher premiums or to workers through reduced benefits

Compiled from official sources — confirm details with the bill’s official record.

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