According to Tennessee workers compensation law, an independent contractor must have how many employees before being required to carry workers compensation insurance?
Correct Answer
D) 5 or more employees
Tennessee requires workers compensation coverage for employers with 5 or more employees, including part-time workers.
Why This Is the Correct Answer
Tennessee Code Annotated §50-6-106 requires employers with 5 or more employees (including part-time workers) to carry workers compensation insurance. This threshold applies to the construction industry and to independent contractors who employ others.
Why the Other Options Are Wrong
Option A: 10 or more employees
10 or more employees is not the Tennessee threshold. Some other states use higher thresholds, but Tennessee's construction industry threshold is 5 employees.
Option B: 3 or more employees
3 or more employees is not Tennessee's threshold, though some states (and some Tennessee industries outside construction) have used lower numbers. For contractors, the number is 5.
Option C: 1 or more employees
1 or more employees (i.e., any employee) is not the Tennessee standard. Requiring coverage from the very first employee would be a stricter rule that Tennessee does not apply to most employers.
Memory Technique
Think of a crew of '5 fingers on one hand' — when you need a full hand of workers, you need workers comp. Five employees = mandatory coverage.
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Previous Question
A homeowner in Nashville hires an unlicensed contractor for $8,000 worth of electrical work. The contractor demands payment but the work fails inspection. Under TCA 62-6, what recourse does the unlicensed contractor have?
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