A contractor employs 8 workers on a residential project. Under Tennessee workers' compensation law, what is the minimum coverage required?
Correct Answer
D) Coverage required for all employees
Tennessee law requires workers' compensation coverage for all employees, regardless of the type of construction work or hours worked.
Why This Is the Correct Answer
Tennessee workers' compensation law requires coverage for all employees in the construction industry regardless of how many employees there are, what type of project is underway, or how many hours those employees work. With 8 workers on a residential project, full workers' comp coverage is mandatory for every one of them.
Why the Other Options Are Wrong
Option A: Workers' compensation is optional for residential work
Workers' compensation is never optional for residential construction in Tennessee. The idea that residential work is exempt is a common misconception; the law makes no such exemption.
Option B: Coverage required only if payroll exceeds $50,000
There is no payroll threshold in Tennessee workers' compensation law. Coverage is not triggered or waived based on the amount of payroll; it applies from the moment you have employees in construction.
Option C: Coverage required only for employees working over 20 hours per week
Tennessee law does not limit the workers' compensation requirement to employees working over 20 hours per week. Part-time, full-time, and any-hours employees in construction all require coverage.
Memory Technique
Remember 'ALL in Tennessee Construction' — if they work for you on a construction site in TN, they are ALL covered. No thresholds, no exemptions, no hours minimums.
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