Under Tennessee workers compensation law, which of the following employees can be exempt from coverage?
Correct Answer
B) Sole proprietor working alone
Sole proprietors working alone without employees are exempt from Tennessee workers compensation requirements.
Why This Is the Correct Answer
Under Tennessee workers compensation law, sole proprietors who work alone without any employees are not required to carry workers compensation coverage. Because there are no employees, there is no employer-employee relationship that the statute is designed to protect. The moment a sole proprietor hires even one employee, coverage requirements are triggered.
Why the Other Options Are Wrong
Option A: Subcontractors with their own licenses
Option A (subcontractors with their own licenses) is incorrect. A licensed subcontractor is still considered a worker on the general contractor's project if they lack their own workers compensation coverage. Simply holding a license does not automatically exempt a subcontractor — the general contractor may bear liability if the sub lacks coverage.
Option C: Corporate officers owning less than 5% of stock
Option C (corporate officers owning less than 5% of stock) is incorrect. Corporate officers with small ownership stakes are generally treated as employees under Tennessee law and must be covered. Exemptions for corporate officers typically require a higher ownership threshold, not 5%.
Option D: Temporary workers hired for less than 30 days
Option D (temporary workers hired for less than 30 days) is incorrect. The duration of employment does not create an exemption under Tennessee workers compensation law. Even a worker hired for a single day is entitled to coverage from the moment they begin work.
Memory Technique
Exempt = solo act. A sole proprietor working alone has no employees to protect, so no coverage is required. The instant they hire help — even one person for one day — they need coverage. Think of it as: 'Solo = exempt. Any crew = coverage required.'
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